Budget wish-list: Singapore Business Federation calls for Covid-19 support schemes to be extended till end-2021

THE Singapore Business Federation (SBF) has called for some Covid-19 support measures to be extended into end-2021 and beyond, citing the impact of the pandemic.

Ongoing foreign worker levy rebates could cover more sectors, while an expansion of the Temporary Bridging Loan Programme would give companies the resources needed for recovery and growth, the SBF said in a document on Wednesday.

These proposals were among six key recommendations submitted to the government by the industry group's committee for small and medium-sized enterprises (SMEs).

Citing the role of government help in providing a cushion from the pandemic impact, the SBF noted that "many support schemes from the government have effectively aided business owners in managing their cost while dealing with a decline in demand".

To bake these ideas into the upcoming national Budget would help companies access much-needed resources, build up resilience, create business value and "better position our companies for recovery and emerge stronger", said the SBF SME Committee.

On its agenda: a rebate on foreign worker levies in industries such as food and beverage services, hospitality and logistics until Dec 31, 2021 - on top of similar rebates that are already in place in the construction, marine shipyard and process sectors.

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The SBF said that this would ease manpower and cash-flow woes for businesses that have been hit by safe-distancing measures and are reliant on blue-collar labourers.

Separately, the association also cited a need "to assure companies that resources will be available when they are ready to gear towards growth".

As such, the SBF hopes that the deadline for the Temporary Bridging Loan Programme (TBLP) can be pushed back again, to March 2022.

The TBLP now supports business loans of up to S$5 million until end-March 2021 or S$3 million until end-September 2021, with the government sharing the bulk of the risk and interest rates capped at 5 per cent a year.

"The TBLP, apart from helping with immediate cash flow needs, is also a vital scheme for company owners that have assessed their business viability and are ready to take on additional risk to gear towards recovery and expansion," the SBF said.

Meanwhile, the SBF pointed to the launch last month of the Tech.Pass visa, which is meant to attract tech-sector leaders to work and invest here, as an opportunity to "help to close the demand gap for local tech talent".

Tech.Pass holders could train workers in areas such as artificial intelligence, data analytics, digital marketing and cyber security, the SBF suggested.

The association asked for more help to enable companies' digital and business transformation and innovation.

These would include pre-approved cyber security advisers for SMEs, as well as "bespoke support" for innovative SMEs to monetise their intellectual property, grow their workforce and scale up internationally, according to the list of recommendations.

To improve businesses' cash flow, the SBF urged the government to pay its suppliers within 14 days, down from the usual 30-day window.

For smaller contracts worth less than S$100,000, the payment should be made within a shorter period of five days if the goods and services are deemed satisfactory, it added, arguing that this move would also set a new benchmark for the private sector.

Said SBF CEO Ho Meng Kit: "As economic recovery remains uncertain and uneven, it is crucial that adequate support measures continue to be in place to help businesses address current issues and, at the same time, to position them for future growth."