SINGAPORE – The Singapore government is considering additional support for the aviation and tourism sectors, which are expected to take a longer time to recover, it said during the unveiling of a fourth landmark budget package on Tuesday (26 May) that will inject S$33 billion to support local workers and businesses.
The package comes as Singapore is due to begin rolling back its Circuit Breaker measures in three phases from 2 June onwards and allow businesses to resume.
Deputy Prime Minister Heng Swee Kiat noted that sectors such as aviation and tourism “will take longer to reopen fully, given the restrictions on global travel for the foreseeable future”.
“The Government will consider providing additional help, depending on the situation and longer-term shape of these industries, and plans for the economy,” he said.
Singapore will be dipping further into its reserves for this fourth COVID-19 support package, which it named the Fortitude budget.
The government will be pumping in S$3.8 billion to extend wage support for all firms by one month through its existing Jobs Support Scheme, which will now last for 10 months. Employers will receive the cash payouts in April, July and October.
Businesses that will not be able to resume operations immediately after the Circuit Breaker measures are lifted on 2 June will be provided wage support at 75% until August 2020 or when they are allowed to reopen. This includes retail outlets, gym and fitness studios, and cinemas.
Some tourism sectors will also be qualified for the maximum wage support of 75% of the first S$4,600 of wages, such as MICE and tourism event organisers and regional ferry operators. Private bus and limousine operators will qualify for 50% of wage support for the first S$4,600 of wages.
To qualify, MICE sector businesses need to show the postponement, cancellation or loss of sales of at least one MICE or leisure event with at least 20% foreign attendees that is scheduled in Singapore between 1 February 2020 to 31 December 2020. The company will also need to derive more than two-thirds of revenue from MICE or leisure events with at least 20% foreign attendees.
Regional ferry operations will need to be licensed by the Maritime and Port Authority of Singapore (MPA) as a Regional Ferry Services Operator.
The aerospace sector, including those in maintenance, repair and operations, will now receive 75% wage support.
Small- and medium-size enterprises (SMEs) will also be offered cash grants to offset rental costs from a pool of S$2 billion. The grants will be disbursed through property owners.
In total, the Singapore will be pulling together nearly S$100 billion through its previous Unity, Resilience and Solidarity Budgets to support businesses, comprising nearly 20% of the country’s gross domestic product (GDP).