Tin Pei Ling had two suggestions for the government regarding Budget 2020.

The MacPherson Single-Member Constituency MP hopes that the goodwill that comes from the Budget measures can ultimately flow through to the micro and small enterprises.

She also asked for more recognition and support for freelancers during this challenging period.

A "responsive budget"

Calling Budget 2020 "a responsive budget that prepares Singaporeans for the challenges ahead", Tin said that the S$4 billion Stabilisation and Support package helps companies to stay liquid and thus preserving the jobs of Singaporeans.

The package has a S$1.3 billion jobs support scheme that offsets 8 per cent of wages of every local employee for three months, up to a monthly cap of $3,600.

It also includes a S$1.1 billion Wage Credit Scheme that co-funds wage increases for Singaporean employees earning a gross monthly wage of up to S$4,000.

Help for SMEs

Tin said that small and medium enterprises (SMEs), "comprising 72% of our employment, are most in need of supportive measures to help them retain local employees".

To help SMEs, Tin suggested that the government ensures access to the Enterprise Financing Scheme, a scheme administered by Enterprise Singapore, to loan money to local businesses.

She also urged respective merchant associations to help SMEs band together to obtain financing from banks.

Tin highlighted an example of how fellow Singaporeans are helping SMEs.

"I note the recent launch of a “SME Help Fund” that aims to help SMEs whose businesses are struck by the Covid-19 outbreak.

Member companies pooled together S$5m and leveraged technology platform to offer low interest loans to affected SMEs, which must also be majority owned by Singaporeans...this is one practical way of how Singaporeans help Singaporeans. I was very heartened to hear this."

The fund is to extend short-term loans to businesses in Singapore amid the virus outbreak.

Tin concluded that the SME Help Fund is an example of how different groups in the society can take the initiative to help fellow Singaporeans in times of need, complementing the government's efforts.

Offering financing options for freelancers

Tin's second suggestion is to provide more support to freelancers, as they are especially vulnerable to changes in the economic conditions.

Tin said that many events and work assignments are cancelled or deferred as a result of the Covid-19 outbreak.

"They have little savings (or “fats”) to see them through this period of work drought. Worse, if they have a family to support."

Unlike companies, she added, many of the financing options available now are not readily accessible to them.

She asked whether the government can consider extending the working capital loan to the group of freelance workers.

She also asked whether the government can help them access the other measures aimed at helping businesses with cashflow to keep them afloat as well.

Top photo from Tin Pei Ling Facebook.