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SINGAPORE: Without the supportive measures put in place by the government to cushion the blow from the COVID-19 pandemic, the economy would likely have doubled last year, according to a document released by the Ministry of Finance (MOF) on Thursday. (February 11th).
The mid-term assessment of the impact of major COVID-19 budget measures found that Singapore’s economy may have shrunk 12.4 percent or more last year. Singapore’s GDP fell 5.8 percent in 2020, according to early estimates.
Using a simulation model, the Monetary Authority of Singapore (MAS) estimated that last year’s five budgets that cost around S $ 100 million supported GDP growth by 5.5 percentage points. The easing of monetary policy boosted GDP by a further 1.1 percentage points, reducing 6.6 percentage points of the drop in GDP.
READ: Singapore’s economy shrinks a record 5.8% in 2020 pandemic
“The COVID-19 support measures have made a significant difference in keeping our people safe and preserving our livelihoods,” Deputy Prime Minister Heng Swee Keat said Thursday at the Shangri-La Rasa Sentosa Resort & Spa, where he spoke. with hotel staff and some beneficiaries of the COVID-19 budget schemes.
“Job losses were prevented and crises were cushioned. More aid was directed to supporting families in need, which in some way contributed to mitigating inequality.
“The interim analysis is encouraging, as it showed that the schemes are achieving the results for which they were designed.”
READ: Support measures will be reduced, but the 2021 budget will remain expansive: analysts
Budget measures, including the Employment Support Plan (JSS), may have helped save or create around 155,000 jobs on average during 2020 and 2021, the MOF said.
From April to December last year, S $ 22.6 billion in salary support for Singapore workers was paid to companies under JSS. Payments accounted for about 80 percent of business grants in 2020.
The Government has also introduced measures to help create jobs and link job seekers with job opportunities and training. SGUnited’s Jobs and Skills Package placed nearly 76,000 local job seekers in growing sectors such as ICT, healthcare and manufacturing, the MOF said.
The acceptance rate of the Job Growth Incentive (JGI), which was introduced at the end of the year, was encouraging, the ministry said. JGI supports companies that create new jobs by co-paying a portion of the salaries of new local employees for one year.
In September and October, 26,000 employers hired 110,000 job seekers under the scheme.
In total, the companies received S $ 27.4 billion in grants to stay afloat. Smaller firms and firms in the sectors most affected by the pandemic received more support, the MOF said.
Singapore companies also benefited from the financing plans, with around 20,000 companies accessing loans worth more than S $ 17 billion between March and December last year.
SOCIAL CARE
The 2020 budgets also committed S $ 10 billion in cash transfers and welfare plans for Singaporeans and households here.
Singaporean households got around S $ 2,000 per person on average from COVID-19 measures such as the Care and Support Package, income relief for the self-employed, and grants for those who have lost income due to the impact. of COVID-19.
The Care & Support package includes cash payments such as the Solidarity payment, the special Workfare payment for low-income workers, and PAssion card refills for seniors.
READ: Household income falls in 2020 due to the impact of COVID-19, but increased in the last 5 years
Lower-income households received higher levels of support, resulting in the income gap narrowing to the lowest in two decades, the MOF said. The Gini coefficient fell to 0.375 in 2020.
“While COVID-19 has exacerbated inequalities around the world, the 2020 Budget measures have helped mitigate them in Singapore,” the MOF said.
Each member of a Singaporean household living in one- and two-bedroom HDB apartments was estimated to receive S $ 3,400 or almost four times more than those living in private property (S $ 900).
Looking ahead to the 2021 Budget, which will be delivered next Tuesday, Heng said the global outlook remains highly uncertain and Singapore’s economic recovery is expected to be uneven across all sectors.
“We will continue to be vigilant as the road to recovery remains uncertain. We will also tailor our support to ensure that those most in need continue to receive help, including workers in the worst affected sectors,” Heng said. , who is also the Coordinating Minister of Economic Policies and Minister of Finance.
