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Jobs support scheme jss for tier 3 companies. Was it a good policy?


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Turbocharged
(edited)

https://www.mof.gov.sg/docs/default-source/default-document-library/news-and-publications/featured-reports/17-feb-2022-6-30pm-assessment-of-the-impact-of-key-covid-19-budget-measures.pdf?sfvrsn=828ebb24_2
 

https://www.mti.gov.sg/-/media/MTI/Resources/Economic-Survey-of-Singapore/2021/Economic-Survey-of-Singapore-2021/FA_AES2021.pdf

I always thought about the merits of the jss scheme as it is by far the most expensive policy ever costing 28 billions dollars. 
It is very different from other countries where by companies furlough workers and gov pay the support directly to the workers. In Singapore, the money is paid to capital, owners of companies and employers. 
 

I can understand roughly the reason for it but I don’t understand why is jss paid to every tier 3 company? Even firms in electronics, pharma, sectors which is not impacted at all by covid. Those money in reality will just be given to the rich employers which then fuel inflation which we are seeing now.

by the gov own study, they spend more than 2x of the money funding tier 3 companies and it it’s cost effectiveness in terms of saving jobs is so much lower, just 0.02 vs 0.44 for tier 1 companies. 
 

I thought tier 3 companies should be opt in for jss on a need basis. We spend a total of 19 billion funding jss for tier 3 companies. A 10% savings would be 2 billion… and less hot money into the economy. 

If you want to blanket give money like ns55, at least give it to the workers not employers….  I was wondering why interest rate goes up and people still have lots of money to buy properties…. All full cash no need to take loan?


 

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Edited by Wind30
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Turbocharged
(edited)
42 minutes ago, Windwaver said:

I do know some bosses that got richer :grin:

That is so bad right? It is not $100 ns55 voucher but literally hundred of thousands of dollars to each firm. All from taxpayers money. 
 

worse thing is so much money fuel inflation making it worse for the poor. I seldom feel any gov policy Is outright wrong but this one seems to be really bad because of the huge sums of money involved.

 

I am surprised they are so honest in the 2021 report showing that tier 3 jss is ineffective in saving jobs. But they took out that number in the 2022 report. 
tier 3 jss cost 19 billion in total… I wonder why this was not debated in parliament 

Edited by Wind30
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Turbocharged
(edited)

There are a lot of dishonest people out there.

Ownself check ownself will not work on the masses.

 

 

Edited by Windwaver
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Supersonic
1 hour ago, Windwaver said:

There are a lot of dishonest people out there.

Ownself check ownself will not work on the masses.

 

 

Definitely many dishonest and bad people around. Such scheme doesnt benefits workers if money is not given to them directly. Employers can just pocket the money after receiving and not share with their workers.

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Turbocharged
(edited)
2 hours ago, 13177 said:

Definitely many dishonest and bad people around. Such scheme doesnt benefits workers if money is not given to them directly. Employers can just pocket the money after receiving and not share with their workers.

Exactly. I am surprised opposition never bring this up in parliament. The amount of money involved is huge. 19 billion dollars disbursed to tier 3 companies owners. 
 

I thought this is a huge issue… esp when gov themselves say tier 3 payouts is not effective in saving jobs…. So much money wasted.

Edited by Wind30
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It has got its virtue. It did help one of my friend who lost his job find another one. The SME towkay whom I know decided to hire a Singaporean instead of a PRC. As the salary payment is the same for both at the end of the day.

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Turbocharged
(edited)
49 minutes ago, Davidklt said:

It has got its virtue. It did help one of my friend who lost his job find another one. The SME towkay whom I know decided to hire a Singaporean instead of a PRC. As the salary payment is the same for both at the end of the day.

But as a whole even the gov says tier 3 jss is not effective is keeping jobs. It is also insanely expensive for its benefits. In your example, I bet the person who benefited the most by far is the sme towkay which is totally illogical. 
When the towkay get lots of money, he pushes prices of houses, cars up… harming the normal workers. I have never seen a policy so badly designed I think. And because of the amount of money involved the impact is huge. 

Edited by Wind30
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Twincharged

JSS is good but it has its flaw. They should simply base on IRAS records, if an entitled company can prove that it is losing money during covid, then tje company will be entitled to claim JSS. 

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1 hour ago, Ct3833 said:

JSS is good but it has its flaw. They should simply base on IRAS records, if an entitled company can prove that it is losing money during covid, then tje company will be entitled to claim JSS. 

no different, there are many ways to cook a book if the boss want to keng.

moreover base on income will be 1.5 year later which many coy will kpkb too late.

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Twincharged
45 minutes ago, Jman888 said:

no different, there are many ways to cook a book if the boss want to keng.

moreover base on income will be 1.5 year later which many coy will kpkb too late.

There has to be some baseline, and  we have to assume that IRAS assessment is a reliable source. At peast better than giving out public fund indiscriminately 

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Turbocharged
(edited)
19 minutes ago, Ct3833 said:

There has to be some baseline, and  we have to assume that IRAS assessment is a reliable source. At peast better than giving out public fund indiscriminately 

Exactly. People is arguing for a 100% foolproof method which is ridiculous. The point is 19 billion was dispense indiscriminately to tier 3 companies, a 10 percent reduction is 2 billion. Freaking 2 billlion dollars…. 
 

I am surprised there isn’t more outrage over this policy. Esp these money were channeled to capital not labour, rich owners not workers. Esp the gov says tier 3 jss isn’t really effective in keeping jobs. Esp it involves literally billions of dollars 
 

even a simple opt in method will probably get us the 10% savings…

Edited by Wind30
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Twincharged
(edited)
39 minutes ago, Wind30 said:

Exactly. People is arguing for a 100% foolproof method which is ridiculous. The point is 19 billion was dispense indiscriminately to tier 3 companies, a 10 percent reduction is 2 billion. Freaking 2 billlion dollars…. 
 

I am surprised there isn’t more outrage over this policy. Esp these money were channeled to capital not labour, rich owners not workers. Esp the gov says tier 3 jss isn’t really effective in keeping jobs. Esp it involves literally billions of dollars 
 

even a simple opt in method will probably get us the 10% savings…

I am privileged to know some real company financial data, large org who made million$ were still given hundreds of thousands of JSS, end up the profit went back to the executive pockets in the HQ in overseas.

This is one area I feel that the government  has failed us badly while they have done well in some other areas.

Edited by Ct3833
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Turbocharged
On 8/5/2022 at 11:22 AM, Davidklt said:

It has got its virtue. It did help one of my friend who lost his job find another one. The SME towkay whom I know decided to hire a Singaporean instead of a PRC. As the salary payment is the same for both at the end of the day.

Not easy to police but surely the department issuing Work Permit can have some level of checks? Match with qualifications and experiences this applicant has and hold the employer responsible for any fakes? Aiya, scholars know how to handle such simple tasks. If scholars don't knows ask ah bengs to teach them lor. Haha

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Supercharged

Jss payout if i recall correctly. In layman terms if the company hires locals and pr. They get 25par. 50par or 75par for a mth salary. Capped at 4.6k max per pax. Ft. Wp. Ep not included.

 

So by right is a rather fool proof justification.

The tier part is a bit messy. Though some industries like construction kena hit badly. Coz for mthd workers stuck in dorms. Cant work. Though got levies rebates but salaries gotta pay.

So it does look a good help from govt.

Though controvosionally its the corporates which are super essential during times like these. Prob the supermarts. Ntucs. Dheng siong. Giants. Etc. All opened during phsse 1 2. Etc. 

 

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Turbocharged
20 hours ago, Spurman said:

Jss payout if i recall correctly. In layman terms if the company hires locals and pr. They get 25par. 50par or 75par for a mth salary. Capped at 4.6k max per pax. Ft. Wp. Ep not included.

 

So by right is a rather fool proof justification.

The tier part is a bit messy. Though some industries like construction kena hit badly. Coz for mthd workers stuck in dorms. Cant work. Though got levies rebates but salaries gotta pay.

So it does look a good help from govt.

Though controvosionally its the corporates which are super essential during times like these. Prob the supermarts. Ntucs. Dheng siong. Giants. Etc. All opened during phsse 1 2. Etc. 

 

Fool proof… I thought it is a foolish policy. Or at least one done without due diligence. 

you can argue they did not have time during covid to plan but post mortem, gov needs to review how much was wasted on companies that did not needed it. Some companies owners really made a lot of money off these gov “assistance” when they did not needed it. 
there should be a better method of “means testing” quickly 
 

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Supercharged
1 hour ago, Wind30 said:

Fool proof… I thought it is a foolish policy. Or at least one done without due diligence. 

you can argue they did not have time during covid to plan but post mortem, gov needs to review how much was wasted on companies that did not needed it. Some companies owners really made a lot of money off these gov “assistance” when they did not needed it. 
there should be a better method of “means testing” quickly 
 

Prob I rephrase it as "mechanically fool-proof".

Say Company ABC did not pay its local worker during the "claimable" months. JSS would not be paid out.

And you are right, some companies made a lot more monies, not due to assistance but more due to the needs for their products.

I cited supermarkets, pharmacies.

Though lets look at another way, if JSS wasn't rendered, I would say a lot of firms might not make it through the dark periods of 2020 and early 2021.

JSS is not perfect. There are many firms who are linked to construction and marine industry but these firms are classified as trading, manufacturing etc. But assistance rendered to them differs. These firms are unable to carry out business as they supply to construction and marine which r badly locked down thru 2020.

 

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