DPM Heng Swee Keat: Government will Continue to Support Businesses and Workers

Deputy Prime Minister Heng Swee Keat announced on 5 October 2020 that the Government will enhance several existing measures to help more companies and workers tide over the impact COVID-19 has created on the economy.

Mr Heng revealed these enhancements at a parliamentary sitting.

Supporting Employers and Employees

The Enhanced Training Support Package (ETSP), part of the Stabilisation and Support Package and Supplementary Resilience Budget, will be extended for another six months till 30 June 2021.

The ETSP will provide enhanced course fee subsidies for firms in the hardest-hit sectors.

Mr Heng said that the Government will extend the ETSP to the marine and offshore sector with immediate effect, on top of the existing sectors such as air transport, retail, and tourism.

In recognition of the gradually recovering economic situation, the Government will also lower the absentee payroll rates to 80 per cent from January 2021, capped at $7.50 per hour.

Marine and Offshore Sector

With immediate effect till 30 June 2021, marine and offshore employers who send their employees for selected sector-specific training programmes will receive enhanced support of up to 90 per cent of the course fees.

This will be on top of the enhanced absentee payroll that has been extended to all sectors from 1 May 2020.

SkillsFuture Singapore (SSG) and the Singapore Economic Development Board (EDB) will be working with appointed training partners to meet the training demands from the sector.

Persons with Disabilities

The Government will also extend the Jobs Growth Incentive (JGI) to support persons with disabilities (PWDs). Under the enhancement, firms will receive funding of 50 per cent for each new PWD-hires’ $5,000 gross monthly wage.

This will apply to new hires of PWDs from September 2020 to February 2021.

Previously under the JGI, only firms who hire new local employees above 40 years of age were eligible to receive 50 per cent of the new hires’ $5,000 gross monthly wage for up to 12 months.

New hires below the age of 40 were only eligible for 25 per cent of their $5,000 gross monthly wage.

Helping Businesses Internationalise, Transform and Digitalise

To give a boost to businesses seeking to internationalise, transform and digitalise, the Government will extend or enhance its capability-building grants such the Market Readiness Assistance Grant, the Productivity Solutions Grant, the Enterprise Development Grant, and the PACT programme.

The Ministry of Trade and Industry (MTI) will announce details in the coming weeks.

Helping Viable Businesses

Providing a working capital of up to $5 million, the Government will extend the Temporary Bridging Loan Programme (TBLP) for six months until September 2021, at reduced levels.

Introduced in the Solidarity Budget, the programme is a Government assisted financing scheme.

Meanwhile, the Monetary Authority of Singapore (MAS) will also extend the MAS Singapore Dollar Facility for Enterprise Singapore Loans until September 2021.

Lastly, the support available under the Enterprise Financing Scheme to help Singapore enterprises access financing in areas such as trade and project will be adjusted as well.

MTI and MAS will provide more details at a later date.

Mr Heng added that the support announced for companies would ultimately benefit workers.

“The best way to protect the welfare of our workers is a good job. By helping viable firms stay afloat during this difficult period, they can retain their workers. By helping firms to restructure and retrain their workers, they can emerge stronger.

“More competitive and productive firms can provide better jobs and better prospects for workers. And more skilled and committed workers make firms more competitive. This synergy between competitive firms and capable workers is critical for both to do well. As part of our long-standing practice of tripartism, we must not fear, but instead ride on change together to achieve synergies and to emerge stronger,” said Mr Heng.

Supporting Households

To help aspiring parents with expenses during this period, the Government will be introducing one-off additional support for newborns.

This will be on top of the Baby Bonus Cash Gift, which provides eligible parents up to $10,000 in benefits.

On Singapore’s Fiscal Position

In battling COVID-19, Mr Heng said the Government had spent close to $100 billion to support people and businesses.

“Our guiding principle is prudence, not austerity. We will continue to invest decisively in our national priorities, with a deep commitment to leave behind a better future for our children,” he said.