Government to allocate S$187m towards extending Enhanced Aviation Support Package

THE government will set aside S$187 million to extend the support measures in the Enhanced Aviation Support Package to March next year, Deputy Prime Minister and Finance Minister Heng Swee Keat said on Monday.

He said in a ministerial statement: "This will provide cost relief for our airlines, ground handlers, cargo agents and airport tenants. This package will also support our local carriers to regain our air connectivity to the world."

The government has been redeploying workers from the aviation sector, who are unable to work right now, to other areas. So far, about 500 air crew have been sent to work at hospitals as Care Ambassadors to support non-clinical work with their service skills.

The temporary redeployment programme will be scaled up to create around 4,000 new jobs - including permanent roles - in the healthcare sector alone. More jobs will also be created in other areas of need.

Meanwhile, with the tourism industry reeling from border closures and the lack of visitors, the government will set aside S$320 million for tourism credits for Singaporeans to encourage local tourism. These will be dubbed SingapoRediscovers Vouchers.

Mr Heng said: "Local consumption will not fully make up for tourist spending, but I hope Singaporeans will take the opportunity to explore our local culture and heritage, nature, art and architecture." The Ministry of Trade and Industry (MTI) will provide more details in September.

He added that businesses in the arts and culture as well as sports sectors will "take much longer to resume full activities". As such, further support will be extended to preserve core capabilities. This is being done in consultation with the Ministry of Culture, Community and Youth.

At the same time, "a small number of businesses, such as those in the nightlife industry, may unfortunately not be able to open soon, due to safe management considerations", he said. "For these businesses, the government will help them transition to other activities or ease their exit." MTI will provide more details on this at a later date.

Singapore's aerospace, aviation and tourism sectors - which are key parts of the economy and act as multipliers for other sectors - have been the hardest hit by the pandemic. The government's strategy involves providing further support for these sectors, to retain core capabilities and position them for an eventual recovery, said Mr Heng.

The Changi air hub and its adjacent industries, for instance, contribute over 5 per cent of Singapore's gross domestic product and employs more than 190,000 people.