There’s no denying that implementing the Circuit Breaker Phase 2 (Heightened Alert) has impacted the income stream of Singaporeans, especially those in the SMB sector.

While some restrictions have been eased, the operating environment for businesses is more controlled than it was in Phase 3.

For instance, dining in is allowed but only in groups of two. The group size will be expanded to five in mid-July if infections do not escalate, Singapore officials have said.

With the Jobs Support Scheme (JSS) payout and rental relief, the Singapore government is trying its best to keep local business and employment opportunities afloat in these uncertain times.

In May, it announced an $800 million support package which is aimed at helping businesses and workers cope with tighter restrictions.

Businesses in selected sectors will receive up to 50% of salary support for their employees under JSS.

Food and beverage businesses, gyms and fitness studios, and performing arts and arts education businesses will receive this enhanced level of support until July 11.

Meanwhile, retail businesses, cinemas, museums, art galleries, historical sites and family entertainment venues will get a 30% salary support during the period.

The level of support will be tapered to 10% for the subsequent two weeks, ending July 25. The payouts will be doled to businesses from September.

What is JSS?

The JSS was first announced at the Unity Budget in February 2020. It was meant to help employers retain employees who are Singapore Citizens and Permanent Residents.

For this reason, the payouts will not apply to employees who were put on no-pay leave or retrenched.

Under the scheme, the government will co-fund a portion of the first $4,600 of gross monthly wages paid to each local employee.

The scheme was available to businesses in all sectors until this March. It was subsequently extended by six months for those in sectors hardest hit by the pandemic.

Although the payouts were meant to cover employees’ wages, businesses can use the money in other ways to sustain their operations.    

“I will encourage businesses to make full use of the enhanced JSS to retain and pay their workers during this period, and to use the lull period to invest in workers through training and upskilling programmes,” Finance Minister Lawrence Wong said at a virtual press conference.

Rental relief

SMB employers may also benefit from rental reliefs. SMBs and non-profit organisations that are tenants of government-owned commercial properties will receive a one-month rental waiver, the government has announced.

They have to draw an annual revenue of $100 million or less. Hawker stalls and coffeeshops will similarly receive a month of relief.

However, SMBs occupying private commercial properties were not left out. Businesses with an annual turnover of $100 million or less, based on FY2019 or more recent filings, will also get some relief.

They will receive a 0.5-month rental waiver under the Rental Support Scheme, announced by the Ministry of Finance in May. Payouts under the scheme will be dispersed in mid-August.

With persisting restrictions, schemes like JSS can be a buoy for SMBs that are struggling to balance their books.

The future of better operating conditions can only become clearer with time, as Singapore moves to vaccinate a larger proportion of its population.