Coronavirus outbreak
Singapore ready to do more if virus outbreak worsens: DPM Heng
Govt has measures and resources to do so, and is keeping close eye on global situation
Sign up now: Get ST's newsletters delivered to your inbox
Deputy Prime Minister Heng Swee Keat (fifth from left) speaking to Parkroyal on Kitchener Road's (from left) Mr Mageswaran Krishnan, 30, assistant restaurant manager; Ms Kamaliah Bonawi, 52, F&B service agent; Ms Helen Harip Wibowo, 24, outlet captain; Mr Anthony Chew, 61, audio-visual technician; and Mr Richard Ong, general manager, about how the team is coping.
ST PHOTO: LIM YAOHUI
Follow topic:
Singapore is watching closely the rapidly evolving global Covid-19 outbreak and is ready to do more should the situation call for it, Deputy Prime Minister Heng Swee Keat said yesterday.
He told reporters that the measures to relieve businesses and workers in the Budget were a very calibrated response that is appropriate for the current situation.
"It is difficult at this point to predict how quickly this virus outbreak will be contained and the knock-on impact it can have on the rest of the economy. But we have the measures, we have the resources and we can do more, and we will be prepared to do more when the situation warrants it."
Mr Heng, who is also Finance Minister, was at the Parkroyal on Kitchener Road hotel to look at how one affected sector was coping. The hospitality industry here has been among the worst and most immediately hit by the virus situation, with a sharp dip in tourist arrivals.
Mr Heng said he was glad to see the hotel making the best use of the downtime to speed up its transformation. And he hoped more companies would make use of the support measures in the Budget, announced last Tuesday, to address both the short-term challenges stemming from the virus outbreak and the longer-term ones to do with the evolving global economy.
"This is a very good time to make use of this downtime to raise our skills and capabilities, as well as the quality of our operations, so that when the upturn comes, we will all emerge stronger," he said.
The Budget set aside $6.4 billion for measures to support businesses, households and front-line agencies to cope with the Covid-19 outbreak.
The bulk of this is in the $4 billion Stabilisation and Support Package, which includes a Jobs Support Scheme and enhancements to the Wage Credit Scheme to keep workers employed.
There is additional help for sectors which are more affected, with measures including a property tax rebate of 30 per cent for the accommodation and function room components of licensed hotels and serviced apartments, and a 15 per cent property tax rebate for qualifying commercial properties such as shops within hotel buildings or at tourist attractions.
Asked about the feedback from retailers that such relief is not direct, Mr Heng said there are many direct measures which the Government will be following up on over the next few months. As for the tax rebates, he urged landlords to pass on the savings to their tenants, noting that CapitaLand has already done so.
"I hope many more will take that example. The ministry is looking at this, and I will be addressing this more fully during the Budget debate," he added.
The Budget also includes measures for companies to transform and grow, and Mr Heng spoke to several Parkroyal staff and managers during his visit.
He noted the hotel's plans involved redesigning jobs and processes and retraining staff so they can be deployed to take on new or complementary roles. "They have been thinking ahead. Even before the Covid-19 outbreak, they have already embarked on this transformation, and now they are making the best use of this time to accelerate this transformation," he said.
One employee he met was head houseman Johnny Lim, who shared how each time a guest requested an extra bed, he had to go to a storeroom on the hotel's eighth floor to wheel one to the room. "If the wheels got stuck, we would have to lift the bed and carry it," said Mr Lim, 67, tapping his shoulder.
But his workload has eased significantly since the hotel started its transformation plan in March last year. Since the renovation, most rooms now have roll-away beds built in, and Mr Lim can turn down extra beds much more quickly.
This has eased the work of four room attendants, who can be deployed to other tasks, said Ms Dorcas Ching, the hotel's assistant director of human capital development.
Like many hotels in Singapore, Parkroyal said it has experienced a drastic drop in business since late last month. Occupancy has fallen by nearly two-thirds, which prompted it to close six floors, adopt a lean manpower strategy and encourage staff to go on leave.
At the same time, it has used the downtime to overhaul air-conditioning and piping and get other renovation and repair work done to prepare for the eventual upturn.
General manager Richard Ong said the Budget measures to help defray wage costs have been welcomed by the industry. The payroll makes up the largest component of hotels' fixed costs.
"At this stage, every little bit helps," Mr Ong said. "I know all of us want more, but under the circumstances, what the Government has given is already quite substantial."
