Businesses unfazed by Jobs Support Scheme error, say situation 'understandable'

Singapore

THE government's error in distributing certain payouts meant to support businesses during the pandemic is understandable, businesses said, even as they wait to find out if they are affected and assess the impact of the government's clawback of excess payouts on their finances.

The authorities are chiefly recovering S$370 million in excess Jobs Support Scheme (JSS) payouts credited to 5,400 businesses last October due to processing errors, via deductions from future JSS payouts and cash from affected businesses.

Most of the affected firms were involved in construction, marine, and process projects. In all, the affected firms are about 3.6 per cent of all firms which received payouts, the authorities disclosed on Thursday.

Separately, another error meant that some firms received lower JSS payouts or foreign worker levy waivers and rebates that they should have.

As a result, some 1,100 businesses are eligible for additional JSS payouts amounting to S$5.5 million, while 1,200 will be eligible for an additional S$6 million in foreign worker levy waivers and rebates.

"The processing of the payouts was probably a very tedious process, and done in a short time. Hence, the error is forgivable," said Jennifer Tang, senior human resources executive at building materials supplier EnGro Corporation.

Singapore Business Federation chief executive Lam Yi Young also said that businesses remain "very appreciative" of the wage subsidy scheme, even as he described it as an "unfortunate incident".

The JSS was introduced in February 2020 to support businesses during the coronavirus crisis. Sectors received different tiers of support depending on the extent they were affected by the pandemic, with those most impacted receiving up to 75 per cent of wage subsidies.

Firms receiving the two highest tiers of support also saw the JSS extended for up to six more months - covering wages paid from April to September this year - by the government during this year's Budget.

As such, Kurt Wee, president of the Association of Small and Medium Enterprises, said that the clawback of the support may affect businesses that had already factored the subsidies in their budgets this year. Labour is typically one of the biggest costs for businesses.

Still, some businesses, like Security & Risk Solutions, may have exercised greater financial prudence amid the pandemic.

Paul Rachmadi, deputy chief executive at Security & Risk Solutions, said that the government is "fair" in offering affected firms different ways to repay the sums.

Singtel and Aetos Holdings said they had spotted the excess in the JSS payouts they received, and alerted the authorities.

For Singtel, the excess payments it received will be offset against future JSS payouts. Aetos, meanwhile, will "work closely with the authorities on the repayment process".

READ MORE: S$370m in excess JSS payouts wrongly credited to 5,400 businesses last Oct