Debated in Parliament on 3 Nov 2021.
Ms Mariam Jaafar asked the Minister for Social and Family Development in light of the increase in job losses among middle-income PMETs, whether the Ministry will review social assistance schemes, in particular the treatment of debt such as renovation loans and insurance payments as expenses.
The Government has introduced various measures to help Singaporeans cope with the impact of COVID-19. To protect workers and save jobs, we introduced the Jobs Support Scheme and Jobs Growth Incentive to help firms retain and hire Singaporeans, and the SGUnited Jobs and Skills Package to help them access job and training opportunities.
In addition, the COVID-19 Recovery Grant (CRG) supports lower- to middle-income resident employees and self-employed persons who, as a result of the economic impact of COVID-19, are involuntarily unemployed, or are experiencing involuntary no-pay leave or significant income loss for at least three consecutive months. The CRG assistance provides temporary support while these individuals actively search for new job or training opportunities.
Households facing financial difficulties can approach our Social Service Offices (SSOs), who will assess their needs and circumstances, and provide ComCare assistance if they meet the criteria. ComCare beneficiaries receive comprehensive support that includes cash assistance to help the family meet the income shortfall for their daily living expenses on basic needs, such as food, transport, and communications. Depending on the household’s needs, they may also receive free medical treatment at public healthcare institutions and be referred to relevant government agencies or our community partners for further support.
However, the ComCare cash assistance provided does not cover loans or instalment payments, which will vary depending on the household’s financial decisions and use of credit. Such payments also generally contribute towards the building of personal assets, which would not be appropriate for the Government to fund via public resources. Our social assistance schemes therefore prioritise support for daily living expenses instead.
Nonetheless we understand the pressures that families with debts face, and our SSOs will support ComCare beneficiaries with outstanding loans or instalment payments to take steps towards regaining financial stability. For instance, we will refer families with debts to relevant debt advisory services like Credit Counselling Singapore, where personal financial counsellors will guide them on the possible courses of action to manage and reduce their debts. Depending on their circumstances, the families may also receive further assistance to negotiate and/or restructure unsecured loans, so that they can make monthly repayments at reduced interest rates which they can afford. The families will also have access to financial literacy classes to equip themselves with financial planning skills such as budgeting, and support groups where they can seek peer advice.
The Government will continue to regularly review the coverage and support quantum of our various measures, to ensure that Singaporeans are supported in meeting their needs.
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