As the Jobs Support Scheme (JSS) tapers off, the next few months will be critical for the labour movement, which will be working closely with workers in affected sectors so that they can upgrade their skills and transition to better jobs, said labour MP Desmond Choo yesterday.
But if the sectors that have been hit hard by the pandemic do not rebound, the National Trades Union Congress (NTUC) can make another push for more wage support for workers, he said in a roundtable discussion organised by The Straits Times and UOB, which was held in the ST newsroom.
Mr Choo, an NTUC assistant secretary-general, also pointed out that many of these industries are in a better position than they were last year at the start of the Covid-19 outbreak as they have been restructuring and redeploying workers to new roles, which has helped to reduce costs for firms.
He made these points after ST associate editor Vikram Khanna asked whether the smaller sum that has been allocated for broad-based wage subsidies under the JSS in this year's Budget, compared with last year's, will be enough for workers in hard-hit sectors such as tourism.
Firms in these sectors will be benefiting from an extension of the JSS, though support has been reduced from last year.
They will get 30 per cent subsidies for wages paid from April through June, and 10 per cent from July through September.
The highest level of JSS support for the hardest-hit sectors last year was 75 per cent.
At the roundtable yesterday, panellists also discussed how effective the new Budget initiatives will be in speeding up economic recovery after Singapore's worst recession.
They included Mr Douglas Foo, president of the Singapore Manufacturing Federation and vice-chairman of the Singapore Business Federation (SBF).
UOB economist Barnabas Gan said the reduced size of fiscal stimulus that will be injected into the economy this time round, combined with the forecast gross domestic product growth rates of 4 per cent to 6 per cent for this year, signals that Singapore is now in a better position to propel its economy towards growth.
Professor Hoon Hian Teck, dean of Singapore Management University's School of Economics and a Nominated MP, said the Budget quickly switched from focusing on cyclical growth factors last year to structural transformation this year.
This sets a good foundation for the economy's growth, he said, citing how the focus on structural growth had helped to power the United States economy after the Great Depression of the 1930s.
This view was also echoed by financial experts on the Money FM 89.3's Budget 2021 Review broadcast yesterday, who said the new Budget provides ample support to efforts by local companies and workers to emerge prepared for the post-Covid-19 era, despite the emphasis on fiscal prudence.
For instance, the Budget's focus on transformation, innovation, recovery and growth can help companies to seize opportunities and grow, said SBF chief executive Lam Yi Young.
At another post-Budget forum organised by the Economic Society of Singapore, panellists zoomed in on topics such as retraining workers and growing sectors that show potential.
Nanyang Technological University assistant professor of economics Bao Te said Singapore's push for the wider adoption of electric vehicles is a step in the right direction as it looks ahead.
But it will find it difficult to compete with global powerhouses such as China, he added.
"Singapore can always try to find some small and beautiful part of the industry... to try to specialise in, and try to get a unique position in the world's value chain," he said.
• Additional reporting by Ovais Subhani and Linette Lai
