$5.1 billion more to support firms, families as workplaces close from 7 April 2020 to 4 May 2020
Extra help comes as Govt is acutely aware circuit breaker will be painful: DPM Heng Swee Keat
By Lim Yan Liang, The Straits Times, 7 Apr 2020
An additional $5.1 billion will be set aside to save jobs and support businesses and families as Singapore heads for a month of heightened safe distancing measures to stem the spread of the coronavirus.
In an unprecedented third round of support measures unveiled in Parliament yesterday, Deputy Prime Minister and Finance Minister Heng Swee Keat announced that the Government will subsidise 75 per cent of the first $4,600 of gross monthly wages for all 1.9 million local workers this month.
Many firms cannot operate at all or can do so only at a much reduced level in the coming weeks, he said, but stressed that they should still retain and pay their workers, with enhancements to the Jobs Support Scheme.
Two weeks back, the scheme entailed subsidising 25 per cent of the first $4,600 of wages for all local employees for nine months this year, with higher subsidy levels for firms in harder-hit sectors - 50 per cent for food services and 75 per cent for aviation and tourism.
Mr Heng said the first payout - to include the higher subsidy - will be brought forward from next month to this month, to help businesses meet pressing cash needs. Firms on Giro and PayNow will get the cash next week, and others will get it by cheque about a week later.
"The aim of this strong support is to directly reduce firms' wage costs, to help them retain their workers," Mr Heng said. "I expect firms to make use of this Jobs Support Scheme to continue paying your workers and refrain from putting workers on no-pay leave during this period or, worse, retrenching them."
The monthly foreign worker levy that firms have to pay will also be waived for April, while a levy rebate of $750 will be granted for each work permit or S Pass holder so that companies can resume operations quickly once the circuit breaker is lifted.
In addition, the eligibility criteria for the Self-Employed Person Income Relief Scheme will be broadened to include those who also earn a small income from employment, as well as those who live in properties with an annual value of up to $21,000, instead of up to $13,000.
And all adult Singaporeans will receive a one-off cash handout of $600, instead of the $300 Care and Support payout that had been announced in the supplementary budget on March 26.
This payment will be credited directly into bank accounts by next Tuesday, 14 April, while higher tiers of Care and Support payouts for those with lower income and the additional $300 payment for parents with at least one Singaporean child under 20 will be brought forward to June from August.
Mr Heng said that these and other forms of support come as the Government is acutely aware that the circuit breaker - which will see all schools and recreation venues closed, and dining-in at eateries halted - will be painful, even as it is essential to curb transmission of COVID-19. "It will disrupt businesses and impact workers severely," he said. "Many will be anxious about their jobs and families."
But these tough decisions have to be made as an escalation in the outbreak would hit lives and livelihoods harder. "We must take short-term pains, to avoid even sharper pain later."
Today, the Minister for Law will introduce a Bill to compel property owners to pass on the Government's 100 per cent property tax rebate to tenants in full. For most, this works out to slightly more than one month of rent.
The Government will also further enhance financing support for enterprises, and increase its risk share of loans under several loan financing schemes from 80 to 90 per cent.
The additional measures necessitate a further draw on past reserves beyond the $17 billion sought in last month's supplementary budget, and Mr Heng said he has sought and obtained President Halimah Yacob's in-principle support to draw an additional $4 billion from the nation's reserves, while the remaining $1.1 billion will be funded from "the fiscal space of this term of government".
President Halimah said Prime Minister Lee Hsien Loong and DPM Heng discussed the severity and urgency of the situation with her last week. "I agreed with them that we need to provide additional support quickly and decisively," she added. "We are entering a critical phase in our nation's fight against COVID-19."
The latest injection means Singapore is allocating about $60 billion to fight COVID-19 to date - of which $6.4 billion was set aside in the Feb 18 Unity Budget, and a further $48.4 billion in the March 26 Resilience Budget. Parliament will continue its debate on the additional spending today.
Extra help comes as Govt is acutely aware circuit breaker will be painful: DPM Heng Swee Keat
By Lim Yan Liang, The Straits Times, 7 Apr 2020
In an unprecedented third round of support measures unveiled in Parliament yesterday, Deputy Prime Minister and Finance Minister Heng Swee Keat announced that the Government will subsidise 75 per cent of the first $4,600 of gross monthly wages for all 1.9 million local workers this month.
Many firms cannot operate at all or can do so only at a much reduced level in the coming weeks, he said, but stressed that they should still retain and pay their workers, with enhancements to the Jobs Support Scheme.
Two weeks back, the scheme entailed subsidising 25 per cent of the first $4,600 of wages for all local employees for nine months this year, with higher subsidy levels for firms in harder-hit sectors - 50 per cent for food services and 75 per cent for aviation and tourism.
Mr Heng said the first payout - to include the higher subsidy - will be brought forward from next month to this month, to help businesses meet pressing cash needs. Firms on Giro and PayNow will get the cash next week, and others will get it by cheque about a week later.
"The aim of this strong support is to directly reduce firms' wage costs, to help them retain their workers," Mr Heng said. "I expect firms to make use of this Jobs Support Scheme to continue paying your workers and refrain from putting workers on no-pay leave during this period or, worse, retrenching them."
The monthly foreign worker levy that firms have to pay will also be waived for April, while a levy rebate of $750 will be granted for each work permit or S Pass holder so that companies can resume operations quickly once the circuit breaker is lifted.
In addition, the eligibility criteria for the Self-Employed Person Income Relief Scheme will be broadened to include those who also earn a small income from employment, as well as those who live in properties with an annual value of up to $21,000, instead of up to $13,000.
And all adult Singaporeans will receive a one-off cash handout of $600, instead of the $300 Care and Support payout that had been announced in the supplementary budget on March 26.
This payment will be credited directly into bank accounts by next Tuesday, 14 April, while higher tiers of Care and Support payouts for those with lower income and the additional $300 payment for parents with at least one Singaporean child under 20 will be brought forward to June from August.
Mr Heng said that these and other forms of support come as the Government is acutely aware that the circuit breaker - which will see all schools and recreation venues closed, and dining-in at eateries halted - will be painful, even as it is essential to curb transmission of COVID-19. "It will disrupt businesses and impact workers severely," he said. "Many will be anxious about their jobs and families."
But these tough decisions have to be made as an escalation in the outbreak would hit lives and livelihoods harder. "We must take short-term pains, to avoid even sharper pain later."
Today, the Minister for Law will introduce a Bill to compel property owners to pass on the Government's 100 per cent property tax rebate to tenants in full. For most, this works out to slightly more than one month of rent.
The Government will also further enhance financing support for enterprises, and increase its risk share of loans under several loan financing schemes from 80 to 90 per cent.
The additional measures necessitate a further draw on past reserves beyond the $17 billion sought in last month's supplementary budget, and Mr Heng said he has sought and obtained President Halimah Yacob's in-principle support to draw an additional $4 billion from the nation's reserves, while the remaining $1.1 billion will be funded from "the fiscal space of this term of government".
President Halimah said Prime Minister Lee Hsien Loong and DPM Heng discussed the severity and urgency of the situation with her last week. "I agreed with them that we need to provide additional support quickly and decisively," she added. "We are entering a critical phase in our nation's fight against COVID-19."
The latest injection means Singapore is allocating about $60 billion to fight COVID-19 to date - of which $6.4 billion was set aside in the Feb 18 Unity Budget, and a further $48.4 billion in the March 26 Resilience Budget. Parliament will continue its debate on the additional spending today.
Coronavirus pandemic: Solidarity Budget
$60 billion help to fight COVID-19
Tee Zhuo summarises how the $60 billion is being used to help families, workers and businesses, with the latest sum targeted at managing the fallout from safe distancing measures to curb virus transmission
The Straits Times, 7 Apr 2020
$6.4 billion: First came what was termed the Unity Budget on Feb 18, where this amount was set aside to combat COVID-19
$48.4 billion: Then came the supplementary Resilience Budget on March 26, where a further sum was added to the war chest
$5.1 billion: Yesterday, DPM Heng Swee Keat unveiled the Solidarity Budget, to enhance the help measures
FAMILIES
CASH UPFRONT
• Under the Solidarity Budget, all Singaporeans aged 21 and above this year will get a one-off Solidarity Payment of $600. Most will receive it by April 14 in their bank accounts, and the rest will get it by cheque in stages from April 30.
• $300 of this $600 Solidarity Payment comes from part of the earlier announced Care and Support package.
• In the Unity Budget, all Singaporeans were to get between $100 and $300, depending on their incomes with those earning less getting more. In the Resilience Budget, the amounts were raised to between $300 and $900.
• Those who earn less and thus qualify for the higher tiers will get a further $300 or $600 in June.
• In addition, parents with at least one Singaporean child aged 20 and below this year each get an additional $300 in cash.
• Eligible Singaporeans aged 21 and above get $300 in grocery vouchers for this year. They will get another $100 next year.
• All Singaporeans aged 50 and above this year will get a PAssion Card top-up of $100.
RELIEF FROM GOVERNMENT FEES, LOANS
• There will be no increases on fees and charges for all government services for a year, from April 1.
• University and polytechnic government loan repayment and interest charges have been suspended for a year from June 1.
• Late payment charges on Housing Board mortgage arrears have been suspended for three months.
HELP FOR COMMUNITY, NEEDY
• Among other things, $145 million has been set aside to help the needy through social service offices and community centres, including more flexibility for ComCare applications.
WORKERS AND JOBS
HELP WITH WAGES
• The Jobs Support Scheme was introduced in the Unity Budget. It is meant to help companies retain local workers through the Government subsidising a chunk of the wages of more than 1.9 million such workers.
• Originally, the Government was going to pay 8 per cent of the first $3,600 of a worker's monthly wage.
• In the Resilience Budget, this was raised to 25 per cent of the first $4,600 of the worker's wage. More help went to sectors worse hit by the pandemic - those in food services will get 50 per cent help in wages. The aviation and tourism sectors will have 75 per cent of wages supported.
• Under yesterday's Solidarity Budget, the Government will now subsidise 75 per cent of the first $4,600 of monthly wages for all local workers for this month. Normal payout levels will revert after this month.
• Payouts were supposed to be in May, July and October. The first payout has been brought forward to this month.
HELP FOR THE SELF-EMPLOYED
• The Self-Employed Person Income Relief Scheme was introduced during the Resilience Budget to help the self-employed tide over the pandemic through three quarterly cash payouts of $3,000, or a total of $9,000.
• Following feedback, it was expanded yesterday to include the self-employed who also earn a small income from employment, capped at $2,300 per month.
• The scheme will now also cover those living in properties with an annual value of up to $21,000, up from $13,000 before.
• About 100,000 people - up from 88,000 - will now get the payouts next month, in July and in October.
• Training and reskilling have been key words of the budgets. The Government is pumping $48 million into a training support scheme for the self-employed, upping training allowances, and allowing the use of SkillsFuture credits for this.
HELP FOR THE LOWER-INCOME
• This group gets a special Workfare payment of $3,000 each, in cash. Previously, they received a one-off payment amounting to 20 per cent of their 2019 payout, with a $100 minimum.
• Union members facing financial distress can claim a one-off payment of up to $300 under the $25 million NTUC Care Fund (COVID-19).
• Low-and middle-income workers who lose their jobs due to COVID-19 get cash grants of $800 a month for three months, administered by social service offices from next month to September.
JOB CREATION
• About 10,000 new jobs will be created over the next year, including jobs for emerging areas in the public sector, long-term roles in essential services and short-term jobs to handle the COVID-19 crisis. There will also be private-sector openings.
BUSINESSES
FOREIGN WORKER RELIEF
• The foreign worker levy, paid monthly, will be waived for this month, it was announced in the Solidarity Budget.
• A levy rebate of $750 will also be granted to firms this month for each work permit or S Pass holder.
PROPERTY TAX RELIEF
• Restaurants, shops, hotels, serviced apartments and tourist attractions, among others, will pay no property tax for this year.
• Businesses in other non-residential properties, such as offices or industrial properties, will get a 30 per cent property tax rebate for this year.
• A Bill to be introduced today will make sure property owners pass on the property tax rebate in full to tenants.
INCOME TAX RELIEF
• Income tax payments will be deferred for three months for firms and self-employed persons, with no application required.
RENT WAIVERS
• The rental waiver for industrial, office and agricultural tenants of government agencies will be raised to a month, up from the half-month rental waiver announced previously.
• Stallholders in hawker centres managed by the National Environment Agency (NEA) or NEA-appointed operators will enjoy three months of rental waiver - up from one month previously - while commercial tenants will continue to get two months of rental waivers.
• The Bill to be introduced today will also let businesses and individuals defer certain contractual obligations, such as rent, repaying loans or completing work, for some time.
HELP WITH LOANS
• Mr Heng previously said $20 billion of loan capital will be given to help firms and catalyse private-sector loan capital.
• The maximum supported loan under the temporary bridging loan programme (TBLP), which addresses cash flow issues in the tourism sector, will be increased to $5 million, from $1 million, and will be expanded to all sectors.
• The quantum for trade loans under the Enterprise Financing Scheme (EFS) will double to $10 million. A working capital loan for small and medium-sized enterprises under the EFS will have the maximum quantum raised from $600,000 to $1 million.
• In addition to the above, the Government will now increase its share of risk in loans taken under the above schemes to 90 per cent, up from 80 per cent, for loans initiated from April 8 this year to March 31 next year.
• Loan insurance premiums under the Loan Insurance Scheme will be subsidised to 80 per cent, up from 50 per cent. Loan payments for this loan and the TBLP can be deferred on request, subject to assessment by participating financial institutions.
SUPPORT FOR SPECIFIC SECTORS
• The Government will continue to offset 75 per cent of the first $4,600 in monthly wages in the tourism and aviation sectors, and 50 per cent in the food services sector, after the share reverts to 25 per cent for local workers in other sectors after this month.
• The aviation sector gets $350 million in help, with measures such as rebates on landing and parking fees, and rental relief for airlines and the cargo industry.
• The tourism sector will get $90 million to ensure it rebounds from the crisis when the time is right.
• The arts and culture sector will get $55 million to support jobs and training, including for digitalisation and retaining jobs.
LAND TRANSPORT
• The point-to-point support package, which helps relieve the shortfall in earnings for taxi and private-hire car drivers, will get $95 million.
• Eligible taxi hirers and private-hire car drivers will continue to get a special relief payment of $300 per vehicle a month till the end of September.
• Private bus owners will get a one-year road tax rebate and a six-month waiver of parking charges at government-managed parking facilities. This will cost $23 million.
$60 billion help to fight COVID-19
Tee Zhuo summarises how the $60 billion is being used to help families, workers and businesses, with the latest sum targeted at managing the fallout from safe distancing measures to curb virus transmission
The Straits Times, 7 Apr 2020
$6.4 billion: First came what was termed the Unity Budget on Feb 18, where this amount was set aside to combat COVID-19
$48.4 billion: Then came the supplementary Resilience Budget on March 26, where a further sum was added to the war chest
$5.1 billion: Yesterday, DPM Heng Swee Keat unveiled the Solidarity Budget, to enhance the help measures
FAMILIES
CASH UPFRONT
• Under the Solidarity Budget, all Singaporeans aged 21 and above this year will get a one-off Solidarity Payment of $600. Most will receive it by April 14 in their bank accounts, and the rest will get it by cheque in stages from April 30.
• $300 of this $600 Solidarity Payment comes from part of the earlier announced Care and Support package.
• In the Unity Budget, all Singaporeans were to get between $100 and $300, depending on their incomes with those earning less getting more. In the Resilience Budget, the amounts were raised to between $300 and $900.
• Those who earn less and thus qualify for the higher tiers will get a further $300 or $600 in June.
• In addition, parents with at least one Singaporean child aged 20 and below this year each get an additional $300 in cash.
• Eligible Singaporeans aged 21 and above get $300 in grocery vouchers for this year. They will get another $100 next year.
• All Singaporeans aged 50 and above this year will get a PAssion Card top-up of $100.
RELIEF FROM GOVERNMENT FEES, LOANS
• There will be no increases on fees and charges for all government services for a year, from April 1.
• University and polytechnic government loan repayment and interest charges have been suspended for a year from June 1.
• Late payment charges on Housing Board mortgage arrears have been suspended for three months.
HELP FOR COMMUNITY, NEEDY
• Among other things, $145 million has been set aside to help the needy through social service offices and community centres, including more flexibility for ComCare applications.
WORKERS AND JOBS
HELP WITH WAGES
• The Jobs Support Scheme was introduced in the Unity Budget. It is meant to help companies retain local workers through the Government subsidising a chunk of the wages of more than 1.9 million such workers.
• Originally, the Government was going to pay 8 per cent of the first $3,600 of a worker's monthly wage.
• In the Resilience Budget, this was raised to 25 per cent of the first $4,600 of the worker's wage. More help went to sectors worse hit by the pandemic - those in food services will get 50 per cent help in wages. The aviation and tourism sectors will have 75 per cent of wages supported.
• Under yesterday's Solidarity Budget, the Government will now subsidise 75 per cent of the first $4,600 of monthly wages for all local workers for this month. Normal payout levels will revert after this month.
• Payouts were supposed to be in May, July and October. The first payout has been brought forward to this month.
HELP FOR THE SELF-EMPLOYED
• The Self-Employed Person Income Relief Scheme was introduced during the Resilience Budget to help the self-employed tide over the pandemic through three quarterly cash payouts of $3,000, or a total of $9,000.
• Following feedback, it was expanded yesterday to include the self-employed who also earn a small income from employment, capped at $2,300 per month.
• The scheme will now also cover those living in properties with an annual value of up to $21,000, up from $13,000 before.
• About 100,000 people - up from 88,000 - will now get the payouts next month, in July and in October.
• Training and reskilling have been key words of the budgets. The Government is pumping $48 million into a training support scheme for the self-employed, upping training allowances, and allowing the use of SkillsFuture credits for this.
HELP FOR THE LOWER-INCOME
• This group gets a special Workfare payment of $3,000 each, in cash. Previously, they received a one-off payment amounting to 20 per cent of their 2019 payout, with a $100 minimum.
• Union members facing financial distress can claim a one-off payment of up to $300 under the $25 million NTUC Care Fund (COVID-19).
• Low-and middle-income workers who lose their jobs due to COVID-19 get cash grants of $800 a month for three months, administered by social service offices from next month to September.
JOB CREATION
• About 10,000 new jobs will be created over the next year, including jobs for emerging areas in the public sector, long-term roles in essential services and short-term jobs to handle the COVID-19 crisis. There will also be private-sector openings.
BUSINESSES
FOREIGN WORKER RELIEF
• The foreign worker levy, paid monthly, will be waived for this month, it was announced in the Solidarity Budget.
• A levy rebate of $750 will also be granted to firms this month for each work permit or S Pass holder.
PROPERTY TAX RELIEF
• Restaurants, shops, hotels, serviced apartments and tourist attractions, among others, will pay no property tax for this year.
• Businesses in other non-residential properties, such as offices or industrial properties, will get a 30 per cent property tax rebate for this year.
• A Bill to be introduced today will make sure property owners pass on the property tax rebate in full to tenants.
INCOME TAX RELIEF
• Income tax payments will be deferred for three months for firms and self-employed persons, with no application required.
RENT WAIVERS
• The rental waiver for industrial, office and agricultural tenants of government agencies will be raised to a month, up from the half-month rental waiver announced previously.
• Stallholders in hawker centres managed by the National Environment Agency (NEA) or NEA-appointed operators will enjoy three months of rental waiver - up from one month previously - while commercial tenants will continue to get two months of rental waivers.
• The Bill to be introduced today will also let businesses and individuals defer certain contractual obligations, such as rent, repaying loans or completing work, for some time.
HELP WITH LOANS
• Mr Heng previously said $20 billion of loan capital will be given to help firms and catalyse private-sector loan capital.
• The maximum supported loan under the temporary bridging loan programme (TBLP), which addresses cash flow issues in the tourism sector, will be increased to $5 million, from $1 million, and will be expanded to all sectors.
• The quantum for trade loans under the Enterprise Financing Scheme (EFS) will double to $10 million. A working capital loan for small and medium-sized enterprises under the EFS will have the maximum quantum raised from $600,000 to $1 million.
• In addition to the above, the Government will now increase its share of risk in loans taken under the above schemes to 90 per cent, up from 80 per cent, for loans initiated from April 8 this year to March 31 next year.
• Loan insurance premiums under the Loan Insurance Scheme will be subsidised to 80 per cent, up from 50 per cent. Loan payments for this loan and the TBLP can be deferred on request, subject to assessment by participating financial institutions.
SUPPORT FOR SPECIFIC SECTORS
• The Government will continue to offset 75 per cent of the first $4,600 in monthly wages in the tourism and aviation sectors, and 50 per cent in the food services sector, after the share reverts to 25 per cent for local workers in other sectors after this month.
• The aviation sector gets $350 million in help, with measures such as rebates on landing and parking fees, and rental relief for airlines and the cargo industry.
• The tourism sector will get $90 million to ensure it rebounds from the crisis when the time is right.
• The arts and culture sector will get $55 million to support jobs and training, including for digitalisation and retaining jobs.
LAND TRANSPORT
• The point-to-point support package, which helps relieve the shortfall in earnings for taxi and private-hire car drivers, will get $95 million.
• Eligible taxi hirers and private-hire car drivers will continue to get a special relief payment of $300 per vehicle a month till the end of September.
• Private bus owners will get a one-year road tax rebate and a six-month waiver of parking charges at government-managed parking facilities. This will cost $23 million.
Solidarity Budget: All firms to get 75% wage subsidies under enhanced Jobs Support Scheme
First payout under enhanced Jobs Support Scheme will also be brought forward to April 2020
By Joanna Seow, Assistant Business Editor, The Straits Times, 7 Apr 2020
Firms in all sectors will have 75 per cent of their local employees' wages subsidised for the month of April, Deputy Prime Minister Heng Swee Keat said yesterday.
They will also receive the first payout under the enhanced Jobs Support Scheme this month, instead of next month, to help with cash flow, he told Parliament in announcing a third set of measures to save businesses and jobs from the fallout of the coronavirus pandemic.
The wage subsidy applies to the first $4,600 of wages paid this month for each of the more than 1.9 million Singaporean and permanent resident employees.
The scheme - first announced in the Budget in February - was already enhanced in the supplementary budget last month to give a 25 per cent subsidy on the wages of all local employees, with higher subsidies of 50 per cent for those in food services and 75 per cent for those in tourism and aviation.
The monthly wage cap was raised from $3,600 to $4,600, and the payouts were to be in three tranches in May, July and October.
The higher support for April is temporary, and the scheme will revert to normal levels beyond that.
Mr Heng said: "The aim of this strong support is to directly reduce firms' wage costs to help them retain their workers. I expect firms to make use of this Jobs Support Scheme to continue paying your workers and refrain from putting workers on no-pay leave during this period or, worse, retrenching them. We will monitor the situation carefully together with our tripartite partners and take action where needed."
The enhanced scheme was among additional measures he announced, which he termed the "Solidarity Budget", to help Singapore cope with the circuit breaker to stem the spread of COVID-19.
Mr Heng noted that many firms cannot operate at all or can operate only at a much reduced level in the coming weeks owing to the strict "circuit breaker" measures announced last Friday. Most workplaces, apart from those providing essential services or in key economic sectors, will be closed for four weeks from today to break the chain of transmission of COVID-19.
But firms should still retain and pay their workers, stressed Mr Heng. This will also enable them to resume operations quickly when the circuit breaker is lifted, he said.
The additional subsidy from the temporary enhancement will first be calculated based on wages paid last October, and later adjusted based on wages paid this month.
This means employers who do not pay their staff wages this month will not gain from the temporary increase to the payouts.
Mr Heng clarified that the salary ceiling, which is based on the median wage level of residents in full-time employment, does not mean workers earning beyond that amount do not qualify. It means regardless of how much they earn, the maximum subsidy will be 75 per cent of $4,600, which is $3,450.
Firms on Giro and PayNow will start getting the first payout next week, while those that are not will get their payouts by cheque, starting about a week later.
The Manpower Ministry said yesterday employers of at least 10 workers that implement cost-saving measures in the circuit-breaker period from today to May 4 must notify it if the measures cause more than a 25 per cent reduction in their employees' pay. There was previously no minimum pay reduction criterion.
First payout under enhanced Jobs Support Scheme will also be brought forward to April 2020
By Joanna Seow, Assistant Business Editor, The Straits Times, 7 Apr 2020
Firms in all sectors will have 75 per cent of their local employees' wages subsidised for the month of April, Deputy Prime Minister Heng Swee Keat said yesterday.
They will also receive the first payout under the enhanced Jobs Support Scheme this month, instead of next month, to help with cash flow, he told Parliament in announcing a third set of measures to save businesses and jobs from the fallout of the coronavirus pandemic.
The wage subsidy applies to the first $4,600 of wages paid this month for each of the more than 1.9 million Singaporean and permanent resident employees.
The scheme - first announced in the Budget in February - was already enhanced in the supplementary budget last month to give a 25 per cent subsidy on the wages of all local employees, with higher subsidies of 50 per cent for those in food services and 75 per cent for those in tourism and aviation.
The monthly wage cap was raised from $3,600 to $4,600, and the payouts were to be in three tranches in May, July and October.
The higher support for April is temporary, and the scheme will revert to normal levels beyond that.
Mr Heng said: "The aim of this strong support is to directly reduce firms' wage costs to help them retain their workers. I expect firms to make use of this Jobs Support Scheme to continue paying your workers and refrain from putting workers on no-pay leave during this period or, worse, retrenching them. We will monitor the situation carefully together with our tripartite partners and take action where needed."
The enhanced scheme was among additional measures he announced, which he termed the "Solidarity Budget", to help Singapore cope with the circuit breaker to stem the spread of COVID-19.
Mr Heng noted that many firms cannot operate at all or can operate only at a much reduced level in the coming weeks owing to the strict "circuit breaker" measures announced last Friday. Most workplaces, apart from those providing essential services or in key economic sectors, will be closed for four weeks from today to break the chain of transmission of COVID-19.
But firms should still retain and pay their workers, stressed Mr Heng. This will also enable them to resume operations quickly when the circuit breaker is lifted, he said.
The additional subsidy from the temporary enhancement will first be calculated based on wages paid last October, and later adjusted based on wages paid this month.
This means employers who do not pay their staff wages this month will not gain from the temporary increase to the payouts.
Mr Heng clarified that the salary ceiling, which is based on the median wage level of residents in full-time employment, does not mean workers earning beyond that amount do not qualify. It means regardless of how much they earn, the maximum subsidy will be 75 per cent of $4,600, which is $3,450.
Firms on Giro and PayNow will start getting the first payout next week, while those that are not will get their payouts by cheque, starting about a week later.
The Manpower Ministry said yesterday employers of at least 10 workers that implement cost-saving measures in the circuit-breaker period from today to May 4 must notify it if the measures cause more than a 25 per cent reduction in their employees' pay. There was previously no minimum pay reduction criterion.
Govt to increase risk share on loans to 90 per cent to ensure credit access for firms during COVID-19 crisis: DPM Heng
Assurance on continued access to credit for businesses
By Choo Yun Ting, The Straits Times, 7 Apr 2020
Efforts will be made to ensure that businesses have continued access to credit despite the uncertainty brought about by the coronavirus outbreak, said Deputy Prime Minister and Finance Minister Heng Swee Keat yesterday.
The Government will increase its risk share of loans taken under several loan financing schemes announced or enhanced in Budget 2020 in February and Resilience Budget last month to 90 per cent, up from 80 per cent.
This applies to loans initiated under the Temporary Bridging Loan Programme, the SME Working Capital Loan programme, and the Enterprise Financing Scheme - Trade Loan scheme from tomorrow to March 31, 2021.
The measure announced in Parliament yesterday aims to lend businesses additional support to cope with the "circuit breaker" measures amid the COVID-19 outbreak and to resume activities after the measures are lifted.
"The economy needs support and intervention in many different forms to go through this rough patch," said Mr Heng. "I urge all businesses, landlords, financial institutions and industry players to do your part in channelling the Government's support measures to firms, workers and households."
The "circuit breaker" measures will see most companies, apart from those in essential services, operating at a reduced level from today for close to a month.
Mr Heng noted that the Monetary Authority of Singapore (MAS), alongside financial institutions, has introduced a package of measures to help small and medium-sized enterprises (SMEs) with temporary cash-flow difficulties. For example, SMEs can now opt to defer principal payments on their secured term loans until the end of 2020.
More than $40 billion of SMEs' existing loans are likely to qualify for this relief, said Mr Heng.
He added that banks and finance companies may also apply for low-cost funding through a new MAS Singapore Dollar facility, for new loans granted under the SME Working Capital Loan and Temporary Bridging Loan programmes.
They must commit to pass on the savings to borrowers if they use this facility for funding, Mr Heng said.
Responding to the $5.1 billion Solidarity Budget unveiled yesterday, Singapore Business Federation chief executive Ho Meng Kit said: "The Solidarity Budget is immediate, direct and substantial help which our businesses need so as to survive the circuit breaker period and save jobs."
The business chamber has launched a helpline to help companies navigate coronavirus-related government advisories for businesses and is also working on a programme to help companies build business resilience for the present challenges and the long term, he added.
The Singapore International Chamber of Commerce (SICC) called the Solidarity Budget "an appropriate, rational and fast response", noting the swift announcements of the three packages to help Singaporeans cope with COVID-19 in successive months.
But there remains a need for more banks to step up and support more SMEs, by providing loans without demanding that SME owners mortgage their homes, the SICC said, especially with the enhanced security of the Government taking on a higher risk share.
Assurance on continued access to credit for businesses
By Choo Yun Ting, The Straits Times, 7 Apr 2020
Efforts will be made to ensure that businesses have continued access to credit despite the uncertainty brought about by the coronavirus outbreak, said Deputy Prime Minister and Finance Minister Heng Swee Keat yesterday.
The Government will increase its risk share of loans taken under several loan financing schemes announced or enhanced in Budget 2020 in February and Resilience Budget last month to 90 per cent, up from 80 per cent.
This applies to loans initiated under the Temporary Bridging Loan Programme, the SME Working Capital Loan programme, and the Enterprise Financing Scheme - Trade Loan scheme from tomorrow to March 31, 2021.
The measure announced in Parliament yesterday aims to lend businesses additional support to cope with the "circuit breaker" measures amid the COVID-19 outbreak and to resume activities after the measures are lifted.
"The economy needs support and intervention in many different forms to go through this rough patch," said Mr Heng. "I urge all businesses, landlords, financial institutions and industry players to do your part in channelling the Government's support measures to firms, workers and households."
The "circuit breaker" measures will see most companies, apart from those in essential services, operating at a reduced level from today for close to a month.
Mr Heng noted that the Monetary Authority of Singapore (MAS), alongside financial institutions, has introduced a package of measures to help small and medium-sized enterprises (SMEs) with temporary cash-flow difficulties. For example, SMEs can now opt to defer principal payments on their secured term loans until the end of 2020.
More than $40 billion of SMEs' existing loans are likely to qualify for this relief, said Mr Heng.
He added that banks and finance companies may also apply for low-cost funding through a new MAS Singapore Dollar facility, for new loans granted under the SME Working Capital Loan and Temporary Bridging Loan programmes.
They must commit to pass on the savings to borrowers if they use this facility for funding, Mr Heng said.
Responding to the $5.1 billion Solidarity Budget unveiled yesterday, Singapore Business Federation chief executive Ho Meng Kit said: "The Solidarity Budget is immediate, direct and substantial help which our businesses need so as to survive the circuit breaker period and save jobs."
The Singapore International Chamber of Commerce (SICC) called the Solidarity Budget "an appropriate, rational and fast response", noting the swift announcements of the three packages to help Singaporeans cope with COVID-19 in successive months.
But there remains a need for more banks to step up and support more SMEs, by providing loans without demanding that SME owners mortgage their homes, the SICC said, especially with the enhanced security of the Government taking on a higher risk share.
Bigger rent waivers for industrial, office and agricultural tenants
By Grace Leong, Business Correspondent, The Straits Times, 7 Apr 2020
The rent waiver for industrial, office and agricultural tenants of government agencies will be increased to one month, from the 0.5 month announced in the Resilience package last month.
"The Government will continue to lead by example in supporting tenants," Deputy Prime Minister Heng Swee Keat said in Parliament yesterday as he announced the Solidarity Budget to mitigate the impact of the "circuit breaker" measures starting today to stem escalating COVID-19 infections.
A new Bill will also be passed today to let businesses and individuals defer certain contractual obligations - such as paying rent, repaying loans, or completing work - for a period, because of the impact from COVID-19.
In addition, new legislation will be introduced in Parliament this week to ensure that landlords pass on property tax rebates in full to their tenants. Property owners who fail to do so unconditionally "without reasonable excuse" will be guilty of an offence.
Commercial properties that qualified for Budget 2020's rebates of 15 per cent to 30 per cent will now pay zero property tax for this year. A property tax rebate of 30 per cent for this year had earlier been granted to all other non-residential properties, such as offices and industrial properties.
If passed, the new legislation will ensure that property owners pass on to their tenants the full amount of property tax rebate received for each property tax account.
It will also ensure that the rebate is passed on in a timely manner according to a prescribed timeline, and prevent property owners from imposing conditions.
A valuation review panel - comprising members from the Valuation Review Board constituted under the Property Tax Act - will settle disputes between a property owner and tenant.
Meanwhile, stallholders in hawker centres managed by the National Environment Agency or NEA-appointed operators will continue to enjoy three months of rent waivers, up from one month announced during Budget 2020.
Commercial tenants will continue to receive two months of rent waivers, Mr Heng added.
By Grace Leong, Business Correspondent, The Straits Times, 7 Apr 2020
"The Government will continue to lead by example in supporting tenants," Deputy Prime Minister Heng Swee Keat said in Parliament yesterday as he announced the Solidarity Budget to mitigate the impact of the "circuit breaker" measures starting today to stem escalating COVID-19 infections.
A new Bill will also be passed today to let businesses and individuals defer certain contractual obligations - such as paying rent, repaying loans, or completing work - for a period, because of the impact from COVID-19.
In addition, new legislation will be introduced in Parliament this week to ensure that landlords pass on property tax rebates in full to their tenants. Property owners who fail to do so unconditionally "without reasonable excuse" will be guilty of an offence.
Commercial properties that qualified for Budget 2020's rebates of 15 per cent to 30 per cent will now pay zero property tax for this year. A property tax rebate of 30 per cent for this year had earlier been granted to all other non-residential properties, such as offices and industrial properties.
If passed, the new legislation will ensure that property owners pass on to their tenants the full amount of property tax rebate received for each property tax account.
It will also ensure that the rebate is passed on in a timely manner according to a prescribed timeline, and prevent property owners from imposing conditions.
A valuation review panel - comprising members from the Valuation Review Board constituted under the Property Tax Act - will settle disputes between a property owner and tenant.
Meanwhile, stallholders in hawker centres managed by the National Environment Agency or NEA-appointed operators will continue to enjoy three months of rent waivers, up from one month announced during Budget 2020.
Commercial tenants will continue to receive two months of rent waivers, Mr Heng added.
Govt waiving Foreign Worker Levy due April 2020, giving S$750 for each work permit or S Pass holder
Employers urged to use levy rebate wisely and support their workers
By Joanna Seow, Assistant Business Editor, The Straits Times, 7 Apr 2020
Employers have to support their workers - both local and foreign - even as they adjust to the closure of most workplaces for four weeks, Manpower Minister Josephine Teo told Parliament yesterday.
She urged employers to communicate clearly with their workers on work and pay arrangements as measures to stem the spread of the coronavirus take effect today.
"Many are asking: How will we get through the next one month? What will happen after that? No one can say for sure. But one thing we can be sure of is that we will get through this together. We will stand in solidarity with workers as well as businesses," she said.
Mrs Teo added that employers in businesses that are not essential services should continue to give appropriate pay to their workers who can telecommute, instead of treating the period as no-pay leave.
More details on how her ministry will help firms in telecommuting will be given later, she said. Ms Jessica Tan (East Coast GRC) had voiced the concerns of some without resources to work from home.
Mrs Teo also gave details of two schemes announced in last month's supplementary budget to help job seekers in today's climate. The SGUnited Traineeships for fresh tertiary graduates will start on June 1 and be managed by the Singapore Business Federation. The Government will fund 80 per cent of the stipend for trainees, and the company that takes them on board pays 20 per cent.
Mrs Teo said that while the stipend may not match the usual starting salary of graduates, it is still better to build up some work experience. "We must find a way to help these young Singaporeans get started in their careers and not let COVID-19 derail them," she said.
The scheme aims to support up to 8,000 traineeships this year. So far, over 100 companies, such as ST Logistics, Surbana Jurong, Micron, Q&M Dental and Commonwealth Capital have committed to 1,500 positions, she added.
As for the SGUnited Jobs initiative to create 10,000 jobs, the first virtual career fair, which is ongoing until April 12, has 5,800 vacancies and 5,500 applicants so far.
Mrs Teo also spoke about support for businesses' cash flow during the circuit breaker period.
Deputy Prime Minister Heng Swee Keat announced yesterday that foreign worker levies will be waived in April, and employers will further get a levy rebate of $750 for each work permit or S Pass holder, to be paid out as early as April 21.
In view of these measures, employers of foreigners on work permits and S Passes will no longer get the daily allowance for quarantined workers, said Mrs Teo.
But she stressed that workers will still get paid as the period counts as paid hospitalisation leave.
Some might ask why the Government is providing support for firms who hire foreign workers, she said, adding that the circuit breaker will significantly impact all businesses.
"Supporting local workers remains our top priority," she said. "But at such a time, we must stand united with all workers - every worker matters - and not draw too many lines. Sharing pain should also mean sharing the relief."
She asked firms to use the levy rebate wisely to retain their essential workforce so that they can restart or scale up as soon as possible.
"Remember how they have helped you and your businesses in good times, do not forsake them in bad times. And take care especially of vulnerable groups," she said.
She noted that some businesses go the extra mile to care for customers and workers, and many workers take on more work to help bosses, or accept pay cuts. "If there's one thing I can say with confidence, it is this: Our economy may take a huge hit. So might jobs. But not our spirit. And never our solidarity."
Employers urged to use levy rebate wisely and support their workers
By Joanna Seow, Assistant Business Editor, The Straits Times, 7 Apr 2020
She urged employers to communicate clearly with their workers on work and pay arrangements as measures to stem the spread of the coronavirus take effect today.
"Many are asking: How will we get through the next one month? What will happen after that? No one can say for sure. But one thing we can be sure of is that we will get through this together. We will stand in solidarity with workers as well as businesses," she said.
Mrs Teo added that employers in businesses that are not essential services should continue to give appropriate pay to their workers who can telecommute, instead of treating the period as no-pay leave.
More details on how her ministry will help firms in telecommuting will be given later, she said. Ms Jessica Tan (East Coast GRC) had voiced the concerns of some without resources to work from home.
Mrs Teo also gave details of two schemes announced in last month's supplementary budget to help job seekers in today's climate. The SGUnited Traineeships for fresh tertiary graduates will start on June 1 and be managed by the Singapore Business Federation. The Government will fund 80 per cent of the stipend for trainees, and the company that takes them on board pays 20 per cent.
The scheme aims to support up to 8,000 traineeships this year. So far, over 100 companies, such as ST Logistics, Surbana Jurong, Micron, Q&M Dental and Commonwealth Capital have committed to 1,500 positions, she added.
As for the SGUnited Jobs initiative to create 10,000 jobs, the first virtual career fair, which is ongoing until April 12, has 5,800 vacancies and 5,500 applicants so far.
Mrs Teo also spoke about support for businesses' cash flow during the circuit breaker period.
Deputy Prime Minister Heng Swee Keat announced yesterday that foreign worker levies will be waived in April, and employers will further get a levy rebate of $750 for each work permit or S Pass holder, to be paid out as early as April 21.
In view of these measures, employers of foreigners on work permits and S Passes will no longer get the daily allowance for quarantined workers, said Mrs Teo.
But she stressed that workers will still get paid as the period counts as paid hospitalisation leave.
Some might ask why the Government is providing support for firms who hire foreign workers, she said, adding that the circuit breaker will significantly impact all businesses.
"Supporting local workers remains our top priority," she said. "But at such a time, we must stand united with all workers - every worker matters - and not draw too many lines. Sharing pain should also mean sharing the relief."
She asked firms to use the levy rebate wisely to retain their essential workforce so that they can restart or scale up as soon as possible.
"Remember how they have helped you and your businesses in good times, do not forsake them in bad times. And take care especially of vulnerable groups," she said.
She noted that some businesses go the extra mile to care for customers and workers, and many workers take on more work to help bosses, or accept pay cuts. "If there's one thing I can say with confidence, it is this: Our economy may take a huge hit. So might jobs. But not our spirit. And never our solidarity."
All adult Singaporeans to receive one-off $600 Solidarity Payment in April 2020 to cope with COVID-19
Majority will get sum in April; another $300 or $600 in June for those entitled to more
By Yuen Sin, The Straits Times, 7 Apr 2020
All Singaporeans aged 21 and above will now receive a one-time payout of $600, said Deputy Prime Minister Heng Swee Keat yesterday, as the Government once again enhanced a payout to help households cope with the impact of the coronavirus pandemic.
This is the second time it has topped up the amount.
In February, the Government announced payouts of between $100 and $300 for every adult Singaporean, which were tripled last month to between $300 and $900, due to be distributed from August to September.
Yesterday, Mr Heng, who is also Finance Minister, announced that $300 of that payment has been brought forward to this month and supplemented with a further $300 to form what will be called the Solidarity Payment.
Mr Heng said the additional payments announced yesterday will cost the Government an extra $1.1 billion.
The rest of the payments will be made in June. All adult Singaporeans will thus receive $600 from this month, with those who qualify for more receiving a further $300 or $600 in June.
The $300 payout for each parent with at least one child aged 20 and below, and the $100 PAssion Card top-up for Singaporeans aged 50 and above this year have also been brought forward to June. The top-up will be given in cash to avoid the need for people to queue at top-up stations.
For the majority of Singaporeans who have provided their bank account details to the Government, the Solidarity Payment will be credited directly into their bank accounts by April 14, said Mr Heng.
The rest will receive the payment by cheque, to be issued in stages later, starting from April 30. Eligible citizens will be notified of their payment via SMS from April 15.
Not everyone will need these cash payouts, Mr Heng noted.
"I am very encouraged that many have written to me, my ministerial colleagues and MPs that they do not need the cash payouts, and suggested that we give these to those who need the cash more. I thank fellow Singaporeans for your thoughtfulness," he said.
He urged those who can to donate to charities on the Giving.sg website or the Community Chest's Courage Fund, or to share it directly with others.
Others who still need support can approach the social service offices and community centres to apply for new schemes such as the Temporary Relief Fund and the upcoming COVID-19 Support Grant, as well as existing ComCare schemes.
The Temporary Relief Fund, which is now open for applications, will give a one-time cash grant of $500 to those who have lost their jobs or income because of the coronavirus outbreak. The COVID-19 Support Grant, which will open for application next month, will provide longer-term financial aid and job support.
Mr Heng also urged Singaporeans to provide emotional and mental health support to their fellow citizens. He noted that the Ministry of Social and Family Development has announced that it will set up a National Care hotline to help anyone facing stress or anxiety over the COVID-19 pandemic.
"In this time of need, I am glad that mental health professionals and trained volunteers have stepped forward to offer their help in setting up the new hotline," said Mr Heng.
Majority will get sum in April; another $300 or $600 in June for those entitled to more
By Yuen Sin, The Straits Times, 7 Apr 2020
All Singaporeans aged 21 and above will now receive a one-time payout of $600, said Deputy Prime Minister Heng Swee Keat yesterday, as the Government once again enhanced a payout to help households cope with the impact of the coronavirus pandemic.
This is the second time it has topped up the amount.
In February, the Government announced payouts of between $100 and $300 for every adult Singaporean, which were tripled last month to between $300 and $900, due to be distributed from August to September.
Yesterday, Mr Heng, who is also Finance Minister, announced that $300 of that payment has been brought forward to this month and supplemented with a further $300 to form what will be called the Solidarity Payment.
Mr Heng said the additional payments announced yesterday will cost the Government an extra $1.1 billion.
The rest of the payments will be made in June. All adult Singaporeans will thus receive $600 from this month, with those who qualify for more receiving a further $300 or $600 in June.
The $300 payout for each parent with at least one child aged 20 and below, and the $100 PAssion Card top-up for Singaporeans aged 50 and above this year have also been brought forward to June. The top-up will be given in cash to avoid the need for people to queue at top-up stations.
For the majority of Singaporeans who have provided their bank account details to the Government, the Solidarity Payment will be credited directly into their bank accounts by April 14, said Mr Heng.
The rest will receive the payment by cheque, to be issued in stages later, starting from April 30. Eligible citizens will be notified of their payment via SMS from April 15.
Not everyone will need these cash payouts, Mr Heng noted.
"I am very encouraged that many have written to me, my ministerial colleagues and MPs that they do not need the cash payouts, and suggested that we give these to those who need the cash more. I thank fellow Singaporeans for your thoughtfulness," he said.
He urged those who can to donate to charities on the Giving.sg website or the Community Chest's Courage Fund, or to share it directly with others.
Others who still need support can approach the social service offices and community centres to apply for new schemes such as the Temporary Relief Fund and the upcoming COVID-19 Support Grant, as well as existing ComCare schemes.
The Temporary Relief Fund, which is now open for applications, will give a one-time cash grant of $500 to those who have lost their jobs or income because of the coronavirus outbreak. The COVID-19 Support Grant, which will open for application next month, will provide longer-term financial aid and job support.
Mr Heng also urged Singaporeans to provide emotional and mental health support to their fellow citizens. He noted that the Ministry of Social and Family Development has announced that it will set up a National Care hotline to help anyone facing stress or anxiety over the COVID-19 pandemic.
"In this time of need, I am glad that mental health professionals and trained volunteers have stepped forward to offer their help in setting up the new hotline," said Mr Heng.
COVID-19 self-employed relief scheme extended to those with some employment income, higher property annual value
NTUC to help administer applications, appeals for self-employed income relief
By Olivia Ho, Arts Correspondent, The Straits Times, 7 Apr 2020
The Self-Employed Person Income Relief Scheme (Sirs) will be extended to include self-employed people who also earn a small income from employment, as well as those who live in properties with an annual value of up to $21,000.
Deputy Prime Minister Heng Swee Keat announced these enhancements in Parliament yesterday as part of a third budget to help tide Singaporeans through the COVID-19 pandemic.
Sirs, first announced on March 26, will disburse three quarterly cash payouts of $3,000 in May, July and October this year to eligible self-employed people. But some felt the criteria were too stringent.
It previously excluded those living in properties with an annual value of more than $13,000 and those who earned any income as employees.
Mr Heng said the annual value threshold will be raised from $13,000 to $21,000. This would include most condominiums outside prime areas and some other private properties.
The scheme would also automatically include the self-employed who also earn a small income from employment work, capped at $2,300 per month, which is the current Workfare income ceiling.
With these enhancements, about 100,000 self-employed people will be eligible for the scheme - up from 88,000 previously.
Other criteria, such as the rule that the self-employed person and the spouse together must not own two or more properties, and that the spouse's assessable income must not exceed $70,000, will not change.
Mr Heng, who is also the Finance Minister, said the move to enhance Sirs follows feedback from self-employed people who have done some employment work to supplement their incomes or who have bought an executive condominium some years ago. "Their income is now severely affected by the pandemic, and they still have to support multiple family members' daily needs or medical bills."
He has also heard from others who view Sirs as overly generous, he said. "Some have asked - why do we allow self-employed persons with annual net trade income of up to $100,000 to qualify?
"Self-employed persons are a very diverse group. Some are own account workers, like taxi drivers, who engage in a trade or business but do not employ any paid workers. Others are sole proprietors, who own small businesses that have employees and a network of business relations."
Manpower Minister Josephine Teo said there is no need for self-employed people aged 37 and above who declared a positive net trade income to apply as they will be automatically notified and receive their first payout in end-May.
Other eligible self-employed people aged 21 and above may apply for the scheme, while those who narrowly miss the eligibility criteria may submit appeals through the National Trades Union Congress (NTUC).
NTUC secretary-general Ng Chee Meng said the labour movement will start facilitating appeals by April 20. In the interim, he hopes more people will apply to the $25 million NTUC Care Fund for COVID-19, which gives existing members $100 to $300 and new members $50 to $200, depending on criteria.
Other MPs called for further assistance for the self-employed.
Dr Intan Azura Mokhtar (Ang Mo Kio GRC) suggested encouraging more participation in schemes such as NTUC's Self-Employed Person Training Support Scheme, as well as more targeted employment assistance to ward against future income insecurity after the nine months of relief are up.
NTUC to help administer applications, appeals for self-employed income relief
By Olivia Ho, Arts Correspondent, The Straits Times, 7 Apr 2020
The Self-Employed Person Income Relief Scheme (Sirs) will be extended to include self-employed people who also earn a small income from employment, as well as those who live in properties with an annual value of up to $21,000.
Deputy Prime Minister Heng Swee Keat announced these enhancements in Parliament yesterday as part of a third budget to help tide Singaporeans through the COVID-19 pandemic.
Sirs, first announced on March 26, will disburse three quarterly cash payouts of $3,000 in May, July and October this year to eligible self-employed people. But some felt the criteria were too stringent.
It previously excluded those living in properties with an annual value of more than $13,000 and those who earned any income as employees.
Mr Heng said the annual value threshold will be raised from $13,000 to $21,000. This would include most condominiums outside prime areas and some other private properties.
The scheme would also automatically include the self-employed who also earn a small income from employment work, capped at $2,300 per month, which is the current Workfare income ceiling.
With these enhancements, about 100,000 self-employed people will be eligible for the scheme - up from 88,000 previously.
Mr Heng, who is also the Finance Minister, said the move to enhance Sirs follows feedback from self-employed people who have done some employment work to supplement their incomes or who have bought an executive condominium some years ago. "Their income is now severely affected by the pandemic, and they still have to support multiple family members' daily needs or medical bills."
He has also heard from others who view Sirs as overly generous, he said. "Some have asked - why do we allow self-employed persons with annual net trade income of up to $100,000 to qualify?
"Self-employed persons are a very diverse group. Some are own account workers, like taxi drivers, who engage in a trade or business but do not employ any paid workers. Others are sole proprietors, who own small businesses that have employees and a network of business relations."
Manpower Minister Josephine Teo said there is no need for self-employed people aged 37 and above who declared a positive net trade income to apply as they will be automatically notified and receive their first payout in end-May.
Other eligible self-employed people aged 21 and above may apply for the scheme, while those who narrowly miss the eligibility criteria may submit appeals through the National Trades Union Congress (NTUC).
NTUC secretary-general Ng Chee Meng said the labour movement will start facilitating appeals by April 20. In the interim, he hopes more people will apply to the $25 million NTUC Care Fund for COVID-19, which gives existing members $100 to $300 and new members $50 to $200, depending on criteria.
Other MPs called for further assistance for the self-employed.
Dr Intan Azura Mokhtar (Ang Mo Kio GRC) suggested encouraging more participation in schemes such as NTUC's Self-Employed Person Training Support Scheme, as well as more targeted employment assistance to ward against future income insecurity after the nine months of relief are up.
Solidarity Budget: Further $4 billion draw on reserves to fund third package
By Danson Cheong, The Straits Times, 7 Apr 2020
The third set of support measures announced by Deputy Prime Minister Heng Swee Keat yesterday will cost $5.1 billion, and necessitate a further draw of $4 billion from the national reserves.
President Halimah Yacob has given in-principle support for this additional draw, DPM Heng said in Parliament, as he unveiled another support package to help tide Singaporeans through the COVID-19 crisis.
She had earlier given in-principle support for a draw of $17 billion to fund the Government's second support package to help businesses and workers battered by economic fallout from the coronavirus pandemic.
Shortly after Mr Heng's statement in Parliament, the President said in a Facebook post that Prime Minister Lee Hsien Loong and Mr Heng had discussed the severity and urgency of the COVID-19 situation with her last week.
"I agreed with them that we need to provide additional support quickly and decisively," Madam Halimah said.
"We have to help businesses retain their capacity so that they can resume activities when the safe distancing measures are lifted. We should protect jobs for our workers, and give additional support to vulnerable groups."
The third package announced by Mr Heng comes ahead of a government-mandated shutdown of most workplaces and all schools to stem the spread of the coronavirus. Dubbed a "circuit breaker", it is meant to cut down movement and social interactions outside of homes to break the chain of transmission of the virus.
While these "significantly stricter pre-emptive measures" are needed to protect Singaporeans and their families, both Mr Heng and Madam Halimah acknowledged that workers and businesses will be severely impacted.
Said Mr Heng, who is also Finance Minister: "Additional support will be required to save jobs, preserve capabilities, and provide immediate direct assistance to Singaporeans to help them tide through this exceptional and difficult period."
The additional drawdown of $4 billion will fund enhanced wage support for businesses and cash payouts for all Singaporeans, among other support measures.
The Solidarity Budget follows two initial tranches of support - the Unity Budget (announced during the Budget in February) and the Resilience Budget (a supplementary budget unveiled last month).
Altogether, the Government's response to the COVID-19 pandemic will cost $59.9 billion in total, or 12 per cent of Singapore's gross domestic product (GDP), said the Deputy Prime Minister.
The country's overall Budget deficit for the 2020 financial year will increase to $44.3 billion, or 8.9 per cent of GDP, Mr Heng added.
"This is an unprecedented Budget, for extraordinary times. The situation remains highly fluid and uncertain. The Government stands ready to provide further support, should it become necessary," he said.
Madam Halimah said Singapore was entering a critical phase in its fight against COVID-19, and urged people to adhere to the circuit breaker measures to avert an exponential rise in the number of cases.
"Let us all do our part, and support one another during this difficult period," she added.
By Danson Cheong, The Straits Times, 7 Apr 2020
The third set of support measures announced by Deputy Prime Minister Heng Swee Keat yesterday will cost $5.1 billion, and necessitate a further draw of $4 billion from the national reserves.
President Halimah Yacob has given in-principle support for this additional draw, DPM Heng said in Parliament, as he unveiled another support package to help tide Singaporeans through the COVID-19 crisis.
She had earlier given in-principle support for a draw of $17 billion to fund the Government's second support package to help businesses and workers battered by economic fallout from the coronavirus pandemic.
Shortly after Mr Heng's statement in Parliament, the President said in a Facebook post that Prime Minister Lee Hsien Loong and Mr Heng had discussed the severity and urgency of the COVID-19 situation with her last week.
"I agreed with them that we need to provide additional support quickly and decisively," Madam Halimah said.
"We have to help businesses retain their capacity so that they can resume activities when the safe distancing measures are lifted. We should protect jobs for our workers, and give additional support to vulnerable groups."
The third package announced by Mr Heng comes ahead of a government-mandated shutdown of most workplaces and all schools to stem the spread of the coronavirus. Dubbed a "circuit breaker", it is meant to cut down movement and social interactions outside of homes to break the chain of transmission of the virus.
While these "significantly stricter pre-emptive measures" are needed to protect Singaporeans and their families, both Mr Heng and Madam Halimah acknowledged that workers and businesses will be severely impacted.
Said Mr Heng, who is also Finance Minister: "Additional support will be required to save jobs, preserve capabilities, and provide immediate direct assistance to Singaporeans to help them tide through this exceptional and difficult period."
The additional drawdown of $4 billion will fund enhanced wage support for businesses and cash payouts for all Singaporeans, among other support measures.
The Solidarity Budget follows two initial tranches of support - the Unity Budget (announced during the Budget in February) and the Resilience Budget (a supplementary budget unveiled last month).
Altogether, the Government's response to the COVID-19 pandemic will cost $59.9 billion in total, or 12 per cent of Singapore's gross domestic product (GDP), said the Deputy Prime Minister.
The country's overall Budget deficit for the 2020 financial year will increase to $44.3 billion, or 8.9 per cent of GDP, Mr Heng added.
"This is an unprecedented Budget, for extraordinary times. The situation remains highly fluid and uncertain. The Government stands ready to provide further support, should it become necessary," he said.
Madam Halimah said Singapore was entering a critical phase in its fight against COVID-19, and urged people to adhere to the circuit breaker measures to avert an exponential rise in the number of cases.
"Let us all do our part, and support one another during this difficult period," she added.
Coronavirus: Solidarity Budget is fiscal equivalent of a CPR for economy
In exceptional times, better for fiscal policy to err on the side of doing more rather than less
By Grace Ho, The Straits Times, 7 Apr 2020
The world economy, like it or not, is experiencing cardiac arrest from the scourge of COVID-19.
If February's Unity Budget can be likened to preventive medicine - and the Resilience Budget in March, intensive care - then the Solidarity Budget announced yesterday is the fiscal equivalent of cardiopulmonary resuscitation (CPR).
Three rounds of support measures in six weeks is a national record. Even during the severe acute respiratory syndrome (Sars) outbreak in 2003, a second supplementary budget was announced only in the second half of the year.
But there is no time to lose. A record 120 more COVID-19 cases were announced here on Sunday, of which four were imported and 116 local.
To stem the growing community spread of COVID-19, most workplaces and retail outlets will be shuttered for one month from today, except those in key economic sectors and essential services. All schools will move to home-based learning from tomorrow.
Countries around the world are attempting a high-wire act of slowing their economies down to deal with a health shock, while not holding things too far back that a rebound becomes impossible.
Singapore is no exception. As Deputy Prime Minister Heng Swee Keat said in Parliament yesterday, the country must take short-term pains to avoid even sharper pain later. "Otherwise, if the outbreak escalates, the impact on lives and livelihoods will be even worse," he said.
It was inevitable that more government support would be needed to cushion the blow of widespread closures. Just what this looks like, was revealed yesterday:
For households, more direct cash in hand - $600 per adult Singaporean - and earlier.
For firms and workers, additional support for wage costs, cash flow and credit.
Firms in all sectors will have 75 per cent of their local employees' wages subsidised for the month of April. The subsidy applies to the first $4,600 of wages paid this month.
The monthly foreign worker levy due this month will be waived. There will also be a foreign worker levy rebate of $750 for each work permit or S pass holder.
A Bill will be tabled today to compel landlords to pass on property tax rebates in full to tenants.
Support for self-employed persons will be broadened to cover those who earn a small income from employment work, including some who live in private property.
The additional boost will draw upon another $4 billion of the nation's past reserves, on top of the $17 billion announced on March 26.
The broad-based Solidarity Budget, crafted with feedback from concerned industry and citizens, is certainly welcome.
Could the Government have done more to pre-empt the economic devastation? Of course, given the substantial reserves at hand. But it has already shown a willingness to scale up its fiscal stimulus significantly in just over six weeks.
The pandemic is evolving by the day. Much remains unknown about the disease's trajectory, or the full repercussions of containment measures applied around the world. A measured approach now is therefore appropriate.
Should the pandemic be prolonged, however, policymakers may be forced to reckon with the need to think out of the box.
Rebates, wage subsidies, cash transfers and bridging loans may be tried-and-tested policy tools, applied during almost all of Singapore's past economic crises.
But as the months - even years - drag on, can the public service bear the administrative load of assessing individual cases on a needs basis?
Already, civil servants are working round the clock to handle queries from affected companies and citizens. A whopping 100,000 have applied for the Temporary Relief Fund (TRF) since it was launched less than a week ago.
Can automatic disbursements work without being abused? Means testing could take too long for those whose earnings have dried up overnight.
Nominated MP Anthea Ong suggested such a mechanism for the TRF and COVID-19 Support Grant, using self-declaration or proxy indicators like changes in Central Provident Fund contributions.
More fundamentally, the COVID-19 outbreak has laid bare the truth that society is only as strong as its weakest link.
Foreign workers housed in crowded living conditions have created a perfect storm for rapid infection. Nearly 20,000 workers in two dormitories, which account for 90 of the COVID-19 cases so far, will be quarantined in their rooms for 14 days.
Meanwhile, rich parents have clamoured for schools to be shut, while poor parents appealed for them to remain open, as they did not have the option to work from home, said Mr Ong Teng Koon (Marsiling Yew-Tee GRC).
Will recent measures, such as grocery vouchers for the poor and protection for the self-employed, represent a new policy normal?
With cleaning, security and other services hobbled by lockdowns in neighbouring countries, can more locals fill such positions so that there are fewer disruptions when the next crisis comes around?
After all, as Mr Ong pointed out, the pandemic has shown that cleaners, nurses, caregivers, utility workers and delivery workers are the real heroes who ought to be rewarded in a manner commensurate with their worth.
Said Workers' Party chief Pritam Singh (Aljunied GRC): "A thorough review of what a living wage in Singapore ought to be, for Singaporeans who man our critical infrastructure and keep the country's heart beating, would be appropriate and timely.
"Only then can we say we are a people who leave no one behind."
No policy or distribution channel works perfectly. Despite the best of efforts, reaching those who need it the most can be difficult.
The implication is that, whatever combination of delivery is chosen, it is better for fiscal policy right now to err on the side of doing more rather than less. Providing immediate relief is essential to prevent extreme suffering and permanent damage to the economy.
In exceptional times, better for fiscal policy to err on the side of doing more rather than less
By Grace Ho, The Straits Times, 7 Apr 2020
If February's Unity Budget can be likened to preventive medicine - and the Resilience Budget in March, intensive care - then the Solidarity Budget announced yesterday is the fiscal equivalent of cardiopulmonary resuscitation (CPR).
Three rounds of support measures in six weeks is a national record. Even during the severe acute respiratory syndrome (Sars) outbreak in 2003, a second supplementary budget was announced only in the second half of the year.
But there is no time to lose. A record 120 more COVID-19 cases were announced here on Sunday, of which four were imported and 116 local.
To stem the growing community spread of COVID-19, most workplaces and retail outlets will be shuttered for one month from today, except those in key economic sectors and essential services. All schools will move to home-based learning from tomorrow.
Countries around the world are attempting a high-wire act of slowing their economies down to deal with a health shock, while not holding things too far back that a rebound becomes impossible.
Singapore is no exception. As Deputy Prime Minister Heng Swee Keat said in Parliament yesterday, the country must take short-term pains to avoid even sharper pain later. "Otherwise, if the outbreak escalates, the impact on lives and livelihoods will be even worse," he said.
It was inevitable that more government support would be needed to cushion the blow of widespread closures. Just what this looks like, was revealed yesterday:
For households, more direct cash in hand - $600 per adult Singaporean - and earlier.
For firms and workers, additional support for wage costs, cash flow and credit.
Firms in all sectors will have 75 per cent of their local employees' wages subsidised for the month of April. The subsidy applies to the first $4,600 of wages paid this month.
The monthly foreign worker levy due this month will be waived. There will also be a foreign worker levy rebate of $750 for each work permit or S pass holder.
A Bill will be tabled today to compel landlords to pass on property tax rebates in full to tenants.
Support for self-employed persons will be broadened to cover those who earn a small income from employment work, including some who live in private property.
The additional boost will draw upon another $4 billion of the nation's past reserves, on top of the $17 billion announced on March 26.
The broad-based Solidarity Budget, crafted with feedback from concerned industry and citizens, is certainly welcome.
Could the Government have done more to pre-empt the economic devastation? Of course, given the substantial reserves at hand. But it has already shown a willingness to scale up its fiscal stimulus significantly in just over six weeks.
The pandemic is evolving by the day. Much remains unknown about the disease's trajectory, or the full repercussions of containment measures applied around the world. A measured approach now is therefore appropriate.
Should the pandemic be prolonged, however, policymakers may be forced to reckon with the need to think out of the box.
Rebates, wage subsidies, cash transfers and bridging loans may be tried-and-tested policy tools, applied during almost all of Singapore's past economic crises.
But as the months - even years - drag on, can the public service bear the administrative load of assessing individual cases on a needs basis?
Already, civil servants are working round the clock to handle queries from affected companies and citizens. A whopping 100,000 have applied for the Temporary Relief Fund (TRF) since it was launched less than a week ago.
Can automatic disbursements work without being abused? Means testing could take too long for those whose earnings have dried up overnight.
Nominated MP Anthea Ong suggested such a mechanism for the TRF and COVID-19 Support Grant, using self-declaration or proxy indicators like changes in Central Provident Fund contributions.
More fundamentally, the COVID-19 outbreak has laid bare the truth that society is only as strong as its weakest link.
Foreign workers housed in crowded living conditions have created a perfect storm for rapid infection. Nearly 20,000 workers in two dormitories, which account for 90 of the COVID-19 cases so far, will be quarantined in their rooms for 14 days.
Meanwhile, rich parents have clamoured for schools to be shut, while poor parents appealed for them to remain open, as they did not have the option to work from home, said Mr Ong Teng Koon (Marsiling Yew-Tee GRC).
Will recent measures, such as grocery vouchers for the poor and protection for the self-employed, represent a new policy normal?
With cleaning, security and other services hobbled by lockdowns in neighbouring countries, can more locals fill such positions so that there are fewer disruptions when the next crisis comes around?
Said Workers' Party chief Pritam Singh (Aljunied GRC): "A thorough review of what a living wage in Singapore ought to be, for Singaporeans who man our critical infrastructure and keep the country's heart beating, would be appropriate and timely.
"Only then can we say we are a people who leave no one behind."
No policy or distribution channel works perfectly. Despite the best of efforts, reaching those who need it the most can be difficult.
The implication is that, whatever combination of delivery is chosen, it is better for fiscal policy right now to err on the side of doing more rather than less. Providing immediate relief is essential to prevent extreme suffering and permanent damage to the economy.
Related
Parliament passes both the Resilience and Solidarity Budgets in Singapore's fight against COVID-19
Solidarity Budget
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
Parliament passes both the Resilience and Solidarity Budgets in Singapore's fight against COVID-19
Solidarity Budget
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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