32 companies return Jobs Support Scheme payouts worth S$35m

Singapore

SOME businesses here have either returned or donated the government payouts received from the Jobs Support Scheme (JSS), as a form of solidarity with the local community amid the Covid-19 outbreak.

As of May 9, 2020, 32 companies have returned the April payout of the JSS, amounting to a total of S$35 million which would be used for future payouts, said a spokesperson from the Ministry of Finance on Sunday.

Another 29 companies that have received the April payout have pledged to decline future JSS payouts.

In a Facebook post on Sunday, Deputy Prime Minister and Finance Minister Heng Swee Keat wrote that he is "heartened" by the actions of these companies. These businesses have "coped better than others" in response to the crisis, and include multinational corporations (MNCs), and financial institutions as well as other local enterprises across different sectors, he noted.

One MNC which has redirected its JSS payout is German pharmaceutical company Boehringer Ingelheim. Its country managing director Gerrard McKenna said that the decision to donate the JSS payout from the government came with "strong support" from employees.

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"Our employees voted and selected the five organisations we chose to donate to," added Mr McKenna, who is also the head of human pharma of the South-east Asia and South Korea regional operating unit.

The company has over 200 employees in Singapore. It will donate a total of S$500,000 - most of it coming from the JSS payout - to five organisations: the Migrant Workers' Assistance Fund (under the Migrant Workers' Centre), Sayang Sayang Fund (under the Community Foundation of Singapore), The Invictus Fund (under the Community Chest), Singapore Red Cross and the Society for the Prevention of Cruelty to Animals (SPCA).

"The purpose of the JSS is to help companies to retain their local employees during this period of economic uncertainty," Mr McKenna noted. "At this point in time, in contrast to other industries, like aviation and tourism, our company in Singapore has not been financially adversely affected."

While the company may see medium to long-term impact due to Covid-19, Boehringer Ingelheim noted the immediate needs of the Singapore community and had decided to donate, he added.

Another MNC that has decided to give up its JSS payout is DSM, which specialises in solutions for nutrition, health and sustainable living.

Pieter Nuboer, president of DSM Nutritional Products Asia-Pacific, said that its business model is "fortunate" to be relatively resilient. But at the same time, he noted that many businesses and groups in societies are in "dire need".

"Regarding any government support coming our way, we are therefore very clear about our moral deliverable," he added. "It is to redirect these funds to those most in need."

First introduced in the Budget and enhanced subsequently, the JSS subsidises 75 per cent of the first S$4,600 of gross monthly wages of local workers in April and May across all sectors. This is in line with the "circuit breaker" measures that started in April 7, and are slated to end by June 1. Over S$7 billion was paid out to over 140,000 employers in April through the JSS to co-fund wages.

Firms which donate the payout can stand to benefit from tax deductions if they are made to approved institutions of public character or to the Singapore government for causes that benefit the local community, going by existing guidelines on the Inland Revenue Authority of Singapore's website.

In a statement, Beh Swan Gin, chairman of the Economic Development Board, said that firms which decided to redirect their JSS resources to those in greater need reflect the "SG Together spirit" of stepping forward and overcoming challenges together.

"Many of these companies share a long-standing partnership with Singapore, which has enabled the creation of good business and job opportunities for the people here," he added.

In his Facebook post, Mr Heng added that he hopes that the move by various firms to donate their JSS payouts will inspire others that are doing well to do the same.