Singapore sets aside $60 billion for fight against coronavirus: DPM Heng Swee Keat
Emerging Stronger task force also set up to review how country's economy can build 'new sources of dynamism'
By Linette Lai, Political Correspondent, The Straits Times, 8 Apr 2020
Parliament yesterday urgently approved plans to heavily subsidise the wage bills of more than 1.9 million workers, support their families and keep businesses afloat, marshalling an extra $54 billion in Singapore's fight against the coronavirus.
Of this, $5.1 billion flows from the latest Solidarity Budget as heightened social distancing kicked in yesterday, requiring most workplaces and schools to close until May 4 to stem transmission of the virus.
This comes as 106 new COVID-19 cases were reported yesterday, 7 April, taking the total to 1,481 cases.
Deputy Prime Minister Heng Swee Keat, who on Monday presented Singapore's third Budget in 48 days, said that even as the country battles the coronavirus, it has to build its resilience and be ready to seize opportunities that emerge.
That is why, apart from the billions of dollars set aside to help Singaporean families, businesses and workers tide over the immediate turmoil, an Emerging Stronger task force is being set up to review how Singapore's economy can bounce back from the crisis and build "new sources of dynamism".
The Singapore Together movement will also be given a new role of emphasising social resilience. The movement was set up last June for the Government and Singaporeans to work together on policy solutions.
One of its first tasks is a Stay Home for Singapore Challenge to get people to help others stay home in a purposeful and positive way.
"Our economy is hit on so many fronts that it is not possible to just restore the status quo," said Mr Heng, adding that the pandemic will reshape the world and amplify global structural shifts already taking place. "Our best response now is to build resilience - in our economy and society."
The Emerging Stronger task force will be chaired by Minister for Social and Family Development Desmond Lee and PSA International group chief executive Tan Chong Meng. Members will include business leaders with experience in areas such as digitisation and connectivity. Their job: to look ahead, identifying trends and responding to structural shifts in the economy.
Mr Heng added that the fight will go on for a long time yet, with things set to get more difficult before they improve. "But one way or other, eventually it (the crisis) will pass - not next week, not next month, but perhaps within a year or two... The question we should ask ourselves even now is when that day comes, what sort of world will it be, and how ready Singapore will be to march forward again."
Rounding up the debate on the supplementary budget, Mr Heng told the House that the current crisis is unprecedented.
In all, nearly $60 billion has been set aside to help Singapore ride out the storm. President Halimah Yacob has given her in-principle support for the Government to draw up to $21 billion from the reserves.
The Revised Supplementary Supply Bill was also presented to her for her assent yesterday.
Mr Heng said as the reserves are called upon to tackle a generational crisis of an unprecedented scale, the Government had to uphold its responsibility to steward the reserves properly for future generations.
"We will never let Singapore become bankrupt," he said.
Thus Singapore's approach aims to help build economic and social resilience. For companies, this means preventing viable businesses from being "permanently damaged" and helping them to preserve their capabilities to recover. And for Singaporeans, this means saving jobs and easing cash-flow needs, especially for the most vulnerable. "We are seeking to ensure that all of us pull through this together, and that we leave no one behind," he said.
Even non-citizens who support Singaporean families - such as adult permanent residents with Singaporean parents, children or spouses and long-term visit pass holders with Singaporean spouses - may apply for a one-time Solidarity Payment of $300, he said.
Half of humanity is now under lockdown, Mr Heng pointed out. "There is hope that as the crisis deepens, people around the world will find the need to come together."
Singapore will need to tackle the COVID-19 pandemic on a "sustainable basis", he added. This means tapping past reserves again if the crisis deepens. "While we must make plans, and we are, at this hour, let us focus our minds fully on making the best use of this very unprecedented Budget to build social and economic resilience."
The Deputy Prime Minister added that beyond its deep financial reserves, the country has also tapped the strength of its citizens. "Without the strength, resourcefulness, trust of our people, all the right measures won't be worth the dollar tag on them," he said.
He also hailed front-line workers and public servants, adding: "It is not only hectic. It has been emotional. We know what is at stake. Our lives, our livelihoods, our loved ones. Our home and nation."
Emerging Stronger task force also set up to review how country's economy can build 'new sources of dynamism'
By Linette Lai, Political Correspondent, The Straits Times, 8 Apr 2020
Of this, $5.1 billion flows from the latest Solidarity Budget as heightened social distancing kicked in yesterday, requiring most workplaces and schools to close until May 4 to stem transmission of the virus.
This comes as 106 new COVID-19 cases were reported yesterday, 7 April, taking the total to 1,481 cases.
Deputy Prime Minister Heng Swee Keat, who on Monday presented Singapore's third Budget in 48 days, said that even as the country battles the coronavirus, it has to build its resilience and be ready to seize opportunities that emerge.
That is why, apart from the billions of dollars set aside to help Singaporean families, businesses and workers tide over the immediate turmoil, an Emerging Stronger task force is being set up to review how Singapore's economy can bounce back from the crisis and build "new sources of dynamism".
The Singapore Together movement will also be given a new role of emphasising social resilience. The movement was set up last June for the Government and Singaporeans to work together on policy solutions.
One of its first tasks is a Stay Home for Singapore Challenge to get people to help others stay home in a purposeful and positive way.
"Our economy is hit on so many fronts that it is not possible to just restore the status quo," said Mr Heng, adding that the pandemic will reshape the world and amplify global structural shifts already taking place. "Our best response now is to build resilience - in our economy and society."
The Emerging Stronger task force will be chaired by Minister for Social and Family Development Desmond Lee and PSA International group chief executive Tan Chong Meng. Members will include business leaders with experience in areas such as digitisation and connectivity. Their job: to look ahead, identifying trends and responding to structural shifts in the economy.
Mr Heng added that the fight will go on for a long time yet, with things set to get more difficult before they improve. "But one way or other, eventually it (the crisis) will pass - not next week, not next month, but perhaps within a year or two... The question we should ask ourselves even now is when that day comes, what sort of world will it be, and how ready Singapore will be to march forward again."
Rounding up the debate on the supplementary budget, Mr Heng told the House that the current crisis is unprecedented.
In all, nearly $60 billion has been set aside to help Singapore ride out the storm. President Halimah Yacob has given her in-principle support for the Government to draw up to $21 billion from the reserves.
The Revised Supplementary Supply Bill was also presented to her for her assent yesterday.
Mr Heng said as the reserves are called upon to tackle a generational crisis of an unprecedented scale, the Government had to uphold its responsibility to steward the reserves properly for future generations.
"We will never let Singapore become bankrupt," he said.
Thus Singapore's approach aims to help build economic and social resilience. For companies, this means preventing viable businesses from being "permanently damaged" and helping them to preserve their capabilities to recover. And for Singaporeans, this means saving jobs and easing cash-flow needs, especially for the most vulnerable. "We are seeking to ensure that all of us pull through this together, and that we leave no one behind," he said.
Even non-citizens who support Singaporean families - such as adult permanent residents with Singaporean parents, children or spouses and long-term visit pass holders with Singaporean spouses - may apply for a one-time Solidarity Payment of $300, he said.
Half of humanity is now under lockdown, Mr Heng pointed out. "There is hope that as the crisis deepens, people around the world will find the need to come together."
Singapore will need to tackle the COVID-19 pandemic on a "sustainable basis", he added. This means tapping past reserves again if the crisis deepens. "While we must make plans, and we are, at this hour, let us focus our minds fully on making the best use of this very unprecedented Budget to build social and economic resilience."
The Deputy Prime Minister added that beyond its deep financial reserves, the country has also tapped the strength of its citizens. "Without the strength, resourcefulness, trust of our people, all the right measures won't be worth the dollar tag on them," he said.
He also hailed front-line workers and public servants, adding: "It is not only hectic. It has been emotional. We know what is at stake. Our lives, our livelihoods, our loved ones. Our home and nation."
Coronavirus pandemic: Supplementary budget debate
Why size of Singapore's reserves cannot be revealed
Size of reserves cannot be disclosed as a matter of national security, says Heng Swee Keat
By Danson Cheong, The Straits Times, 8 Apr 2020
The size of Singapore's reserves is a matter of national security and cannot be disclosed, lest its economic and financial stability be threatened, Deputy Prime Minister Heng Swee Keat said yesterday.
Responding to Workers' Party (WP) chief Pritam Singh (Aljunied GRC), who spoke about the size of past reserves, Mr Heng said that these funds serve as a "strategic defence" to protect the Singapore dollar from speculative attacks and bolster the confidence of investors and citizens.
He compared the country's reserves to the Singapore Armed Forces' arsenal, and said: "No country's armed forces will ever tell you exactly how much ammunition and weaponry they really have.
"To do so is to betray valuable intelligence to potential adversaries. This is obviously not a wise defence strategy, and likewise should not be adopted for our financial reserves."
Mr Heng cited how then President S R Nathan gave the nod for $150 billion from past reserves to be used to guarantee bank deposits during the 2008 financial crisis, which helped calm depositors and prevent a run on banks. "As a small country without any natural resources and highly dependent on imports, our reserves are vital to our overall economic and financial stability, and our well-being," he said. "It is neither in the interest of Singapore or Singaporeans to repeatedly ask about the size of our reserves. We are in the middle of a storm, and I am very disappointed that Mr Pritam Singh has used this occasion to raise this question again."
Singapore's past reserves comprise assets invested by the Monetary Authority of Singapore (MAS), Temasek and GIC. While MAS and Temasek disclose the sum of the funds they invest, those invested by GIC are not disclosed.
MAS has about $396 billion in foreign assets, while Temasek's current portfolio is valued at $313 billion, according to latest figures.
In response, Mr Singh said the WP seeks figures on the reserves because "when the Government introduces policies where reserves have to be employed, the question we have to ask ourselves is: Is it enough, or is it too much... or is it too little?".
He also asked if there could be a more nuanced way to "consider some of these numbers and have a deeper conversation about them".
Mr Heng said the current system was rigorously designed, and provided checks and balances.
The Government has to seek the President's approval for any draw on the reserves. "I spent a lot of time explaining the details. And I can tell you that the President and CPA (Council of Presidential Advisers) asked very good questions," he said.
Mr Heng also said the COVID-19 crisis has reaffirmed Singapore's fiscal policy of spending prudently, investing wisely and setting aside money for the long term.
"I am extremely grateful that we have been able to tap the deep financial reserves - our current and past reserves which have been so carefully built up, invested and managed. This has allowed us to respond to the crisis without having to borrow, and without burdening our future generations with repayment obligations," he said.
The Government has twice sought and obtained President Halimah Yacob's in-principle support to draw up to $21 billion from the reserves to fund COVID-19 support packages.
Said Mr Heng: "The aftermath of the COVID-19 outbreak may be with us for a long time, and we will need to deal with it on a sustainable basis. If the crisis deepens, our economy and government revenues shrink, we may have to make use of our past reserves again for a recovery."
The three support packages - $6.4 billion from the Unity Budget in February, the $48.4 billion Resilience Budget unveiled last month, and the $5.1 billion Solidarity Budget announced on Monday - amount to $59.9 billion, or about 12 per cent of gross domestic product (GDP).
In all, the spending in the 2020 financial year will be the largest in Singapore's history. It will also see the country run its largest deficit ever - $44.3 billion or 8.9 per cent of GDP.
Why size of Singapore's reserves cannot be revealed
Size of reserves cannot be disclosed as a matter of national security, says Heng Swee Keat
By Danson Cheong, The Straits Times, 8 Apr 2020
The size of Singapore's reserves is a matter of national security and cannot be disclosed, lest its economic and financial stability be threatened, Deputy Prime Minister Heng Swee Keat said yesterday.
Responding to Workers' Party (WP) chief Pritam Singh (Aljunied GRC), who spoke about the size of past reserves, Mr Heng said that these funds serve as a "strategic defence" to protect the Singapore dollar from speculative attacks and bolster the confidence of investors and citizens.
He compared the country's reserves to the Singapore Armed Forces' arsenal, and said: "No country's armed forces will ever tell you exactly how much ammunition and weaponry they really have.
"To do so is to betray valuable intelligence to potential adversaries. This is obviously not a wise defence strategy, and likewise should not be adopted for our financial reserves."
Mr Heng cited how then President S R Nathan gave the nod for $150 billion from past reserves to be used to guarantee bank deposits during the 2008 financial crisis, which helped calm depositors and prevent a run on banks. "As a small country without any natural resources and highly dependent on imports, our reserves are vital to our overall economic and financial stability, and our well-being," he said. "It is neither in the interest of Singapore or Singaporeans to repeatedly ask about the size of our reserves. We are in the middle of a storm, and I am very disappointed that Mr Pritam Singh has used this occasion to raise this question again."
Singapore's past reserves comprise assets invested by the Monetary Authority of Singapore (MAS), Temasek and GIC. While MAS and Temasek disclose the sum of the funds they invest, those invested by GIC are not disclosed.
MAS has about $396 billion in foreign assets, while Temasek's current portfolio is valued at $313 billion, according to latest figures.
In response, Mr Singh said the WP seeks figures on the reserves because "when the Government introduces policies where reserves have to be employed, the question we have to ask ourselves is: Is it enough, or is it too much... or is it too little?".
He also asked if there could be a more nuanced way to "consider some of these numbers and have a deeper conversation about them".
Mr Heng said the current system was rigorously designed, and provided checks and balances.
The Government has to seek the President's approval for any draw on the reserves. "I spent a lot of time explaining the details. And I can tell you that the President and CPA (Council of Presidential Advisers) asked very good questions," he said.
Mr Heng also said the COVID-19 crisis has reaffirmed Singapore's fiscal policy of spending prudently, investing wisely and setting aside money for the long term.
"I am extremely grateful that we have been able to tap the deep financial reserves - our current and past reserves which have been so carefully built up, invested and managed. This has allowed us to respond to the crisis without having to borrow, and without burdening our future generations with repayment obligations," he said.
The Government has twice sought and obtained President Halimah Yacob's in-principle support to draw up to $21 billion from the reserves to fund COVID-19 support packages.
Said Mr Heng: "The aftermath of the COVID-19 outbreak may be with us for a long time, and we will need to deal with it on a sustainable basis. If the crisis deepens, our economy and government revenues shrink, we may have to make use of our past reserves again for a recovery."
The three support packages - $6.4 billion from the Unity Budget in February, the $48.4 billion Resilience Budget unveiled last month, and the $5.1 billion Solidarity Budget announced on Monday - amount to $59.9 billion, or about 12 per cent of gross domestic product (GDP).
In all, the spending in the 2020 financial year will be the largest in Singapore's history. It will also see the country run its largest deficit ever - $44.3 billion or 8.9 per cent of GDP.
Job losses would be major cost to lives, society, says DPM Heng Swee Keat
He urges firms to take longer-term view and retain, upskill workers for future economy
By Joanna Seow, Manpower Correspondent, The Straits Times, 8 Apr 2020
While saving lives is the Government's topmost priority amid the COVID-19 pandemic, saving jobs comes next, said Deputy Prime Minister Heng Swee Keat yesterday.
This is because when people are out of a job, there is a major cost to individual lives and to society, he told Parliament.
Individuals lose the chance to gain experience, while companies which lay off workers become less competitive. If many firms fail, the supply chain will be disrupted, which will drag down the broader economy, said Mr Heng in his speech rounding up the debate on the supplementary budget.
This is why the SGUnited Traineeships scheme will be launched to help first-time job seekers and fresh graduates get work experience during this period, he said.
At the same time, there is high wage support through the Jobs Support Scheme, which subsidises nine months of wages of all local employees - by 75 per cent for this month and at least 25 per cent in other months - to provide cash-flow aid to firms.
"However, the (scheme) will fail if firms take a short-term view, pocket the payouts in one month, and retrench their workers the next month," said Mr Heng.
"I urge businesses to take a longer-term view - retain and upskill your workers to accelerate your transformation for the future economy."
Employers who reduce wages or put staff on no-pay leave will have their payouts reduced accordingly, while those who had done so before the announcements can raise wages or bring employees back on the payroll if they want to receive the payouts, said Mr Heng in response to Ms Jessica Tan (East Coast GRC) and Ms Sylvia Lim (Aljunied GRC).
Mr Heng noted that some MPs asked during the debate on Monday and yesterday if more could be done. Nominated MP Yip Pin Xiu, a Paralympian, had asked for more help for small businesses in the sports sector.
"Rest assured that we will continue to monitor the situation closely, and do more as and when we need to, to save jobs," said Mr Heng. He also assured workers that support is in place to help them be resilient when confronted with challenges.
"The best form of support is continued employment, both in the immediate and long term. But if your livelihood is affected, we are here to help you through difficult times, to bounce back when conditions improve," he said.
New measures announced this year provide more support for workers to train and upskill themselves, and also to find a new job in emerging areas, he added.
There is also strong social support through new schemes such as the Temporary Relief Fund and the COVID-19 Support Grant, as well as through existing schemes such as ComCare.
Freelancers can tap the Self-Employed Person (SEP) Income Relief Scheme for cash assistance of $9,000, as well as the SEP Training Support Scheme for an hourly training allowance when they attend eligible courses.
As for low-wage workers, a combination of policies is needed to "shift the entire landscape of support", said Mr Heng, listing the progressive wage model and Workfare schemes as examples that have raised wages while keeping unemployment low.
He noted that several MPs, including Mr Png Eng Huat (Hougang), Mr Pritam Singh (Aljunied GRC) and Nominated MP Walter Theseira, had asked the Government to relook its approach on support for low-wage workers, especially during this period. Labour MPs have also consistently championed the needs of this group of workers.
"Every worker is assured that he can earn more wages through skills upgrading," he said, adding that the Tripartite Alliance for Fair and Progressive Employment Practices ensures they are treated fairly.
He urges firms to take longer-term view and retain, upskill workers for future economy
By Joanna Seow, Manpower Correspondent, The Straits Times, 8 Apr 2020
While saving lives is the Government's topmost priority amid the COVID-19 pandemic, saving jobs comes next, said Deputy Prime Minister Heng Swee Keat yesterday.
This is because when people are out of a job, there is a major cost to individual lives and to society, he told Parliament.
Individuals lose the chance to gain experience, while companies which lay off workers become less competitive. If many firms fail, the supply chain will be disrupted, which will drag down the broader economy, said Mr Heng in his speech rounding up the debate on the supplementary budget.
This is why the SGUnited Traineeships scheme will be launched to help first-time job seekers and fresh graduates get work experience during this period, he said.
At the same time, there is high wage support through the Jobs Support Scheme, which subsidises nine months of wages of all local employees - by 75 per cent for this month and at least 25 per cent in other months - to provide cash-flow aid to firms.
"However, the (scheme) will fail if firms take a short-term view, pocket the payouts in one month, and retrench their workers the next month," said Mr Heng.
"I urge businesses to take a longer-term view - retain and upskill your workers to accelerate your transformation for the future economy."
Employers who reduce wages or put staff on no-pay leave will have their payouts reduced accordingly, while those who had done so before the announcements can raise wages or bring employees back on the payroll if they want to receive the payouts, said Mr Heng in response to Ms Jessica Tan (East Coast GRC) and Ms Sylvia Lim (Aljunied GRC).
Mr Heng noted that some MPs asked during the debate on Monday and yesterday if more could be done. Nominated MP Yip Pin Xiu, a Paralympian, had asked for more help for small businesses in the sports sector.
"Rest assured that we will continue to monitor the situation closely, and do more as and when we need to, to save jobs," said Mr Heng. He also assured workers that support is in place to help them be resilient when confronted with challenges.
"The best form of support is continued employment, both in the immediate and long term. But if your livelihood is affected, we are here to help you through difficult times, to bounce back when conditions improve," he said.
New measures announced this year provide more support for workers to train and upskill themselves, and also to find a new job in emerging areas, he added.
Freelancers can tap the Self-Employed Person (SEP) Income Relief Scheme for cash assistance of $9,000, as well as the SEP Training Support Scheme for an hourly training allowance when they attend eligible courses.
As for low-wage workers, a combination of policies is needed to "shift the entire landscape of support", said Mr Heng, listing the progressive wage model and Workfare schemes as examples that have raised wages while keeping unemployment low.
He noted that several MPs, including Mr Png Eng Huat (Hougang), Mr Pritam Singh (Aljunied GRC) and Nominated MP Walter Theseira, had asked the Government to relook its approach on support for low-wage workers, especially during this period. Labour MPs have also consistently championed the needs of this group of workers.
"Every worker is assured that he can earn more wages through skills upgrading," he said, adding that the Tripartite Alliance for Fair and Progressive Employment Practices ensures they are treated fairly.
Help for firms to build resilience, position them for recovery
By Choo Yun Ting, The Straits Times, 8 Apr 2020
Building resilience among Singapore firms will position them for recovery and save jobs - which is a key thrust that underpins the economic support being provided amid the coronavirus pandemic.
Deputy Prime Minister and Finance Minister Heng Swee Keat said yesterday that Singapore is building economic resilience by ensuring that viable businesses are not permanently damaged but are able to preserve their capabilities for recovery.
In his round-up speech on the supplementary budget, Mr Heng noted that with the economy hit on so many fronts, it is "not possible to just restore the status quo".
"Moreover, as the most open economy in the world, injecting funds cannot counter the extensive global supply and demand shocks. Our best response now is to build resilience - in our economy and society," he said.
On the economic front, support for businesses covers the areas of costs, cash flow and credit. Enhancements to financing measures include the Government taking on a higher risk share on several loan schemes, including the temporary bridging loan programme and SME Working Capital Loan programme.
Addressing questions from National Trades Union Congress (NTUC) secretary-general Ng Chee Meng and Mr Liang Eng Hwa (Holland-Bukit Timah GRC) on getting aid to firms more quickly, Mr Heng said government agencies like the Central Provident Fund Board and Inland Revenue Authority of Singapore are working to expedite payouts. Firms on Giro and PayNow will start receiving the first tranche of Jobs Support Scheme payouts next week, while those on cheque payments will get payouts a week later.
The public service is also working towards making faster payments to businesses supplying goods and services to the Government. It has brought forward the scheduled due date of over 1,000 payment vouchers by an average of 11 days, he said.
This amounts to over $600 million, benefiting close to 300 firms, mostly small and medium-sized enterprises (SMEs), said Mr Heng.
"I encourage businesses that are in better financial positions to consider making similar gestures for their suppliers, many of which are SMEs. By keeping your supply chain intact, your company will also benefit," he added.
Noting that the Monetary Authority of Singapore, along with financial institutions, has introduced measures to help SMEs with temporary cash-flow difficulties, Mr Heng said he was glad to see industry players step up to help businesses.
He urged businesses to use the support "wisely and responsibly", even as the Government provides help in a broad-based manner.
Last month's Resilience Budget also provides support for reinforcing Singapore's supply chains, said Mr Heng, acknowledging the points made by MPs such as Mr Ang Wei Neng (Jurong GRC) and Mr Murali Pillai (Bukit Batok) about the importance of strengthening supply chain resilience and food security. He added that Singapore has been working on its strategy to ensure a stable supply of safe food and essential goods for years, and will continue to do so.
Mr Heng highlighted the efforts of Mr Seah Kian Peng (Marine Parade GRC), who is chief executive of NTUC Enterprise, as well as his staff in keeping supermarket shelves stocked.
"Through your hard work, and that of other distributors, we can instil confidence in the adequacy of our food supplies," he said.
By Choo Yun Ting, The Straits Times, 8 Apr 2020
Building resilience among Singapore firms will position them for recovery and save jobs - which is a key thrust that underpins the economic support being provided amid the coronavirus pandemic.
Deputy Prime Minister and Finance Minister Heng Swee Keat said yesterday that Singapore is building economic resilience by ensuring that viable businesses are not permanently damaged but are able to preserve their capabilities for recovery.
In his round-up speech on the supplementary budget, Mr Heng noted that with the economy hit on so many fronts, it is "not possible to just restore the status quo".
"Moreover, as the most open economy in the world, injecting funds cannot counter the extensive global supply and demand shocks. Our best response now is to build resilience - in our economy and society," he said.
On the economic front, support for businesses covers the areas of costs, cash flow and credit. Enhancements to financing measures include the Government taking on a higher risk share on several loan schemes, including the temporary bridging loan programme and SME Working Capital Loan programme.
Addressing questions from National Trades Union Congress (NTUC) secretary-general Ng Chee Meng and Mr Liang Eng Hwa (Holland-Bukit Timah GRC) on getting aid to firms more quickly, Mr Heng said government agencies like the Central Provident Fund Board and Inland Revenue Authority of Singapore are working to expedite payouts. Firms on Giro and PayNow will start receiving the first tranche of Jobs Support Scheme payouts next week, while those on cheque payments will get payouts a week later.
The public service is also working towards making faster payments to businesses supplying goods and services to the Government. It has brought forward the scheduled due date of over 1,000 payment vouchers by an average of 11 days, he said.
This amounts to over $600 million, benefiting close to 300 firms, mostly small and medium-sized enterprises (SMEs), said Mr Heng.
"I encourage businesses that are in better financial positions to consider making similar gestures for their suppliers, many of which are SMEs. By keeping your supply chain intact, your company will also benefit," he added.
Noting that the Monetary Authority of Singapore, along with financial institutions, has introduced measures to help SMEs with temporary cash-flow difficulties, Mr Heng said he was glad to see industry players step up to help businesses.
He urged businesses to use the support "wisely and responsibly", even as the Government provides help in a broad-based manner.
Last month's Resilience Budget also provides support for reinforcing Singapore's supply chains, said Mr Heng, acknowledging the points made by MPs such as Mr Ang Wei Neng (Jurong GRC) and Mr Murali Pillai (Bukit Batok) about the importance of strengthening supply chain resilience and food security. He added that Singapore has been working on its strategy to ensure a stable supply of safe food and essential goods for years, and will continue to do so.
Mr Heng highlighted the efforts of Mr Seah Kian Peng (Marine Parade GRC), who is chief executive of NTUC Enterprise, as well as his staff in keeping supermarket shelves stocked.
"Through your hard work, and that of other distributors, we can instil confidence in the adequacy of our food supplies," he said.
Landlords not worse off with tax rebate law, says Heng
By Grace Leong, Business Correspondent, The Straits Times, 8 Apr 2020
A new law that obliges commercial property owners to unconditionally pass on their property tax rebate in full to their tenants does not make these property owners worse-off, Deputy Prime Minister Heng Swee Keat said yesterday.
In fact, it staves off rental terminations and keeps their premises rented out, he added, in response to comments from some property owners that such an obligation penalises them.
Landlords who fail to pass on the savings to their tenants "without reasonable excuse" face fines of up to $5,000 under the COVID-19 (Temporary Measures) Bill, which was introduced and passed yesterday.
"With a property tax rebate of up to 100 per cent, property owners pay less or even no property tax for the year.
"Property owners should pass the full tax savings on to their tenants, as the property tax rebate is intended to benefit the tenants," said Mr Heng, who is also Finance Minister, in his round-up speech of the supplementary budget debate.
Commercial properties that qualified for Budget 2020's rebates of 15 per cent to 30 per cent will, with enhancements introduced in the Resilience Budget, pay zero property tax for this year. A property tax rebate of 30 per cent for this year has also been granted in the supplementary budget to all other non-residential properties, such as offices and industrial properties.
"On the cost front, I am heartened to see some property owners passing on the 100 per cent rebate fully to their tenants, by reducing rentals," said Mr Heng.
He added that some property owners, such as Mapletree Commercial Trust, have even gone further, by giving their tenants more than the property tax rebate that they receive, to share the burden during this time of uncertainty.
"Despite these commendable moves, I have received feedback from tenants that some property owners have yet to pass on the property tax rebate to them.
"This is why we are imposing a legal obligation on property owners to unconditionally pass on to their tenants the full amount of rebate that is attributable to the tenanted properties," said Mr Heng.
"With this move, I trust that all property owners will do your part, support your tenants, and give additional help to tenants who need it."
The Government is leading by example, he said, by giving a rental waiver of up to three months for government-owned properties, which helps about 36,000 tenants.
Ms Foo Mee Har (West Coast GRC) noted that "it is regrettable that we have to enact new laws to compel landlords to pass on property tax rebates to tenants".
Although some tenants are unable to secure even $100 revenue a day, "a sum too little to cover rental for a day", Mr Christopher de Souza (Holland-Bukit Timah GRC) said some landlords have "not been prompt to pass on the rebate saving to their tenants, adopting a wait and see approach".
"We should make it compulsory for the commercial landlord to pass on the full property tax rebate, in actual dollar terms, to the tenants," he added. "Such prescriptive legislation ensures the money spent from our Budget is indeed stretched."
By Grace Leong, Business Correspondent, The Straits Times, 8 Apr 2020
In fact, it staves off rental terminations and keeps their premises rented out, he added, in response to comments from some property owners that such an obligation penalises them.
Landlords who fail to pass on the savings to their tenants "without reasonable excuse" face fines of up to $5,000 under the COVID-19 (Temporary Measures) Bill, which was introduced and passed yesterday.
"With a property tax rebate of up to 100 per cent, property owners pay less or even no property tax for the year.
"Property owners should pass the full tax savings on to their tenants, as the property tax rebate is intended to benefit the tenants," said Mr Heng, who is also Finance Minister, in his round-up speech of the supplementary budget debate.
Commercial properties that qualified for Budget 2020's rebates of 15 per cent to 30 per cent will, with enhancements introduced in the Resilience Budget, pay zero property tax for this year. A property tax rebate of 30 per cent for this year has also been granted in the supplementary budget to all other non-residential properties, such as offices and industrial properties.
"On the cost front, I am heartened to see some property owners passing on the 100 per cent rebate fully to their tenants, by reducing rentals," said Mr Heng.
He added that some property owners, such as Mapletree Commercial Trust, have even gone further, by giving their tenants more than the property tax rebate that they receive, to share the burden during this time of uncertainty.
"Despite these commendable moves, I have received feedback from tenants that some property owners have yet to pass on the property tax rebate to them.
"This is why we are imposing a legal obligation on property owners to unconditionally pass on to their tenants the full amount of rebate that is attributable to the tenanted properties," said Mr Heng.
"With this move, I trust that all property owners will do your part, support your tenants, and give additional help to tenants who need it."
The Government is leading by example, he said, by giving a rental waiver of up to three months for government-owned properties, which helps about 36,000 tenants.
Ms Foo Mee Har (West Coast GRC) noted that "it is regrettable that we have to enact new laws to compel landlords to pass on property tax rebates to tenants".
Although some tenants are unable to secure even $100 revenue a day, "a sum too little to cover rental for a day", Mr Christopher de Souza (Holland-Bukit Timah GRC) said some landlords have "not been prompt to pass on the rebate saving to their tenants, adopting a wait and see approach".
"We should make it compulsory for the commercial landlord to pass on the full property tax rebate, in actual dollar terms, to the tenants," he added. "Such prescriptive legislation ensures the money spent from our Budget is indeed stretched."
Singaporeans' values critical to tackling next crisis after COVID-19, says DPM Heng
He lauds resourcefulness and strength of the people as nation stands together to fight virus
By Tee Zhuo, The Straits Times, 8 Apr 2020
Whether Singapore can tackle the next crisis after the coronavirus will depend critically on the values of its people, said Deputy Prime Minister Heng Swee Keat.
In his round-up speech yesterday after Parliament debated the supplementary budget, Mr Heng said he was grateful to be able to tap the "deep reservoirs of strength and resourcefulness" of Singaporeans, beyond the nation's financial reserves.
"Without the strength, resourcefulness, trust of our people, all the right measures won't be worth the dollar tag on them," he said.
Healthcare workers, Home Team officers, cleaners and other unsung heroes have carried out their duties with commitment and courage, he said, adding that the outpouring of support and recognition for these front-line workers was moving.
Singapore's national stock of resilience is made up of individual stocks of resilience, added Mr Heng, who is also Finance Minister.
"Ultimately, the long-drawn fight against the virus will be won by us standing together as one united people," he told the House.
"We must each do our part, this is absolutely serious, a matter of life and death."
Mr Heng added that he was heartened that Singaporeans and MPs have shown strong values and commitment to the nation's future.
He said that several Singaporeans, while touched by the use of reserves, have said the amounts should be put back later so future generations have funds for the next crisis.
Likewise, MPs also urged against spending in an "unbridled fashion" from the reserves.
"Indeed, as we draw down on our reserves to tackle this generational crisis of unprecedented scale, we must uphold our responsibility to steward our reserves properly in our time, for the benefit of our future generations," he said.
Mr Heng said he was surprised and glad about instances of values demonstrated by the young.
He cited Transport Minister Khaw Boon Wan's anecdote on Monday of how his Primary 2 granddaughter had been urging his wife and their helper to put on masks and observe safe distancing.
On the same day, a mother watching Mr Heng's Solidarity Budget speech later told him that her daughter had asked if Singapore would become bankrupt.
The answer, he stressed, is "no". "We will never let Singapore become bankrupt."
Said Mr Heng: "As adults, let us uphold our values, and not let our children and future generations down. It is precisely for them that my team and I are determined to exercise fiscal discipline and prudence."
He also said that it has been an extremely hectic period for him, other Cabinet ministers and his staff.
Officers at the Finance Ministry (MOF) have been working for nearly 10 weeks, preparing three Budgets within 48 days.
It has also been an emotional period, Mr Heng said.
"We know what is at stake. Our lives, our livelihoods, our loved ones. Our home and nation," he added.
Noting that MOF officers are often called "bean counters", Mr Heng quipped: "We count, because you count.
"We count, to protect our people and our home."
He lauds resourcefulness and strength of the people as nation stands together to fight virus
By Tee Zhuo, The Straits Times, 8 Apr 2020
Whether Singapore can tackle the next crisis after the coronavirus will depend critically on the values of its people, said Deputy Prime Minister Heng Swee Keat.
In his round-up speech yesterday after Parliament debated the supplementary budget, Mr Heng said he was grateful to be able to tap the "deep reservoirs of strength and resourcefulness" of Singaporeans, beyond the nation's financial reserves.
"Without the strength, resourcefulness, trust of our people, all the right measures won't be worth the dollar tag on them," he said.
Healthcare workers, Home Team officers, cleaners and other unsung heroes have carried out their duties with commitment and courage, he said, adding that the outpouring of support and recognition for these front-line workers was moving.
Singapore's national stock of resilience is made up of individual stocks of resilience, added Mr Heng, who is also Finance Minister.
"Ultimately, the long-drawn fight against the virus will be won by us standing together as one united people," he told the House.
"We must each do our part, this is absolutely serious, a matter of life and death."
Mr Heng added that he was heartened that Singaporeans and MPs have shown strong values and commitment to the nation's future.
He said that several Singaporeans, while touched by the use of reserves, have said the amounts should be put back later so future generations have funds for the next crisis.
Likewise, MPs also urged against spending in an "unbridled fashion" from the reserves.
"Indeed, as we draw down on our reserves to tackle this generational crisis of unprecedented scale, we must uphold our responsibility to steward our reserves properly in our time, for the benefit of our future generations," he said.
Mr Heng said he was surprised and glad about instances of values demonstrated by the young.
He cited Transport Minister Khaw Boon Wan's anecdote on Monday of how his Primary 2 granddaughter had been urging his wife and their helper to put on masks and observe safe distancing.
On the same day, a mother watching Mr Heng's Solidarity Budget speech later told him that her daughter had asked if Singapore would become bankrupt.
The answer, he stressed, is "no". "We will never let Singapore become bankrupt."
Said Mr Heng: "As adults, let us uphold our values, and not let our children and future generations down. It is precisely for them that my team and I are determined to exercise fiscal discipline and prudence."
He also said that it has been an extremely hectic period for him, other Cabinet ministers and his staff.
Officers at the Finance Ministry (MOF) have been working for nearly 10 weeks, preparing three Budgets within 48 days.
It has also been an emotional period, Mr Heng said.
"We know what is at stake. Our lives, our livelihoods, our loved ones. Our home and nation," he added.
Noting that MOF officers are often called "bean counters", Mr Heng quipped: "We count, because you count.
"We count, to protect our people and our home."
More cash in hand for Singaporeans - and family supporting them
By Yuen Sin, The Straits Times, 8 Apr 2020
This year's Budgets provide direct support for families, with more for the lower income, to support a resilient society, Deputy Prime Minister Heng Swee Keat said yesterday.
He said he shared a concern raised by Ms Foo Mee Har (West Coast GRC) that some Singaporean families may have non-citizen members who support the family but currently do not benefit from cash payouts in the Care and Support Package. "They... are supporting the family in different ways through this difficult period," he said.
To support these families, adult permanent residents with Singaporean parents, spouses or children will be able to apply for a one-off Solidarity Payment of $300.
Long-Term Visit Pass-Plus holders, who are foreign spouses of Singaporeans, can do so as well.
More details on the application process will be provided later.
Nominated MP Walter Theseira, Dr Lim Wee Kiak (Sembawang GRC), Ms Foo, Mr Louis Ng (Nee Soon GRC) and Workers' Party MP Faisal Manap (Aljunied GRC) had also asked about giving more cash to tide over different groups of Singaporeans and their families.
Mr Heng said the Government will already provide more than what they proposed. He cited how a 50-year-old couple with a child aged 20 years old and below will receive up to $3,200 in cash. This is from the Solidarity Payment, Care and Support Package, and $100 PAssion card top-up in cash.
Low-wage workers on Workfare will also receive an additional $3,000 in cash to help them with their expenses, he added, while those who are unemployed can receive $2,400 from the COVID-19 Support Grant over three months, among other things.
In the interim, those needing urgent help with basic living expenses can apply for cash assistance of $500 under the Temporary Relief Fund.
The Ministry of Social and Family Development and the HDB are also exercising greater flexibility under ComCare and for mortgage repayments respectively, he said.
In addition, under the Jobs Support Scheme, employers get up to $31,000 in wage offsets over nine months, for each local worker retained. Eligible self-employed persons will get $9,000 over the same period under the Self-Employed Person Income Relief Scheme.
"With this set of schemes, we balance between targeting our support for those who need it more, and flowing support quickly to large groups. It is not an easy balance, and we will do our best to calibrate this," said Mr Heng.
Singapore's ability to put together a support package for Singaporeans amounting to 12 per cent of gross domestic product without borrowing against the country's future is "testament to the optimal fiscal balance we have sought to maintain over the years", he added.
The Government will continue to work hard at this and continue to look at improvements, he said.
For instance, it will study whether self-employed persons should be more systematically included in Singapore's social security system, as suggested by Dr Intan Azura Mokhtar (Ang Mo Kio GRC).
But the Government cannot do this alone, said Mr Heng, who noted that many Singaporeans are stepping up to help others in the spirit of Singapore Together, including distributing hand sanitisers, masks and meals to those who need it more.
"These are spontaneous acts of community support, and I hope they inspire more to do the same. This is the social cohesion and resilience that we must have."
By Yuen Sin, The Straits Times, 8 Apr 2020
This year's Budgets provide direct support for families, with more for the lower income, to support a resilient society, Deputy Prime Minister Heng Swee Keat said yesterday.
He said he shared a concern raised by Ms Foo Mee Har (West Coast GRC) that some Singaporean families may have non-citizen members who support the family but currently do not benefit from cash payouts in the Care and Support Package. "They... are supporting the family in different ways through this difficult period," he said.
To support these families, adult permanent residents with Singaporean parents, spouses or children will be able to apply for a one-off Solidarity Payment of $300.
Long-Term Visit Pass-Plus holders, who are foreign spouses of Singaporeans, can do so as well.
More details on the application process will be provided later.
Nominated MP Walter Theseira, Dr Lim Wee Kiak (Sembawang GRC), Ms Foo, Mr Louis Ng (Nee Soon GRC) and Workers' Party MP Faisal Manap (Aljunied GRC) had also asked about giving more cash to tide over different groups of Singaporeans and their families.
Mr Heng said the Government will already provide more than what they proposed. He cited how a 50-year-old couple with a child aged 20 years old and below will receive up to $3,200 in cash. This is from the Solidarity Payment, Care and Support Package, and $100 PAssion card top-up in cash.
Low-wage workers on Workfare will also receive an additional $3,000 in cash to help them with their expenses, he added, while those who are unemployed can receive $2,400 from the COVID-19 Support Grant over three months, among other things.
In the interim, those needing urgent help with basic living expenses can apply for cash assistance of $500 under the Temporary Relief Fund.
The Ministry of Social and Family Development and the HDB are also exercising greater flexibility under ComCare and for mortgage repayments respectively, he said.
In addition, under the Jobs Support Scheme, employers get up to $31,000 in wage offsets over nine months, for each local worker retained. Eligible self-employed persons will get $9,000 over the same period under the Self-Employed Person Income Relief Scheme.
"With this set of schemes, we balance between targeting our support for those who need it more, and flowing support quickly to large groups. It is not an easy balance, and we will do our best to calibrate this," said Mr Heng.
Singapore's ability to put together a support package for Singaporeans amounting to 12 per cent of gross domestic product without borrowing against the country's future is "testament to the optimal fiscal balance we have sought to maintain over the years", he added.
The Government will continue to work hard at this and continue to look at improvements, he said.
For instance, it will study whether self-employed persons should be more systematically included in Singapore's social security system, as suggested by Dr Intan Azura Mokhtar (Ang Mo Kio GRC).
But the Government cannot do this alone, said Mr Heng, who noted that many Singaporeans are stepping up to help others in the spirit of Singapore Together, including distributing hand sanitisers, masks and meals to those who need it more.
"These are spontaneous acts of community support, and I hope they inspire more to do the same. This is the social cohesion and resilience that we must have."
New Emerging Stronger task force to tap business leaders, prepare for recovery
By Linette Lai, Political Correspondent, The Straits Times, 8 Apr 2020
The new task force set up to chart Singapore's course beyond the coronavirus outbreak will comprise business leaders with rich experience in key areas such as digitalisation and connectivity, as well as broad perspectives on the global economy, the Future Economy Council said.
It will be chaired by Minister for Social and Family Development Desmond Lee and PSA International group chief executive Tan Chong Meng, Deputy Prime Minister Heng Swee Keat announced yesterday. In his speech rounding up debate on the supplementary budget, Mr Heng Swee Keat said the Emerging Stronger task force is key to building up economic resilience here.
"Things will get tougher before they improve," he said. "The question we should ask... is, when that day comes, what sort of world will it be, and how ready Singapore will be to march forward again."
The task force's members will have to identify trends and help the country make the most of longer-term economic opportunities.
They will report to the Future Economy Council and work with its six clusters and intermediaries like trade associations and chambers.
"There may be major global shifts after this pandemic, so it is imperative for us to look to the future and plan ahead," said Mr Lee.
Trade tensions and technological disruptions were already changing the global economy before the virus hit home, Mr Tan said. "With COVID-19, this change has accelerated, and the task before us is therefore a challenging one," he added. "But we must find a way to brave these challenges, and turn them into opportunities, and to be first off the blocks when recovery comes."
By Linette Lai, Political Correspondent, The Straits Times, 8 Apr 2020
The new task force set up to chart Singapore's course beyond the coronavirus outbreak will comprise business leaders with rich experience in key areas such as digitalisation and connectivity, as well as broad perspectives on the global economy, the Future Economy Council said.
It will be chaired by Minister for Social and Family Development Desmond Lee and PSA International group chief executive Tan Chong Meng, Deputy Prime Minister Heng Swee Keat announced yesterday. In his speech rounding up debate on the supplementary budget, Mr Heng Swee Keat said the Emerging Stronger task force is key to building up economic resilience here.
"Things will get tougher before they improve," he said. "The question we should ask... is, when that day comes, what sort of world will it be, and how ready Singapore will be to march forward again."
The task force's members will have to identify trends and help the country make the most of longer-term economic opportunities.
They will report to the Future Economy Council and work with its six clusters and intermediaries like trade associations and chambers.
"There may be major global shifts after this pandemic, so it is imperative for us to look to the future and plan ahead," said Mr Lee.
Trade tensions and technological disruptions were already changing the global economy before the virus hit home, Mr Tan said. "With COVID-19, this change has accelerated, and the task before us is therefore a challenging one," he added. "But we must find a way to brave these challenges, and turn them into opportunities, and to be first off the blocks when recovery comes."
Heng Swee Keat urges caution on WP chief Pritam Singh's suggestion of a 'New Deal' for Singapore
By Rei Kurohi, The Straits Times, 8 Apr 2020
Deputy Prime Minister Heng Swee Keat yesterday cautioned against a suggestion by Workers' Party chief Pritam Singh to provide continued support to people after the coronavirus pandemic subsides.
Mr Singh (Aljunied GRC) had on Monday compared Singapore's additional support measures to the New Deal implemented by United States President Franklin Roosevelt to rebuild the country during the Great Depression of the 1930s.
He asked if the second and third support packages could constitute a new social compact for Singapore, saying the country should thoroughly review what a living wage ought to be for workers providing essential services, like cleaners.
Responding yesterday, Mr Heng warned against relying on "ideological short cuts or labels, without thinking deeply about interactions and longer-term effects".
He noted that the New Deal was meant to take the US out of the Great Depression, but its ideas have also polarised American society.
This schism can still be seen today between liberals who support it for its comprehensive relief and reform programmes, and conservatives who oppose it for being hostile to business and growth, he said.
Mr Heng noted that Mr Singh himself had pointed out "the New Deal took more than six years and secured the US as a welfare state with a strong federal government and a perennial national debt problem".
"Indeed, we should think hard about this," he told the House.
He also cited how the United Kingdom went through a phase of polarisation similar to that of the US, with successive British governments "swinging between the left and right of the political spectrum".
Mr Heng said that he was a student in the UK in the early 1980s when Conservative Party leader Margaret Thatcher "rode to electoral victory" after Britons became fed up with widespread public sector strikes, including in the National Health Service, in 1978-79.
"It is important that in any policymaking, we pay attention to the subtle but significant changes in the tone of society, in the attitudes of people and in relationships which will take years to show, and which are not easy to reverse," he said.
"For our little red dot, we must have the courage and wisdom to do what is right for us - and not rely on simple ideology or fad and fashion of the day. Focus on our people's well-being, and design systems and support around that core purpose."
For the Singapore Government, it has never been a matter of "whether we want to spend", but rather how to make the best use of resources, to achieve the best outcome for its people, said Mr Heng.
If the country stays adaptable, it can continue adjusting its social security system according to the needs of the day, he added. When digitalisation put pressure on employment and wages of older workers, it rolled out Workfare. More recently, it started the Self-Employed Person Income Relief Scheme and COVID-19 Support Grant.
"So let me urge all members in this House to remain rigorous and clear-headed, and to focus on outcomes for our people," he said.
"Let us commit to making sure that what we do is fiscally sustainable, not just in this term or the next term of government, but for our future generations."
By Rei Kurohi, The Straits Times, 8 Apr 2020
Deputy Prime Minister Heng Swee Keat yesterday cautioned against a suggestion by Workers' Party chief Pritam Singh to provide continued support to people after the coronavirus pandemic subsides.
Mr Singh (Aljunied GRC) had on Monday compared Singapore's additional support measures to the New Deal implemented by United States President Franklin Roosevelt to rebuild the country during the Great Depression of the 1930s.
He asked if the second and third support packages could constitute a new social compact for Singapore, saying the country should thoroughly review what a living wage ought to be for workers providing essential services, like cleaners.
Responding yesterday, Mr Heng warned against relying on "ideological short cuts or labels, without thinking deeply about interactions and longer-term effects".
He noted that the New Deal was meant to take the US out of the Great Depression, but its ideas have also polarised American society.
This schism can still be seen today between liberals who support it for its comprehensive relief and reform programmes, and conservatives who oppose it for being hostile to business and growth, he said.
Mr Heng noted that Mr Singh himself had pointed out "the New Deal took more than six years and secured the US as a welfare state with a strong federal government and a perennial national debt problem".
"Indeed, we should think hard about this," he told the House.
He also cited how the United Kingdom went through a phase of polarisation similar to that of the US, with successive British governments "swinging between the left and right of the political spectrum".
Mr Heng said that he was a student in the UK in the early 1980s when Conservative Party leader Margaret Thatcher "rode to electoral victory" after Britons became fed up with widespread public sector strikes, including in the National Health Service, in 1978-79.
"It is important that in any policymaking, we pay attention to the subtle but significant changes in the tone of society, in the attitudes of people and in relationships which will take years to show, and which are not easy to reverse," he said.
"For our little red dot, we must have the courage and wisdom to do what is right for us - and not rely on simple ideology or fad and fashion of the day. Focus on our people's well-being, and design systems and support around that core purpose."
For the Singapore Government, it has never been a matter of "whether we want to spend", but rather how to make the best use of resources, to achieve the best outcome for its people, said Mr Heng.
If the country stays adaptable, it can continue adjusting its social security system according to the needs of the day, he added. When digitalisation put pressure on employment and wages of older workers, it rolled out Workfare. More recently, it started the Self-Employed Person Income Relief Scheme and COVID-19 Support Grant.
"So let me urge all members in this House to remain rigorous and clear-headed, and to focus on outcomes for our people," he said.
"Let us commit to making sure that what we do is fiscally sustainable, not just in this term or the next term of government, but for our future generations."
Nominated MP proposes temporary universal basic income scheme to help Singaporeans get through COVID-19 crisis
By Linette Lai, Political Correspondent, The Straits Times, 8 Apr 2020
Give all Singaporeans a universal basic income for the duration of the COVID-19 crisis, to assure them their basic needs will be met even if they lose their jobs, said Nominated MP Walter Theseira.
Under his proposal, dubbed the Majulah Universal Basic Income (Mubi) Scheme, all Singaporeans - including children and retirees - will get $110 a week for 12 weeks. This will be considered taxable income and cost $4.62 billion.
But the money will not come from Singapore's reserves or other sources of tax revenue, he told the House yesterday.
Instead, the scheme will be funded by a temporary personal income tax increase of 4.25 per cent. Taxes will be paid only next year, when the economy is expected to have recovered. After taxes, the less well-off will benefit more from the scheme, while the high-income will help finance it.
"In effect, Mubi will distribute money from the future, when the economy and jobs are expected to recover, to the present, when many Singaporeans are facing immediate cash flow problems as they lose jobs or face sharp reductions in income," said the associate professor of economics at the Singapore University of Social Sciences. He worked with Dr Ong Qiyan, deputy director of research at the National University of Singapore's Social Service Research Centre, on the proposal.
In a policy paper, they said payouts should be weekly and automatic, without any means testing. "This is to avoid any possible gaps in coverage. Incomes and jobs will be volatile over the next few months," they said.
Having a universal basic income scheme will also help nudge Singaporeans to follow advice to stay at home, they added. For example, those who provide services such as home repairs may not feel they can take adequate precautions, but are reluctant to suspend their services due to the loss of income.
The authors noted that although the scheme is designed to avoid tapping past reserves or other tax revenue, the Government must be prepared to pay the difference if the proposed rise in income tax revenue is less than expected.
It is "financed on the principle of solidarity, because all Singaporeans must face the COVID-19 pandemic together". "All Singaporean taxpayers are asked to contribute towards financing the scheme," they said. "Some will give more, but all will give some."
Responding, Mr Heng said he fully supports the spirit of the suggestion. "Those who have more should support those who have less. Such solidarity is especially needed in these difficult times."
He said some government support schemes have to be broad-based, so that help can be quickly channelled to people. Those who do not need cash payouts from the Government should share it with those who need it more, by donating to Giving.sg or the Community Chest's Courage Fund, or directly sharing it with others, he added.
By Linette Lai, Political Correspondent, The Straits Times, 8 Apr 2020
Give all Singaporeans a universal basic income for the duration of the COVID-19 crisis, to assure them their basic needs will be met even if they lose their jobs, said Nominated MP Walter Theseira.
Under his proposal, dubbed the Majulah Universal Basic Income (Mubi) Scheme, all Singaporeans - including children and retirees - will get $110 a week for 12 weeks. This will be considered taxable income and cost $4.62 billion.
But the money will not come from Singapore's reserves or other sources of tax revenue, he told the House yesterday.
Instead, the scheme will be funded by a temporary personal income tax increase of 4.25 per cent. Taxes will be paid only next year, when the economy is expected to have recovered. After taxes, the less well-off will benefit more from the scheme, while the high-income will help finance it.
"In effect, Mubi will distribute money from the future, when the economy and jobs are expected to recover, to the present, when many Singaporeans are facing immediate cash flow problems as they lose jobs or face sharp reductions in income," said the associate professor of economics at the Singapore University of Social Sciences. He worked with Dr Ong Qiyan, deputy director of research at the National University of Singapore's Social Service Research Centre, on the proposal.
In a policy paper, they said payouts should be weekly and automatic, without any means testing. "This is to avoid any possible gaps in coverage. Incomes and jobs will be volatile over the next few months," they said.
Having a universal basic income scheme will also help nudge Singaporeans to follow advice to stay at home, they added. For example, those who provide services such as home repairs may not feel they can take adequate precautions, but are reluctant to suspend their services due to the loss of income.
The authors noted that although the scheme is designed to avoid tapping past reserves or other tax revenue, the Government must be prepared to pay the difference if the proposed rise in income tax revenue is less than expected.
It is "financed on the principle of solidarity, because all Singaporeans must face the COVID-19 pandemic together". "All Singaporean taxpayers are asked to contribute towards financing the scheme," they said. "Some will give more, but all will give some."
Responding, Mr Heng said he fully supports the spirit of the suggestion. "Those who have more should support those who have less. Such solidarity is especially needed in these difficult times."
He said some government support schemes have to be broad-based, so that help can be quickly channelled to people. Those who do not need cash payouts from the Government should share it with those who need it more, by donating to Giving.sg or the Community Chest's Courage Fund, or directly sharing it with others, he added.
More income relief for lower-wage workers during COVID-19 crisis, says Zaqy Mohamad
By Olivia Ho, Correspondent, The Straits Times, 8 Apr 2020
By Olivia Ho, Correspondent, The Straits Times, 8 Apr 2020
More workers will get help from the Short-Term Relief Fund during the coronavirus pandemic, as coverage is extended to half the resident workforce, up from 20 per cent previously. Minister of State for Manpower Zaqy Mohamad announced the increased support in Parliament yesterday in the debate over the supplementary budget.
The fund currently provides financial help to lower-wage workers whose employers are unable to pay them wages due to financial difficulties or business failure.
Mr Zaqy said that since April 1, the Ministry of Manpower (MOM) has increased this support from up to one month's salary, currently capped at $1,000, to up to two months' salary, capped at $4,600, depending on the worker's income.
This enhancement will last till year end, when it will be reviewed.
The Tripartite Alliance for Dispute Management, set up by MOM, National Trades Union Congress and Singapore National Employers Federation, will identify workers who may need this financial relief.
Lower-wage workers will continue to get additional help through the enhanced Workfare Income Supplement scheme. "The qualifying income ceiling and maximum annual payouts have both gone up since January 2020," said Mr Zaqy. "More workers can benefit from greater Workfare support of up to $4,000 a year."
Those earning up to $2,000 per month last year, including self-employed people, will receive a Workfare Special Payment of $3,000 in cash. The Central Provident Fund Board will pay eligible Workfare recipients two payouts of $1,500 in July and October this year, brought forward from November.
As for the Self-Employed Person Income Relief Scheme, which gives direct cash assistance of $9,000 over nine months, he said MOM is working with NTUC to provide details on how to apply and file an appeal soon.
In the meantime, he called on self-employed people with spare capacity during the downturn to use this time in training and upskilling through initiatives such as the Self-Employed Person Training Support Scheme administered by NTUC.
The scheme has been extended until year end and self-employed people will get an hourly training allowance of $10 from May 1 - up from $7.50 - with no cap as to how much training they can sign up for.
"For example, a self-employed private-hire car or bus driver who spends 10 full days training in a month can receive $800 of training allowance in that month," he said.
The fund currently provides financial help to lower-wage workers whose employers are unable to pay them wages due to financial difficulties or business failure.
Mr Zaqy said that since April 1, the Ministry of Manpower (MOM) has increased this support from up to one month's salary, currently capped at $1,000, to up to two months' salary, capped at $4,600, depending on the worker's income.
This enhancement will last till year end, when it will be reviewed.
The Tripartite Alliance for Dispute Management, set up by MOM, National Trades Union Congress and Singapore National Employers Federation, will identify workers who may need this financial relief.
Lower-wage workers will continue to get additional help through the enhanced Workfare Income Supplement scheme. "The qualifying income ceiling and maximum annual payouts have both gone up since January 2020," said Mr Zaqy. "More workers can benefit from greater Workfare support of up to $4,000 a year."
Those earning up to $2,000 per month last year, including self-employed people, will receive a Workfare Special Payment of $3,000 in cash. The Central Provident Fund Board will pay eligible Workfare recipients two payouts of $1,500 in July and October this year, brought forward from November.
As for the Self-Employed Person Income Relief Scheme, which gives direct cash assistance of $9,000 over nine months, he said MOM is working with NTUC to provide details on how to apply and file an appeal soon.
In the meantime, he called on self-employed people with spare capacity during the downturn to use this time in training and upskilling through initiatives such as the Self-Employed Person Training Support Scheme administered by NTUC.
The scheme has been extended until year end and self-employed people will get an hourly training allowance of $10 from May 1 - up from $7.50 - with no cap as to how much training they can sign up for.
"For example, a self-employed private-hire car or bus driver who spends 10 full days training in a month can receive $800 of training allowance in that month," he said.
MPs share stories of lives disrupted by COVID-19 and urge Singaporeans to stay strong and rise above it
Workers, firms face uncertain future, but some say crisis can be a catalyst for change
By Linette Lai, Political Correspondent, The Straits Times, 7 Apr 2020
As the coronavirus burrows into society and upends Singaporeans' way of life, MPs spoke in Parliament of workers fearing for their jobs, businesses struggling to stay afloat and families striving to come to terms with the new normal.
But amid the dark clouds, there is a silver lining, they said. Managed well, this crisis can be a catalyst for change.
"There are still plenty of uncertainties ahead. The outbreak may get worse before it gets better, and there is no certainty how long this will take," said Mr Liang Eng Hwa (Holland-Bukit Timah GRC).
"But I believe we will eventually have a Victory Budget in time to come, where we will position ourselves for a strong recovery and emerge stronger," added Mr Liang, who kicked off yesterday's debate on the new additional support measures to help Singapore cope with the crisis.
Earlier yesterday, Deputy Prime Minister Heng Swee Keat announced that an extra $5.1 billion will be set aside to save jobs and support businesses and families. Dubbed the Solidarity Budget, this third package means a total of $59.9 billion is being marshalled to take on the coronavirus outbreak.
This week, Singapore will shut down all schools and most workplaces as it puts in place a "circuit breaker" to stem the spike in COVID-19 cases in the country.
But the loss of revenue has already hit businesses hard in recent weeks, whether they are landlords or tenants.
Tenants have been up in arms because many landlords have not passed down the property tax rebates they received - an issue that will be addressed in proposed legislation.
But some landlords have outstanding mortgages to repay, and struggle to do so as tenants delay paying rent and vacancies rise in their properties, said Mr Gan Thiam Poh (Ang Mo Kio GRC).
"Everyone has his plight, and the root of the problem is revenue loss and the resulting cash-flow problems," he added.
Workers' Party MP Png Eng Huat (Hougang) noted the "circuit breaker" measures for this month are "slowly killing the man in the street trying to make ends meet".
He was at a coffee shop in his constituency when the Government announced that dining in would no longer be allowed, he said. Two workers were especially worried about what this meant for their jobs.
"They knew that there would be no... dishes to wash come Tuesday morning. You could tell by the look in their eyes that they were worried about what is to come, the bills to pay and the living expenses," he added.
Nominated MP Anthea Ong said an acquaintance working as an event emcee nearly killed himself last week after losing all his gigs.
And Ms Tin Pei Ling (MacPherson) recounted how a resident's children had gone hungry one day after their father - a Grab driver and the sole breadwinner - was not able to make enough money to buy food for them.
Ms Jessica Tan (East Coast GRC) highlighted that some companies and people may need extra help to begin working from home
Also, the home environment may not always be conducive for work. "Imagine several adults in a home teleconferencing at the same time, and then having children trying also to do home-based learning in a small space," she said. "All this will add stress to any home environment."
Then, there are workers who are misled by unscrupulous employers.
Mr Saktiandi Supaat (Bishan-Toa Payoh GRC) said a resident had asked him if it was true that employers' Central Provident Fund contribution rates had been reduced.
"Her employer said it is a cost-saving measure to help businesses," he told the House. "Of course, I told her it wasn't... However, this brings to mind that in times like this, businesses may resort to illegal measures to cut their losses."
At the same time, the crisis provides the impetus for change - for the better.
If businesses had been further along the road to digitalisation when the crisis hit, the transition to telecommuting would have been less painful and better executed, said Nominated MP Douglas Foo, who is president of the Singapore Manufacturing Federation.
"The economy and business landscape after we emerge from this crisis will be vastly different," he said. "Companies have to realise with increasing urgency that digitalisation is no longer just a want or a good-to-have. It is now a necessity, and business owners must snap out of the haze of apathy and really use this opportunity for change."
Ms Ong also called for more mental health support for Singaporeans, given that pandemics can induce anxiety and inflict psychological damage.
"It is hard to fault such a generous Budget trying to avert an economic calamity and save jobs and industry - even lives," she said. "Yet, the crisis illuminates long-term cracks that we must address decisively for a good and strong rebound as a nation."
Workers, firms face uncertain future, but some say crisis can be a catalyst for change
By Linette Lai, Political Correspondent, The Straits Times, 7 Apr 2020
As the coronavirus burrows into society and upends Singaporeans' way of life, MPs spoke in Parliament of workers fearing for their jobs, businesses struggling to stay afloat and families striving to come to terms with the new normal.
But amid the dark clouds, there is a silver lining, they said. Managed well, this crisis can be a catalyst for change.
"There are still plenty of uncertainties ahead. The outbreak may get worse before it gets better, and there is no certainty how long this will take," said Mr Liang Eng Hwa (Holland-Bukit Timah GRC).
"But I believe we will eventually have a Victory Budget in time to come, where we will position ourselves for a strong recovery and emerge stronger," added Mr Liang, who kicked off yesterday's debate on the new additional support measures to help Singapore cope with the crisis.
Earlier yesterday, Deputy Prime Minister Heng Swee Keat announced that an extra $5.1 billion will be set aside to save jobs and support businesses and families. Dubbed the Solidarity Budget, this third package means a total of $59.9 billion is being marshalled to take on the coronavirus outbreak.
This week, Singapore will shut down all schools and most workplaces as it puts in place a "circuit breaker" to stem the spike in COVID-19 cases in the country.
But the loss of revenue has already hit businesses hard in recent weeks, whether they are landlords or tenants.
Tenants have been up in arms because many landlords have not passed down the property tax rebates they received - an issue that will be addressed in proposed legislation.
But some landlords have outstanding mortgages to repay, and struggle to do so as tenants delay paying rent and vacancies rise in their properties, said Mr Gan Thiam Poh (Ang Mo Kio GRC).
"Everyone has his plight, and the root of the problem is revenue loss and the resulting cash-flow problems," he added.
Workers' Party MP Png Eng Huat (Hougang) noted the "circuit breaker" measures for this month are "slowly killing the man in the street trying to make ends meet".
He was at a coffee shop in his constituency when the Government announced that dining in would no longer be allowed, he said. Two workers were especially worried about what this meant for their jobs.
"They knew that there would be no... dishes to wash come Tuesday morning. You could tell by the look in their eyes that they were worried about what is to come, the bills to pay and the living expenses," he added.
Nominated MP Anthea Ong said an acquaintance working as an event emcee nearly killed himself last week after losing all his gigs.
And Ms Tin Pei Ling (MacPherson) recounted how a resident's children had gone hungry one day after their father - a Grab driver and the sole breadwinner - was not able to make enough money to buy food for them.
Ms Jessica Tan (East Coast GRC) highlighted that some companies and people may need extra help to begin working from home
Also, the home environment may not always be conducive for work. "Imagine several adults in a home teleconferencing at the same time, and then having children trying also to do home-based learning in a small space," she said. "All this will add stress to any home environment."
Then, there are workers who are misled by unscrupulous employers.
Mr Saktiandi Supaat (Bishan-Toa Payoh GRC) said a resident had asked him if it was true that employers' Central Provident Fund contribution rates had been reduced.
"Her employer said it is a cost-saving measure to help businesses," he told the House. "Of course, I told her it wasn't... However, this brings to mind that in times like this, businesses may resort to illegal measures to cut their losses."
At the same time, the crisis provides the impetus for change - for the better.
If businesses had been further along the road to digitalisation when the crisis hit, the transition to telecommuting would have been less painful and better executed, said Nominated MP Douglas Foo, who is president of the Singapore Manufacturing Federation.
"The economy and business landscape after we emerge from this crisis will be vastly different," he said. "Companies have to realise with increasing urgency that digitalisation is no longer just a want or a good-to-have. It is now a necessity, and business owners must snap out of the haze of apathy and really use this opportunity for change."
Ms Ong also called for more mental health support for Singaporeans, given that pandemics can induce anxiety and inflict psychological damage.
"It is hard to fault such a generous Budget trying to avert an economic calamity and save jobs and industry - even lives," she said. "Yet, the crisis illuminates long-term cracks that we must address decisively for a good and strong rebound as a nation."
Related
Solidarity Budget: $5.1 billion third COVID-19 relief package to save jobs and support businesses and families
Supplementary Budget 2020 - Resilience Budget
$48 billion Resilience Budget to combat impact of COVID-19
Extraordinary measures for extraordinary times: Heng Swee Keat on COVID-19 stimulus package
Singapore Budget 2020: Advancing as One Singapore
Ministry of Health - Updates on COVID-19 (Coronavirus Disease 2019) Local Situation
Solidarity Budget: $5.1 billion third COVID-19 relief package to save jobs and support businesses and families
Supplementary Budget 2020 - Resilience Budget
$48 billion Resilience Budget to combat impact of COVID-19
Extraordinary measures for extraordinary times: Heng Swee Keat on COVID-19 stimulus package
Singapore Budget 2020: Advancing as One Singapore
Ministry of Health - Updates on COVID-19 (Coronavirus Disease 2019) Local Situation
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