The Singapore government will be distributing a further $800 million to aid firms and individuals through a broadened support package during Phase 2 (Heightened Alert), announced Minister for Finance Lawrence Wong at a virtual doorstop interview on May 28.
Phase 2 (Heightened Alert) takes place from May 16 to June 13, where gatherings are limited to two, and dining in is not allowed at food and beverage (F&B) outlets.
The fund will not be drawn from Singapore’s past reserves. It will be funded by a reallocation of spending, says Wong, who will take a Supplementary Supply Bill at the next parliamentary sitting in July to effect the reallocation.
“Given the circumstances, and given the fact that many businesses are already needing help, we thought that we should announce the measures first and explain what we are doing, and then we will effect the necessary changes in the Supplementary Supply Bill in parliament, in July,” he says.
In his speech, Wong explained that the country “must expect to run into situations like these from time to time” where restrictions are tightened temporarily in order to contain the occasional outbreak of cases in the community.
He adds that the virus is “likely to be around for some time” and that “more resilient strategies” are required to adapt to the new environment.
“The government will continue to help businesses and individuals to adapt and transform, and create and seize new opportunities. In the private sector, enterprises themselves will need to take a sustainable and collaborative approach to strengthen their industries in the face of major disruptions,” he says.
Enhancements to current schemes, rental reliefs and Covid-19 recovery grant
The recently-announced support package will comprise enhancements to the current jobs support scheme (JSS) for affected sectors, rental relief for small and medium enterprises (SMEs) and non-profit organisations in commercial properties, as well as the Covid-19 recovery grant (temporary), among other measures.
This includes enhancing JSS support to 50% for sectors where the tightened measures have led to them suspending most, if not all of their activities.
These include gyms, fitness studios, performing arts organisations and arts education centres.
Previously, on May 14, the government announced that it would increase support for F&B businesses from 10% to 50%.
JSS support will also be enhanced to 30% for sectors that are not required to suspend operations but remain significantly affected by the restrictions. This includes the retail sector, personal services, museums, art galleries, cinema operators, indoor playgrounds and other family entertainment centres.
However, supermarkets, convenience stores and online retailers will not be eligible for the support.
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Wong says he will “encourage businesses to make full use of the enhanced JSS to retain and pay their workers during this period” and to use the lull period to train and upskill their workers through courses and programmes.
One-month rental waivers extended
During the Phase 2 (Heightened Alert) period, the government will also extend a one-month rental waiver to SMEs and non-profit organisations who are tenants of government-owned commercial properties, going beyond the month-long rental waiver for hawker stalls and coffee shops in government-owned properties.
SMEs and non-profit organisations in privately-owned commercial properties will receive a half-month rental payout under a new Rental Support Scheme, where tenants will get cash payouts directly from the Inland Revenue Authority of Singapore (IRAS).
On May 22, the Ministry of Sustainability and the Environment announced that it will subsidise 100% of fees for table-cleaning and centralised dishwashing services for around 6,000 cooked food stallholders in hawker centres managed by the National Environment Agency (NEA) or NEA-appointed operators during the no dine-in period.
Needy individuals to receive help
Finally, the support package will provide direct targeted help to individuals in need including one-off support for lower to middle income employees and self-employed persons who have been affected by the tighter measures.
Applicants with at least one month of involuntary no-pay leave will receive up to $700, while applicants experiencing “significant income loss” will receive up to $500.
