Budget 2021: Aviation, land transport, arts & culture, sports sectors to get more targeted support

SOME S$1.2 billion from the new S$11 billion Covid-19 Resilience Package will go towards providing more targeted support for sectors hardest hit by the pandemic, with the bulk going towards the aviation sector.

In his Budget speech on Tuesday, Deputy Prime Minister and Finance Minister Heng Swee Keat noted that the recovery in global air travel will take time since curbs on international travel largely remain in place. As at end January, the total passenger movements at Changi Airport accounted for just 2 per cent of pre-Covid levels.

"To preserve core capabilities and Singapore's strong position built up over the years, I will provide targeted support and extend cost relief for the aviation sector," said Mr Heng. This will cost the government S$870 million this year.

He added: "I expect the aviation sector to use this lull to sustain and upgrade its capabilities, and to prepare for the recovery."

Within the land transport sector, taxis and private hire car drivers have also been adversely impacted by the pandemic and will continue to need support this year. S$133 million from the Package will be used for the Covid-19 Driver Relief Fund, which was announced previously.

Finally, the arts and culture sector, and the sports sector, have also been hurt by the pandemic. The government will extend the Arts and Culture Resilience Package and Sports Resilience Package in FY21 to support businesses and self-employed people in these sectors.

Mr Heng said that that he will enhance these packages to support capability development and sector transformation to encourage the community to deepen skills, go digital and transform business models. A total of S$45 million is being set aside for the extension and enhancements to these packages.