Phase 2 (Heightened Alert) update for SMBs

As Singapore embarks on a journey to revitalise its economy, businesses have begun to experience some hope for a brighter future.

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What the transition to Phase 2 (Heightened Alert) means for SMBs in Singapore

What the transition to Phase 2 (Heightened Alert) means for SMBs in Singapore

19 August 2021 | SMB, Digitalisation | 5 min read

However, as things stand, there are still restrictions that remain and the Republic’s transition into Phase 2 (Heightened Alert) has outlined how businesses must operate until further changes are made. Here are the key measures and updates that directly impact SMBs operating in Singapore.

Employees can return to the office once more

Remote and hybrid work arrangements have been a mainstay for businesses during the pandemic. While this shift is expected to create long-term changes in how SMBs operate, business leaders and employees have been waiting for employees to be allowed back into the office.

The latest easing that took effect on 19 August allows half of all employees who can work from home to return to working on-site. Social gatherings taking place in the office, which were banned previously, have also been allowed to return (recommended 2 per group for the unvaccinated, and up to 5 per group for fully vaccinated individuals).

MICE events will host more vaccinated participants

MICE events allow business leaders to network with industry counterparts, develop strong professional relationships, and conduct client outreach. Such events have been allowed since the beginning of Phase 2 (Heightened Alert) but participants were limited to as few as 50 attendees.

Beginning from 19 August, MICE events can hold up to 1000 attendees if all the attendees are fully vaccinated. If attendees are unvaccinated, the limit remains at 50. Activities that require unmasking such as food and beverage service are also allowed during these MICE events, subject to updated safe management measures.

Job Support Scheme (JSS) has been enhanced to provide more targeted financial support

The JSS was first announced at the national Budget in 2020 and was further extended by the Resilience, Solidarity, and Fortitude Budgets. This scheme provides cash flow assistance to businesses by providing partial relief that covered employee wages. The scheme has been extended several times with different levels of relief.

The latest support measures took effect on 19 August. Until 31 August, only businesses operating in significantly affected sectors qualify for support amounting to 10% of employee wages. After 1 September, the JSS scheme will revert to its original schedule which will allow Tier 1 businesses such as Aviation, Tourism, Hospitality to receive support for one more month.

Vaccine-differentiated measures have made its way to the workplace

The reopening and easing of measures have placed even more importance of prevailing safe management measures. The new measures place greater focus and responsibility to do the right thing with suggestions rather than enforceable legislation. For businesses that operate at public premises, temperature screenings are no longer mandatory.

The latest advisory from the Ministry of Manpower, National Trades Union Congress and Singapore National Employers Federation, and the Ministry of Health encouraged all employers to adopt a “vaccinate or regular test” regime. For high-risk settings such as gyms, restaurants, and supermarkets, this regime is mandatory. However, SMBs can require that employees undertake the costs involved with regular testing.

Ultimately, the latest announcements represent a step forward for Singapore-based SMBs who eager to build business resilience and maintain continuity. While the situation remains dynamic and unforeseen circumstances can derail any future progress, high vaccination rates and ample healthcare capacity has placed Singapore in a good place to become a COVID-resilient nation.

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