Singapore unveils additional $8b fiscal package

The government has put more emphasis on job security, extending the Job Support Scheme for seven months.

In a ministerial speech, Deputy Prime Minister and Finance Minister Heng Swee Keat announced a new set of support measures totalling $8b.

Heng noted that they will focus on three key strategies to help Singapore adjust to a ‘new normal’ brought by the COVID-19 pandemic. They aim to support jobs and create new ones; support the hardest-hit sectors; and to position the local economy to growth.

Under the first key focus, Singapore has extended the Job Support Scheme (JSS) for seven months. Those in aerospace, aviation, tourism will receive up to 50% of wage support from September to March 2021. Workers under the building and construction industry will also enjoy a 50% wage support, but will go down to 30% by November.

Meanwhile, workers under arts and entertainment, food services, land transport, marine and offshore, and retail may enjoy wage support of up to 30%, whilst the other sectors that are coping well will be offered a 10% wage support until December.

Furthermore, the government has created a $1b programme, dubbed as the Jobs Growth Initiative (JGI), which aims to encourage firms in expanding their headcount. JGI will also co-pay 25% of salaries of all new local hires for one year. The government will also co-pay 50% of the salaries for new hires aged 40 and above.

Under the same vein, Heng added that the COVID-19 Support Grant (CSG) has been extended till December and that from 1 October, it will be open to both CSG recipients and new unemployed applicants.

He notes that all of the measures above are in preparation as the labour market is expected to remain weak beyond 2020.

Support for the hard-hit sectors
Apart from the enhanced wage support, Heng also revealed that they will release further sectoral support to retain core capabilities.

“To position these hardest-hit sectors for recovery, we will work with companies to support workers with specialised skills. I will also provide further sectoral support to retain core capabilities,” he said.

To start, the government will allocate $187m to extend support measures in the Enhanced Aviation Support Package until March 2021. This is expected to provide cost relief for airlines, ground handlers, cargo agents, and airport tenants and will also support our local carriers.

As the government has been redeploying the affected airline workers to support non-clinical work, they also aim to scale up the temporary redeployment programme. This will create 4,000 new jobs, including permanent roles in healthcare, as well as more jobs in other areas.

Lastly, in order to lift the tourism, retail and F&B sector, they will launch SingapoRediscovers Vouchers, which are tourism credits worth $320m collectively.

“Local consumption will not fully make up for tourist spending, but I hope Singaporeans will take the opportunity to explore our local culture and heritage, nature, art, and architecture,” Heng said.

In addition, the government will soon detail more support measures for businesses under the arts and culture, sports sectors and nightlife industries.

Under the third key strategy, Heng noted that startups are also contributing to Singapore’s economic growth. For this, the government has set aside $150m to enhance the Startup SG Founder programme to raise startup capital grant and to continue to provide mentorship.