Schemes aimed at helping jobs and companies to be extended & enhanced: DPM Heng
On October 5, Deputy Prime Minister Heng Swee Keat gave a speech in Parliament, speaking at length on Singapore's position amidst the Covid-19 pandemic.
In addition, he touched on the extension and enhancement of multiple schemes aimed at helping jobs and companies.
He noted the performance and outlook of various sectors were "highly uneven." As per Heng:
"Some sectors are doing better than before COVID-19. Firms in the IT, biomedical, e-commerce, and finance sectors have benefited from the rise in demand for these services during this period.
...But sectors that involve the movement of people across borders, such as aviation and tourism, will recover only when people around the world feel safe enough to resume travel, and this will take some time."
So what are these schemes that are being extended?
Enhanced Training Support Package (ETSP)
According to Heng, the ETSP, which was enhanced in the Resilience Budget, will be extended for another six months, until Jun. 30, 2021, to provide improved course fee subsidies for firms in sectors worst affected by Covid-19.
In addition, apart from existing sectors already covered under the scheme, such as aviation, retail and tourism, the scheme will also be extended to the marine and offshore sector.
Heng added:
"In recognition of the gradually recovering economic situation, we will also be lowering the absentee payroll rates to 80% from Jan. 2021, capped at $7.50 per hour."
Jobs Growth Incentive (JGI)
Noting that people with disabilities might have a more challenging time in finding jobs, Heng stated that they will be provided with the higher tier of wage support of 50 per cent under the JGI.
This will apply to new hires of persons with disabilities from Sep. 2020 to Feb. 2021, he added.
"Capability-building grants" to be extended and enhanced
Heng also highlighted that several "capability-building grants" will be extended and enhanced, as part of a bid to help businesses transform and digitalise themselves, and tap on new sources of growth.
These grants are the Market Readiness Assistance Grant, the Productivity Solutions Grant, the Enterprise Development Grant, and the PACT programme.
Details will be announced by the Ministry of Trade and Industry in the coming weeks, Heng added.
Loan Schemes
Meanwhile, the Temporary Bridging Loan will be extended for another six months, until Sep. 2021, albeit at reduced levels.
The Monetary Authority of Singapore (MAS) will also extend the MAS Singapore Dollar Facility for Enterprise Singapore Loans, until Sep. 2021.
New five-year Research, Innovation and Enterprise plan to be unveiled in Dec.
Separately, Heng also announced the unveiling of a new Research, Innovation and Enterprise (RIE) plan in Dec.
This plan will build on earlier investments and enhance research to support areas of national priority, such as early childhood development, elderly healthcare, and lifelong learning.
It will also expand the transformation of the manufacturing, aviation and maritime industries, and deepen Singapore's capabilities as a "Smart Nation and sustainable society," Heng added.
Progressive Wage Model to be extended to more sectors
In the meantime, the government will also be extending the Progressive Wage Model (PWM) to more sectors over time, while still ensuring that businesses in these new sectors can absorb the change, Heng further stated.
In addition, "companies which voluntarily pay progressive wages and provide advancement pathways for lower-income workers will also be recognised with a PWM Mark," he highlighted.
The effect of this effort will be the creation of better jobs and the raising of skills levels, along with the slowing of the future growth of the foreign workforce, Heng added.
He stated:
"We may still be battling the downturn, but will be actively looking to identify the next few sectors where we can use this 4-in-1 framework, to redesign jobs and raise skills levels, and expand PWM to benefit more groups of lower-wage workers as soon as conditions allow.
The DPM acknowledged that such a move will mean an increase in business costs and add on to the challenges that firms are facing.
However, Covid-19 has also shown that there is a critical need for firms to be more manpower-lean, productive, and have jobs attractive for locals, in order to survive long-term, he said.
"We will have to explore solutions, and the Government will provide support for the transition."
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Top image from Heng Swee Keat Facebook