Earlier today (on 17 August 2020), Deputy Prime Minister (DPM) Heng Swee Keat – who is also the Coordinating Minister for Economic Policies and Minister for Finance – delivered his Ministerial Statement to supplement the four budgets announced earlier this year.
The measures announced serve to continue supporting workers, businesses and protect livelihoods as Singapore deals with the continuing COVID-19 health and economic crisis.
Here are 5 major announcements that were made and how they help Singaporeans, workers and companies.
#1 Extension Of Jobs Support Scheme (JSS) Up To March 2021
Of utmost concern to Singaporeans, the support for jobs have been extended for 7 more months. The Jobs Support Scheme (JSS) which was due to expire in August 2020, will be extended to up to March 2021. However, the level of wage support has been reduced and adjusted based on the projected recovery of different sectors.
Aerospace, aviation, and tourism sectors will receive support at 50% wage levels for wages paid up to March 2021.
The Built Environment sector will receive 50% wage support for 2 more months for wages paid up to October 2020, before lowering to 30% for the following 5 months for wages paid up to March 2021.
Arts and entertainment, food services, land transport, marine and offshore, and retail sectors will receive 30% wage support for wages paid up to March 2021.
Most of the remaining sectors will receive 10% support for wages paid up to March 2021.
For sectors that are projected to continue doing well, such as biomedical sciences, financial services, and ICT, will only receive 10% support for 4 more months, for wages paid up to December 2020.
Read Also: Here’s What You Need To Know About The Jobs Support Scheme
#2 Introduction Of Jobs Growth Initiative
Amid the drastic economic impact, Singapore has managed to keep unemployment lower than the peak levels seen during SARS and the Global Financial Crisis and there are still bright spots in the economy that are growing and require more workers.
To help Singaporeans transition into these sectors, the government is launching the Jobs Growth Initiative (JGI) to support job creation. The government has set aside $1 billion for this initiative to encourage companies to hire local workers.
Government will co-pay up to 25% of salaries of all new local hires for one year, subject to a cap and up to 50% of salaries of those who are aged 40 and above.
Additionally, 24 SGUnited Jobs and Skills Centres have been set up in the heartlands for job seekers to seek help in finding a suitable job, traineeship, attachment or training.
Those who are currently unemployed and seeking employment can fully utilise these initiatives and resources to help them get back on their feet as soon as possible.
#3 Extension Of COVID-19 Support Grant To December 2020
For those who are not earning much or unemployed, the COVID-19 Support Grant (CSG) has been extended to December 2020. This provides a monthly cash grant of $800 for those eligible for 3 months.
From 1 October 2020, the extension will be open to both existing CSG recipients and new applicants. This will benefit those who are more recently affected by the COVID-19 recession as well as those who had received support previously.
More details will be released by Ministry of Social and Family Development in early September.
#4 Expansion Of Eligibility For Receiving Workfare Special Payment
For lower wage workers, the eligibility for the $3,000 Workfare Special Payment has been extended. Previously, only those who qualified for Workfare for work done in 2019 were eligible for the payout.
With the extension, those who have received or will be receiving Workfare for work done in 2020 will also be eligible for the payout. This addresses those whose incomes have been reduced this year because of the current crisis but had not previously qualified for the Workfare Special Payment because their income in 2019 was above the qualifying threshold.
#5 SingapoRediscovers Vouchers
$320 million of tourism credits in form of SingapoRediscovers Vouchers will be issued to all Singaporeans. This is to encourage local tourism and support Singapore’s local tourism sector, which continues to be drastically affected.
Singaporeans will be able to use these vouchers to explore local culture and heritage, nature, art, and architecture sites. More details will be announced by Ministry of Trade and Industry in September.
Those looking forward to a resumption in the nightlife scene will be disappointed as there are no current plans to resume those activities, due to safe management considerations. Instead, the government will be helping these businesses transition to other activities or ease their exit.
Additional Measures Do Not Require Additional Draw On Past Reserves
In total, the government has set aside $92.9 billion for the four budgets: the annual Budget and the additional Solidarity, Resilience and Fortitude budgets. The measures from the Ministerial Statement will cost up to $8 billion and will tap on existing funds that have been reallocated.
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