The Deputy Prime Minister and Minister for Finance, Mr Heng Swee Keat, gave a Ministerial Statement on 17 August 2020 announcing an extension of the existing measures to continue the support for businesses and workers. This is a timely announcement as the Singapore economy has been badly affected and some of the measures announced earlier this year are coming to an end.
The three strategies highlighted by the Minister to deal with the ongoing crisis and enable Singapore economy to rebuild from the crisis are (a) continued support for workers and create new jobs; (b) provide further support for sectors which are hit the hardest; and (c) transform our economy to position for growth in the post-COVID-19 world.
CONTINUED SUPPORT FOR WORKERS AND CREATE NEW JOBS
Job Support Scheme ("JSS")
- JSS which co-funds the first S$4,600 of gross monthly wages of local employees for businesses up to August 2020 will be extended for another seven months up to March 2021, with support level tapered based on the projected recovery of the various sectors.
- The tiered support levels for the extended seven months are summarised in the table below.
Tier 1 Tier 2 Tier 3 Support level for wages paid from September 2020 to March 2021
Aviation, Aerospace and Tourism
Arts and Entertainment, Food Services, Land Transport, Marine & Offshore and Retail
All other sectors
* Built Environment
The support for September and October 2020 is at 50%. Thereafter at 30% for remaining five months to March 2021
# Financial Services, Information and Communications Technology and Media, Biomedical Sciences, Precision Engineering, Electronics and Online Retail and Supermarkets will be given support up to December 2020 only
Jobs Growth Incentive ("JGI")
- JGI is introduced to support growing sectors in creating new jobs for local workers, in particular the mature workers.
- For all new local hires, the Government will co-pay up to 25 per cent of their salaries for one year, subject to a cap. For those aged 40 and above, the co-payment will be up to 50 per cent.
- More details will be provided by the Ministry of Manpower towards the end of August 2020.
COVID-19 Support Grant ("CSG")
Workfare Special Payment ("WSP")
SGUnited Jobs and Skills Centres and updating of Tripartite Advisory
PROVIDE FURTHER SUPPORT FOR SECTORS WHICH ARE HARDEST HIT
Enhanced Aviation Support Package
- Enhanced Aviation Support Package introduced in the Resilience Budget to provide cost relief for airlines, ground handlers, cargo agents and airport tenants will be extended up to March 2021.
Redeployment of workers
- The Government has been helping workers in the aviation sector who cannot work now to be redeployed to other areas of need.
- The Temporary Redeployment Programme has been scaled up, creating about 4,000 new jobs in the healthcare sector.
Supporting tourism sector
- S$320 million will be set aside for tourism credits that Singaporeans can use to support local tourism.
- More details will be provided by the Ministry of Trade and Industry (“MTI”) in September 2020.
TRANSFORM OUR ECONOMY TO POSITION FOR GROWTH IN THE POST-COVID-19 WORLD
Startup SG Founder Programme
- To continue to encourage innovation and entrepreneurship, the Government will set aside S$150 million to enhance the Startup SG Founder Programme in phases.
- More details will be provided by the MTI in September 2020.
For further information or assistance, please contact:
Koh Puay Hoon, Partner
Cindy Lim, Partner
William Chua, Partner
Ivy Chiong, Director