Job Support Scheme (JSS) was introduced back in early 2020 as part of the Singapore government’s pandemic financial support to encourage employers to retain local employees (both citizens and Permanent Residents). Singapore has paid out over S$27.6 billion through JSS as of September 2021.
As COVID-19 restrictions have now been extended till early November 2021 in response to the rising number of COVID cases, the Singapore government has also extended JSS to 21st November 2021. This aims to provide further financial support to impacted industries.
The enhanced pay out corresponds to wages paid from August to October 2021 and will be disbursed in December 2021.
What should businesses expect post JSS
There is no doubt many SMEs who will experience speed bumps post Job Support Scheme (JSS). Many SMEs may not be able to get back to the pre-pandemic productivity levels. Furthermore, the cost of doing business has also risen and is expected to stay. This is due to:
- Compliance with COVID-19 safety regulation and the requirement to implement new safety measures.
- Limited physical sales activities. For example, capacity constraints, social distancing requirements.
- Increase in cost of goods sold due to global supply chain challenges.
- Limited inflow of migrant worker driving up wages and operational expenses.
Managing cash flow
To get through this difficult period, it is extremely crucial now for SMEs to manage their cash flow closely. It is advisable to understand the timing of your cash inflows and outflows to ensure that your business is able to meet all operational expenses and obligations.
Invoice Finance is a cash flow tool that will help you take control of business cash flow. It gives you the ability to plan your business in confidence as you will have certainty on when you get paid from outstanding invoices. You no longer need to wait for 30, 60 or even 90 days for your customer to pay. Find out more here on how Invoice finance can help your business.