The ongoing COVID-19 pandemic has meant that many Singapore SMBs have been some of the hardest hit as they struggle to stay afloat. Industry leaders and trade associations have proposed a raft of measures for the upcoming Budget 2022 on Feb 18, to help businesses cushion the impact of COVID-19.
Extension of rental support
As COVID-19 continues to dampen consumer spending, businesses are hoping for more help in the form of rental waivers, especially for the retail sector. Travel restrictions and safe distancing measures have meant lower tourist numbers and reduced local consumption. Many SMBs are hoping that the government will extend rental and wage support to provide much-needed relief.
According to the President of the Singapore Retailers Association, rental is the largest component of cost structures for the retail sector. He has advocated that the retail sector needs substantial rental support, with job support schemes to be continued for 2022.
Extension of wage support and temporary bridging loans
The Singapore Business Federation has called for a three-month extension of wage support and temporary bridging loans for its Budget 2022 wishlist. This will help companies cope with uncertainty and cost pressures as they adapt to COVID-19.
SBF proposes that the government should co-pay 25% of wages under the Jobs Support Scheme (JSS) for currently eligible businesses. This includes food and beverage (F&B), fitness, retail, education, tourism, art galleries, performing arts, family entertainment, and historical sites. The wage support should be extended for three more months after Singapore’s “stabilization” phase, thereby helping companies prepare for recovery.
It has also requested a one-year extension of the temporary bridging loan programme until March 31, 2023, and for the government to provide up to 90% of risk-sharing. This will help businesses cope with rising costs.
Finally, SBF recommends that the government help defray the costs of bringing in foreign manpower. Due to additional testing, quarantine requirements and travel restrictions, manpower costs have gone up, making it hard to bring in foreign manpower.
The market readiness assistance scheme could also be expanded to support activities beyond business development and marketing, with a loosened revenue eligibility criteria to include larger companies. This will provide a timely boost for companies bracing themselves for the final burst to recovery.
Funding of Antigen Rapid Test (ART) kits
COVID-19 routine test costs have been a strain on the bottom line. Many businesses hope that the government will extend more help in the form of funding for Antigen Rapid Test kits.
Extend the foreign worker waiver for staff on stay home notices
It is also hoped that the foreign worker levy rebate for staff on stay home notices will continue to be extended. This will help employers manage costs associated with border measures and safeguards, particularly in the construction, marine shipyard and process sectors. Given the rising costs of materials and labour, coupled with sub-optimal headcount, an extension would bring relief to companies, especially in the construction sector.
In addition, construction companies are asking for help to ease cash flow constraints. The Singapore Contractors Association noted that projects have been delayed due to a lack of manpower. This means an increase in fixed costs for salary for Singaporeans and Permanent Residents, as they are incurred over a longer period of time.
The Finance Ministry is partnering with the People’s Association and grassroots organizations to seek the public’s views and suggestions for Budget 2022. Hopefully, Budget 2022 will see more programmes to help SMBs survive and thrive amidst the pandemic.
