Deputy Prime Minister Heng Swee Keat said that the Singapore Government will be unveiling a slew of targeted measures to support businesses affected by the Wuhan corona-virus outbreak at the Budget 2020 on 18 February 2020.
The support package comprises of measures to help companies re-skill and retrain workers, including through wage support, and help in addressing short-term cash flow problems. The Minister also expressed that despite the package being ready, they should be aware of the fact that the situation is “fast-evolving”.
The DPM said that the most directly affected sectors will be transport and tourism, and targeted measures are needed to address the challenges faced by these sectors. A joint statement by the Ministry of Finance and the Ministry of Trade and Industry stated that there has already been a decline in air traffic through Changi Airport and an increase in hotel room cancellations.
Mr Heng also emphasised that there will be a broader economic slowdown and that Budget 2020 would address this weakness. Comparing the Wuhan corona-virus support package to the SARS relief package in 2003, Mr Heng said some measures will be similar, although a sharp analysis of the current situation is needed given that Singapore’s economy has grown and evolved since then. Mr Heng stated that Singapore’s economic linkage with the Chinese economy has grown significantly.
While it is too early to assess the economic impact of the outbreak, Mr Heng said the Government’s priority is to ensure that workers remain employed and employable; thus the planned measures will help ensure companies remain viable. Mr Heng added that the Government is also looking at how to help companies make use of this period to restructure some of their operations, adding that it is important for them to continue these efforts so that they can emerge stronger when the recovery happens.
Mr Heng stated that the measures to retrain workers will be made on top of what the Government is already planning for the next bound of SkillsFuture.
Source: Business Times, 1 February 2020