Parliament

Govt agencies urged to gather input from firms on reopening

A man walks along Raffles Quay on May 27, 2020. ST PHOTO: KUA CHEE SIONG

As Singapore reopens its economy, government agencies should involve businesses and society at large in discussions on navigating the Covid-19 pandemic, said Ms Cheryl Chan (Fengshan) yesterday.

She cited the issues surrounding the Ministry of Trade and Industry's classification of businesses that would be allowed to resume operations after the circuit breaker period as an example of why partnerships are important.

Pet grooming services were allowed while elective preventative care services and vaccination for pets were not, she noted, leaving some pet owners puzzled about the rationale behind the decision.

And some companies, like those in the construction, landscaping and renovation sector, were allowed to reopen in phase one of the post-circuit breaker period, but their suppliers or sub-contractors were not, said Ms Chan during the debate on the supplementary Fortitude Budget.

In these sectors, a single project is typically fulfilled by "a pool of suppliers and workers of varying skillsets from different companies", with contractors outsourcing parts of the project, she said.

"Even if the companies understand and wish to comply with the new rules, some of the rules are impractical, or they would reduce productivity owing to their long roll-out period and (this is) further exacerbated by the inconsistency of new measures as detailed across the agencies," she added.

In effect, the date when a business can restart is not determined by the end of the circuit breaker, said Ms Chan. Instead, it hinges on whether the companies' network of suppliers will be allowed to provide them with services, whether they can obtain approvals from government agencies - which are given on a case-by-case basis - and whether they have the financial means to survive in the interim.

Many small and medium-sized enterprises (SMEs) also have ongoing liabilities such as rent and utilities, Ms Chan said, adding that loans and tax deferments do not help companies if they cannot generate enough revenue in the short term.

While some companies that did not get the green light to reopen in phase one have worked out plans to modify their business models to suit the new normal, those in other sectors like the service industry will inevitably require a human to deliver the service, she said. Other firms, like those in the automotive industry, have large capital commitments and are dependent on local regulatory systems that significantly impact their product sales and volume.

"To enable these businesses and industries to restart in the new normal, the ministries must be prepared to solicit inputs, take on board industries' proposals and make specific adjustments instead of broad measures," said Ms Chan.

Separately, Ms Lee Bee Wah (Nee Soon GRC) called for more help for larger home-grown companies that have expanded overseas, such as Charles & Keith, V3 Group and BreadTalk. She also said some non-contact sports such as athletics, sailing, swimming, golf and tennis should be allowed to resume as they carry little or no risk of Covid-19 transmission.

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A version of this article appeared in the print edition of The Straits Times on June 05, 2020, with the headline Govt agencies urged to gather input from firms on reopening. Subscribe