Experts Said Extended JSS is Good But Still Can’t Help Some Companies

Yesterday, DPM Heng Swee Keat unveiled the East Co- sorry, additional Covid-19 financial measures.

For businesses, the government is putting in more funds to extend the JSS and encourage jobs creation:

The JSS is supposed to end on August 2020, whereby the last payout would be given in October 2020.

This time, the extension goes on for up to seven months—all the way to 2021.

Extension of Job Support Scheme

Previously, the JSS for companies was between 25% to 75%.

In this latest extension, it would be between 10% to 50%, and unlike the previous measures whereby all JSS would end at the same time (August 2020), this will end on different periods for different sectors.

Here are what was announced:

• Aerospace, aviation and tourism sectors = 50% JSS until March 2021
• Built environment sector = 50% JSS until October 2021, then 30% JSS until March 2021
• Arts and entertainment, food services, land transport, marine and offshore, and retail sectors = 30% JSS until March 2021
• Other sectors = 10% JSS until 2021

That’s good, right?

Experts Said Extended JSS is Good But Still Can’t Help Some Companies

Well, every expert that ST spoke to said that it’s good, but whether it’s enough? They’re not so sure about that.

OCBC Bank head of treasury research and strategy Selena Ling

It’s generous and helps distressed companies tide over these challenging times, which would hopefully turn around by Mar 2021.

However, if demand does not pick up, some firms might just go under anyway.

CIMB Private Banking economist Song Seng Wun

Every business gets help, even those at the third tier (read: 10% help in other sectors). However, this will only cushion the impact and unemployment rate will still rise, especially in “vulnerable sectors” like “aerospace”.

Tourism, as well as Arts & Entertainment businesses, will continue to suffer as well.

EY Asean workforce advisory Samir Bedi

It will help in retaining talents and creating jobs; for third-tier sectors, businesses might use the extra funds to create new jobs or retrain staff.

Not Every Business In “Third-Tier” Sector Are Doing Well

However, unlike what Mr Samir said, there are companies like recruitment firm EPS Consultants which is under the third-tier (10% JSS support) but continue to face cost pressures.

While they’re not in the tourism industry, businesses everywhere are freezing hiring, which means they have lesser revenue.

And based on the impact of Covid-19, they’re probably not the only one.

Nonetheless, Companies Are Thankful

Smart sanitary solutions company Rigel said that the JSS support helps the company to retain its staff and buy them time to look into ways to save the company.

They are planning to move into new markets and grow their business revenue.

It was added that the company’s survival depends on the recovery of the construction industry, and if the industry doesn’t recover in time, the company’s survival might be in danger too.

Seoul Garden, the brand everyone is familiar with, says that the support helps them to retrain staff and redesign jobs, as well as R&D.

The Group’s General Manager, Garry Lam, says that focusing on the skills of their people is imperative and that the extended support has done a lot to help them in that regard.

Not A Magical Pill

In short, the extended JSS isn’t a vaccine to the Covid-19 economic impact. However, if companies in Singapore can use it wisely, it could just let them bounce back bigger and higher.

Since you’re here to find out more about JSS and other financial help, how about checking what’s available for individuals in Singapore?

There’s a really nifty thing known as tourism credits which help businesses in the first-tier and individuals as well. Pretty cool stuff.

You can read more here.