When the Ministry of Health (MOH) announced the transition into Phase 3 (Heightened Alert) from 14 June 2021, it was definitely welcomed news for both businesses and people.
This time, rather than set a date to ease safe management measures – it would be done in a 2-step process. The first step happening on 14 June, and if everything remains under control, higher-risk activities will be allowed to re-open in the second step a week later on 21 June 2021.
Read Also: Phase 3 (Heightened Alert): 6 Things Businesses Need To Know
However, this also means is that certain industries would be facing an extended closure period. They will not be allowed to open from 14 June, which was the initial end of Phase 2 (Heightened Alert), and instead, will only re-open on 21 June 2021.
To mitigate this, the government is extending the Jobs Support Scheme (JSS) for “affected” sectors until 20 June. Thereafter, it will continue to provide the JSS payouts for “affected” sectors from 21 June to 30 June 2021. The current COVID-19 Driver Relief Fund (CDRF) for taxi and private hire car drivers will also be extended for three more months, presumably until the end of September.
Other than taxi and private hire car drivers, the “affected” sectors are (as detailed by the enhanced JSS payouts):
So, Business As Usual For “Non-Affected” Businesses?
The use of the word “affected” in the government press release to describe these businesses is fair. However, it also seems to suggest that other sectors are “non-affected”. This cannot be true.
The clearest example of how every single business in Singapore has been affected by Phase 2 and 3 (Heightened Alert) is that the government has mandated 100% work-from-home to be the default work arrangement. At last count, businesses were already able to bring back up to 75% of their employees who can actually work-from-home. Now, they cannot bring back anyone who isn’t an essential worker. Every single business that was affected by this measure has to continue paying rent for their workplace even though they cannot bring a single employee back.
The argument is that they can continue to operate. Being able to operate is not the same as being “non-affected”. They have to scramble again to implement a 100% work-from-home arrangement. They had to ensure employees have their equipment to be able to work from home and manage their entire workforce remotely. Surely, many of these businesses would also see significant impact to their operations, productivity and bottomline.
Even though many businesses are in a more fortunate position that those that are being supported by the government, they are not “non-affected” businesses. However, being classified as such means they should not expect to be supported by the government.
Read Also: Why Singapore Businesses Need To Be Prepared For The Long Winter Ahead
Are Retail, Cinemas, Personal Care, Museums and Indoor Playgrounds and Entertainment Centres “Less Affected”?
This is not meant to be a jibe at sectors that are identified as suffering the most: F&B, gyms and fitness studios, performing arts organisations and arts education centres. In fact, they probably are.
But, are retail stores that depend on the CBD crowd (who are now 100% working from home) really suffering less than F&B outlets that are still able to do food deliveries? Are cinema operators better off than the performing arts organisation?
These are not questions we have answers to, but it seems hard to imagine how any business relying on the CBD crowd, whether retail, entertainment or otherwise is really doing that well. Similarly, just because a business is allowed to open, albeit still under stricter measures, may not mean that they are less affected.
Are Businesses In Tier 1 and Tier 2 Sectors On JSS Faring Better Than “Affected” Businesses Due To Phase 2 and 3 (Heightened Alert)?
The enhanced JSS payouts will only be provided to “affected” businesses. Effectively, this means that from 16 May to 20 June 2021, F&B establishments, closed gyms and fitness studios, performing arts organisations and arts education centres were receiving a higher JSS payout than certain Tier 1 and Tier 2 sectors.
Certain Tier 1 and Tier 2 sectors not included in the enhanced JSS payouts were receiving 30% and 10% JSS support during this time. Such Tier 1 sectors include the aviation industry, hotels, MICE and tourism event organisers, and money changers to name a few, while Tier 2 sectors include built environment contractors and film distributors among others.
It’s hard to see how these types of businesses were faring better than the “affected” sectors.
No Additional Support For Self-Employed In Phase 3 (Heightened Alert)
When Phase 2 (Heightened Alert) was announced, self-employed persons could tap on an enhanced COVID-19 Recovery Grant – Temporary (CRG-T), in addition to the CRG. This provided a one-off $500 payout for “affected” self-employed individuals.
It seems odd that a self-employed individual who may be operating in the same sector as those already identified as “affected” sectors, would be given significantly less support just because of the method they incorporated their company. The JSS support provides salary support up to the first $4,600. This means “affected” businesses received up to 50%, or $2,300, in JSS payout for each employee they hired, this includes owners who are hired and a salary.
Furthermore, when Phase 3 (Heightened Alert) was announced, there were no new measures to support the self-employed individuals.
Read Also: Why Self-Employed Persons Could Be The Hardest-Hit Group Of People In Phase 2 (Heightened Alert)
Everyone Is Hurting From COVID-19
Despite only certain sectors being highlighted as those “affected” by Phase 2 and 3 (Heightened Alert), it hasn’t been business as usual for majority of businesses in Singapore. A great number of businesses have suffered and are still suffering.
This also isn’t to say that everyone should be provided with equal support. There will be businesses that are more greatly affected – that’s fair. But we should not simply think that other businesses are functioning normally.
Apart from not being able to return to the workplace, businesses also have to cope with managing their people in a different way. Work-from-home, especially in a lockdown or 100% manner can have adverse impacts on a person’s mental well-being.
At the same time, it’s not only the employees who need protection. Business owners are also susceptible to mental health concerns, especially in a more pressurising environment. They have to manage the fluid changes implemented by the government for over a year now. Self-employed persons are another group that has been given less support in Phase 3 (Heightened Alert) and even in previous support measures simply because they are not employees. Even though it is far from business as usual for them.
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