$1.1 billion Covid-19 support package for workers and firms

A $1.1 billion support package that includes enhanced wage subsidies under the Jobs Support Scheme (JSS), rental relief and a new relief fund for market and hawker centre stallholders will be rolled out to cushion businesses and workers from the blow of harsher Covid-19 restrictions.

Wage support will be bumped up to 60 per cent for the hardest-hit sectors such as food and beverage (F&B), gyms and performing arts organisations that have had to suspend many, if not all, of their activities, the Ministry of Finance (MOF) said yesterday - a day after tightened measures kicked in, and ahead of a debate in Parliament next week on the package.

The package, which comes on top of a $1.2 billion package announced weeks earlier to cover tighter measures imposed since May, will be funded by reallocated monies arising from one-off underutilised budgets as a result of Covid-19 delaying some projects, as well as funds set aside earlier in the event that support measures needed to be extended.

In a video posted on Facebook and Instagram yesterday, Finance Minister Lawrence Wong said he had been engaging business leaders and trade associations virtually, and the package was put together based on their inputs.

"I hope all of these measures will help our affected workers and businesses tide through these challenging times. Remember: You are not alone. We are here with you, for you, and we will overcome this crisis together as one people."

On Thursday, Singapore reverted to phase two (heightened alert), with tighter measures in place until Aug 18 to curb the worsening Covid-19 situation.

Business associations, small-and medium-sized enterprises (SMEs) and F&B establishments recently pleaded with landlords to take on their share of the burden and give timely rental rebates, as many shops and restaurants contemplate winding up after a 16-month roller-coaster ride of changes, including to dining-in rules.

Acknowledging their concerns, MOF said it is looking at how to ensure rental obligations are shared fairly between the Government, landlords and qualifying tenants.

Tenants of government-owned commercial properties will now get an extra four weeks of rental waiver, while eligible tenant-occupiers and owner-occupiers of privately owned commercial properties will get two weeks of rental relief in cash payouts under the Rental Support Scheme.

JSS support will be raised to 40 per cent for sectors significantly affected by restrictions, such as the retail sector, tourist attractions, licensed hotels and cinema operators. This will taper to 10 per cent from Aug 19 to 31.

The Covid-19 Driver Relief Fund will be enhanced for taxi and private-hire car drivers, while a new Market and Hawker Centre Relief Fund will give a one-off $500 cash payout to all individual stallholders of cooked-food and market stalls in centres managed by the National Environment Agency (NEA) or NEA-appointed operators.

To help other workers affected by the tightened measures, the Government will also make the temporary Covid-19 Recovery Grant available until Aug 31.

Business associations yesterday welcomed the latest package.

Association of Small and Medium Enterprises (Asme) president Kurt Wee said businesses, especially those in the F&B sector, will find relief in the higher JSS support levels.

He said Asme is aware that many companies had been preparing to cut manpower. "With this announcement, I believe and hope that businesses will be in a better position to push and sustain through this trying period without manpower cuts."

DBS Bank senior economist Irvin Seah said there is a real need for help on the ground, and this is likely to be the last injection of support before the country reaches the target to vaccinate two-thirds of its population by next month.

"The amount, in the bigger scheme of things, is not (too) big. But hopefully, this does not amount to a permanent shift in our fiscal policy mandate."