Singapore Deputy Prime Minister Heng Swee Keat on Monday unveiled an additional $5.8 billion (S$8 billion) stimulus package, focusing on the labor market and the worst hit sectors of the [economy][1] during the coronavirus pandemic.
Heng, who is also the finance minister, said the government is not planning to draw on past reserves to fund the latest stimulus.
The city-state economy has undergone its worst quarterly performance on record, by contracting 13.2 percent in the second quarter of 2020.
The government so far has unveiled about $72.98 billion (S$100 billion) measures over four budgets to support the people and [business][2] during the Covid-19 crisis.
“We designed our measures to give us flexibility for adjustments as the crisis progresses,” Heng said. “Some of these measures are ending soon.”
In the latest package, the government has extended the Jobs Support Scheme to retain and upskill workers and also launched Jobs Growth Incentive to increase headcount of local workers.
Heng extended the grant given to unemployed Singaporeans until December 2020.
Aerospace, aviation, and tourism have been the hardest hit sectors. For the aviation sector, Heng said he will allocate an additional $136.47 million (S$187 million) to extend the support measures in the Enhanced Aviation Support Package up to March 2021.
The government also plans to create around 4,000 new jobs, including permanent roles, in the healthcare sector alone.
Other measures include $233.53 million (S$320 million) in vouchers to residents to support domestic tourism. Details of the programme will be released by the Ministry of Trade and Industry next month.
Last week, citing weak performance of the domestic economy and significant uncertainty over how the Covid-19 situation evolve in quarters ahead, the government downgraded GDP growth forecast for this year to “-7.0 to -5.0 percent” from “-7.0 to -4.0 percent”.
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[Business News][2]