If you’ve been paying attention to local economics recently, you’ll know that in 2021, Singapore’s looking at a K-shape recovery.
It looks chim but basically, what it’s saying is there are two different groups of sectors.
Those that will improve (upwards) and those that will stagnate or worsen (downwards).
The aviation industry, unfortunately, belongs to the latter group, given how global travel is likely not recovering anytime soon.
Which is why, for Budget 2021, the government is looking at providing more help to the beleaguered industry.
Budget 2021’s $870m Support Package for the Aviation Industry Will Increase Wage Subsidies by 50%
According to the Ministry of Transport (MOT), an S$870 million support package will be provided to the aviation industry.
The Jobs Support Scheme (JSS), which has been extended, will provide 30% wage support from April to June 2021, and 10% from July to September 2021.
The Aviation Workforce Retention Grant will enhance the subsidies to Singaporean and permanent resident workers to 50% from April to September 2021.
Payouts will be made in two separate tranches: once in September (for the Apr to Jun period) and once in December (for the Jul to Sep period).
The grant is expected to cost S$330 million.
Who Gets The Grant?
So, here’s the key question: Who will benefit from the grant?
Basically, these beneficiaries are companies whose activities are based primarily at Changi Airport
They should also already be receiving Tier 1 JSS support.
There’s no application for the grant and companies will be notified of the amount of support they’ll receive by the Civil Aviation Authority of Singapore (CAAS).
The Remaining S$540 Million
But you may feel that something isn’t adding up. After pulling out your calculator and crunching in the numbers, you then realise that there is a remainder of S$540m.
So, what happens to the remaining money?
They’ll go to the OneAviation Support Package which provides cost relief for the industry.
Some of the measures in the package include:
- Extension of rebates on fees and charges at Changi and Seletar airports by one year
- Extension of rebates on fees payable by pilots, air traffic controllers and aircraft maintenance engineers by one year
The package hopes to help companies in the industry retain their core competencies, maintaining Singapore’s position as an aviation hub.
“We must avoid further reductions to the aviation workforce so that companies will not lose their core local capabilities, which have taken many years to build up. If the sector weakens its capabilities, this will hamper its ability to recover.” said MOT.
Training support, such as training pilots to fly other types of aircraft, will also be provided to aviation companies.
According to the chief executive of Changi Airport Group, Lee Seow Hiang, the purpose of the aviation support package is not only to provide more financial aid, but also to enhance the skills of its workforce, and develop new ways for safe travel experiences.
Basically, it’s like what Minister Chan Chun Sing said earlier in the pandemic: Don’t throw away your workers now and find yourself unprepared when things pick up again.
Feature Image: EQRoy / Shutterstock.com
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