Glad for help, but some hope rules will ease soon

Businesses from beauty clinics to cinemas that have been affected by tighter restrictions welcomed the enhanced wage subsidies announced yesterday, but some said they are still holding out for restrictions to ease.

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

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

The company's general manager Stephanie De Braux said only 15 per cent to 20 per cent of its business involves face-related services. "But we are grateful that the core business is still allowed to operate, and any wage support is a welcome measure," she said.

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

Earlier, when the stricter curbs were announced, the food and beverage (F&B) sector was given wage support of 50 per cent under JSS. This has now been extended to businesses in sectors required by the tightened measures to suspend many, if not all, of their operations.

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

Businesses in sectors that may not have to suspend operations but are nonetheless significantly affected by the restrictions will get 30 per cent of JSS subsidies.

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

Beauty and aesthetics-related businesses that fall under personal care services are among those that remain partially operational.

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

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 is difficult to forecast for the upcoming months," he said.

Another group that will get more wage support is cinema operators, whose JSS support rate will go 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 the 50 per cent capacity under the heightened alert measures.

"The Government and landlord's support will definitely cushion the pressure, especially during this difficult period," said a spokesman for Golden Village.

However, independent cinema The Projector has decided to pause operations from Monday to June 13 to reduce costs, after an 80 per cent fall in audiences compared with phase three.

While it 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 said.