$800m Covid-19 support package to help firms, workers

An $800 million support package that includes enhanced wage subsidies under the Jobs Support Scheme (JSS) and rental relief will be rolled out to help businesses and workers cope with the impact of tightened Covid-19 restrictions.

Announcing the measures yesterday, Finance Minister Lawrence Wong said affected gyms, fitness studios, and performing arts and arts education centres will get 50 per cent of salary support for local employees under the JSS - the same as what food and beverage operators are currently receiving.

Sectors that do not have to suspend operations but are significantly affected by the measures will get 30 per cent of JSS subsidies.

This will help retailers, personal care service providers, museums, art galleries, historical sites, cinemas, indoor playgrounds and other family entertainment centres.

However, supermarkets, convenience stores and online retailers will not be eligible for the enhanced wage support.

Rental relief will be given to eligible small and medium-sized enterprises as well as non-profit organisations in qualifying commercial properties, Mr Wong said.

Eligible lower-and middle-income workers and self-employed workers whose income has been affected can also receive a one-off payout of up to $700 under a new temporary grant.

The Ministry of Finance (MOF) said yesterday that the enhanced JSS payouts, which are based on wages paid from April to next month, will be disbursed in September.

Employers who put local employees on mandatory no-pay leave or retrench them will not be eligible for JSS payouts for those employees, MOF said.

"I would encourage businesses to make full use of their enhanced JSS to retain and pay their workers during this period," said Mr Wong.

The various support measures for those affected by the phase two (heightened alert) restrictions from May 16 to June 13 will not require an additional draw on past reserves, he said.

Instead, they will be funded through a reallocation of spending.

Some development expenditure can be funded by the Significant Infrastructure Government Loan Act (Singa), which allows the Government to fund long-term infrastructure projects through borrowing, said MOF.

This was not reflected in the budgeted expenditure as the Singa Bill was passed on May 10, after the February Budget.

A Supplementary Supply Bill will be tabled at the next Parliament sitting in July to effect the reallocation of spending.

Speaking at a virtual media conference, Mr Wong, who is co-chair of the multi-ministry task force on Covid-19, said the tightened measures are having an effect in controlling the spread of the virus.

"Therefore, we do not think there is a need for further tightening in our overall posture," he said, adding that the task force will give a fuller update on Monday.

If there are further extensions of the restrictions beyond June 13, MOF will consider whether support measures can be similarly extended, he said.

He noted that the financial support package handed out this time round is not on the same scale as those allocated last year.

This is because most parts of the economy are still operating, and there are also more government schemes, like the Jobs Growth Incentive, to support new opportunities.

Last year, close to $100 billion was dedicated to Covid-19 support measures over five Budgets, with up to $52 billion drawn from the reserves.

Mr Wong said Singapore must expect to encounter situations like this from time to time, where restrictions need to be tightened temporarily in response to occasional outbreaks.

"So, we will have to learn to adapt to such situations using our own resources rather than to dip into our past reserves," he said.