CDC Vouchers Scheme: 1.3 million Singaporean households to receive $100 CDC vouchers; vouchers valid till 31 December 2022

$100 worth of CDC vouchers for each Singaporean household available for collection online from 13 December 2021

By Goh Yan Han, The Straits Times, 14 Dec 2021

All Singaporean households can now collect $100 worth of vouchers that they can spend at about 10,000 participating hawker stalls and heartland merchants.

The community development council (CDC) vouchers, worth $130 million in total and given out to 1.3 million households, are available for collection digitally from Monday (Dec 13) and can be used till Dec 31, 2022.

Prime Minister Lee Hsien Loong, who launched the latest tranche of the voucher scheme on Monday, said in a Facebook post later in the day that over 200,000 households had claimed the vouchers.

One Singaporean per household can claim the vouchers through an online link that requires the use of Singpass. He will then receive a link at his registered mobile number.

This link can then be shared via messaging apps with household members, who can then use the vouchers that come in denominations of $2, $5 and $10.

A unique decal will be used to identify participating merchants, with more expected to come on board.

Those who are unable to claim or use the vouchers digitally, such as if they do not have a smartphone, can approach community clubs or centres for assistance, such as to print hard copy vouchers.

To spend the voucher digitally, the resident has to click on the CDC vouchers link, select the amount to be used and show the QR code to a participating merchant, who will then scan it using the RedeemSG Merchant App.

Those using hard copy vouchers have to show the merchant the QR code on the voucher, which the merchant will then scan.

No change will be given, so residents have to select the suitable denominations of vouchers and top up the extra, or forfeit the remaining value.

The vouchers are not allowed to be resold, and each resident's address is stated on the voucher link to deter reselling.

Deputy Prime Minister Heng Swee Keat had announced this third update to the scheme at Budget 2021 as part of a $900 million Household Support Package.

The CDC voucher scheme was launched last June to help up to 400,000 lower-income families, with a second tranche for them announced in January this year.

PM Lee said at the launch held at Jurong Spring Community Club that the vouchers are to express the Government’s appreciation for everyone’s solidarity amid the pandemic.

They should also help to defray some daily expenses such as food and essential household items and services, as well as support local heartland shops and hawkers that have been hit hard during the pandemic, he said.

He noted that the fight against Covid-19 has been a long and winding journey and the country's response to it has had to adapt accordingly when the virus "surprised us multiple times".

He said: "It's been challenging for everyone, especially for our residents and for our heartland businesses, to keep up with the new policies and changing situations.

"Thank you for bearing with us, and for your continued trust and support as we make our way through these difficult times."

The voucher scheme has gone digital so that they are easier to use, said PM Lee, who is also chairman of the People's Association, which CDCs come under.

Merchants can better track transactions and receive payment faster with less hassle, while residents have the convenience and flexibility of digital vouchers, he added.

Singapore's roadmap to living with COVID-19: Task force chairs deliver ministerial statements on Government's response to pandemic in Parliament, 26 July 2021

Greater use of community care facilities rather than hospitals

Shorter stays in hospitals and community care facilities

Home quarantine instead of staying at government facilities

All households to get DIY COVID-19 test kits

Vaccinated individuals travelling to safe countries could serve a shorter seven-day SHN at home

Singapore to review COVID-19 rules in early August 2021, ease measures for vaccinated people if situation under control

By Linette Lai, The Straits Times, 27 Jul 2021

Singapore will review its Covid-19 restrictions early next month, easing some measures if virus clusters are under control and hospitalisation rates remain low.

But only vaccinated people will be allowed to take advantage of these looser restrictions, as they are "much better protected against the effects of the virus", said Finance Minister Lawrence Wong yesterday.

A larger proportion of vaccinated people who have contracted the virus, but display mild or no symptoms, will also be admitted directly to community care facilities instead of first going to hospitals.

This is part of Singapore's move towards treating the virus as endemic, Health Minister Ong Ye Kung said.

His ministry also plans to allow more people to serve their quarantine at home.

In addition, it is reviewing its policies so that fully vaccinated patients - who are already discharged from isolation seven days earlier than other patients - can be discharged even earlier, and complete the rest of their isolation at home.

The two ministers, along with Trade and Industry Minister Gan Kim Yong, were giving Parliament an overview of the next steps in the country's pandemic response.

A total of 4.24 million people have received at least one dose of a Covid-19 vaccine, with 3.07 million having completed the full two-dose regimen as at Sunday.

By early next month - the midpoint of the current phase two (heightened alert) period, about two-thirds of Singapore's population would have received both doses, Mr Wong said.

Three-quarters of all seniors aged 70 and above would also have been vaccinated by then.

At that time, the authorities will assess the overall infection situation. They will also monitor the status of infected cases, to confirm that vaccines have weakened the link between infection and hospitalisation.

If all goes well, rules on social gatherings will be eased for vaccinated individuals, the minister said.

"This means that if you want to attend a large event or a religious service involving more than 100 persons, you have to be fully vaccinated," he told the House in a ministerial statement.

"If you want to go out to dine in a restaurant or work out in a gym, you have to be fully vaccinated."

Further down the road, fully vaccinated travellers may see stay-home notices replaced by a rigorous testing regimen, or may just serve a shorter notice at home, instead of in a hotel, Mr Wong said.

Mr Ong said it is now clear that those who are fully vaccinated are less likely to become critically ill when they contract the virus.

"(The protocols) need to shift closer to how we treat influenza today, without extensive contact tracing and quarantine in dedicated facilities, and hospitalising only those who are very ill," he said.

On the economic front, Mr Gan stressed that businesses should prepare for Covid-19 to become endemic.

This means helping eligible employees get vaccinated and integrating the use of antigen rapid tests into work processes, as well as continuing flexible work arrangements, he said.

Businesses that are able to respond, adapt and transform quickly will emerge stronger and move ahead of the others, the minister said.

In a separate statement on extra support for workers and businesses affected by the latest restrictions, Mr Wong said the measures announced earlier this month will cost more than $2 billion.

Although certain industries - such as the retail and food and beverage sectors - will continue to face challenges, the country remains on track for growth of 4 per cent to 6 per cent this year.

"Ultimately, the best way to support our businesses and workers is to bring the infection under control, push up our vaccine coverage, and reopen our economy," Mr Wong said.

Additional COVID-19 support measures for Singapore's Phase 2 and 3 heightened alert period to cost $1.2 billion: Finance Minister Lawrence Wong in Ministerial Statement, 5 July 2021

Extra aid for firms, workers hit by COVID-19 curbs to cost $1.2 billion

Sum to be covered by reallocation of funds; no need to draw from reserves: Lawrence Wong

By Tham Yuen-C, Senior Political Correspondent, The Straits Times, 6 Jul 2021

The additional support package to help companies and workers affected by the latest Covid-19 restrictions is expected to cost $1.2 billion, with the amount covered through the reallocation of funds, Finance Minister Lawrence Wong told Parliament yesterday.

There will be no need to draw from the reserves again, he said, noting that Singapore is already expected to draw up to $53.7 billion of it, an amount "which we are not likely to be able to put back any time soon, if at all".

Half of the $1.2 billion will be covered by funds originally earmarked for the Deep Tunnel Sewerage System and North-South Corridor projects. Singapore will instead borrow to finance these projects, under the Significant Infrastructure Government Loan Act that allows borrowing to finance long-term infrastructure.

The remaining $0.6 billion will be reallocated from development expenditure that was underutilised mainly because of project delays arising from Covid-19.

In his first ministerial statement on government spending since becoming Finance Minister in May, Mr Wong said the Government would not hesitate to use its fiscal firepower to protect lives and livelihoods, but stressed that any spending must not unfairly burden future generations.

"Our expenditure in financial year 2020 was the highest ever in the history of our country; and this unprecedented fiscal response has also led to the largest Budget deficit in Singapore's history," he said.

"Now that things are better, we should refrain from drawing further on past reserves. Instead, we will fund the support measures using resources that were approved in this year's Budget."

He pointed out that the high levels of government spending worldwide could saddle future generations with crippling debt.

While Singapore has been able to buck this trend owing to the foresight and fiscal prudence of its previous generations, it has had to draw on past reserves in two consecutive financial years, he noted.

It initially did so last year at the height of the pandemic when the economy suffered its worst recession and shrank by 5.4 per cent, and again at the start of financial year 2021 to pay for continuing Covid-19 measures.

A spike in unlinked Covid-19 community cases, with clusters fuelled by the more transmissible Delta variant of the coronavirus, forced the country into phase two (heightened alert) on May 16, with restrictions on dining in at food outlets and social gatherings.

The restrictions were eased from June 14, when the country moved into phase three (heightened alert).

Mr Wong said that Singapore is relatively well placed to deal with the pandemic now, with the economy steadily improving, strong testing and tracing capabilities, as well as a vaccination programme that is making good progress.

He said most parts of the economy continued to operate over the past two months, unlike during the circuit breaker period from April to June last year, when "literally the entire economy was shut down".

With infection numbers having been brought down, Singapore expects to open up further, with larger groups of five people allowed to dine at food outlets from next Monday, he said.

Yesterday, he also announced the extension of the Temporary Bridging Loan Programme and Enhanced Enterprise Financing Scheme - Trade Loan for an additional six months from Oct 1 to March 31 next year, to help small and medium-sized enterprises tide over cash flow problems as they prepare for the new normal.

Other support measures, announced on May 28 to help businesses and workers worst hit by the latest round of restrictions, include an extension of the Jobs Support Scheme (JSS) to food and beverage outlets, gyms and performing arts organisations, among others, which have been badly hit. They received JSS support of 50 per cent.

Rental relief was also provided for businesses, while targeted help was given to affected groups and workers such as taxi and private-hire car drivers and those who are self-employed.

JSS support will be tapered off to 10 per cent for two weeks from next Monday, as Singapore prepares to reopen its economy further.

Parliament will debate the additional support package on July 26.

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."

Changes in Singapore’s healthcare subsidy framework from 2022

Singapore stretches healthcare dollar with targeted subsidies

With healthcare spending going up every year as Singapore's population greys and the country's fiscal situation gets tighter than it has been in decades, it has become more crucial than ever to make every dollar count. Insight looks at how the latest changes in the healthcare subsidy framework help make a difference.

By Linette Lai, Political Correspondent, The Straits Times, 13 Mar 2021

Healthcare spending has sometimes been compared to a balloon - squeeze it in one area and a bulge appears in another.

The analogy speaks to how difficult it is to rein in rising healthcare costs, a challenge that Singapore has become increasingly familiar with as its population greys.

The big question is: With limited resources and growing needs on every end, how can the country make every healthcare dollar count?

Stretching the healthcare dollar is one of the main aims behind changes to the subsidy structure in public healthcare institutions announced last week by the Health Ministry.

In a nutshell: Hospitals will use per capita household income to determine subsidies, rather than individual income. There will also be just one subsidy range for the B2 and C ward classes. On top of that, changes in the subsidy structure at specialist outpatient clinics mean that people who earn more will have to pay more.

Lastly, subsidies in community hospitals will rise - to tally more closely with subsidies in acute hospitals - removing one financial barrier that patients may face when making the switch from one to the other.

Singapore has 10 public acute hospitals. They are the eight general hospitals, KK Women's and Children's Hospital, as well as the National Heart Centre Singapore.

The changes are slated to take effect by the middle of next year.

Commenting on the changes, Professor Teo Yik Ying, dean of the Saw Swee Hock School of Public Health at National University of Singapore, said that with healthcare costs expected to go up, it seems likely that the Government's intent is for subsidies to play a larger role.

"But this means subsidies need to be more targeted and equitable, especially towards those who require more assistance," he said.

"This is the main reason underpinning the changes."

Greatest bang for its buck

Singapore has traditionally prided itself on achieving the greatest bang for its buck in healthcare.

A banner that used to hang outside the Health Ministry's headquarters in Outram Park proudly proclaimed: "The World's Most Cost-effective Healthcare System". It has the statistics to bear this out.

The latest available data shows that government spending on healthcare - including expenditure on endowment funds such as MediFund, but excluding transfers - stood at 2.1 per cent of Singapore's gross domestic product in 2017, which is significantly lower than what is routinely spent by other developed countries.

But this is unlikely to last. As it is, the figure is expected to rise to 3 per cent by 2030, when the proportion of Singaporeans aged 65 and older will go up from one in six to one in four.

Already, Singapore is beginning to see signs of this trend. The national health expenditure rose from $13 billion in 2012 to $22 billion in 2017, or around 11 per cent yearly. And the Government's share of healthcare spending went up from 40 per cent in 2013 to 46 per cent in 2018.

The new subsidy changes will help by channelling patients to the facilities that are most cost-effective and best meet their needs - what is known in healthcare parlance as "right-siting".

In other words, not every ailment would be best treated with a long stay at an acute hospital, just as one would not use a sledgehammer to crack a walnut.

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."

Singapore Green Plan 2030 to change the way people live, work, study and play

Singapore poised to take green leap forward

New sustainability initiatives launched to change how people work, study and play

By Audrey Tan, Science and Environment Correspondent, The Straits Times, 11 Feb 2021

Singaporeans look set to lead much greener lives by 2030, with new sustainability initiatives launched to change the way they work, study and play.

The Singapore Green Plan 2030, released by five ministries yesterday, will chart the country's way towards a more sustainable future, "building back better" as it recovers from the fallout of Covid-19.

The plan seeks to inform all aspects of development here - from infrastructure, to research and innovation, to training programmes.

"The comprehensive plan will strengthen Singapore's economic, climate and resource resilience, improve the living environment of Singaporeans, and bring new business and job opportunities," said the ministries in a joint statement. The Ministries of Education, National Development, Sustainability and the Environment, Trade and Industry and Transport are driving the initiative.

Under the Green Plan, at least 20 per cent of schools here will be carbon-neutral by 2030.

Adults, too, will work in greener buildings, since there are plans to raise the sustainability standards of buildings. People will be encouraged to commute in a less carbon-intensive way - cycling paths will triple in length by then, and the rail network will be expanded to 360km, up from the 230km today.

This infrastructure will be built within a city cloaked in green, with more initiatives to help nature seep into the heartland.

For instance, more nature parks will sprout up over the years. By 2030, there will be a more than 50 per cent increase in nature park land where people can go hiking or birdwatching.

Even the fossil fuel haven of Jurong Island will be transformed into a "sustainable energy and chemicals park".

Behind the scenes, research and innovation in low carbon alternatives will continue, even as programmes such as the new Enterprise Sustainability Programme are rolled out to help firms develop capabilities in this area.

More details on these initiatives will be given during the Budget next week, and in the subsequent Budget debates.

Prime Minister Lee Hsien Loong said in a Facebook post that the Green Plan will build upon Singapore's past sustainability efforts.

"We need to ensure a Singapore for our future generations. All of us have to work together, and make Singapore a bright green spark for the world," said PM Lee.