SINGAPORE: Financial assistance for the unemployed and low-income workers are set to increase as the COVID-19 outbreak unnerves businesses and employees across Singapore.

“The best way to safeguard the well-being of our people is by supporting them to stay employed,” said Deputy Prime Minister and Finance Minister Heng Swee Keat in Parliament on Thursday (Mar 26).

“As the impact of COVID-19 on our economy deepens, some workers will lose their jobs or see their incomes significantly reduced. We will help them.”

UNEMPLOYMENT BENEFITS

Between May and September this year, low- and middle-income workers who become unemployed can receive a grant of S$800 a month over three months as they look for a new job or undergo training under the COVID-19 Support Grant.

Those who are eligible must not have a per capita household income of S$3,100 a month or live in a property with an annual value of S$21,000 or more, among other criteria. Beneficiaries can apply at their nearest social service offices (SSOs).

READ: COVID-19 Resilience Budget: ‘Landmark’ S$48 billion package to tide Singapore through ‘unprecedented’ crisis

READ: 10 things you need to know about Budget 2020

Residents who require help more urgently can tap on the Temporary Relief Fund, which they can access via the SSOs and community centres come April.

Eligibility for the ComCare scheme – a government welfare programme that provides assistance to those who fall into financial hardship – will be eased to ensure affected Singaporeans can get help.

A total of S$145 million will be set aside for this set of unemployment benefits.

HELP FOR HOUSEHOLDS

The Care and Support package, originally valued at S$1.6 billion, will now cost about S$4.6 billion. 

Mr Heng said: “Many Singaporeans are concerned about how they will pay their bills and household expenses if their livelihoods are affected during this uncertain period. 

“We will put more cash in the hands of all families to help them cope.”

Cash payouts for all adult Singaporeans will now be tripled to a range of S$300 to S$900, depending on their income.

The additional cash payout given to each Singaporean parent with at least one Singaporean child aged 20 and younger will also be tripled from S$100 to S$300.

READ: COVID-19 Budget: Self-employed people, firms, first-time jobseekers to receive more support

READ: COVID-19 Budget: Income tax payments for companies, self-employed people delayed for 3 months

Singaporeans aged 50 and over who were set to get a S$100 top-up in their PAssion cards will receive the amount in their bank accounts instead, as to avoid the need to queue at top-up stations, said DPM Heng.

These cash payouts will be disbursed between August and September this year.

Grocery vouchers given to needy Singaporeans this year will also triple from S$100 to S$300. Together with the S$100 voucher given to them next year, they will receive S$400 in grocery vouchers over 2020 and 2021.

READ: Budget 2020: 5 things to know about measures to help Singapore households with living costs

READ: Budget 2020: Free meals for vulnerable families islandwide as MPs urge more help for those in need

Grants given to self-help groups and community development councils (CDCs), which have their own assistance schemes, will be increased. Self-help groups will receive S$20 million over two years.

CDCs will receive S$75 million this year, S$50 million more than the original sum announced.

FREEZE IN FEES AND LOANS

All government services fees and charges will be frozen for a year, from Apr 1 to Mar 31, 2021, Mr Heng said.

Graduates’ loan repayments and interest charges will be suspended for one year between Jun 1 and May 31 2021 as well, in order to help graduate who are worried about having to pay off their student loans while finding job in this economic climate, said DPM Heng.

READ: COVID-19 Budget: More than S$1 billion for aviation, tourism, other sectors

READ: About 940,000 HDB households to receive S$134 million in S&CC rebates

Late payment charges on HDB mortgage arrears will also be suspended for three months, to help those who are struggling with their mortgage payments, he said.

The Housing and Development Board will continue to exercise flexibility when providing assistance during this period through existing measures such as deferring payment of loan installments for six months, he added.

SUPPORT FOR LOW-INCOME, SELF-EMPLOYED WORKERS

Singaporeans who are on Workfare will receive more money under the new Workfare Special Payment scheme announced at the Budget this year.

They were originally going to receive a one-off stipend of 20 per cent of their 2019 payout, with a minimum S$100 payout.

They will now each receive S$3,000 in cash instead.

READ: Singapore’s reserves are for rainy days, COVID-19 already a ‘mighty storm’: DPM Heng

READ: Enhanced training assistance for low-wage, self-employed people to improve career prospects

Mr Heng pointed out that the country’s labour movement is also helping workers, including freelancers.

The National Trades Union Congress (NTUC) announced last week that it will set aside S$25 million to provide a one-off relief of up to S$300 to low and middle income union members.

The union also topped up the training support scheme offered to self-employed workers – now a rate of S$10 per hour – by S$4 million, giving union members an additional training allowance of up to S$1 per hour.

READ: Union members affected by COVID-19 outbreak to receive one-off relief of up to S$300: NTUC

“We will protect jobs, support our workers, and protect livelihoods,” said Mr Heng as he listed the various initiatives in his speech. 

“We will continue to monitor the situation closely, and are prepared to take swift action to do more if needed.”

BOOKMARK THIS: Our comprehensive coverage of the novel coronavirus and its developments

Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram

SINGAPORE: Self-employed people, firms and first-time jobseekers will receive more financial support, announced Deputy Prime Minister Heng Swee Keat on Thursday (Mar 26), amid an economic slowdown caused by the COVID-19 outbreak.

This is part of a S$48 billion Resilience Budget to deal with what is likely to be the “worst economic contraction since independence”, said Mr Heng, and follows the S$4 billion Stabilisation and Support Package for workers and firms announced during Budget this year.

READ: COVID-19 Resilience Budget: ‘Landmark’ S$48 billion package to tide Singapore through ‘unprecedented’ crisis

READ: COVID-19 Budget: Income tax payments for companies, self-employed people delayed for 3 months

Under the Resilience Budget, those who are self-employed will receive direct cash support through a Self-Employed Person Income Relief Scheme, which offers S$1,000 per month to eligible self-employed people for nine months.

“Some of them have less means and family support, and need help to tide over this difficult period,” said Mr Heng, adding that S$1.2 billion will be set aside for this scheme.

“Overall, we expect to reach out to most of the self-employed persons who depend on self-employment for their livelihood and have less means and family support,” he said.

In addition, self-employed people will receive enhanced hourly training allowances under the Self-Employed Person Training Support Scheme, for them to use the downtime to train and upskill.

From May 1, the hourly training allowance will be raised from S$7.50 to S$10. The training support scheme will also be extended to December this year.

“The enhanced training allowance is on top of the already generous training subsidies, which cover up to 90 per cent of fees.

“In addition, trainees will be able to tap on their SkillsFuture Credit to further offset the course fees,” said Mr Heng, who is also Minister for Finance.

He added that S$48 million will be set aside for this enhanced scheme.

READ: COVID-19 Budget: More than S$1 billion for aviation, tourism, other sectors

READ: ‘It always helps when you know you are not alone’: Freelancers rally online after taking hit from COVID-19 outbreak

KEEPING WORKERS EMPLOYED

The Jobs Support Scheme, introduced during Budget this year, will be enhanced and extended, said Mr Heng. The scheme aims to help firms retain local workers during this period of uncertainty. 

“The situation now calls for bolder and more aggressive moves to save jobs and keep workers in employment,” he said.

For firms, the Government will co-fund 25 per cent of every local employee’s wage, up from 8 per cent. Firms in the food services sector will receive 50 per cent co-funding per local worker, while firms in the aviation and tourism sectors – the most badly affected sectors – will receive 75 per cent co-funding.

More workers will also qualify for co-funding, with the qualifying wage ceiling raised from S$3,600 to S$4,600. The median wage in Singapore is S$4,600.

The Jobs Support Scheme will also be extended for two quarters until the end of 2020. Employers will receive payouts in May, July and October.

Effectively, a total of S$15.1 billion will be allocated to 1.9 million local workers under the Jobs Support Scheme, more than twice the support provided during the Global Financial Crisis.

“With this support from the Government, I urge employers to do your part to hold on to your workers,” said Mr Heng.

READ: COVID-19 Budget: Unemployment benefits increase; higher cash payouts for adult Singaporeans

READ: President Halimah Yacob gives ‘in-principle support’ to draw on reserves for second COVID-19 assistance package

MORE JOBS FOR FIRST-TIME JOBSEEKERS

For first-time jobseekers concerned about the current job market, the Government will offer traineeships and provide more help to find employment for them.

The SGUnited Traineeships will give young people the opportunity to “gain valuable work experience” and give “an added boost for employers to emerge stronger from this crisis”, said Mr Heng.

“Under this programme, Workforce Singapore will co-share manpower costs with enterprises that offer traineeships targeted at local first-time jobseekers this year,” he said, adding that he hoped to support up to 8,000 traineeships this year, across large and small enterprises.

“This will include science and technology traineeships in our R&D labs, deep-tech startups, accelerators and incubators,” he said, with more details to be announced by the Ministry of Manpower.

READ: Singapore’s reserves are for rainy days, COVID-19 already a ‘mighty storm’: DPM Heng

In addition, the Government will set up an SGUnited Jobs initiative, to create about 10,000 jobs over the next year, with the public sector taking the lead.

“Our agencies have been planning our manpower needs early, and there is a range of jobs which we need to fill in emerging areas.

“We will accelerate hiring plans to fill these roles, while giving our people meaningful employment opportunities,” he said.

This includes long-term roles in areas such as social services, early childhood education and ICT to enhance the provision of essential services, and short-term temporary jobs like health declaration assistants, temporary management support officers and Transport Ambassadors to handle the increase in COVID-19 related operations.

At the same time, the Government is also working with the Singapore Business Federation and Trade Associations and Chambers to identify jobs in the private sector.

“These may come from businesses recruiting for the eventual recovery, or with short-term manpower needs due to disruptions in labour supply,” he said.

He added that Workforce Singapore will be holding a virtual career fair on Friday with more than 2,200 job vacancies, with a focus on short-term temporary jobs that are immediately available. Jobseekers looking for long-term roles may visit mycareersfuture.sg instead.

BOOKMARK THIS: Our comprehensive coverage of the novel coronavirus and its developments

Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram

SINGAPORE: Companies and self-employed people will get an automatic deferment of income tax payments for three months, announced Deputy Prime Minister Heng Swee Keat in Parliament on Thursday (Mar 26), amid an economic slowdown caused by the COVID-19 outbreak.

The deferment is part of a slew of measures under a S$48 billion Resilience Budget announced by Mr Heng to provide additional support to workers, businesses and households.

This follows the S$4 billion Stabilisation and Support Package for workers and firms announced during the Budget in February.

Companies will not have to make income tax payments due in April, May and June, said Mr Heng, meaning that payments will only be payable from July.

This will allow them to use the cash that has been freed up to meet other urgent needs, Mr Heng said.

For self-employed persons, income tax payments due in May, June and July will be deferred, he added.

“Employees may approach the Inland Revenue Authority of Singapore if they need help with their income tax payments, and wish to avail themselves of this arrangement,” he said.

READ: Budget 2020: 5 things to know about plans to help workers and businesses amid COVID-19 challenges

To ease the load of qualifying commercial properties that may have been “more badly hit” by the COVID-19 outbreak, property tax will be suspended for the year, said Mr Heng.

These commercial properties include hotels, restaurants, shops, tourist attractions and serviced apartments.

This is an enhancement over the support measures Mr Heng announced in response to the outbreak during this year’s Budget in February, Mr Heng said. At the time, he said these properties would receive 15 per cent to 30 per cent property tax rebate.

Businesses in other non-residential properties such as offices and industrial properties will be granted a property tax rebate of 30 per cent this year, as they are also affected by the COVID-19 situation, Mr Heng added.

READ: COVID-19 Budget: Unemployment benefits increase; higher cash payouts for adult Singaporeans

LANDLORDS URGED TO FULLY PASS ON REBATE

He “strongly urged” landlords to fully pass on the rebate to tenants, by reducing rentals, to directly ease the cash flow and cost pressures faced by them.

“Many businesses have pointed out that it will be a lose-lose situation if landlords do not support their tenants. After all, if tenants fail, the properties will be empty,” he said.

“So my message to landlords is: Do your part, chip in, and give additional help to tenants who are more badly hit.”

The Government will lead by example, he said.

The National Environment Agency (NEA) will give stallholders in hawker centres it manages or NEA-appointed operators three months of rental waiver, up from the one month announced during the Budget.

Other Government agencies, such as the Housing & Development Board and the National Arts Council will provide two months of rental waiver to eligible tenants, such as social service agencies and charities, Mr Heng said.

This is up from half a month previously announced. All other non-residential tenants will receive half a month of rental waiver.

READ: COVID-19 Budget: Self-employed persons, firms, first time jobseekers to receive more support

ENHANCED FINANCE SCHEMES

Additionally, said Mr Heng, S$20 billion of loan capital will be set aside in this Budget, Mr Heng said.

“This will help support good companies with strong capabilities, and catalyse private sector loan capital. As the situation is fluid, we will seek to provide help where the credit needs are more acute,” Mr Heng said.

Mr Heng also announced enhancements to several financing schemes “so that even the hardest-hit businesses can continue to have access to credit”.

For instance, to support businesses’ trade financing needs, Mr Heng said he will double the maximum loan quantum for the Enterprise Financing Scheme-Trade Loan from S$5 million to S$10 million, and increase the Government’s risk-share from up to 70 per cent, to 80 per cent.

Subsidies to businesses for loan insurance premiums under the Loan Insurance Scheme will also increase from 50 per cent to 80 per cent.

The Temporary Bridging Loan Programme, which was previously only for enterprises in the tourism sector, will be extended to all enterprises. The maximum supported loan amount will also be increased from S$1 million to S$5 million.

Small and medium enterprises that require further support can continue to tap on the EFS-SME Working Loan Capital, which has a S$1 million maximum loan quantum, up from S$600,000, Mr Heng said.

The Monetary Authority of Singapore (MAS) is working with banks and insurers to see how best to help businesses and individuals facing cash flow challenges with their loan obligations and insurance premium payments, he added. Details will be announced by MAS and the industry at a later date, he said.

READ: President Halimah Yacob gives ‘in-principle support’ to draw on reserves for second COVID-19 assistance package

GIVING PEOPLE LEGAL RELIEF

While the measures deal with helping people in financial terms, Mr Heng said giving people relief from legal obligations that have arisen because of the COVID-19 situation is an “important and complementary part”.

He provided an example of individuals who may have placed deposits for large gatherings that will not be able to proceed.

“It is not their fault that the gathering cannot go ahead. Should the deposits be simply forfeited? That won’t be right,” he said.

The Government is studying the issue and the Minister for Law will present a set of measures next week to deal with this, he said.

IMPORTANCE OF INVESTING IN R&D

Mr Heng noted that the COVID-19 outbreak has reinforced the importance of investing in research and development to prepare for critical challenges such as managing pandemics and ensuring food security.

Singapore’s investments in R&D have borne fruit, said Mr Heng, citing how Singapore was one of the first countries to successfully develop COVID-19 test kits.

COVID-19 has also emphasised the importance of having resilient supplies of food and other essential items, Mr Heng said.

Singapore is building up its national stockpile of health supplies such as masks and hand sanitisers, and is strengthening its food resilience for the long term, Mr Heng said.

“Some may be concerned about the impact on our food supplies, arising from supply chain disruptions. We need not worry,” he said, assuring Singaporeans that the country has in place a multi-pronged strategy to ensure that its people continue to have a stable supply of safe food.

READ: Singapore’s economy contracts by 2.2% in Q1 as COVID-19 outbreak hits construction, services sectors

BUILDING ECONOMIC RESILIENCE

At the industry level, all firms have a part to play in building economic resilience, as the country prepares for recovery, Mr Heng said.

This is why the Government introduced the SG Together Enhancing Enterprise Resilience (Steer) programme, he said. The programme supports industry-led initiative to help companies tide over today’s economic uncertainties, and build longer-term capabilities.

The Government will now match S$1 for every S$2 raised by trade associations and chambers, or business groups for qualifying initiatives. It previously matched S$1 for every S$4.

Support for skills upgrading will also increase, Mr Heng said. All employers will receive 90 per cent absentee payroll rate to provide additional cash flow relief when they send their employees for training from May 1 this year, he said.

He also said that Singaporeans may make early use of the base S$500 SkillsFuture Credit Top-up for their courses from Apr 1 this year, ahead of the full implementation date in October.

“I hope this will help many more workers, jobseekers, and self-employed persons make use of the downtime to learn, develop new skills and stay employable,” he said.

BOOKMARK THIS: Our comprehensive coverage of the novel coronavirus and its developments

Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram