Second package to stabilise economy in the works: DPM Heng
Aim is to help workers keep their jobs and support SMEs as global situation worsens
By Linette Lai, Political Correspondent, The Straits Times, 12 Mar 2020
As the global coronavirus situation has worsened since the Budget last month, the Government is working on a second stimulus package, Deputy Prime Minister Heng Swee Keat said yesterday.
Like the existing $4 billion package announced on Feb 18, it will aim to help workers keep their jobs, he said. It will also help small and medium-sized enterprises make the best of the crisis, and support workers who are retrenched.
Mr Heng, who is also Finance Minister, said he had a discussion with Prime Minister Lee Hsien Loong on Tuesday on the key measures needed. "Our topmost concern is our workers because if all workers can keep their jobs, consumption can resume and life can take place as normally as possible."
He was at the Budget 2020 Roundtable organised by The Straits Times and The Business Times, with OCBC Bank as the presenting sponsor. On the panel moderated by ST associate editor Vikram Khanna were OCBC head of global commercial banking Linus Goh, Ademco Security Group managing director Toby Koh and Institute of Policy Studies senior research fellow Faizal Yahya.
Mr Heng noted that in recent weeks, uncertainty has grown significantly in global financial markets as the virus has spread to all the major economies - the United States, Japan and the European Union. Sentiments have fallen, in turn affecting investments and consumption, he said. "That is the reason why since about 10 days ago, we have started working on the need for a second package to stabilise our economy and to emerge stronger from this," he said.
And while Singapore's first priority is to tackle the outbreak, it must also look at how to revive the economy, he added. "There are some areas of strength which we must build on, and there are areas of weakness which we must support so that it does not get much worse."
Mr Heng added in a separate radio interview with Money FM 89.3's Elliott Danker that the Government is in the middle of working out the details of the second package, and has been looking at feedback from businesses following the first package in the Budget.
Asked if he would consider tapping past reserves, Mr Heng said he is not ruling out the option. "Our reserves have been set aside to meet the needs of a rainy day, and it looks like this rain is not a light one," he said. "So, we will have to look at what we need to do."
But he noted that President Halimah Yacob will need to assent to the use of the reserves. "We will have to discuss this very carefully, as we did during the global financial crisis," Mr Heng said.
In a Facebook post yesterday afternoon, President Halimah said the Government has been keeping her and the Council of Presidential Advisers updated on the situation, and they are monitoring it closely. "If our public health is at stake and our people's welfare affected, we need to do the necessary," she said.
At the roundtable, Mr Heng also highlighted the need to support self-employed persons who have been hard hit. "We have to rethink this whole model, to look at how we can strengthen it better, so that when we have a downturn like this, how can they be better protected? And if we have an upturn, how can they be ready?" he said.
Such workers may operate individually, and thus, the need for training and skills upgrading may not be obvious to them, he added.
"But if we can bring them together in some way, then everybody gets a better sense of their common needs, and we can look at more innovative solutions to meet these needs," said Mr Heng.
At the same time, Singapore should aim to emerge stronger from the outbreak, which has revealed certain needs of the global economy, he said. This will be a key focus of the Future Economy Council's Emerging Stronger Taskforce he announced on Monday would be set up to help businesses find opportunities amid the crisis and emerge stronger.
Added Mr Heng: "If we can be first off the block to innovate... we can respond to this new situation very dynamically and come up with innovations that will meet the needs of Singapore and the world."
Aim is to help workers keep their jobs and support SMEs as global situation worsens
By Linette Lai, Political Correspondent, The Straits Times, 12 Mar 2020
Like the existing $4 billion package announced on Feb 18, it will aim to help workers keep their jobs, he said. It will also help small and medium-sized enterprises make the best of the crisis, and support workers who are retrenched.
Mr Heng, who is also Finance Minister, said he had a discussion with Prime Minister Lee Hsien Loong on Tuesday on the key measures needed. "Our topmost concern is our workers because if all workers can keep their jobs, consumption can resume and life can take place as normally as possible."
He was at the Budget 2020 Roundtable organised by The Straits Times and The Business Times, with OCBC Bank as the presenting sponsor. On the panel moderated by ST associate editor Vikram Khanna were OCBC head of global commercial banking Linus Goh, Ademco Security Group managing director Toby Koh and Institute of Policy Studies senior research fellow Faizal Yahya.
Mr Heng noted that in recent weeks, uncertainty has grown significantly in global financial markets as the virus has spread to all the major economies - the United States, Japan and the European Union. Sentiments have fallen, in turn affecting investments and consumption, he said. "That is the reason why since about 10 days ago, we have started working on the need for a second package to stabilise our economy and to emerge stronger from this," he said.
And while Singapore's first priority is to tackle the outbreak, it must also look at how to revive the economy, he added. "There are some areas of strength which we must build on, and there are areas of weakness which we must support so that it does not get much worse."
Mr Heng added in a separate radio interview with Money FM 89.3's Elliott Danker that the Government is in the middle of working out the details of the second package, and has been looking at feedback from businesses following the first package in the Budget.
Asked if he would consider tapping past reserves, Mr Heng said he is not ruling out the option. "Our reserves have been set aside to meet the needs of a rainy day, and it looks like this rain is not a light one," he said. "So, we will have to look at what we need to do."
But he noted that President Halimah Yacob will need to assent to the use of the reserves. "We will have to discuss this very carefully, as we did during the global financial crisis," Mr Heng said.
In a Facebook post yesterday afternoon, President Halimah said the Government has been keeping her and the Council of Presidential Advisers updated on the situation, and they are monitoring it closely. "If our public health is at stake and our people's welfare affected, we need to do the necessary," she said.
At the roundtable, Mr Heng also highlighted the need to support self-employed persons who have been hard hit. "We have to rethink this whole model, to look at how we can strengthen it better, so that when we have a downturn like this, how can they be better protected? And if we have an upturn, how can they be ready?" he said.
Such workers may operate individually, and thus, the need for training and skills upgrading may not be obvious to them, he added.
"But if we can bring them together in some way, then everybody gets a better sense of their common needs, and we can look at more innovative solutions to meet these needs," said Mr Heng.
At the same time, Singapore should aim to emerge stronger from the outbreak, which has revealed certain needs of the global economy, he said. This will be a key focus of the Future Economy Council's Emerging Stronger Taskforce he announced on Monday would be set up to help businesses find opportunities amid the crisis and emerge stronger.
Added Mr Heng: "If we can be first off the block to innovate... we can respond to this new situation very dynamically and come up with innovations that will meet the needs of Singapore and the world."
Saving jobs a top priority: DPM Heng
Govt's priority is to prevent retrenchments to protect both workers and firms
He urges companies to take long-term view during period of economic uncertainty
By Choo Yun Ting, The Straits Times, 12 Mar 2020
Preventing retrenchments amid the economic uncertainty, both for the sake of workers and companies in the long run, is a foremost priority of the Government, Deputy Prime Minister and Finance Minister Heng Swee Keat said yesterday.
Laying off workers at the slightest sign of problems will create longer-term issues for the company as well, as these workers take with them experience and know-how, he added.
This would make any future upturn harder for these companies as they would have reduced their own capabilities, Mr Heng said.
"It is important for companies to take that long view," he stressed.
At the same time, it is important for companies to release workers to new, growing industries if they find that their business model is no longer viable, he added.
Mr Heng was at the Budget 2020 Roundtable jointly organised by The Straits Times and The Business Times, with OCBC Bank as the presenting sponsor. On the panel moderated by ST associate editor Vikram Khanna were OCBC head of global commercial banking Linus Goh, Ademco Security Group managing director Toby Koh and Institute of Policy Studies senior research fellow Faizal Yahya.
Mr Heng said the Government is looking at specific measures to help workers who are retrenched over this period of economic uncertainty. Details will be announced as part of a second stimulus package.
In a separate radio interview with Money FM 89.3's Elliott Danker, who asked about plans to tackle a potential rise in unemployment, Mr Heng noted the National Trades Union Congress has started a Job Security Council that will match retrenched workers to vacancies.
"There will be companies which... as they restructure, may need to let go of some workers. And that is where, if we have a good training system, we can begin to retrain workers," he said.
It is not all doom and gloom, said Mr Heng in the radio interview, noting the Economic Development Board has brought in strong investments, and banks are ready to support viable enterprises. "We should not be pessimistic, we should have the grit to go for the long haul and look at what we can do to support one another in this process."
This is not limited to between the Government and its people and businesses, but should also be between enterprises, he added.
During the discussion, Dr Faizal asked if there can be further salary support in the form of an "absentee payroll" for firms whose employees go for training courses, especially for professionals, managers and executives, who are increasingly displaced and find it harder to get jobs.
Mr Koh suggested measures to encourage firms to increase hiring and create jobs in the downturn, noting there are "healthy" small and medium-sized enterprises that want to hire but are "holding back".
Mr Heng highlighted enhanced schemes announced in the Budget. These include $1,000 SkillsFuture Credit top-ups for mid-career workers in their 40s and 50s, and the SkillsFuture Enterprise Credit that can help employers defray up to 90 per cent of out-of-pocket costs for business transformation, job redesign and skills training.
"I hope that companies that are looking at the long term will take this opportunity to hire, and in particular for this group of people (aged)... 40 to 60, many of whom may have been displaced from existing jobs," he said.
Govt's priority is to prevent retrenchments to protect both workers and firms
He urges companies to take long-term view during period of economic uncertainty
By Choo Yun Ting, The Straits Times, 12 Mar 2020
Preventing retrenchments amid the economic uncertainty, both for the sake of workers and companies in the long run, is a foremost priority of the Government, Deputy Prime Minister and Finance Minister Heng Swee Keat said yesterday.
Laying off workers at the slightest sign of problems will create longer-term issues for the company as well, as these workers take with them experience and know-how, he added.
This would make any future upturn harder for these companies as they would have reduced their own capabilities, Mr Heng said.
"It is important for companies to take that long view," he stressed.
At the same time, it is important for companies to release workers to new, growing industries if they find that their business model is no longer viable, he added.
Mr Heng was at the Budget 2020 Roundtable jointly organised by The Straits Times and The Business Times, with OCBC Bank as the presenting sponsor. On the panel moderated by ST associate editor Vikram Khanna were OCBC head of global commercial banking Linus Goh, Ademco Security Group managing director Toby Koh and Institute of Policy Studies senior research fellow Faizal Yahya.
Mr Heng said the Government is looking at specific measures to help workers who are retrenched over this period of economic uncertainty. Details will be announced as part of a second stimulus package.
In a separate radio interview with Money FM 89.3's Elliott Danker, who asked about plans to tackle a potential rise in unemployment, Mr Heng noted the National Trades Union Congress has started a Job Security Council that will match retrenched workers to vacancies.
"There will be companies which... as they restructure, may need to let go of some workers. And that is where, if we have a good training system, we can begin to retrain workers," he said.
It is not all doom and gloom, said Mr Heng in the radio interview, noting the Economic Development Board has brought in strong investments, and banks are ready to support viable enterprises. "We should not be pessimistic, we should have the grit to go for the long haul and look at what we can do to support one another in this process."
This is not limited to between the Government and its people and businesses, but should also be between enterprises, he added.
During the discussion, Dr Faizal asked if there can be further salary support in the form of an "absentee payroll" for firms whose employees go for training courses, especially for professionals, managers and executives, who are increasingly displaced and find it harder to get jobs.
Mr Koh suggested measures to encourage firms to increase hiring and create jobs in the downturn, noting there are "healthy" small and medium-sized enterprises that want to hire but are "holding back".
Mr Heng highlighted enhanced schemes announced in the Budget. These include $1,000 SkillsFuture Credit top-ups for mid-career workers in their 40s and 50s, and the SkillsFuture Enterprise Credit that can help employers defray up to 90 per cent of out-of-pocket costs for business transformation, job redesign and skills training.
"I hope that companies that are looking at the long term will take this opportunity to hire, and in particular for this group of people (aged)... 40 to 60, many of whom may have been displaced from existing jobs," he said.
Transparency key to allaying people's fears during COVID-19 outbreak, says DPM Heng
By Tham Yuen-C, The Straits Times, 12 Mar 2020
Being transparent and putting out clear, accurate information are important to allay people's fears amid the COVID-19 outbreak, Deputy Prime Minister Heng Swee Keat said on the panic buying of basic essentials by people around the world.
When people can be sure they are getting accurate information, they will have no reason to panic, he said in a radio interview on MoneyFM 89.3 yesterday, when asked how Singapore can better promote psychological resilience.
Mr Heng, who is also Finance Minister, said: "First and foremost, we need to provide information as clearly as possible. Because when people trust the information that we put out is accurate, then there is no need for that panic.
"So, transparency is important in this regard, and building a high level of trust with our people."
When Singapore raised its disaster response alert level to "orange" on Feb 7, supermarket shelves were emptied of toilet paper, rice and instant noodles, among other items, as people rushed to stock up on supplies.
As the number of COVID-19 cases climbed around the world, the same scene played out in supermarkets in other countries, including the United States, Germany, Japan and Australia.
Mr Heng noted that panic buying happened "even in countries where we have such high respect for the resilience of the people".
He quipped: "It is a worldwide phenomenon, including panic buying of toilet paper, for some reason."
He added that it was a natural human instinct to be fearful when there is uncertainty, and this sometimes causes people to do things which are not in their best interests in the long run.
Also, in some of the places where people have rushed to stockpile essentials, there has been a lack of trust about whether the numbers of infections reported were accurate, he said.
In Singapore, government ministers and MPs took to social media and made announcements to assure people that there were adequate stockpiles of food and other essentials. The largest retailer, FairPrice, also opened up its warehouse to the media to allay people's fears.
Mr Heng urged people to support one another during this period. "If we can pull through together, support one another, we can deal with this. We just have to stay calm and carry on."
By Tham Yuen-C, The Straits Times, 12 Mar 2020
Being transparent and putting out clear, accurate information are important to allay people's fears amid the COVID-19 outbreak, Deputy Prime Minister Heng Swee Keat said on the panic buying of basic essentials by people around the world.
When people can be sure they are getting accurate information, they will have no reason to panic, he said in a radio interview on MoneyFM 89.3 yesterday, when asked how Singapore can better promote psychological resilience.
Mr Heng, who is also Finance Minister, said: "First and foremost, we need to provide information as clearly as possible. Because when people trust the information that we put out is accurate, then there is no need for that panic.
"So, transparency is important in this regard, and building a high level of trust with our people."
When Singapore raised its disaster response alert level to "orange" on Feb 7, supermarket shelves were emptied of toilet paper, rice and instant noodles, among other items, as people rushed to stock up on supplies.
As the number of COVID-19 cases climbed around the world, the same scene played out in supermarkets in other countries, including the United States, Germany, Japan and Australia.
Mr Heng noted that panic buying happened "even in countries where we have such high respect for the resilience of the people".
He quipped: "It is a worldwide phenomenon, including panic buying of toilet paper, for some reason."
He added that it was a natural human instinct to be fearful when there is uncertainty, and this sometimes causes people to do things which are not in their best interests in the long run.
Also, in some of the places where people have rushed to stockpile essentials, there has been a lack of trust about whether the numbers of infections reported were accurate, he said.
In Singapore, government ministers and MPs took to social media and made announcements to assure people that there were adequate stockpiles of food and other essentials. The largest retailer, FairPrice, also opened up its warehouse to the media to allay people's fears.
Mr Heng urged people to support one another during this period. "If we can pull through together, support one another, we can deal with this. We just have to stay calm and carry on."
COVID-19 situation likely to worsen and this will affect Singapore GE timing: DPM Heng Swee Keat
By Tham Yuen-C, Senior Political Correspondent, The Straits Times, 12 Mar 2020
By Tham Yuen-C, Senior Political Correspondent, The Straits Times, 12 Mar 2020
The coronavirus situation and its impact on the economy are likely to worsen, and ensuring Singapore can focus on overcoming the challenges is a major factor in deciding when to hold the general election, Deputy Prime Minister Heng Swee Keat said yesterday.
"If you have big challenges ahead, then surely you want to be able to spend time on these challenges. Therefore, the key question is, will the challenges be greater now or will the challenges be greater a year from now?"
"So, it depends on our assessment of the situation, and I am discussing (this) with the PM. PM will set out his thinking," Mr Heng said, referring to Prime Minister Lee Hsien Loong.
Mr Heng, who is also Finance Minister, was speaking to reporters of Singapore Press Holdings (SPH) at a roundtable organised by The Straits Times and The Business Times, and in an interview with SPH radio station Money FM 89.3.
He had been asked about the timing of the next general election, which is due by April next year.
Political pundits expected it to be called early this year until the appearance of an imponderable in January: The outbreak of the coronavirus, which originated in China and spread to Singapore and around the world.
Mr Heng said during the roundtable discussion that with waves of the disease erupting and hitting different parts of the world, it is likely the COVID-19 outbreak will last until at least the end of the year.
"It is important that we have all the management attention to deal with this, and I am afraid the management attention we need to deal with this will get more challenged in the months ahead because the situation is so fluid, so dynamic.
"We need to be able to respond as fully as we can as a country and as a people to this very major uncertainty to our lives as well as our livelihood, because we don't know how the global economy is going to pan out."
He added: "We need to be prepared for the worst, and I hope we will have the conditions to allow us to do that. And that will be a very major factor in deciding when we call the election."
He also said the Government's focus at the moment is on containing the outbreak and its impact on the economy.
When asked whether Singapore will go to the polls sooner or later, he would only say he is still discussing the matter with PM Lee.
In the United States, as the presidential election campaigning unfolds amid the virus outbreak, election officials have rushed to make changes before the November polls. They include relocating polling stations out of nursing homes.
The Democratic presidential candidates, former vice-president Joe Biden and Senator Bernie Sanders, have also cancelled rallies as cases of COVID-19 continue to climb in the country.
Mr Heng, when asked if Singapore would consider holding an election amid the virus outbreak, and whether the Elections Department is looking at measures to protect public health, said: "We are looking at all possibilities."
He added: "We need to respect our Constitution and make sure that election rules are properly followed. But if there is a need for us to adopt measures to achieve the same objective, then we will have to look at the appropriate measures that will allow our people to express their views, cast their votes."
Singapore must do utmost to support people and businesses, including considering use of past reserves: President Halimah
By Linette Lai, Political Correspondent, The Straits Times, 12 Mar 2020
Singapore must do everything necessary to safeguard the health and welfare of its people, including tapping its past reserves, if this is needed to help workers and businesses tide over the coronavirus outbreak, President Halimah Yacob said yesterday.
She noted in a Facebook post that the country will be greatly impacted by the crisis, especially since the global situation has worsened and financial markets are feeling the impact.
"In such a situation, we must do our utmost to support our people and our businesses, including considering using past reserves if necessary," Madam Halimah wrote.
"If our public health is at stake and our people's welfare affected, we need to do the necessary."
Her post came hours after Deputy Prime Minister Heng Swee Keat said that the Government is not ruling out the use of Singapore's past reserves, although it must first get the President's consent.
"Our reserves have been set aside to meet the needs of a rainy day, and it looks like this rain is not a light one," he told a Budget roundtable jointly organised by The Straits Times and The Business Times.
"So, we will have to look at what we need to do," said Mr Heng.
President Halimah said that the Government has been keeping her and the Council of Presidential Advisers updated, and that they are monitoring the situation closely.
"Health experts from around the world have warned that it will take many more months before the virus will run its course, with devastating consequences on people and economies. The crashing oil prices seriously aggravated the situation," she wrote.
She added: "Many of our companies, particularly those related to the tourism industry, but more broadly other sectors as well, are bleeding because of disrupted supply chains, rapidly falling demand and tightening cash flows. Fear and loss of confidence have gripped financial markets around the world."
She also urged Singaporeans to continue doing their best in the fight against the coronavirus and to support one another.
By Linette Lai, Political Correspondent, The Straits Times, 12 Mar 2020
Singapore must do everything necessary to safeguard the health and welfare of its people, including tapping its past reserves, if this is needed to help workers and businesses tide over the coronavirus outbreak, President Halimah Yacob said yesterday.
She noted in a Facebook post that the country will be greatly impacted by the crisis, especially since the global situation has worsened and financial markets are feeling the impact.
"In such a situation, we must do our utmost to support our people and our businesses, including considering using past reserves if necessary," Madam Halimah wrote.
"If our public health is at stake and our people's welfare affected, we need to do the necessary."
Her post came hours after Deputy Prime Minister Heng Swee Keat said that the Government is not ruling out the use of Singapore's past reserves, although it must first get the President's consent.
"Our reserves have been set aside to meet the needs of a rainy day, and it looks like this rain is not a light one," he told a Budget roundtable jointly organised by The Straits Times and The Business Times.
"So, we will have to look at what we need to do," said Mr Heng.
President Halimah said that the Government has been keeping her and the Council of Presidential Advisers updated, and that they are monitoring the situation closely.
"Health experts from around the world have warned that it will take many more months before the virus will run its course, with devastating consequences on people and economies. The crashing oil prices seriously aggravated the situation," she wrote.
She added: "Many of our companies, particularly those related to the tourism industry, but more broadly other sectors as well, are bleeding because of disrupted supply chains, rapidly falling demand and tightening cash flows. Fear and loss of confidence have gripped financial markets around the world."
She also urged Singaporeans to continue doing their best in the fight against the coronavirus and to support one another.
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