Singapore planning for possible future where COVID-19 is endemic: Lawrence Wong

$800 million COVID-19 support package for Singapore firms and workers, including more wage subsidies, rental relief during Phase 2 (Heightened Alert)

By Linette Lai, Political Correspondent, The Straits Times, 29 May 2021

Singapore has started planning for the possibility that Covid-19 may become endemic here, Finance Minister Lawrence Wong said yesterday.

This could mean Singaporeans will need to get booster jabs from time to time, he noted.

In the coming months, better treatments could also be developed for the disease, making it less of something to fear, he added at a virtual media conference.

But even then, the country may have to take basic precautions - for example, with regard to ventilation systems and buildings - to minimise the risk of infection.

"When will it happen? I really can't say," Mr Wong replied in response to a reporter's question on when the virus will be considered endemic here.

"But we are indeed planning for a plausible scenario down the road where scientists around the world... come to the conclusion that it is not going to be possible to eradicate this virus - it is never going to go away, and we then have to learn to live with it."

The minister was speaking at a media conference to announce extra help for individuals and businesses impacted by the tightened measures on social interaction. The $800 million package of support measures will be debated at the next Parliament sitting in July.

At the virtual event, Mr Wong was asked how Singaporeans might go about their daily lives in the coming years, given that it seems difficult to picture the current restrictions on mask wearing and social gatherings lasting for a long time.

"I can't even predict what is going to happen next month," he replied. "So, I don't know that it is so easy to tell you what is going to happen years down the road because the situation is really very uncertain."

$800 million COVID-19 support package to help firms, workers

It includes enhanced wage subsidies, rental relief, one-off payouts to eligible workers

By Yuen Sin, The Straits Times, 29 May 2021

An $800 million support package that includes enhanced wage subsidies under the Jobs Support Scheme (JSS) and rental relief will be rolled out to help businesses and workers cope with the impact of tightened Covid-19 restrictions.

Announcing the measures yesterday, Finance Minister Lawrence Wong said affected gyms, fitness studios, and performing arts and arts education centres will get 50 per cent of salary support for local employees under the JSS - the same as what food and beverage operators are currently receiving.

Sectors that do not have to suspend operations but are significantly affected by the measures will get 30 per cent of JSS subsidies.

This will help retailers, personal care service providers, museums, art galleries, historical sites, cinemas, indoor playgrounds and other family entertainment centres.

However, supermarkets, convenience stores and online retailers will not be eligible for the enhanced wage support.

Rental relief will be given to eligible small and medium-sized enterprises as well as non-profit organisations in qualifying commercial properties, Mr Wong said.

Eligible lower-and middle-income workers and self-employed workers whose income has been affected can also receive a one-off payout of up to $700 under a new temporary grant.

The Ministry of Finance (MOF) said yesterday that the enhanced JSS payouts, which are based on wages paid from April to next month, will be disbursed in September.

Employers who put local employees on mandatory no-pay leave or retrench them will not be eligible for JSS payouts for those employees, MOF said.

"I would encourage businesses to make full use of their enhanced JSS to retain and pay their workers during this period," said Mr Wong.

The various support measures for those affected by the phase two (heightened alert) restrictions from May 16 to June 13 will not require an additional draw on past reserves, he said.

Instead, they will be funded through a reallocation of spending.

DPM Heng Swee Keat steps aside as leader of 4G team on 8 April 2021

PM Lee Hsien Loong to stay on until new 4G leader is chosen to replace DPM Heng

Cabinet reshuffle to be announced in two weeks; Heng to give up finance portfolio, remain in Cabinet as DPM and also Coordinating Minister for Economic Policies

Same leadership team remains in place to deal with foreign countries, investors

4G ministers to pick new leader as Heng Swee Keat steps aside, setting back Singapore's succession plan for next Prime Minister

By Sumiko Tan, Executive Editor, The Straits Times, 9 Apr 2021

Deputy Prime Minister Heng Swee Keat has decided to step aside as leader of the People's Action Party's fourth-generation (4G) team, and pave the way for a younger person with a longer runway to lead the country when Prime Minister Lee Hsien Loong retires.

Mr Heng, who turns 60 this year, cited the long-term and profound challenges of the Covid-19 pandemic, his age and the demands of the top job as reasons for his decision.

"This year, I am 60. As the crisis will be prolonged, I would be close to the mid-60s when the crisis is over. The 60s are still a very productive time of life," he said.

"But when I also consider the ages at which our first three prime ministers took on the job, I would have too short a runway should I become the next prime minister then. We need a leader who will not only rebuild Singapore post-Covid-19, but also lead the next phase of our nation-building effort."

Singapore's first prime minister Lee Kuan Yew was 35 when he took on the job, his successor Goh Chok Tong was 49 and PM Lee was 52.

Mr Heng, who said his decision was taken after careful deliberation and discussion with his family, said: "I have decided to step aside as leader of the 4G team so that a younger leader who will have a longer runway can take over." He added that he had made the decision with the best interests of Singapore and Singaporeans at heart.

PM Lee said he understood and respected Mr Heng's decision. Mr Heng will stay on in the Cabinet as DPM and Coordinating Minister for Economic Policies. As had been earlier planned between the two men, he will relinquish his finance portfolio when a Cabinet reshuffle takes place in two weeks. Mr Heng will also remain the PAP's first assistant secretary-general.

Noting that Mr Heng has done exceptional work as Minister for Finance, especially in the past year, PM Lee said: "I thank you for your selfless decision to stand aside. Your actions now are fully in keeping with the spirit of public service and sense of duty that motivated you to step forward when I asked you to stand for election in 2011."

The 4G leadership issued a statement saying it respected and accepted Mr Heng's decision, and that it must have been a difficult one to make. "But no one could have foreseen the disruption of Covid-19, the great uncertainty it has created and its long-lasting impact. We know that he has made the decision with Singapore's long-term interests at heart."

The statement, which bore the names of 30 office-holders, the Speaker of Parliament and the secretary-general of the NTUC, noted the critical role Mr Heng played in leading key initiatives, including delivering five Budgets last year.

It also said that tackling Singapore's pressing immediate challenges and ensuring that the country emerges stronger from this crisis remain the foremost priority.

"Under these circumstances, the 4G team will need more time to select another leader from amongst us. We have therefore requested PM Lee Hsien Loong to stay on as Prime Minister until such time when a new successor is chosen by the team and is ready to take over. We are grateful that PM has agreed to our request."

The statement added that this "unexpected turn of events is a setback for our succession planning", and sought Singaporeans' support and understanding.

The shocking news was announced at a 4.30pm news conference at the Istana yesterday. Facing the media were PM Lee, Mr Heng and seven other ministers who are in the PAP central executive committee. They included 4G ministers Chan Chun Sing and Ong Ye Kung, both 51, who had in earlier years been touted as contenders for the role of 4G leader, as well as younger ministers Lawrence Wong, 48, and Desmond Lee, 44.

Mr Heng, a former top civil servant, had been chosen by his PAP peers as "first among equals" in 2018, and was on track to be Singapore's fourth prime minister when PM Lee retired. While there was a question mark about his health after he had a brain aneurysm during a Cabinet meeting in May 2016, he fully recovered.

PM Lee, 69, had said he aimed to hand over the reins of power by the age of 70 in February next year. But the pandemic appeared to have affected the succession timeline. In July last year, when Singapore held its general election, PM Lee said he would see Singapore through the crisis and hand the country over "intact and in working order" to his successor.

Speaking at the news conference, Mr Heng - who was his usual relaxed and smiling self - said that when he joined politics, it was not with an ambition to become the prime minister.

Asked if the 2020 General Election results had a part to play in his decision, Mr Heng said it had not. In a surprise move, he had moved from his Tampines GRC ward to East Coast GRC. The PAP won East Coast GRC, considered a shakier ward for the party, with 53.41 per cent of the votes.

On when the 4G might decide on a new leader, PM Lee said: "I think they will take longer than a few months, but I hope that they will reach a consensus and identify a new leader before the next general election. I have no intention of staying on longer than necessary."

Budget 2021 debate in Parliament

Singapore must press on with plans for next growth phase, says DPM Heng

It is investing in growth areas, and skills for new jobs, to emerge stronger from the crisis

By Linette Lai, Political Correspondent, The Straits Times, 27 Feb 2021

With a narrow window of opportunity in which to transform its economy, Singapore has to press ahead with planned investments in order to secure its next decade of growth, Deputy Prime Minister and Finance Minister Heng Swee Keat said yesterday.

Doing so would enable the economy to provide jobs in new areas even as it restructures, and enable the country to emerge stronger after the Covid-19 pandemic has passed.

And if it has to draw on the country's reserves to do so, it should do its best to make good on the draw, he told Parliament.

"Now is the time to chart our course, position ourselves to catch the winds of opportunity and sail boldly in the reshaped world," he said in his speech rounding up three days of debate in which 65 MPs spoke.

Mr Heng set out what it means for Singapore to emerge stronger together - the theme of this year's $107 billion Budget - and stressed that the Government cannot do this all alone.

"The Government is committed to put in the investments," he said. "To succeed, every Singaporean must come together to build the Singapore that we want."

By creating opportunities for workers to acquire skills needed for the new jobs of the future, the Government would help them stay employable, and also help prevent a "Covid-19 generation" of young people without jobs.

He called on businesses to look beyond hiring just "plug and play" workers and consider taking on those with potential to learn. At the same time, job seekers should keep an open mind, taking the initiative to build new skills and staying receptive to new job roles.

Singaporeans must also look out for one another, he said, adding that the Government will push ahead with plans to develop deeper capabilities in the social sector.

At the same time, Singapore has to consider how to pay for the choices it makes, Mr Heng said, noting that discussions on building a society with better social safety nets are "only one half of the conversation".

"We must be upfront - if we want to spend more, we have to raise the revenue," he said, reiterating that the impending goods and services tax (GST) hike from 7 per cent to 9 per cent, which will take place soon, between next year and 2025, is necessary to fund Singapore's rising spending needs in areas such as healthcare.

"Economic growth alone is not likely to raise enough revenues to fully meet our needs," he added. "The honest, but hard, conclusion is that we will need to raise more tax revenue."

The GST hike will be matched with a $6 billion Assurance Package that effectively delays its effect for at least five years for most Singaporean households, he said.

Mr Heng acknowledged that it is natural for everyone to look out for what is new in each year's Budget. But Singaporeans should also appreciate what is already there, and look at the nation's spending in totality over the years, he said.

Over the past decade, Singapore has been gradually tilting its system of taxes and financial transfers in favour of lower-and middle-income groups, he noted.

This year, a member of a lower-income citizen household can expect benefits of $6,500 after taxes on average, and a member of a middle-income household gets $3,500. In contrast, a member of a household in the highest income group pays around $9,500 in taxes, after accounting for benefits, he said.

Mr Heng also addressed concerns MPs raised that this year's Budget appears to have little short-term support for middle-income households. This is not so, he said, noting the $42 billion set aside for social spending and transfers on top of security spending and economic investments, all of which benefit Singaporeans.

"We should not look at each Budget in terms of 'goodies for me', but whether the totality of the spending creates more opportunities for us and our children."

He also cited Nominated MP Hoon Hian Teck, who on Wednesday articulated Singapore's need to balance stabilising the economy to avoid a sharp downturn, and investing in structural policies for transformation.

Mr Heng also noted how Mr Shawn Huang (Jurong GRC) put it aptly when he said that for Singapore to survive, it had to pivot and develop an edge to seize opportunities of the future. "If we get this right, we can set our economy on the path of growth for the next five to 10 years," said the DPM.

Singapore Budget 2021: Emerging Stronger Together

$11 billion set aside to fight COVID-19, $24 billion to help Singapore emerge stronger from crisis

DPM Heng Swee Keat unveils Budget to tackle current crisis, with eye on future challenges as well

By Linette Lai, Political Correspondent, The Straits Times, 17 Feb 2021

Against a backdrop of global uncertainty amplified by the pandemic, Deputy Prime Minister Heng Swee Keat yesterday delivered a Budget finely balanced between providing immediate help to sectors under stress, and investing in Singapore's long-term future.

The $107 billion plan - the first full Budget in the Government's new term - includes an $11 billion Covid-19 Resilience Package. This will help safeguard public health and support the workers and businesses that need help, with extra money going to the hardest-hit sectors, such as aviation and tourism.

The Jobs Support Scheme, which helped stave off retrenchments last year, will be extended until September, but in a more targeted and tapering way. This will cost $700 million.

Job seekers also got a helping hand, with another $5.4 billion set aside for a fresh injection into the SGUnited Jobs and Skills Package. This is on top of the $3 billion set aside last year and will support the hiring of 200,000 locals through the Jobs Growth Incentive and provide up to 35,000 traineeship and training opportunities this year.

In addition, Mr Heng pledged to allocate $24 billion across the next three years to enable Singapore's firms and workers to emerge stronger from the crisis.

The country's investments to equip its people to seize opportunities and help businesses innovate are what distinguish it from others, said Mr Heng, who is also Finance Minister.

"While last year's Budgets were tilted towards emergency support in a broad-based way, this year's Budget will focus on accelerating structural adaptions," he added in a speech that lasted just over two hours and underscored the need to make the country's businesses and workers future-ready.

Mr Heng announced that the salaries of nurses and other healthcare workers, who have been on the forefront of the fight against Covid-19, will be enhanced, with details to be disclosed later.

He also unveiled a $900 million Household Support Package of utility grants and GST and cash vouchers to help all families, but targeted most at lower-to middle-income households.

And in line with Singapore's long-term goal to become a more sustainable society, measures will be introduced to encourage the adoption of electric vehicles, with green bonds to be issued on select public infrastructure projects.

In a Facebook post last evening, Prime Minister Lee Hsien Loong said: "While grappling with the pandemic, we must not neglect the future. Hence the Budget has many items that build our capabilities and competitiveness. When the sun shines again, we must be ready to seize the new opportunities."

All these measures mean that Singapore will see a Budget deficit of $11 billion, following last year's deficit of $64.9 billion.

Running a fiscal deficit to support targeted relief is warranted in the immediate term, given the unprecedented impact of Covid-19, Mr Heng said. But Singapore's recurrent spending needs in areas such as healthcare will continue to rise, and the country must meet these needs in a "disciplined and sustainable way", he said, adding that beyond this crisis, "we must return to running balanced budgets".

Singapore will tap its reserves to fund the $11 billion Covid-19 Resilience Package. But Mr Heng pointed out that the nation expects to utilise only $42.7 billion of past reserves for the last financial year, against the $52 billion that had been provided for.

This means the total expected draw over two years will amount to $53.7 billion - a net increase of $1.7 billion from what Singapore expected to draw from its reserves to respond to the crisis. President Halimah Yacob has given her in-principle support for the draw, he added.

Singapore's spending needs mean the impending GST hike, slated to take place some time between next year and 2025, will happen "sooner rather than later". Its exact timing will depend on Singapore's economic outlook, Mr Heng said, adding that the country will not be able to meet rising recurrent needs without the increase. He reiterated that $6 billion has already been set aside under last year's Budget to defray the impact of this tax hike on the majority of Singaporean households by at least five years.

Petrol duties have also been raised for the first time in six years, and take place with immediate effect, with road tax rebates in place to cushion the impact of this hike.

From January 2023, GST will also be extended to low-value goods to ensure a level playing field for local businesses to compete effectively.

In order to finance long-term infrastructure such as new MRT lines that will benefit both current and future generations, the Government will also issue up to $90 billion in new bonds under a law to be tabled later this year.

On the topic of foreign manpower, Mr Heng said foreigners with the right expertise are a welcome complement to Singaporeans in areas where the country is short on skills. But foreign worker quotas will be tightened in the manufacturing sector, where the local workforce has to deepen its skills.

"The way forward is neither to have few or no foreign workers, nor to have a big inflow," he said. "We have to accept what this little island can accommodate."

Singapore expects its revenues will be able to support projected expenditure from all proposed measures as the economy recovers.

But this assumes the global Covid-19 situation comes under control by next year, said Mr Heng. Otherwise, the Government will seek the President's consideration to again tap past reserves.

"We have carefully thought through the different scenarios. While we expect recovery in Singapore and globally, there is a wide cone of uncertainty," he added.

"Even if the economic and fiscal situation turns out to be worse than expected, we must still press on to invest in new areas, so as to ride on the structural changes, transform and emerge stronger as an economy, and as a people."

Matched Retirement Savings Scheme: 440,000 CPF members eligible for new scheme with government matching retirement account top-ups from 2021

Govt will match cash top-ups of up to $600 a year in their CPF Retirement Account for 5 years from 2021 to 2025

By Sue-Ann Tan, The Straits Times, 7 Jan 2021

Thousands of people are set to get matching sums of up to $600 a year to top up their Central Provident Fund (CPF) Retirement Account, under a new scheme which kicks off this year.

The move to help more older CPF members attain the Basic Retirement Sum and provide them with retirement adequacy comes through the Matched Retirement Savings Scheme, which will benefit some 440,000 people. They account for about 53 per cent of CPF members aged between 55 and 70, said the CPF Board yesterday.

The scheme allows anyone, including family members, employers or members of the community, to make top-ups to a person's Retirement Account. Each dollar of cash top-up will be matched by the Government for the next five years, capped at $600 per year.

Top-ups can be made on the CPF website or mobile app. They also do not have to be made in a lump sum. This means that those who make small and regular top-ups throughout the year using Giro can receive the matching grant.

CPF Board chief executive Augustin Lee said: "About half of CPF members turning 55 today have yet to attain the Basic Retirement Sum. This matching grant by the Government will encourage them to save more with CPF.

"There's no better savings interest rate than what CPF pays now. We hope their loved ones and the wider community can also pitch in. Even small amounts saved consistently can go a long way in securing CPF members' retirement needs."

Those who are eligible for the scheme must be between 55 and 70 years old, and have less than the Basic Retirement Sum of $93,000 this year in their Retirement Account.

Other criteria include average monthly income, annual value of their residence, and property ownership.

Eligible members will be notified by the CPF Board this month. They can also check their eligibility on the CPF website.

Ms Selena Ling, OCBC Bank's head of treasury research and strategy, said: "Retirement adequacy concerns are increasingly pertinent for an ageing population like Singapore's... While current inflationary pressures are mild due to the pandemic, nevertheless, inflation levels are expected to return to positive territory this year and Singaporeans are also living longer."

Associate Professor Lawrence Loh from the National University of Singapore Business School added: "The matching incentive will help develop a habit of augmenting the retirement funds early in the CPF contributor's life."

The CPF Board is also partnering grassroots leaders to encourage the community to build up the retirement savings of the vulnerable.

Donors from Bukit Timah pitched in to help 100 residents, with the first batch of top-ups made yesterday.

PM Lee Hsien Loong on Future of Trade at the Bloomberg New Economy Forum 2020

PM Lee hopes US President-elect Biden will build constructive ties with China

This means both countries may compete but ultimately do not want to collide, he says

By Linette Lai, Political Correspondent, The Straits Times, 18 Nov 2020

Asia - and especially China - is an important part of the world for America, said Prime Minister Lee Hsien Loong yesterday, expressing his hope that US President-elect Joe Biden will develop a framework for an overall constructive relationship with Beijing.

This means a relationship in which both powers remain in competition with issues to resolve, but ultimately do not want to collide and will work to develop areas of common interests while constraining the areas of disagreement, he said at the Bloomberg New Economy Forum, which is being held virtually.

Within this framework, topics such as trade, security, climate change, nuclear non-proliferation and the issue of North Korea can be dealt with, he added.

He also expressed the hope that the World Trade Organisation, under the Biden administration, will no longer be "deliberately pushed to one side" in the way it has been under the Trump administration.

Countries may quarrel over many things, but they should try to "insulate" trade because trade disputes hurt all parties involved, he said.

"The more countries avoid doing that, the more it will be credible when they say we believe in multilateral trade, and they believe in win-win development and cooperation with our neighbours."

PM Lee was speaking to Bloomberg News editor-in-chief John Micklethwait in a wide-ranging interview.

Asked if President Donald Trump has done "permanent damage" to the way the United States is viewed in the region, PM Lee said there will be some long-term impact on how America is viewed, as well as how it views itself. Although the shift in perspective did not start with Mr Trump, it has become more evident in the last four years, he added.

"When you talk about putting America first and making America great again, it is a more narrow definition of where America's interests lie than has hitherto been the way US administrations have seen things," PM Lee said.

Previous administrations took a broad interest in the region's stability and the well-being of the country's partners, he noted. It tended its alliances, fostering an orderly environment and subjecting itself to the same rules.

"It will take some time for America to come back to such a position, and for others to be convinced that it is taking such a position," PM Lee said. "It may never come back all the way, certainly in the short term and certainly in terms of its relationship with China."

But he also noted Mr Biden knows Chinese President Xi Jinping very well. "That personal engagement at the top is important," he said, when asked how Mr Biden might deal with China on issues like human rights.

Equally important is how each country sees the other and the intentions of the other, he added.

The Chinese, for their part, do not want a collision with America. But at the same time, PM Lee said, "I am not sure that they are prepared to give a lot of ground."

China is likely to hold the view that its growing affluence and power have resulted in a win-win situation for the world, he said. "Things have gotten better, yet many countries do feel that things do need to be adjusted. That adjustment will be very difficult to make."

On Mr Biden's pledge to convene a global summit of democracies in the first year of his presidency, PM Lee said most countries want to work with the US but few would be willing to join a coalition that excludes players like China.

All countries should be involved in working out adjustments to the world order, he said. In the process, alliances will form and cooperation will take place, he added. "But to try and make a line-up, Cold War-style, I do not think that is on the cards."

On whether the US will rejoin the Comprehensive and Progressive Agreement for Trans-Pacific Partnership trade agreement, PM Lee replied that this is not likely to happen any time soon.

"The stars are not aligned," he said. "I still think that it makes sense for the US, but it has to make domestic political sense as well. That will take time and a different alignment of the economic situation as well as the political configuration in the US."

As for whether Mr Biden could reach out to Asia when he becomes president, PM Lee said that it is a possibility, but Asia will be just one of the Biden administration's many priorities.

He also said the domestic forces represented by Mr Trump persist, and will have to be dealt with.

"I hope that it will be a new direction for America, but do not forget that Mr Trump collected more votes than Barack Obama," he said, referencing the former US president.

PM Lee added of Mr Trump: "He has not disappeared, nor the pressures which he represented - they have not disappeared from America's body politic either."

At the same time, China has come to realise that having an America that is "at sixes and sevens" is not much to their advantage, the Prime Minister said.

"It is better to have somebody there who may not fully agree with you, but understands his interest in a broad way and whom you can deal with," he said. "With Biden, maybe they will decide that they want a new try. I hope so. It is not easy to do this."

DPM Heng Swee Keat outlines Singapore's plans to get through COVID-19 pandemic and emerge stronger in Ministerial Statement on 5 October 2020

Economic support measures could save 155,000 jobs, pave way for future: Deputy Prime Minister Heng Swee Keat

Singpore's plan not just to get through pandemic but gain ground for next lap of growth as well

By Linette Lai, Political Correspondent, The Straits Times, 6 Oct 2020

The economic support measures being rolled out during the current crisis could save around 155,000 jobs over this year and the next, cushioning the rise in the resident unemployment rate by about 1.7 percentage points this year, said Deputy Prime Minister Heng Swee Keat yesterday.

More than half of the jobs saved are due to the Jobs Support Scheme alone, he said, adding that there will still be job losses.

The Monetary Authority of Singapore has also estimated that the four combined Budgets will prevent the economy from contracting by a further 5.6 per cent of Singapore's gross domestic product this year, and 4.8 per cent next year, he added.

Addressing Parliament ahead of a third Supplementary Supply Bill, Mr Heng said Singapore's plan is not simply to get through the pandemic. The objective at this "critical juncture" is to gain ground that will pave the way for the country's next lap of economic growth over the next five to 10 years, he said.

Laying out the Government's plans for growth, Mr Heng, who is also Coordinating Minister for Economic Policies and Finance Minister, added: "Let me stress that everything this Government does to protect, reopen and grow our economy - we do, not for the economy's sake, but for our people.

"We strive to secure a way for Singapore to continue to make a good living, so that Singaporeans can have a good life. This is our guiding principle."

In August, Mr Heng announced that another $8 billion would be spent to save jobs, create new ones and seize new growth opportunities.

The third Supplementary Supply Bill, which provides for this, will go through the usual parliamentary proceedings. It is scheduled to be debated by MPs next week, and has to be assented to by the President.

In his speech yesterday, Mr Heng outlined Singapore's progress in its fight against COVID-19. The multi-ministerial task force handling the crisis will release more details on the third and final stage of the country's phased reopening in the coming weeks, he said.

He also pledged to continue supporting households and added that support for businesses and workers will not taper off too sharply, even as Singapore shifts its approach to helping save jobs and firms.

On top of this, several support schemes will be further enhanced to help firms in hard-hit sectors, as well as those which are growing amid the coronavirus pandemic.

Mr Heng also laid out Singapore's refreshed, longer-term economic strategy which builds on the existing industry transformation maps to restructure various sectors.

First, Singapore will build up its role at the heart of Asia's growth, while forging connectivity with other key markets, Mr Heng said.

It also includes rebuilding physical connectivity in travel and trade, and strengthening digitalisation.

Transport Minister Ong Ye Kung will share more details today in his ministerial statement on Singapore's plans to revive its air hub and restore connectivity.

Second, the country will redouble its efforts to foster inclusive growth. Noting that COVID-19 has revealed vulnerabilities in Singapore's labour market, Mr Heng said it is necessary to better understand its structure, and upgrade jobs and skills across all segments.

But it will still be necessary to bring in global talent to complement local talent, even as Singapore carefully updates its foreign workforce policies, he added.

"By building on complementary strengths, we can build cutting-edge capabilities in our workforce and our firms, and plug into global networks. This will ultimately benefit all Singaporean workers."

Last, it will invest in economic resilience and sustainability as a source of competitive advantage. This includes producing essential supplies locally, and ramping up deployment of renewable energy.

Mr Heng reiterated that there are no plans to draw on past reserves for this latest support package, beyond what was approved earlier.

To fund its COVID-19 response, the Government had obtained President Halimah Yacob's approval twice this year to draw up to $52 billion from past reserves.

"We have dedicated close to $100 billion to support our people and businesses through this difficult period. As we do so, we must be careful not to spend in a way that squanders what generations before us have painstakingly built up," Mr Heng said.

"Our guiding principle is prudence, not austerity. We will continue to invest decisively in our national priorities, with a deep commitment to leave behind a better future for our children."

SingapoRediscovers Vouchers: All adult Singaporeans to get $100 tourism vouchers in December 2020 for staycations, attractions and local tours

The scheme will last for seven months, from December 2020 to end-June 2021

By Tiffany Fumiko Tay, The Straits Times, 17 Sep 2020

Singaporeans aged 18 and above this year will receive $100 each to spend on staycations, tickets to leisure attractions and local tours, in a move to stimulate domestic spending and save jobs in the tourism sector.

The digital SingapoRediscovers Vouchers will be accessible via SingPass from December and can be used to offset ticket purchases and hotel stays until the end of June next year. Permanent residents will not be eligible for the vouchers.

Adult Singaporeans will also be able to purchase up to six subsidised tickets for attractions and tours - each at $10 off - for those under 18.

Announcing the details yesterday, Trade and Industry Minister Chan Chun Sing said the duration of the voucher programme is timed to coincide with the March, June and December school holidays, and to spread out demand in between.

The initiative is not a social assistance scheme, he stressed.

"This is an economic scheme to help our tourist attractions preserve their capabilities that have been built up over the years while they consolidate capacity in the interim," Mr Chan told reporters during a visit to Jurong Bird Park.

The $320 million SingapoRediscovers Vouchers scheme was first announced last month and forms part of the Government's efforts to prop up the tourism sector, which has been decimated by travel restrictions amid the COVID-19 pandemic.

The vouchers, which will come in denominations of $10, can be used at all licensed hotels, leisure attractions and for local tours by operators that have received approval from the Singapore Tourism Board (STB) to reopen or resume.

There are currently 214 hotels, 40 attractions and 438 tour itineraries that have been given the green light to resume operations with safe management measures in place. They include Singapore's four wildlife parks, a number of activities and hotels on Sentosa and guided tours of Pulau Ubin.

STB also announced that tourist attractions can apply to increase their operating capacity to 50 per cent - up from the current 25 per cent - from tomorrow.

Gardens by the Bay and park operator Wildlife Reserves Singapore are among those planning to do so.

The move to get Singaporeans to support local businesses is gathering pace, with the latest move complementing the $45 million SingapoRediscovers marketing campaign, launched in July to promote holidays at home. The vouchers will provide added incentive for Singaporeans to rediscover their backyard, STB said.

Mr Chan added that while there are other support schemes for tourism businesses, the vouchers will encourage consumers to support fellow citizens employed in the industry.

He said businesses outside the tourism sector are expected to see a boost as well, as spending spills over into food and beverage, for example. "As to the exact extent of the catalytic effect, it will be a bit hard to predict at this point in time, but we hope that it is at least a few times what we have provided for in the Budget," he added.

The STB said specific details on how the vouchers can be redeemed will be announced in November.

It called a tender yesterday to appoint platforms to facilitate the redemption of vouchers.

While the tourism board expects that the redemption process "will adopt a digital mode by default", it will provide support for those who have difficulty using such methods.

Observers said the $100 credits will drive interest in leisure activities that Singaporeans may have previously overlooked, but operators need to boost their offerings to spur additional out-of-pocket spending.

PM Lee Hsien Loong's speech at the Debate on the Motion of Thanks to the President on 2 September 2020

Singapore must avoid going down path of polarised politics: PM Lee
Government and opposition must work for good of country, not just partisan interests
By Lim Yan Liang, Assistant News Editor, The Straits Times, 3 Sep 2020

Singapore's success over the years, from building up its economy to tackling the ongoing Covid-19 crisis, has been possible because the country managed to get its politics right, said Prime Minister Lee Hsien Loong.

And it is up to Singaporeans to ensure it remains so, by being engaged on the issues, sending the right signals through their votes and rewarding parties that delivered for the people.

The ruling People's Action Party, which helped build the country with the people, has a special duty to keep the system working, providing the leadership the country needs and deserves.

"At the most fundamental level, to make our politics work, both the Government and the opposition must share an overriding objective - to work for Singapore, and not just for our party or our supporters," he added yesterday, when he rose to join the debate on the President's Address to the opening of Parliament.



That would make it possible to have policy debates based on principles and fact, guided by shared ideals and goals, including protecting Singapore's security, growing its economy and securing its future.

"If we do that, then there's a basis for us to manage the inherent tensions in our system, and for politics to work out productively," he said, but cautioned that it was not a given that the virtuous circle would continue.



Elsewhere, politics has become increasingly toxic and bitter, issues are politicised and governments paralysed by partisan bickering, leaving countries divided and on a spiral downwards.

"If this happens to Singapore, we will not just cease being an exceptional nation, it will be the end of us. We must not go down this path."

While there is no guarantee that even under a PAP government, Singapore will forever be successful, PM Lee called on Singaporeans to work with and keep faith with the Government, a formula that has served the country well.



In a wide-ranging 90-minute speech broadcast live, he also spoke on Singapore's ongoing battle against Covid-19 and noted that the nation has managed, after eight gruelling months, to stabilise the situation, with one of the world's lowest fatality rates. This had called for a tremendous effort, with Singaporeans working together and giving the Government their trust and support, he said.



The same compact will be crucial as the country navigates a changed world that requires stronger safety nets, the thorny issue of foreign worker policy, and evolving politics given the greater desire for opposition voices in Parliament, he said.

There was a need for more robust safety nets going forward, he said, citing greater economic uncertainty and the long-term trends of an ageing population and rising healthcare costs.

The Government is not ideologically opposed to any solutions raised, he added. But it is imperative these safety nets are fiscally sustainable and do not create new problems in themselves, like eroding the spirit of self-reliance.



Singapore is also reviewing its foreign worker criteria, given the slack in the job market due to the downturn. Yet it must be careful not to give the wrong impression that it no longer welcomes foreigners, as its success is predicated on being an international hub that serves a global market, he said.

Taking up the hot button issue of foreigners competing with Singaporeans for jobs, which had dominated the first two days of the debate, he said: "The Government will always be on the side of Singaporeans. What is the point of creating jobs for foreigners if it does not benefit Singaporeans?"

He added: "We may be under stress now, but we cannot turn inwards. We will adjust our policies to safeguard Singaporean jobs, but let us show confidence that Singaporeans can hold their own in the world."

A spirited exchange with Leader of the Opposition Pritam Singh followed PM Lee's speech, in which he said he had listened carefully to Mr Singh spelling out on Monday how he planned to go about his new role. "I applaud his tone and approach. The government benches will do our part to work with him, to keep Parliament a constructive forum for debate," PM Lee said.



He added that it was good to have an adequate number of opposition MPs in the House, to keep the Government on its toes. But he warned that the opposition's tactic of urging voters to back it, assuming the PAP would still be around to form the government, was flawed.

"At what point does a vote for a strong opposition become a vote for a different government?" he asked.



Responding, Mr Singh said he and his colleagues were sincere in standing for election to ensure an opposition presence, not because he was "desperate for power" or had dreams of forming a government. Likewise, in posing questions such as on the use of the nation's reserves, they were seeking good outcomes for Singapore and not out of a desire of "raiding them", he said.



PM Lee concluded his speech on a rousing note. Covid-19, like so many other challenges that Singapore has faced, would be a "platform for ambition and daring", he said, pledging that the nation would emerge stronger and more united from the crisis, as it had done in the past.

"We are here by dint of will and imagination, in defiance of all the odds. And of all those who said we wouldn't make it, we did.

"Do not doubt. Do not fear. Jewel will shine again. Changi will thrive again. SIA will be a great way to fly once more. Our economy will prosper anew," he said.



Choking up as he concluded, PM Lee said: "Our children and our grandchildren will continue marching forward to build a fairer, evermore just and equal society."