Budget 2021: Job support extended for sectors such as aviation, tourism, retail, arts

THE Jobs Support Scheme (JSS) will be extended by either three or six months for companies that remain heavily affected by the coronavirus pandemic.

This JSS extension will cost S$700 million and is part of a new S$11 billion Covid-19 Resilience Package in this year's Budget, Deputy Prime Minister Heng Swee Keat announced on Tuesday.

Tier 1 sectors - aviation, aerospace and tourism - will get a six-month extension of the JSS. Companies in these sectors will receive support covering 30 per cent of wages paid from April to June 2021, and 10 per cent for wages paid from July to September 2021.

Tier 2 sectors - including retail, arts and culture, food services and built environment - will get a three-month extension of JSS at 10 per cent, covering wages paid up to June 2021.

Supermarkets and convenience stores, however, are excluded from Tier 2 and are classified as Tier 3B instead. Companies in this tier stopped qualifying for the JSS this year.

Tier 3A, comprising all other sectors, will continue to receive wage support up to March 2021 as previously announced. These firms are generally recovering, said Mr Heng, who is also Finance Minister.

Meanwhile, nightlife establishments such as pubs and karaoke outlets are not yet allowed to reopen. They can apply for grants from the Ministry of Trade and Industry and Enterprise Singapore to pivot to other permissible activities or wind down.

"Even as our economy recovers gradually and some sectors grow well, some other sectors remain stressed," Mr Heng said in Parliament. The government is thus tailoring support to maintain resilience and support growing areas, with the JSS extension and other measures this year.

The government will also extend specific schemes within the SGUnited Jobs and Skills Package to facilitate workers moving to jobs in growth areas. These will include the Jobs Growth Incentive; and specific traineeship, attachment and training opportunities.

In 2020, the government extended the Temporary Bridging Loan Programme and the enhanced Enterprise Financing Scheme - Trade Loan till Sept 30, 2021 to ensure businesses have continued credit access.

The Enterprise Financing Scheme was also enhanced last year to better support loans for local construction projects.

Over 20,000 companies have taken up more than S$17 billion of working capital and trade loans in the past year through these programmes. "I hope businesses will make full use of these schemes," Mr Heng said.