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While most business operators are thankful for the support measures announced during the Budget speech, some business owners and stakeholders felt that the initiatives failed to address their immediate concerns brought about by the COVID-19 outbreak.
While they are thankful for the support measures announced during the Budget speech, some business owners and stakeholders in the retail, food services and tourism industry felt that the initiatives failed to address their immediate concerns brought about by the COVID-19 outbreak, reported Today.
In his Budget speech, finance minister Heng Swee Keat unveiled the government’s plan to help businesses affected by the sharp drop in sales and traffic.
Among these is a 30% property tax rebate to function-room and accommodation segments of hotels and serviced apartments.
Moreover, 8% of the wages of every Singapore employee will be offset by the government, with the grant starting this July.
The Wage Credit Scheme’s limit will also be increased from $4,000 to $5,000 for qualifying wage hike in 2019 and 2020. Introduced during Budget 2013, the Wage Credit Scheme sees the government co-funding the wage increases given to Singaporean employees with a gross monthly salary of up to $4,000.
The government will co-fund 20% of the wage increases in 2019 and 15% for this year.
In welcoming the initiatives, Singapore Hotel Association’s executive director Margaret Heng said: “We are particularly appreciative of the hotel property tax rebate of 30%, the corporate income tax rebate as well as the job support scheme.”
“Hotels do have high operating costs and manpower is the largest component, so these measures will help to some extent,” she said.
One company, however, said the grant of support wages may have been helpful if they were offered in March and April.
This comes as the company is unsure if it would still be around by July considering the steady decline in business in the past weeks.
“My (earnings) have been down 50% in these two weeks… I don’t know how long I can last. I don’t want to belittle the help and I am thankful, but I was hoping for something more helpful,” said Dr Kevin Cheong, executive director of tourist attraction Sentosa 4D AdventureLand.
“I think only people who are hit like us will understand that the gravity of the issue is more than just a few percentage points when three-quarters of your business has gone overnight.”
Asia Travel Group director Kliff Ang also noted that the grant to offset Singapore employees’ wages would not be that helpful for firms that heavily rely on foreign workers.
“These industries, like the hotel industry, tap mostly foreign workers… so (whether or not the wage offset cash grant will be helpful) depends on the labour composition of the company.”
Instead, Ang, along with other business owners, had hoped for measures like the waiver of foreign worker levy, which was part of the relief package rolled out during the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003.
Meanwhile, some operators wished the government would provide more rental rebates to ease some of their out-of-pocket operation costs that comprise a large chunk of their cash-flow expenses.
Tenants at hawker centres and markets managed by the National Environment Agency will see their rents waived for a month. Tenants of other government agencies like the Housing and Development Board will enjoy a half-month rent waiver.
During this lull in business, a month’s worth of rent waived is helpful for stallholders, said Tiong Bahru Hawker Association chairperson Low Teck Seng.
Nonetheless, it would not be enough in the event the disease outbreak continue for a few more months, he added.
For businesses operating in private properties, the government granted landlords a 15% tax rebate for qualifying commercial properties. Heng had urged landlords to pass the rebates to tenants by lowering rents.
However, not everyone is optimistic of the idea.
“The rental rebate of half a month at government-owned properties is very little and when the major developers or landlords see this, I don’t think they will give more than (what the Government is giving),” said Andrew Tjioe, the President Advisor of the Restaurant Association of Singapore.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg`
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