Budget debate

Call for speedier, extensive aid for firms, staff and the vulnerable

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While the $4 billion Stabilisation and Support Package for firms and employees was comprehensive, more help may be needed.

ST PHOTO: KUA CHEE SIONG

Tiffany Fumiko Tay

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Hastening support for businesses and workers and expanding the coverage for vulnerable groups are among the suggestions made by Members of Parliament to help those hit hard by the coronavirus outbreak cope in the short term.
Speaking during the debate on the Budget statement yesterday, MPs said that while the $4 billion Stabilisation and Support Package for firms and employees announced by Deputy Prime Minister Heng Swee Keat last week was comprehensive, more immediate and extensive help may be needed.
Mr Gan Thiam Poh (Ang Mo Kio GRC) was among several who called for bringing forward the payouts for the Jobs Support Scheme, which will offset 8 per cent of wages for every local worker for three months. Payment will be given to employers by the end of July this year.
"Many of the smaller companies are already struggling to remain in business, and it would be tough for them to wait for another five months," he said.
Mr Patrick Tay (West Coast GRC), assistant secretary-general of the National Trades Union Congress (NTUC), proposed reinstating NTUC's Surrogate Employer Programme, which was implemented during the severe acute respiratory syndrome crisis in 2003.
Acting as a "surrogate employer", NTUC provided course fee funding and training allowances to workers whose companies could not sponsor their training. This included tour guides and workers put on unpaid leave.
"I see a good opportunity for us to revisit and reintroduce this scheme to support workers who may fall through the cracks, or those not covered under current schemes, such as our freelancers and self-employed Singaporeans," Mr Tay told Parliament.
Several MPs asked that support measures be extended to cover more sectors and vulnerable groups of workers.
Mr Saktiandi Supaat (Bishan-Toa Payoh GRC) asked if the temporary bridging loan programme for businesses in the tourism sector could be offered to those in the four other sectors that have been badly hit - aviation, retail, food services and point-to-point transport services.
Senior Minister of State for Trade and Industry Koh Poh Koon noted that while these sectors feel the impact of the virus spread most acutely, the prolonged shutdown of factories in China has disrupted supply chains around the world, causing knock-on effects on other industries.
"The manufacturing and service sectors are also facing a manpower squeeze as many workers from China are unable to return to Singapore for work. This adds extra pressure on our already tight labour market," he said.
"I hope that the Government can pay special attention to sectors that may feel the downstream ripple effects of Covid-19, especially if the situation is protracted."
Freelancers and the self-employed are particularly vulnerable to losses of income during the current situation, and more must be done to help them, MPs said.
Mr Gan noted that these workers will not be eligible for the various assistance schemes announced in the Budget.
"For example, many tourist guides are self-employed. Would the Government roll out measures to help them find other interim and part-time jobs?"
Ms Denise Phua (Jalan Besar GRC) said that many Singaporeans are concerned about a prolonged outbreak and how long the Government will be able to sustain large deficits.
"What will an extended Stabilisation and Support package look like? How will it be further financed if the impact is even more broad-based than the tourism and transport sectors directly hit by the outbreak; when supply chains continue to be disrupted; when consumer sentiment and demand continues to decline; and companies start to shed their local manpower?"
Dr Teo Ho Pin (Bukit Panjang) suggested that the Government aid struggling businesses by boosting consumer demand. Firms can entice consumers by giving them shopping vouchers and discount coupons for air tickets and hotel stays, while matching grants can be given to businesses, he said.
A total of 31 MPs, including office-holders, spoke yesterday, and the debate is set to continue today.
DPM Heng is expected to respond to the suggestions when he rounds up the Budget debate tomorrow.
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