S$800m Covid-19 aid package for firms and individuals

Singapore

THE government will enhance its support measures to the tune of S$800 million to help companies and individuals during the current Phase 2 (Heightened Alert), said Finance Minister Lawrence Wong on Friday.

This move comes about two weeks after further restrictions - including a ban on dining-in and reducing the permissible size of group gatherings from five to two people - were made to curb the spread of Covid-19, and after engaging workers, unionists and business leaders to get their feedback and hear their concerns.

Mr Wong said the broadened support package is "not quite a second Budget" and is meant to "provide short-term relief" so that businesses and people can "tide over this period".

The package will be funded by a reallocation of spending, which means there is no need to draw from the past reserves again. Mr Wong, however, intends to table a Supplementary Supply Bill at the next Parliament sitting in July to effect the reallocation.

A key plank of the package is the extension of the Jobs Support Scheme (JSS) - which provides wage subsidies to firms for the first S$4,600 of gross monthly wages paid to local employees - to more affected sectors. Gyms and fitness studios are among those that will get JSS support of 50 per cent, while businesses that are not required to suspend operations but have been affected - cinemas, personal care services, family entertainment centres and others - will get a 30 per cent subsidy.

The government is also helping businesses with cash flow concerns by supporting their rental costs, while help is also on the way in the form of one-off support for lower to middle-income employees and self-employed persons.

"This package is not of the same scale as what we had done last year," Mr Wong noted.

"Because most parts of the economy are still operating, businesses and individuals have learned to adapt... So, our circumstances today are very different compared to last year."

As the pandemic is far from over, he added that Singapore must be ready to deal with the need to tighten restrictions temporarily whenever there is an occasional outbreak of cases in the community.

"We will have to learn to adapt to such situations, using our own resources rather than to dip into our past reserves," Mr Wong said.

Mr Wong added that the current Phase 2 (Heightened Alert) restrictions - which will last until June 13 - have been generally effective in controlling the spread of the virus and initial assessments have shown that there is no need for "further tightening" at this point.

A fuller update of Singapore's public health situation and the government's next moves will be shared at a press conference next Monday.

Should there be a need to extend the restrictions beyond the Heightened Alert phase, the government will relook at the situation and see if some relief measures can be prolonged, Mr Wong said.

When asked why some sectors such as personal care services are receiving a lower JSS of 30 per cent, he explained this is because certain businesses like hair dressing salons and manicure studios are still able to operate as long as their employees and customers remain masked.

However, should they feel the actual impact is more severe, these operators can make an appeal for higher JSS support.

As to why some of these newer support measures are only being announced now instead of when Phase 2 (Heightened Alert) started a fortnight ago, Mr Wong explained: "The situation is so fluid and it's moving so quickly ... At that time, we focused primarily on the activities that were immediately suspended and that is why we announced a set of measures focused on those segments."

While most affected businesses will be able to restart operations normally again once Phase 2 (Heightened Alert) is lifted, Mr Wong said nightlife operators will need to wait a little longer until the infection situation has stabilised before reopening pilots can be considered again.

He said the virus will "likely be around for some time" so everybody has "a role to play to develop more resilient strategies to adapt to this new environment".

He added: "I was very encouraged to see this positive attitude and mindset, among many businesses in my engagements. For example, landlords and tenants have come together under the auspices of the Singapore Business Federation to develop a code of conduct for the leasing of retail premises; and the key landlord and tenant association groups have pledged to support the code."

On the government's part, it will "continue to help businesses and individuals to adapt and transform, and create new and seize new opportunities".

READ MORE:

• Retailers welcome rental, wage relief, as Heightened Alert 'almost like a circuit breaker'
• Having occasional flare-ups might be the new normal to be faced
• Likely no tightening of Covid-19 restrictions for now with cases stabilising: Lawrence Wong