Covid-19 support measures: S$187m boost for aviation sector, S$320m set aside for domestic tourism vouchers for S’poreans

• The Government will allocate an extra S$187 million to prop up the aviation sector until March 2021
• To stimulate domestic tourism, it will put aside S$320 million for domestic tourism credits
• The authorities are prepared to step up support for firms in the sports and arts and culture sectors

SINGAPORE — An extra S$187 million will be injected into the coronavirus-hit aviation industry, Deputy Prime Minister Heng Swee Keat said on Monday (Aug 17).

In a ministerial statement detailing increased support for workers and jobs affected by the pandemic, Mr Heng said that the Government would extend support under the Enhanced Aviation Support Package by five months until March next year.

The package, originally totalling S$350 million, was announced in March to fund measures such as rebates on aircraft landing and parking charges, and rental relief for airlines, ground handlers and cargo agents. 

Mr Heng, who is also Finance Minister, said that the S$187 million boost would provide cost relief for Singapore’s airlines, ground handlers, cargo agents and airport tenants. It will also help carriers regain air connectivity to the world.

The measures include a 10 per cent rebate on landing charges for all scheduled passenger and freighter flights arriving in Singapore, and a 50 per cent rental rebate for the lounges and offices of airlines and ground handlers in the terminals of Changi and Seletar airports.

The aviation industry has been one of the hardest-hit by the pandemic, with air travel crippled by border closures around the globe. 

“The Changi air hub and its adjacent industries contribute to over 5 per cent of Singapore's gross domestic product and employ more than 190,000 people,” said Mr Heng.

For workers in the aviation sector who are unable to work, the Government has been helping to redeploy them to other areas of need.

Five hundred air crew have since been moved to hospitals as care ambassadors, where they have been using their service skills to support non-clinical work.

“We will scale up the temporary redeployment programme,” Mr Heng said, as he pledged that the Government would create about 4,000 new jobs, including permanent roles, in the healthcare sector. 

“We are also creating more jobs in other areas of need,” he said. 

The pandemic-led travel restrictions have also brought foreign visitor arrivals to a halt. 

Mr Heng said that the Government is determined to support Singapore’s tourism industry by encouraging local tourism.

To do this, S$320 million will be set aside for tourism credits — by way of “SingapoRediscovers vouchers” — that Singaporeans may use, he said. 

Last month, the Government launched a nine-month, S$45 million SingapoRediscovers campaign to urge residents to rediscover Singapore in an effort to prop up the tourism sector.  

“Local consumption will not fully make up for tourist spending, but I hope Singaporeans will take the opportunity to explore our local culture and heritage, nature, art and architecture,” said Mr Heng. 

The Ministry of Trade and Industry will provide more information on the vouchers next month.

Mr Heng added that he was also prepared to offer more support to businesses in the sports and arts and culture sectors, which will also take much longer to resume activities completely.

For a small number of firms, including those in the nightlife sector, that may not be able to open soon, the Government will help them move to other activities or ease their exit, he said.