TO HELP customers cope with the current economic downturn, NTUC FairPrice on Tuesday announced a slew of measures to keep essential goods affordable and assured its staff that they will not be retrenched this year.

The initiatives include an extension of the 5 per cent discount on 500 house-brand items till end of the year, doubling the range of budget items by March, more attractive rebates for customers, promotions and help for suppliers who face cashflow problems.

VIDEO NTUC Fairprice extends discount on housebrand items (1:30) NTUC FairPrice measures to help Singaporeans cope with hard times NTUC FairPrice will extend the 5 per cent discount on 500 housebrand items to end of the year - for the fourth time. Number of 'yellow dot' items, which are 25 per cent cheaper, will be doubled to 200 end of March. 400 'Everyday Low Priced' items comprising top national brands will be offered daily. These are priced at least the same or lower than other supermarket chains. There will be attractive rebates and linkpoints for members, good value promotions and 2 per cent discount for senior citizens every Tuesday. Suppliers will be asked to lower prices as soon as commodity prices fall. $2 million will be set aside to help SME suppliers who face cashflow problems. No FairPrice staff will be retrenched this year. Three new stores will be open this year and new staff will be hired. 50 per cent more in donation to NTUC to help low wage workers cope with rising food costs. FairPrice donated $3.5 million to NTUC last year. FairPrice Foundation will contribute 20 per cent to the community. The contribution was $6.7 million last year. A package will cost FairPrice $15 million.

Instead of scaling back operations, FairPrice, which has 500,000 members and more than 6,000 staff, will also open three new stores and hire about 500 more workers.

Announcing the measures at a media lunch, its chairman Mr Ng Ser Miang said: '2009 will be a challenging year as we gear up to ride this potentially tumultuous time.

'Amid this challenging landscape, NTUC FairPrice as a social enterprise is all the more committed to doing more for our customers, our trade partners, our staff and also the labour movement and help Singapore ride through this recession.

'We believe we can all join hands to help each other emerge stronger in the upturn.'

To support customers, Mr Ng said FairPrice, Singapore's largest supermarket chain, will ensure that essential goods remain affordable, especially to the lower income families.

It will extend the 5 per cent discount on 500 house-brands items - which was to end in March - to December. This is the fifth extension since the discount was launched in December 2007, costing the chain about $7.5 million.

For the budget conscious shoppers, the number of 'yellow dot' items - which are 25 per cent cheaper - will be doubled to 200 by end of March.

The chain will also offer 400 low priced items daily, comprising top national brands.

Besides rebates, rewards for customers and good value promotions, it will also continue to give 2 per cent discount for senior citizens every Tuesday.

FairPrice is also roping in suppliers to keep prices low. They are asked to drop prices as soon as the commodity prices fall.

SME suppliers who face cashflow problems will also get help. FairPrice has set aside $2 million this year to help them. This scheme will cover early payment terms, discount on listing fees and advertisements, and help to promote Singapore-made products.

Mr Ng also gave FairPrice staff the assurance that they will not be laid off this year. Instead, the chain will send staff for training and skills upgrading courses to prepare them for the upturn.

It will also give hardship grant and advance salary to help needy staff tide through the recession.

FairPrice will also up its donation to NTUC by 50 per cent to help low-wage workers. Last year, it gave $3.5 million.

The 'Helping Hand Package' will cost FairPrice about $15 million.