Businesses and workers will be extended an S$800 million support package lifeline amidst tightened Covid-19 restrictions.

This additional help will come in the form of enhanced wage subsidies under the Jobs Support Scheme and rental relief.

These new measures were announced on Friday, May 28.

Who will receive help

Affected gyms, fitness studios, and performing arts and arts education centres will get 50 per cent of salary support for local employees under the Jobs Support Scheme (JSS), finance minister Lawrence Wong said.

Retailers, personal care services, museums, art galleries, historical sites, cinemas, indoor playgrounds and other family entertainment centres significantly affected but do not have to suspend operations will get 30 per cent of subsidies under the JSS.

Those not eligible for the enhanced wage support include supermarkets, convenience stores and online retailers.

The Ministry of Finance (MOF) in a statement that the enhanced payouts will be disbursed in September and are based on wages paid in April to June 2021.

Rental relief and one-off payment

Rental relief will also be given to small and medium enterprises (SMEs), as well as eligible non-profit organisations in commercial properties.

Eligible lower to middle-income workers and self-employed workers whose income have been affected by the measures can receive between S$500 and S$700 under a new Covid-19 Recovery Grant (Temporary) in a one-off payout.

Employers who put local employees on mandatory no-pay leave or retrench them will not be eligible for JSS payouts for those employees.

Do not need to draw down past reserves

The financial support package handed out this time round is not on the same scale as those allocated in 2020.

Singapore will not draw down past reserves to fund the various support measures for those affected by the Phase 2 (Heightened Alert) restrictions from May 16 to June 13.

Last year, close to S$100 billion was dedicated to Covid-19 support measures over five Budgets, with up to S$52 billion drawn from the reserves.

The latest measures will be funded through a reallocation of spending.

MOF said some development expenditure can be capitalised under the recently passed Significant Infrastructure Government Loan Act (Singa) Bill.

A Supplementary Supply Bill will be tabled at the next Parliament sitting in July to effect the reallocation of spending.

Wong also said he does not think there is a need for further tightening of measures as the current ones have been helping to curb the spread of the virus.

Wong added:

Under such a circumstance, I do not think we should be going to the president to seek permission to draw on our past reserves. In fact, we must expect to run into situations like these from time to time, when we experience an occasional outbreak of cases in our community, and we will then need to tighten restrictions temporarily to control the spread of the virus.

So, we will have to learn to adapt to such situations, using our own resources rather than to dip into our past reserves. And it is on that basis that we are able to set aside some funds for this package.

Top photos via Capitaland & Unsplash