President Halimah Yacob has given the go-ahead to fund Covid-19 support packages totalling $59.9 billion, which draw up to $21 billion from Singapore's past reserves.
Giving her assent to the revised Supplementary Supply Bill yesterday, a move which formally authorises the Resilience and Solidarity budgets announced last month and this month, President Halimah said the Government's support measures should be rolled out quickly given the escalating pandemic, which has impacted economies, societies and livelihoods.
"It is important that we cushion this impact for Singaporeans, and help everyone tide through this challenging period," she said in a Facebook post. "The situation is still extremely fluid, so it is important that we implement the measures well, yet remain responsive to the changing needs on the ground."
An additional round of support to the tune of $5.1 billion was announced on Monday to cushion the impact of the Covid-19 circuit breaker, which will see businesses and schools shuttered until May 4.
Together with the Unity Budget announced in February, the Resilience and Solidarity budgets total $59.9 billion in support measures to deal with the impact of the outbreak.
The country will chalk up its largest Budget deficit ever at $44.3 billion. Both the size and close timing of the assistance packages are unprecedented in Singapore's history.
Madam Halimah, who as President is responsible for protecting Singapore's past reserves, has held several rounds of discussions with Prime Minister Lee Hsien Loong and Deputy Prime Minister Heng Swee Keat since February.
While they agreed there was no need to draw on past reserves then, given the extent of the crisis at the time, they revisited the issue last month after the World Health Organisation declared Covid-19 a global pandemic. The President gave her in-principle support to draw on past reserves to fund part of the second assistance package.
Following the spike in local cases late last month and early this month, she discussed with the PM and DPM the need to provide additional support, in view of the further economic impact caused by the circuit breaker measures.
After Parliament debated and passed the revised Supplementary Supply Bill on Tuesday, the Bill was sent to Madam Halimah for assent. The Bill will now be enacted into a law called the Supply Act, which controls the Government's spending in the coming financial year.
This is the second time the Government has drawn on past reserves and the largest amount to date, eclipsing the $4.9 billion then President S R Nathan approved during the 2009 global financial crisis.
"We are able to do this decisively because of the substantial reserves built up over the years," said Madam Halimah. "We should be thankful for the discipline of our forebears in spending prudently and saving up in the past."
This year's Budget and two waves of supplementary measures have seen new and enhanced schemes relating to jobs and wage support, cash transfers to households, as well as help for the self-employed.
Examples include an expanded Jobs Support Scheme to cover 75 per cent of all local employees' wages this month up to a salary ceiling of $4,600, and a Self-Employed Person Income Relief Scheme that will disburse $9,000 in cash over nine months to eligible persons.
Madam Halimah said yesterday that the next few weeks will be critical in the fight against Covid-19. "It is crucial that all of us comply with safe distancing measures, even though they may be inconvenient in the near term."
Urging Singaporeans to stay home and stay safe, she said: "If we stand united as a nation, I am confident that we will be able to weather this storm together and emerge stronger as one people."
