S’pore Aviation Sector Will Get $112 Million Package Under Budget 2020 To Cope With Covid-19 Outbreak

Finance Minister Heng Swee Keat Announces $112 Million Package For Affected Companies

The government has repeatedly acknowledged the difficulty Singapore’s economy is facing due to the Covid-19 outbreak.

On Tuesday (18 Feb), Deputy Prime Minister Heng Swee Keat announced that the aviation sector will be receiving a $112 million package to support the industry. This sector is one of the hardest-hit so far, reported The Straits Times.

Source

Other bodies will co-fund package

The Aviation Sector Assistance Package will be co-funded by 3 bodies — the government, Civil Aviation Authority of Singapore (CAAS), and Changi Airport Group (CAG).

They seek to support the companies impacted by the recent Covid-19 outbreak for 6 months. The overall aim is to lower business costs and protect jobs in the sector.

Mr Heng explained that most directly affected sectors are tourism and aviation. As lesser tourists visit Singapore, hotel occupancy rates will fall too.

Changi Airport will receive rebates

Changi Airport will get a 15% property tax rebate, which’ll ease tax burdens.

Apart from that, the following will also be included:

  • rebates on aircraft landing and parking charges
  • assistance to ground handling agents
  • rebates on rent for shops and cargo agents at Changi Airport.

In addition, all Singapore carriers operating scheduled flights will save about $6 million on regulatory fees, thanks to CAAS’ 50% rebate on the fees for new and renewed Certificates of Airworthiness.

Source

 

Any airline operating flights between Mainland China and Singapore will receive assistance too. Those that operated the routes will obtain landing credits.

Source

Singapore Airlines (SIA) and carriers that continue operating scheduled passenger flights between Mainland China and Singapore will receive 100% rebate on the landing charges.

Sectors harder hit as China is now a major player

Transport Minister Khaw Boon Wan added that Singapore is harder hit this time, as compared to during the SARS outbreak in 2003.

China is now a huge source of tourism for us, making up one-third of Changi Airport’s retail sales and 11% of our travelling traffic.

Back then it was only 5%. Now they’ve stopped completely, which is a big blow.

In addition, demand for flights to other countries are falling too. As it is, SIA cancelled more than 100 flights between Singapore and destinations like South Korea due to the falling demand.

Stay strong, Singapore

Hopefully, this package will be able to keep the aviation sector on its feet. We hope that economy will stay strong and recover from the crisis soon.

Stay strong, Singapore.

Also read:

Featured image adapted from Unsplash.

Arista Lim

Arista is a spicy food and karaoke enthusiast. Also really into tea, especially oolong or tieguanyin.

Recent Posts

Woman loses S$330K to scam after OCBC staff fail to dissuade her from transferring money

She was left with just S$600 in her accounts.

25 Nov 2024, 2:42 am

Novena condo unit’s renovation still unfinished after more than 1 year & S$152K in deposits paid

The unit is in a mess, with building materials strewn across its rooms and wires…

25 Nov 2024, 1:32 am

Chee Hong Tat joins PAP’s CEC for the 1st time after getting co-opted

Manpower Minister Tan See Leng was also co-opted as he received the 14th-highest number of…

25 Nov 2024, 12:21 am

SM Lee stepping down as PAP Secretary-General, party pays tribute to him

"This will be my last speech to the party conference as Secretary-General," he said.

24 Nov 2024, 11:33 pm

Man in China attempts to jump from bridge while holding his 3 young children, later rescued

The children were evacuated safely while the man was rescued from the sea.

24 Nov 2024, 6:33 pm

13-year-old boy gets electrocuted twice after train surfing in Brazil, sent to hospital in serious condition

A passerby's attempt to save him only led to his second electrocution.

24 Nov 2024, 5:51 pm