Phase 2 Heightened Alert Support Package for SMEs (July to August 2021)
From 22 July 2021, Singapore has reverted to Phase 2 (Heightened Alert), which means that many companies set up in Singapore will inevitably be affected. Fortunately, the Singapore Government will be cushioning the impacts of the harsher COVID-19 restrictions with a $1.1 billion support package.
Summary of Phase 2 Heightened Alert Support Package for SMEs
- The Jobs Support Scheme (JSS) will provide enhanced wage subsidies to relevant sectors.
- Privately-owned commercial properties will have their rent offset for half the duration of Phase 2 (Heightened Alert).
- Extended temporary COVID-19 Recovery Grant for workers on involuntary no-pay leave
- A part of food delivery costs through third-party logistics partners and food delivery platforms to be offset through a Food Delivery Booster Package.
- Retailers will receive a one-off 80% support on qualifying service fee costs imposed by platforms including Shopee, Qoo10 and Lazada, capped at $8,000 through an E-commerce Booster Package
-
Enhanced Jobs Support Scheme
From 22 July to 18 August 2021, the JSS will be enhanced for sectors that are affected.
| Affected Sectors | Wage Support |
|---|---|
Sectors that were closed or sectors with further safe management measures implemented, including: Food & Beverage businesses, fitness studios, gyms, arts education centres and performing arts organisations. |
Increased to 60% |
Sectors that are significantly affected, including: Tourist attractions, retail sector, art galleries, affected personal care services, museums, licensed hotels, cruise and regional ferry operators, cinema operators, travel agents, MICE (meetings, incentives, conferencing and exhibitions) organisers, as well as other family entertainment centres. |
Increased to 40% |
From 19 to 31 August 2021, the JSS support will be reduced to 10%.
How Do I Apply For The Support?
Employers are not required to apply for the JSS. For eligible employers, the Inland Revenue Authority of Singapore (IRAS) will notify them by mail to inform them of the support tier and the JSS payout amount payable to them.
-
Rental Relief
Under the Rental Support Scheme, government-owned commercial property tenants will receive an additional four-week rental waiver. This means government-owned commercial properties will have their rent offset for the entire duration of Phase 2 (Heightened Alert).
On the other hand, owner-occupiers and qualifying tenant-occupiers of privately-owned commercial properties will receive an extra two-week rental relief cash payout. In other words, Privately-owned commercial properties will have their rent offset for half the duration of Phase 2 (Heightened Alert).
However, the Ministry of Finance (MOF) has noted that many tenants gave feedback about how their landlords were not forthcoming with rental support and are looking into how rental obligations can be fairly shared among landlords, qualifying tenants and the Government.
How Do I Apply For The Support?
The details are still pending, and the Ministry of Law will announce more about this scheme.
-
Food Delivery Booster Package
With the impact of the stricter measures implemented on the food and beverage sector, Enterprise Singapore (ESG) has reintroduced the Food Delivery Booster Package in a bid to offset a portion of food delivery costs through third-party logistics partners and food delivery platforms for transactions placed between 22 July to 18 August 2021.
| Mode of Delivery | Percentage Funded by ESG |
|---|---|
| Food delivery platforms (Deliveroo, GrabFood, foodpanda, and Bungkus) | Five percentage points of the commission cost charged |
| Third-party logistics partners | 20% of the delivery cost of food delivery orders |
How Do I Apply For The Support?
| Mode of Delivery | Percentage Funded by ESG |
|---|---|
| Food delivery platforms (Deliveroo, GrabFood, foodpanda, and Bungkus) | F&B businesses that are already running on any of the eligible food delivery platforms are eligible for the reduced commission costs, with no further application needed. |
| Third-party logistics partners | The support will be disbursed through the following third-party logistics partners, including Pickupp, GrabExpress, Lalamove, Chope, Zeek Logistics, YY Circle, Pandago, DLVRD, and MilkRun. |
More details can be found on the ESG website.
-
E-commerce Booster Package
From now till 16 November 2021, local retailers will also be encouraged to get onboard local e-commerce platforms with grant support through the E-commerce Booster Package extension.
Retailers will receive a one-off 80% support on qualifying service fee costs imposed by platforms including Shopee, Qoo10 and Lazada, capped at $8,000.
How Do I Apply For The Support?
Retailers can reach out directly to eligible e-commerce platforms including Zalora, Lazada, Qoo10, Mummys Market, and Shopee. Each retailer is allowed to apply for just one e-commerce platform. More details can be found on the ESG website.
By the way, we also help E-commerce companies sort out their accounting through a simple chat platform and keeping documents online. Drop us a chat to find out how to get accounting for e-commerce businesses done by experts.
Is There Support For My Workers Too?
For other workers affected by the stricter COVID-19 measures, the Government has extended the temporary COVID-19 Recovery Grant. Under this grant, those who were put on an involuntary no-pay leave will receive a payout of up to $700, while those who lost at least half their salary for at least a month as a result of the stricter safe management measures since 16 May 2021 will get up to $500 payout.
Recipients who are currently under the grant and continue to need extra help can also apply for a second payout for support.
How Do My Workers Apply For Their Support?
Eligible workers can apply for support through the Ministry of Social and Family Development (MSF) website here.
Need A Helping Hand During This Crisis?
We know how tough this period can be, but hang tough for there is light at the end of the tunnel.
Stay focused on growing your business, so your company can emerge stronger. Leave your accounting pain points to us, because we know that preparing financial statements yourself is a chore.
We do affordable online accounting for busy founders, with a human expert who has your back and works alongside you to ensure your business prospers while being compliant. Get in touch with us today!
