Singapore to Provide Additional Funds to Aerospace, Aviation & Tourism Sector

The Government of Singapore will provide additional funds to help the aerospace, aviation and tourism industries as they are among the hardest-hit sectors by the COVID-19 pandemic.

The Deputy Prime Minister Heng Swee Keat has made the announcement in a televised address to the nation on Monday (August 17). He explained in the statement that these industries need to be supported because they are the main driving force of the economy and a multiplier for other industries in Singapore.

He said, “Our strategy is to provide further support for these sectors, to retain core capabilities and position them for an eventual recovery. These sectors are important parts of our economy and they are multipliers for other sectors.”

“Singapore’s position as a global business node depends on our connectivity as an air hub. The Changi Air Hub and its adjacent industries contribute to over 5 per cent of Singapore’s GDP and employ more than 190,000 people. Tourism adds vibrancy to our retail and F&B sectors,” he further added.

An additional S$187 million will be invested in the enhanced aviation support plan announced in March this year, which will last until March 2021.

According to a joint statement of the Civil Aviation Authority of Singapore (CAAS) and the Ministry of Transport (MOT), the move will provide rental relief for airlines, rebates on landing and parking charges and save costs for the country’s airlines, ground handlers, cargo agents and airport tenants. This package will also support country’s local airlines to rebuild the air connectivity to the world.

On Monday (August 17), Mr. Heng Swee Keat also announced that companies in the severely affected aviation, aerospace and tourism industries will receive 50% of their wages, which will be paid for another seven months until March 2021.

The government will provide Singaporeans with travel credit “Singapore Rediscovers Vouchers” worth S$320 million. The Ministry of Trade and Industry (MTI) will provide more detailed information in September.