23 August 2021
On 17 August 2020, Deputy Prime Minister and Finance Minister Mr. Heng Swee Keat announced additional COVID-19 support measures. To date, Singapore has dedicated close to S$100 billion over four Budgets – the Unity, Resilience, Solidarity and Fortitude Budgets1 – to support workers and businesses through this period of economic uncertainty and anxiety. The additional measures announced by the Government commits an additional S$8 billion of funds to: (a) preserve and create jobs for Singapore workers; (b) position the hardest-hit sectors for recovery or transition; and (c) transform the economy for a post-COVID-19 world.
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1. |
Extending the Jobs Support Scheme ("JSS") |
Since its launch in the Unity Budget, over S$16 billion of JSS pay-outs have been made to cover wages. The Government will extend JSS for another seven months until March 2021 (previously until August 2020), with adjustments based on projected recovery of different sectors: a. Aerospace, aviation and tourism sectors b. Built environment sector c. Arts and entertainment, food services, land transport, marine and offshore, and retail sectors d. Biomedical sciences, financial services, and information and communication technology sectors |
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Launching the Jobs Growth Incentive ("JGI") |
S$1 billion will be set aside for the JGI to create new jobs for Singapore workers in certain recovering/growing sectors in the next six months by making co-payments of salaries: » new local hires – up to 25% of salaries (capped at S$5,000) for one year; and There is no minimum local employee requirement to enjoy the JGI incentive for the full 12 months. However, the incentive support rate will be reduced proportionally if employees leave the original team. Further details will be provided in August 2020 |
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Extending the COVID-19 Support Grant ("CSG") |
The CSG aims to help Singapore citizens and permanent residents who are presently unemployed due to retrenchment or contract termination, placed on involuntary no-pay leave for at least three consecutive months, or are experiencing at least 30% loss of salary for at least three consecutive months, as a consequence of COVID-19. A total of S$90 million has been paid out since May 2020. The CSG will be extended until December 2020 and open to both existing CSG recipients and new applicants from 1 October 2020. |
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Widening the eligibility of Workfare Special Payment ("WSP") |
As announced in Budget 2020, all Singaporean employees and selfemployed person who received Workfare Income Supplement payments in 2019 will receive a WSP in 2020. The WSP provides a cash pay-out of S$3,000 for all eligible Singaporeans. The Government will widen the eligibility of WSP to include those who had not received Workfare Income Supplement payments in 2019 but have received or will be receiving Workfare Income Supplement payments for work done in 2020. |
B. PRESERVING CORE CAPABILITIES FOR BADLY HIT SECTORS
The aerospace, aviation and tourism sectors have been hit hard by the COVID-19 pandemic. To facilitate the recovery of these sectors, the Government will provide further sectoral support to retain core capabilities and prepare for an eventual recovery.
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1. |
Extending the Enhanced Aviation Support Package |
The Enhanced Aviation Support Package will be extended to March 2021 with an additional funding of S$187 million to cover: a. Airlines b. Ground handlers c. Cargo
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Scaling-up the temporary redeployment programme |
The Government will create around 4,000 new jobs in the healthcare sector and more jobs in other sectors where needed. |
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Promoting local tourism |
The Government will issue S$320 million of tourism credits for Singaporeans to use in a bid to promote local tourism and support the tourism sector. |
C. TRANSFORMING THE ECONOMY
Lastly, the Government seeks to accelerate the transformation of Singapore's economy in anticipation of structural shifts in the post-COVID-19 global economy.
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Enhancing Startup SG Founder programme |
The Startup SG Founder programme provides up to S$30,000 to eligible entrepreneurs by matching $3 to every $1 raised by the entrepreneur. An additional S$150 million will be injected into the programme to raise the startup capital grant and continue to provide mentorship, so as to encourage innovation and entrepreneurship in the Singapore startup scene. |
D. OUR OBSERVATIONS
Structural changes in the global economy brought on by the COVID-19 pandemic and global economic uncertainty arising from increasingly strained Sino-American relations have thrown into sharp relief the tumultuous times ahead for Singapore which depends heavily on international trade for its prosperity and livelihood. Like the four Budgets earlier, the measures announced by the Deputy Prime Minister build upon the recurring themes of sheltering Singapore workers and businesses from the strong economic headwinds, preserving the hard-won competitive advantages of its national champions (such as Singapore Airlines) and key economic sectors (such as its tourism sector) and re-orienting the Singapore economy and labour force to seize the opportunities to be presented by the next reconfiguration of the international economic order.
For further information, please contact:
Eugene Lim, Co-Founder and Principal, TaxiseAsia
