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SINGAPORE: Businesses and MPs have welcomed the government's announcement on training for workers as well as enhancing its financing schemes for local companies.
These are among the measures to help individuals and businesses tide over the current economic climate.
Prime Minister Lee Hsien Loong, in giving a glimpse of the measures on Sunday, also said Budget Statement 2009 will be brought forward to before the Lunar New Year which falls on January 26.
As the financial storm rages, companies are finding it tough to get credit from banks.
Lawrence Leow, president of the Association of Small & Medium Enterprises, said: "Even for the very key customers, banks nowadays usually lower the quantum and ask for higher interest rates. So, it is really a double whammy for the companies.
"It is also common nowadays for suppliers to ask for cash payment. So, PM's announcement this afternoon is actually very good, very important.
"I think one of the schemes being used prior to the crisis is the local enterprise finance scheme. This scheme is one where the government co-shares default risk. Normal times, it is 50-50.
"But in times of crisis, government will raise their default risk to 80 or even 90 per cent. I suspect the scheme they (government) are going to announce will probably be moulded around this concept."
Some said that bringing the Budget forward is timely.
Inderjit Singh, chairman for Government Parliamentary Committee for Trade and Industry, said: "I am glad the PM is going to announce them (economic relief measures) earlier because we need to save companies now before they go down under.
"If we had waited till February, by the time we implement these things, it will be March or April next year. So this (bringing the Budget forward) is a positive move."
Josephine Teo, NTUC Assistant Secretary General, said: "The downturn came rather unexpectedly, and I am sure there are businesses that are caught off guard.
"Any help that the government can provide to businesses to manage their costs better, thereby allowing them to retain as many of their workers as possible, will be welcome."
As for the man in the street, many told Channel NewsAsia that they are glad the Budget has been brought forward.
Besides service and conservancy charges, and rental rebates, many also hope the government can be more generous with cash payouts.
"The best thing is cash," said a member of the public.
"More subsidies for bus fare," said another.
"GST should only be levied on luxury items, because especially the poor families, it is very taxing on them to have to pay an extra 7 percent on everything," said a third.
Some suggested that reducing Goods and Services Tax (GST) may also help businesses.
Mr Leow said: "I know it is unthinkable if the recession is a mild one. But this time round, it is a global recession. I think it may be worth the while to re-look at whether GST should be lowered to 3 percent, if not, 5 percent. This will help to stimulate local consumption."
Baey Yam Keng, MP for Tanjong Pagar GRC, said: "I think besides what has been done in the past about U-SAVE and the rebates in conservancy charges, I think, perhaps we could look at some government fees to be waived or give discounts during this trying period. Also, for businesses - administration fees, licence fees."
While there are calls for more to be done, those interviewed said they are confident the government will be able to weather the storm with the people.
Zainal Abidin Rasheed, Mayor for North East CDC, said: "I am sure the government will do its part in terms of dividends and whatever financial assistance that they can come up with, to tide people over the period while they get retrained and get new job opportunities."
- CNA/ir
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