SINGAPORE - Businesses affected by tighter restrictions, from beauty clinics to cinemas, welcomed the enhanced wage subsidies announced on Friday (May 28), but some said they are still holding out for restrictions to ease.

They fear the tightened measures under the current phase two (heightened alert) - which cap group sizes at two people and bar activities that require removal of masks - could cripple their business if they are not eased.

Sugar(ed), a beauty studio that specialises in sugaring - a method of hair removal - has stopped all face-related services, even though not all require masks to be removed.

General manager Stephanie De Braux said only 15 per cent to 20 per cent of its business is related to the face. "But we are grateful that the core business is still allowed to operate, and any wage support is a welcome measure," said Ms De Braux.

Finance Minister Lawrence Wong announced that wage subsidies via the Jobs Support Scheme (JSS) will increase for sectors that have been "significantly affected" by tightened Covid-19 measures.

Earlier, only the food and beverage (F&B) sector was on the receiving end of JSS support, at a rate of 50 per cent. Now, businesses in sectors where the tightened measures require them to suspend many, if not all, of their operations will also get wage support of 50 per cent.

These include gyms, fitness studios, performing arts organisations and arts education centres.

Additionally, sectors that may not be required to suspend operations but are nonetheless significantly affected by the restrictions will get 30 per cent of JSS subsidies.

These include retail outlets, affected personal care services, museums, and indoor playgrounds.

Beauty and aesthetics-related businesses that fall under personal care services are among the affected sectors, which remain partially operational.

Mr Adren How, founder of aesthetic clinic business Only Group, feels the 30 per cent wage subsidy will be "a brief respite from the current market situation and fears caused by the pandemic".

But he has longer-term concerns.

"As the pandemic has been ongoing for more than a year, to sustain and create more longevity for the business, additional support would definitely be required, since the situation is very fluid and it's difficult to forecast for the upcoming months," added Mr How, who runs eight outlets islandwide.

Another group that will get more wage support is cinema operators , which see their JSS support rate going up from 10 per cent to 30 per cent.

Golden Village, which has 13 outlets, said it remains optimistic, even though it is operating well below 50 per cent capacity under the heightened alert measures.

"The Government's and landlord's support will definitely cushion the pressure, especially during this difficult period. Any form of help counts," said a spokesman.

However, independent cinema The Projector has taken the decision to pause operations from May 31 to June 13, following an 80 per cent fall in audiences, compared with phase three. This is to reduce operational costs.

While it, too, is appreciative of the enhanced support for the cinema sector, in particular, the rental relief payout going direct to tenants, it feels the measures are not enough to address the severity of the impact of the tightened restrictions on operational sustainability.

"Beyond the capacity restrictions, the recently introduced prohibition of F&B consumption on the premises - which accounts for almost half our revenues - is a significant loss for the cinema," said founder Karen Tan.

"With these new support measures, our aim is to minimise the temporary wage cuts to our employees during this period of voluntary closure, and we look forward to reopening under more sustainable conditions," she added.