SURVEY ON IMPACT OF PHASE 2 (HEIGHTENED ALERT) MEASURES ON BUSINESSES - (Based on responses collected from 17 to 21 May 2021.) - Singapore ...
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SURVEY ON IMPACT OF PHASE 2 (HEIGHTENED ALERT)
MEASURES ON BUSINESSES
(Based on responses collected from 17 to 21 May 2021.)Overview of Key Findings
• Most businesses
- expect continued uncertainty with economic activities continuing at present pace over the next 3 to 6 months.
- either strongly agree or somewhat agree that the current tightened measures are sufficient in addressing the recent
increase in community case.
- are largely confident in Singapore Government’s handling of the current COVID-19 situation.
- remain operational during the Phase 2 (Heightened Alert) period.
- will continue with their existing strength of workers and continue to pay their salaries during the Phase 2
(Heightened Alert) period.
• The number of SMEs that are more confident in Singapore Government’s handling of the COVID-19 situation now
compared to a year ago is larger than those who are less confident (37% versus 29%), but for large companies, it is the
reverse (22% versus 44%).
• Almost half of SMEs (53%) expect their overall business revenues to decline by more than 25%.
• Top short-term challenges for businesses: Decline in demand which leads to slowdown in business revenue and
Unsteady cashflow.
• Top medium-term challenges for businesses: Uncertainty in Local and Global environment and Rise in business cost.
• Top 3 strategies adopted by businesses to cope with Phase 2 (Heightened Alert) measures: Allow all/more employees to
consider working from home; Continue to look for opportunities to invest in business transformation and innovation
initiatives; and Continue to look for opportunities to diversify supplier sources/markets and strengthen business
model. 2The survey drew responses from 805 companies across key industries.
Most respondents are SMF (45%) and Most are from the Information and Communications
SBF (42%) members. & Professional Services (21%) sector.
EuroCham, 7% Industries %
Information and Communications & Professional Services 21
AmCham, 7%
Retail, Hotels & Food and Beverages 20
SMF, 45%
BritCham, 14% Manufacturing 16
Wholesale Trade 9
Health & Education 8
Other Services (e.g. Repair, Servicing, etc.) 8
Construction & Civil Engineering 6
SBF, 42%
Banking, Finance, Insurance & Accounting 4
SMF SBF BritCham AmCham EuroCham
Others (e.g. Arts & Culture, Social Services, etc.) 4
83% of the respondents are SMEs. Logistics & Transportation 4
Real Estate 2
Large Company /
Enterprise
17% SME (Grp annual
sales not more than 72% of respondents have ≥30% local shareholding
S$100 million OR Grp
employment size not Company Shareholding %
more than 200 ≥30% Local Shareholding 72
workers)
83%Most Large Companies (54%) and SMEs (45%) expect continued uncertainty with economic activities
continuing at present pace over the next 3 to 6 months.
View of the Local Economy over the Next 3 to 6 Months
45%
Continued uncertainty with economic activities continuing at
54%
present pace.
46%
44%
Another wave of global infection with new variants of
23%
COVID-19 and local economic activities will slump again.
40%
Economy has bottomed-out, the worst is over with 7%
economic activities gathering momentum but in a slow and 17%
sustained pace. 8%
5%
Vaccine administered, with resumption of economic
6%
activities at pre-COVID levels.
5%
0% 10% 20% 30% 40% 50% 60%
SME Large Company / Enterprise Total n = 805
Q: Which option best describes your view of the local economy over the next 3 to 6 months? (Please select one option only.) 4Most SMEs (58%) and Large Companies (77%) either strongly agree or somewhat agree
that the current tightened measures are sufficient in addressing the recent increase in
community cases.
Are the latest measures for Phase 2 (Heightened Alert) sufficient?
45%
39%
40% 38% 38% 38%
35%
30%
25% 23%
20% 21%
19%
20%
15%
14%
15%
11%
10% 8%
6% 5%
5%
5%
0%
Strongly agree that the Somewhat agree that the Neutral Somewhat disagree that Strongly disagree that the
measures are sufficient measures are sufficient the measures are measures are sufficient
sufficient
SME Large Company / Enterprise Total n = 805
Q: Do you think the latest tightened COVID-19 measures introduced under Phase 2 (Heightened Alert) are sufficient to address the increase 5
in community cases? (Please select one option only.)Most respondents (67% of Large Companies and 65% of SMEs) are largely
confident in Singapore Government’s handling of the current COVID-19 situation.
Level of Confidence in Singapore Government’s Handling of the COVID-19 Situation
30%
25% 24% 24%
21%
20% 20%
20% 18%
15%
15% 13% 14%
11% 11% 12%
10% 10% 10% 10% 9%
10% 9%
5% 4% 4% 4% 4% 4%
3%
2% 2% 2% 2% 2% 2% 2% 2%
1%
0%
0 1 2 3 4 5 6 7 8 9 10
(Not (Very
confident confident)
at all)
n = 805
SME Large Company / Enterprise Total
Q: On a scale from “0 – Not confident at all” to “10 – Very Confident”, how confident are you of the Singapore Government’s handling of the 6
current COVID-19 situation?The number of SMEs that are more confident in Singapore Government’s
handling of the COVID-19 situation now compared to a year ago is larger than
those who are less confident (37% versus 29%), but for large companies, it is the
reverse (22% versus 44%).
Change of Confidence Level in Singapore Government’s Handling of the COVID-19 Situation
40%
35% 33% 34% 34% 34%
30%
25%
22% 21%
19% 19%
20%
16% 15%
15%
11% 11%
10% 11% 10%
10%
5%
0%
Much less confident now A little less confident now No change in confidence A little more confident Much more confident
than one year ago than one year ago level now than one year ago now than one year ago
SME Large Company / Enterprise Total n = 805
Q: How has your confidence in the Singapore Government’s handling of the pandemic changed compared to a year ago? (Please select one 7
option only.)Change in confidence level in Singapore Government’s handling of the pandemic.
Verbatim Responses (1/2)
“The Singapore government has shown that economic interests heavily influence the decisions rather than the safety of the people.” – SME,
Information and Communications & Professional Services
“Government uses reactive approach, and they should be more proactive approach in managing the raising covid cases.” – SME, Health &
Education
“Very slow vaccination programme.” – Large Company, Manufacturing
“More stringent controls on borders from high risk countries should have been enforced much earlier.” – Large Company, Information and
Communications & Professional Services
“Strict measures disproportionate to actual situation.” – Large Company, Real Estate
“Weak vaccination push and irrational timelines.” – Large Company, Construction & Civil Engineering
“Disagree with the opening up of air travel which is a high risk of virus transmission.” – SME, Wholesale Trade
“Government uses reactive approach and they should be more proactive approach in managing the raising covid cases.” – SME, Health &
Education
“The government has not communicated it's plan for opening up the borders and re-establishing international business upon which Singapore is so
reliant.” – Large Company, Information and Communications & Professional Services
“Government continues to take a more reactive stance vs more proactive & decisive moves to curb the situations.” – SME, Other Services (e.g.
Repair, Servicing, etc)
Q: Why has your confidence in the Singapore Government’s handling of the pandemic changed compared to a year ago? (Please be specific & concise.) 8Change in confidence level in Singapore Government’s handling of the pandemic.
Verbatim Responses (2/2)
“The government has definitely improved in the way of handling the situation compared to last year in a more structured manner taking into the
learnings from last year.” – Large Company, Wholesale Trade
“Great in handling local pandemic but can do better with imported cases.” – SME, Retail, Hotels & Food and Beverages
“They have shown their support for SME in term of financial aid and helping to retain employment.” – SME, Manufacturing
“They have learn from other countries and successfully customised solutions to suit Singapore.” – Large Company, Manufacturing
“The reaction is fast and policies are calculated.” – SME, Information and Communications & Professional Services
“Singapore has one of the lowest cases in the world and the situation is well controlled. Supermarkets are stocked up, businesses have resumed,
people are used to the wfh scheme. Residents also feel safe to head out.” – SME, Banking, Finance, Insurance & Accounting
“Implementation of HA and change of strategies (eg like getting more people for first jab by delaying second jab) are faster compared to a year ago.”
– SME, Retail, Hotels & Food and Beverages
“Our Government is wiling to hear industry feedback on the challenges and make adjustment/support.” – SME, Construction & Civil Engineering
“They respond speedily and expedite safety management measures to curb the local transmission of the Covid-19 virus.” – SME, Real Estate
“They've proven to be capable of controlling the first wave of infections, and they have experience under their belt.” – Large Company, Health &
Education
“They have learn from other countries and successfully customised solutions to suit Singapore” – Large Company, Manufacturing
Q: Why has your confidence in the Singapore Government’s handling of the pandemic changed compared to a year ago? (Please be specific & concise.) 9Most businesses (72% of Large Companies and 54% of SMEs) remain operational
during the Phase 2 (Heightened Alert) period.
Status of Business Operations during Phase 2 (Heightened Alert)
80%
72%
70%
60% 57%
54%
50%
41%
39%
40%
30% 27%
20%
10%
5% 4%
1% 1% 0% 0%
0%
Operational Partially operational Temporarily closed Permanently closed
SME Large Company / Enterprise Total n = 805
Q: Is your business operational during Phase 2 (Heightened Alert)?(Please select one option only.)
10More than half of SMEs (53%) expect their overall business revenues to decline
by more than 25%.
Overall Businesses Revenue Level
35%
30% 29% 29%
25%
26%
25% 24% 24%
21%
20%
15%
14%
15% 13% 13% 12%
11%
10% 10%
10% 8%
5% 4%
5% 4%
2% 1%
0%
No Impact Increase Down by 10% or Down by >10% to Down by >25% to Down by >50% to Down by >75%
less 25% 50% 75%
SME Large Company / Enterprise Total
n = 805
Q: How do you see your overall business revenue being affected with the implementation of the new tightened measures introduced under 11
Phase 2 (Heightened Alert)? (Please select one option only.)Top 2 short-term challenges faced by businesses are ‘Decline in demand which leads to slowdown in
business revenue’ (60%) and ‘Unsteady cashflow’ (37%). Other top short-term challenges faced by Large
Companies include ‘Finding new and innovative ways to pivot the business to tide through this period’,
‘Manpower unable to return to work, hampering operations’ and ‘Supply chain disruptions’.
Top short-term challenges faced during Phase 2 (Heightened Alert)
61%
Decline in demand which leads to slowdown in business revenue 58%
60%
41%
Unsteady cashflow 13%
37%
28%
Insufficient manpower 34%
29%
Supply chain disruptions (e.g. closures, delays/cancellations of raw materials from 27%
41% SMEs
source markets, delays in delivery of orders, cancellations from customers, etc.) 29%
28%
Increase in business costs (e.g. increase in raw material costs, cleaning costs, etc.) 27%
28%
22% Large
Finding new and innovative ways to pivot the business to tide through this period 49%
27% Companies
27%
Lack of Government support 18%
25%
24%
Managing wage costs 10%
21%
14%
Manpower unable to return to work in outlet, factories or offices, hampering operations 44%
19%
21%
Payments on property rentals 5%
18%
7%
Obtaining financial support and loan 1%
6%
Others (e.g. employees' mental health, foreign manpower issues, travel restrictions, 3%
difficulties in meeting clients face-to-face)
14%
5%
0% 10% 20% 30% 40% 50% 60% 70%
SME Large Company / Enterprise Total
Q: What do you think would be your top three short-term challenges as a result of the tightened measures introduced during this period of n = 805 12
Phase 2 (Heightened Alerts)? (Please select the top three options.)Top 3 middle-term challenges that businesses foresee facing in the next 6 to 12 months are ‘uncertainty in local
and global economic environment’ and ‘rise in business cost’. Large Companies are also concerned with ‘travel
restrictions’.
Top middle-term challenges in the next 6 to 12 months
51%
Uncertainty in local economic environment 34%
48%
43%
Uncertainty in global economic environment 53%
45%
43%
Rise in business cost 16%
39%
37%
Unsteady cash flow 5%
32%
29%
Finding new and innovative ways to grow the business 34%
30%
21%
Travel restrictions 53%
27%
14%
Talent acquisition 31%
17%
18%
Stiffer competition from other companies 14%
17% Large
18% Companies
Expansion to overseas markets 11%
17%
12%
Talent retention 32%
15%
8%
Improving digital capabilities 14%
9%
4%
Upskilling and training 2%
4%
Others (e.g. difficulties in meeting clients face-to-face, difficulties in obtaining 1%
international student approvals)
2%
1%
0% 10% 20% 30% 40% 50% 60%
n = 805
SME Large Company / Enterprise Total
Q: What do you think would be your top three middle-term challenges that you foresee your business facing in the next 6 to 12 13
months?(Please select the top three options.)Majority of Large Companies (88%) and two-thirds of SMEs (61%) will continue with
their existing strength of workers and continue to pay their salaries during the Phase 2
(Heightened Alert) period. Manpower Measures
Continue with my existing strength of workers & continue to pay 61%
88%
their salaries 66%
12%
Ask workers to go on shorter work days / weeks 2%
11%
7%
Recruiting new workers 8%
7%
6%
Reduce workers' salaries / bonuses 1%
5%
6%
Ask workers to take No-Pay-Leave 0%
5%
4%
Lay off some of our workers 2%
4%
Send employees for training courses under the Absentee Payroll 2%
0%
Scheme 1%
2%
Lay off most of our workers 0%
1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
SME Large Company / Enterprise Total
n = 805
Q: How will your company manage its workers during Phase 2 (Heightened Alert) Period? (Please select one option only.) 14Top 3 strategies adopted by businesses are ‘allowing all/more employees to consider working from home’
(60%), ‘continuing to look for opportunities to invest in business transformation and innovation initiatives’
(38%) and ‘continuing to look for opportunities to diversify supplier sources/markets and strengthen business
model’ (34%).
Top strategy(ies) adopted by businesses in view of current measures
Business Operation - Allow all/more employees to consider working from home 55% 89%
60%
Business Operation - Continue to look for opportunities to invest in business 36%
transformation and innovation initiatives 51%
38%
Business Operation - Continue to look for opportunities to diversify supplier 36%
sources/markets, and strengthen business model 23%
34%
Financial - Reduce operating costs by streamlining business processes
33%
28%
33%
Manpower - Continue to look for opportunities to send workers for training and upskilling 19%
during this time 15%
19%
Business Operation - Suspension of business operations / activities in large 18%
congregated areas (e.g. company event, roadshows, assemblies, etc) 26%
19%
Manpower - Realignment of job scope
19%
13%
18%
Business Operation - Ramping up the use of automation
17%
20%
18%
Manpower - Streamline manpower in response to reduced business sales
17%
9%
16%
Manpower - Having existing staff take on the responsibilities of absentees
15%
20%
16%
Financial - Seek loans to aid in short-term cash-flow problems
17%
4%
15%
Business Operation - Procurement of healthcare supplies and equipment for employees 13%
(e.g. masks, hand sanitisers, thermometers, etc) 16%
13%
Business Operation - Temporary suspension of business
8%
2%
7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
SME Large Company / Enterprise Total
n = 805
Q: What strategy(ies) would your company be adopting to cope with the measures introduced under Phase 2 (Heightened Measures)? (Please select 15
all options that apply.)Companies’ wish list for affected businesses that have not been addressed.
Verbatim Responses (1/2)
General
“Government should not only focus on one sector, but all other sectors are also affected. ” – SME, Other Services (e.g. Repair, Servicing, etc.)
“It should be allowed for retail business to remain open (under consideration of all safe management measures).” – Large Company, Logistics &
Transportation
“Greater encouragement and availability of vaccine roll-out.” – Large Company, Banking, Finance, Insurance & Accounting
“Increase vaccinations to reopen borders.” – Large Company, Banking, Finance, Insurance & Accounting
Digitalisation
“Expand the Covid-IT support to cover more laptops subsidy, video conferencing platform to cover cost for remote working. Continue to allow industry
that can work to continue operation.” – SME, Construction & Civil Engineering
“Digital marketing training support is the most we needed in current situation besides the above mentioned. Which can helps a lot of retailers move on
to the platform from now on.” – SME, Others (e.g. Arts & Culture, Social Services, etc.)
“Clear policy for those vaccinated and incentives to digitalize business creating a new ecosystem with partnerships.”– Large Company, Other Services
(e.g. Repair, Servicing, etc.)
“Wages support and help SME to further innovate and transform through digitalisation and others.” – SME, Wholesale Trade
“More support in digitalisation development including equipments such as laptops, etc. – SME, Retail, Hotels & Food and Beverages
Q: The Government has provided targeted support measures for affected businesses, such as increase of Jobs Support Scheme support for Food & Beverages
establishments and one month of rental waiver for hawker stall and coffeeshop tenants of Government agencies. What other Government support measures would you 16
require to help cope with the impact of Phase 2 (Heightened Measures)? (Please be specific & concise.)Companies’ wish list for affected businesses that have not been addressed.
Verbatim Responses (2/2)
Manpower
“Allow re-enter of all EP, WP and DP holders, with SHN (vaccinated and negative) or SHN at dedicated facilities.” – Large Company, Logistics &
Transportation
“Greater support for allowing staff to return from abroad, scrap the reduction on new employment passes being issued.” – Large Company, Others
(e.g. Arts & Culture, Social Services, etc.)
Business Cost
“Reduction in Levies paid for foreign workers.” – Large Company, Construction & Civil Engineering
“To provide continual JSS support for manufacturing relating to construction sector. Construction sector has been badly hit, but JSS only
considered manufacturer of construction equipment under tier 3, which is insufficient support for the firm. – SME, Manufacturing
“Property rental rebate with the proof of loss in revenue during this Phase 2 Heightened Alert period.” – SME, Health & Education
“Direct funding to SME's rather than underwriting bank loan schemes. Banks are not going to loan to our business sector given the current risks.
So, the gov't program is rather pointless for us. We do however need support beyond the JSS. Working Capital Grants (Direct), Rental relief etc...
are desperately needed.” – SME, Construction & Civil Engineering
“Would be great to have more support from government to extend the jobs support scheme to all other industries and also the rental rebates for
commercial office tenants too.” – Large Company, Wholesale Trade
“Mandate Landlords to provide Rental relief for all affected businesses not just F&B. Provide JSS to all affected businesses. Extend bank loan
principal repayment moratoriums.” – SME, Retail, Hotels & Food and Beverages
Q: The Government has provided targeted support measures for affected businesses, such as increase of Jobs Support Scheme support for Food & Beverages
establishments and one month of rental waiver for hawker stall and coffeeshop tenants of Government agencies. What other Government support measures would you 17
require to help cope with the impact of Phase 2 (Heightened Measures)? (Please be specific & concise.)Thank You
If you need any clarifications, kindly
contact:
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