Singapore announces SGD 8 billion measures to support workers and businesses

Singapore, on August 17, announced a seven months extension of wage subsidies under the state-run scheme and a new initiative to bolster hiring in “bright spots”. The announcement was a part of a massive economic package to bolster the economy which is fast slipping into recession. Making the announcement of an economic package worth SPD eight billion in a televised address, country's Deputy Prime Minister Heng Swee Keat highlighted the growing anxieties within the working class.

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As per the official data, the county’s economy shrank by 6.7 per cent in the first half of the year, with a record quarterly slump in the second quarter amid a two-month circuit breaker and weak external demand. Therefore, to support those hit by the pandemic induced job loss, the lawmaker said that Jobs Support Scheme(JSS) would be extended by seven months to cover wages paid up to March 2021. The scheme was set to expire on August 31.

'Based on projected recovery'

However, Keat added that some sectors were also recovering, in fact, faster than others. Therefore,  the wage subsidy scheme would be tweaked based on the projected recovery of the different sectors. Under the extended Jobs Supprt Scheme (JSS) scheme, companies in the worst-hit sectors like aerospace, aviation and tourism will receive wage subsidies of 50 per cent for seven more months. For the built environment sector, wage support will be at 50 per cent for two more months before being lowered to 30 per cent from November to March 2021.

While sectors like food, arts and entertainment, land transport, marine and offshore, retail would receive 30 per cent for seven months, the large majority of remaining sectors would receive only 10 per cent of wages paid until March 2021. Keat also announced the launch of a Jobs Growth Incentive (JGI) that will "support hiring in bright spots within the economy, such as biomedical sciences, financial services, ICT, public healthcare and long-term care sectors". In addition, the minister also announced the extension of the COVID-19 Support Grant (CSG) until December 2020.

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(With inputs from PTI)

(Image credits: AP)