CalChamber Urges Pull Back of Emergency COVID Rules - Advocacy
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VOLUME 47, NUMBER 4 • FEBRUARY 5, 2021
CalChamber Urges Pull Back Unemployment Insurance
Legislature, Governor
of Emergency COVID Rules Must Act to Prevent
California Employers
The California
Chamber of
COVID-19 pandemic, many of the new
safety restrictions are not feasible for
from Paying for
Commerce urged
the California
employers—especially small businesses
struggling in the midst of a pandemic that
EDD’s Mistakes
Legislature this has threatened to bankrupt them. Whenever
week to correct “California’s solution to COVID-19 something goes
a series of costly cannot simply be to shift the costs of its wrong—when-
COVID-19 workplace mandates imposed social safety net to California’s employ- ever something
through an emergency regulation order. ers,” said CalChamber Policy Advocate is lost or
The regulation, issued by the Robert Moutrie. damaged—the
California Division of Occupational During the emergency rulemaking question is always the same: who gets
Safety and Health (Cal/OSHA) late process, Cal/OSHA failed to adequately stuck holding the bag? And we all know
in 2020, requires employers to take a consider the feasibility of many of the the answer should be simple: the person
number of extraordinary steps that include provisions of the emergency mandate who made the mistake should bear the
providing costly unlimited paid time off and, as such, created policies that are costs of that mistake.
for workers. It further creates an overly not only expensive, but unworkable, the But with California’s Unemployment
broad testing scheme that ignores the real- CalChamber pointed out in the letter. Insurance (UI) Fund, it appears that
ities of current testing availability. Specifically, the CalChamber is asking unless the Legislature and Governor act,
In the letter sent to legislators on that the following provisions of the emer- California’s employers will be stuck foot-
February 1, the CalChamber argues that gency regulation be addressed: ing a billion-dollar bill for failure of the
while safety practices in the workplace • Limit the uncapped time off provi- Employment Development Department
have had to change as a result of the See CalChamber Urges: Page 6 (EDD) to prevent unprecedented fraud.
Reports
State Supreme Court Rejects Challenge New information came out last week
that gives us a better picture than ever
to Prop. 22 Independent Contractor Initiative before of how much fraud occurred, how
much came from the California’s UI Fund,
The California Proposition 22 as unconstitutional. and how much is likely to be recovered.
Supreme Court California voters passed Proposition (See EDD summary at https://www.
this week rejected 22 in November 2020 by a 59% majority. edd.ca.gov/unemployment/pdf/fraud-
an attempt to The ballot measure classified app-based info-sheet.pdf, and two reports from the
overturn Prop- drivers for companies such as Uber, State Auditor at https://www.auditor.
osition 22, the Lyft, Postmates, and DoorDash as inde- ca.gov/reports/recent.)
voter-approved pendent contractors and mandated that EDD’s January 25 press release
ballot initiative those companies provide certain benefits, confirmed that 9.7% of the $114 billion
classifying including guaranteeing at least 120% See Action Needed: Page 3
app-based drivers minimum wage during engaged time,
as independent payment per mile, health care coverage
contractors. for those who work a certain number of Inside
A group of drivers and the Service hours, and the development of anti-ha-
Employees International Union (SEIU) rassment policies. Zero-Emission Vehicles/New
filed a petition with the state high court See State Supreme Court: Page 6 Transportation Revenues: Page 5
on January 12 seeking to invalidate
W W W. C A L C H A M B E R A L E R T. C O M
CALIFORNIA CHAMBER OF COMMERCE FEBRUARY 5, 2021 • PAGE 2
Labor Law Corner
If 65+ Employee Falters, Focus on Job Performance, Not Age
meetings, forgetting how to do certain Act (ADA) issue, or the California law,
tasks, and generalized forgetfulness. the Fair Employment and Housing Act
It is inappropriate to ask certain ques- (FEHA), which brings into play the inter-
tions—such as “Are you slowing down?” active process.
or “Is old age catching up with you?” or As with other disabilities, the
“At your age, it is probably difficult to employer representative needs to involve
remember things.” the employee, discuss the problems and
But instead of having the employee show concern, but yet explain the impact
Dana Leisinger
tested for mental competence, there are on the company. The employer should
HR Adviser better ways to handle this situation. ask for the employee’s input, noting
suggestions and “reasonable accommo-
We have an employee who is over the age Job Performance dations.” Some accommodations can
of 65 and has worked for us for several First, if there is a suspicion of mental be very simple, and all ideas should be
years, but recently his cognitive skills issues, the employer can focus on the explored.
appear to be diminishing. Can we ask job performance issues—approaching Some simple tools can help memory
him to take a test for his mental health? the individual and the problems that loss in this busy world: To-do lists, calen-
With an aging population and workers have come up, such as missed meetings, dar reminders, even sticky notes to help
who continue to work well past retire- forgetting how to perform tasks they have remind an employee of upcoming events.
ment age, the issue of mental competence done for years, and a decline in perfor- The employer should also take copi-
is becoming a daunting issue for employ- mance/lowered production. ous notes during these communications.
ers to deal with. Signs include missing Indeed, if there is that suspicion These kinds of situations don’t often
that there are mental issues, the contact ripen into a lawsuit, but if one does, the
should not be in the form of a severe employer should be able to show they
reprimand, but a gentle approach address- worked with the employee.
ing the problems. Specifics are necessary,
not a vague reference to unacceptable Column based on questions asked by callers
California Chamber Officers performance. on the Labor Law Helpline, a service to Cali-
fornia Chamber of Commerce preferred and
Donna L. Lucas Interactive Process executive members. For expert explanations
Chair Often, the employee volunteers the of labor laws and Cal/OSHA regulations, not
Kailesh Karavadra issue of the issues noted above, telling legal counsel for specific situations, call (800)
First Vice Chair the person who has addressed it. It then 348-2262 or submit your question at www.
becomes an Americans with Disabilities hrcalifornia.com.
Gregory S. Bielli
Second Vice Chair
Janet A. Liang
Third Vice Chair
Mark Jansen
CalChamber-Sponsored Seminars/Trade Shows
Immediate Past Chair More at www.calchamber.com/events. Diplomacy Matters: California Leading
Allan Zaremberg Labor and Employment the Way. World Trade Center Northern
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It All Virtual Seminar. CalChamber. (916) 447-9827.
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CALIFORNIA CHAMBER OF COMMERCE FEBRUARY 5, 2021 • PAGE 3
Webinar Highlights Common Labor Violations to Avoid
Representa- of the most common wage-and-hour Problem Areas
tives from laws, including: Throughout the webinar, Boyenger
the Califor- • Meal and rest periods; and Norris point out what areas are most
nia Labor • Mileage reimbursement; problematic for employers. Norris says
Commission- • Minimum wages and minimum that one of the biggest stumbling blocks
er’s Office wage schedule; for employers is not keeping proper
joined the • Overtime calculations; records.
California Chamber of Commerce in • Pay periods; He explains that the top two things
a free live webinar recently to educate • Piece rate and rest period employers don’t do are to have a signed
employers on common wage-and-hour calculations; written agreement between the parties,
violations and how to avoid them. • Recordkeeping best practices; and a written statement of basic condi-
The webinar is part of the Employer • Reporting time pay; and tions for workers, such as rate of pay, the
Outreach Series of live webinars with the • Tips and gratuities. start of the work week, etc.
Labor Commissioner’s Office that break Boyenger and Norris break down These two items are important
down some of the state’s most important key definitions, such as what consti- because if a claim of violation is filed,
labor laws and include Q&A sessions tutes “hours worked,” and what differ- the situation becomes a “he said/she said”
with attendees. entiates “travel time” from “mileage scenario where the employer must find a
The January 22 webinar, “Typical reimbursement.” way to prove their facts in the case.
Violations to Avoid with Non-Exempt When covering the topic of tips and During the webinar, Frank asks perti-
Employees,” was moderated by gratuities, Boyenger explains that Labor nent questions and seeks clarification on
CalChamber Executive Vice President Code Section 350 specifies that a gratuity is the laws discussed in the moment. Once
and General Counsel Erika Frank a tip, not a wage. However, he pointed out the presentation concludes, attendees are
and featured Senior Deputy Labor that some agencies, such as the California able to ask Boyenger and Norris ques-
Commissioner Von A. Boyenger and Employment Development Department tions directly.
Max Norris, staff attorney at the Labor (EDD), do consider a tip a wage. The next Employer Outreach Series
Commissioner’s Office. Visual examples are also used to illus- webinar will focus on typical violations
A recording of the webinar is avail- trate what labor laws require. For exam- of exempt employees and will be held on
able on HRCalifornia in the webinar ple, Norris shows paystub examples and March 26.
section under the Forms & Tools menu. points out the information that is legally CalChamber members should keep an
required to be included, such as the pay
Webinar Highlights rate, overtime hours and rate, and piece
eye on their email boxes for an invitation
to sign up for the next webinar.
Using presentation slides (available rate. He also uses worksheets to explain
here), Boyenger and Norris explain some how to calculate overtime pay.
Action Needed to Prevent Employers from Paying for EDD’s Mistakes
From Page 1 That question is important because Auditor notes that it is very unlikely any
distributed last year in unemployment funds taken from California’s UI Fund significant portion of that money will be
benefits were sent to fraudulent claims. add to the UI Fund’s insolvency and must recovered. Fraud (by its nature) is hard to
EDD also acknowledged that there is be repaid by California’s employers as track when the claimants used the addresses
another 17% of payments that EDD is increased taxes (and by the state as inter- and information of actual citizens and the
investigating as potentially fraudulent. est payments). state has limited prosecutorial resources.
That means that somewhere between Well, EDD estimates that 5% of Furthermore, even if the fraudsters
9.7% and 26.7% of payments distributed the confirmed fraud was from the state could all be located, fraudsters certainly
were to fraudsters—which translates to fund—and we do not know how much of haven’t been holding the money in a
fraudulent payments in the total amount the potential fraud will be from the state stack that the state can swoop in and
of somewhere between $11.06 billion and fund. Assuming that the 5% also applies claim. The money is likely gone.
$30.4 billion. to the potential fraud, we’re looking at Which brings us back to the first
California’s UI Fund having lost some- question: who pays? Right now, without
State or Federal Funds? where between $500 million and $1.52 action from the Legislature, that fraud
As you may know, federal legislation billion to fraudsters because of EDD’s will add to the UI Fund’s insolvency,
last year created new categories of bene- failure to verify eligibility between which means employers will have to pay
fits (such as Pandemic Unemployment March 2020 and December 2020. Those through increased taxes for decades to
Assistance for independent contractors) and are not small sums. come as they slowly return the fund to
expanded some additional programs. So— solvency. And that just doesn’t seem fair.
with that in mind—how much of that fraud Who Should Pay? This story appeared first as a Capitol
was taken from California’s UI Fund, and The question we now have to consider Insider blog post.
how much was paid for by federal money? is: who should pay for the fraud? The State Staff Contact: Robert MoutrieW W W. C A L C H A M B E R A L E R T. C O M
CALIFORNIA CHAMBER OF COMMERCE FEBRUARY 5, 2021 • PAGE 4
CalChamber Emphasizes Need to Listen to
Regions in Redrawing Political Districts
Comments by repre- many factors, include the sharing of Republicans and Democrats to the Senate
sentatives of regional common social and economic interests. and the Assembly,” Wilson explained
groups, including to commissioners. “Fairly drawn legis-
local chambers of Shared Interests lative districts are a critical component
commerce, are critical “Employees and business owners to ensuring that the greatest number of
to the process of have many shared interests, including Californians have their voices heard in
redrawing political how they get to and from work, whether the State Capitol.”
boundaries, the Cali- there are sufficient employment opportu-
fornia Chamber of Commerce told the nities to provide a true skills marketplace, Lessons from Last Round
Citizens Redistricting Commission last as well as access to the same sources of Ten years ago, Wilson said, the
week. news and information,” Wilson told the commission’s schedule was “too ambi-
“Where people work and for what commission. “We hope you will take tious—too many meetings that perhaps
types of businesses is a critically import- these interests into consideration when shed heat but not light.” He emphasized
ant consideration when you get about creating maps.” that it is important for the commission
drawing the lines,” Martin R. Wilson, The regional chambers in the “to convene regional meetings in a virtual
CalChamber executive vice president, CalChamber’s statewide network, Wilson format but not be weighted down by a
public affairs said at the 14-member commented, “are the ones best able to lengthy process.”
commission’s January 27 hearing. His speak for the businesses they represent.” He continued, “The most valuable
presentation was part of an economic Local governments, he added, will public input will come when the tentative
sector panel. be conducting their own redistricting maps are presented.”
The CalChamber was actively processes and will have useful data to He suggested the commission
involved in the redistricting process share with the commission. “Among the develop draft narrative justification
when the current maps were drawn in many insights they will bring to the table plans for public review at the same time
2011. The CalChamber also was an early may be how to avoid unnecessary splits as the first draft maps. The narratives,
supporter of the measures assigning the of counties,” he said. he commented, will assist with public
task of drawing new political maps for For example, he told commissioners, understanding of the maps, especially the
the state Assembly, Senate and Board of the 2011 Senate maps split two counties descriptions of communities of interest.
Equalization districts (Proposition 11) among six districts, “creating several Videos and agendas of the commis-
and Congress (Proposition 20). districts that defied logic.” sion meetings are available on its website
Wilson credited the commission’s Given the bipartisan nature of its at https://wedrawthelines.ca.gov/viewer/.
outreach plan for correctly viewing political activities, the CalChamber Staff Contact: Martin R. Wilson
communities of interest that, among works “equally hard to elect both
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CALIFORNIA CHAMBER OF COMMERCE FEBRUARY 5, 2021 • PAGE 5
ZEV Mandate Should Spur Policy Talks
on New Revenues for Transportation
It’s full steam tion of vehicles that do not use gasoline effect trading taxes on fuels for a fee on
ahead for or diesel erode transportation revenues. miles traveled.
the Newsom Even without the Governor’s directive, This is not a new idea. Since 2017,
administration’s gas taxes will be inadequate to meet state policy makers have had before
zero-emission future system repairs and improvement them a road map to test and implement
vehicle (ZEV) because gasoline use is becoming discon- the next generation in transportation
strategy. But nected from road use. finance—a fee based on the actual use of
this enthusiasm In a triumph of technology and market the state transportation network that puts
for a new forces, cars have become far more fuel a premium on user choice and personal
generation of efficient, driving down revenues from privacy protection.
automobile the gas tax. Legislators recognized this In the spirit of a true user charge, the
technology may in 2017 when, as part of the comprehen- proposal envisions a broad application of
Loren Kaye
degrade the sive transportation tax and revenue bill, the mileage fee, with no exemptions and
very roads they drive upon. they included a first-ever $100 fee on no rate differentials—at least in the test-
The Governor kicked his clean car zero-emission vehicles to ensure ZEV ing phase. The fee would replace, not add
initiative into high gear last September users help pay for the roads. to, the existing gas tax.
with an executive order requiring all But this modest fee was not designed
new cars and passenger trucks sold in to offset the anticipated transition from Commission Recommendation
California be zero-emission by 2035. gasoline and diesel to electricity and Just last year the state’s own
He went further in January by hydrogen. California Transportation Commission
earmarking nearly $1.5 billion of declared, “the gas tax clearly will not
one-time and future revenues to increase be a sustainable financing mechanism
the pace and scale of new electric vehicle Guest Commentary for transportation in the coming decade
charging and hydrogen fueling stations, By Loren Kaye and therefore work needs to accelerate
and provide subsidies for new and used to implement a per mile road charge as
ZEVs and equipment. an alternative.” The Commission recom-
Bad News for Mobility Eroding Tax Base mended the Legislature authorize a pilot
program to test actual revenue collection
A recent study by the Mineta
These carrot-and-stick policies may for a select group of vehicles.
Transportation Institute at San Jose State
substantially advance the sales and use The timing of this couldn’t be
University took a careful look at econom-
of ZEVs. But for every gasoline- or better. President Biden’s choice for
ics, travel behavior, vehicle fleet trends,
diesel-powered vehicle retired and not Transportation Secretary, Pete Buttigieg,
and policy choices to develop six trans-
replaced, California’s enormous transpor- is a proponent of road user charges, float-
portation revenue scenarios.
tation network will get a little grittier. ing the idea of such a fee to enhance the
In five of the six scenarios, research-
The ambition to replace combustion federal highway trust fund—likely in
ers found revenues from gasoline and
engine vehicles with ZEVs should be recognition of the new administration’s
diesel sales would decrease from $2
shelved as long as the erosion of fuel commitment to raise automobile fuel effi-
billion to $4 billion in inflation-adjusted
tax revenues for transportation system ciency standards.
revenues by 2040.
support remains unaddressed. The For more than half a century,
This tax erosion from gasoline and
Legislature should evaluate the wisdom Californians have invested heavily in a
diesel taxes that today account for nearly
of mandating a new fuel supply for the state transportation network that serves
three-quarters of state revenues for the
vehicle fleet that undermines the basis for commerce, the workforce and social
upkeep and improvement of transporta-
funding the state and local transportation cohesion, connecting Californians to
tion systems would in most cases not be
system. each other and the world. Policy makers
made up from new taxes on vehicle sales
This is but one of several issues should maintain our historic commit-
and ZEVs.
collateral to the ZEV mandate that affect ment to this important asset even as they
mobility for residents, and that so far Road Users Fee embark on the difficult task of reducing
state leaders have not come to terms with. vehicle carbon emissions.
The solution to this revenue mismatch
Growing Disconnect is to stop depending on a diminishing Loren Kaye is president of the California
revenue source. Instead, the Newsom
California policy makers have long Foundation for Commerce and Education, a
administration and Legislature should
known that improved efficiencies of think tank affiliated with the California Cham-
reinvigorate a flagging effort to research ber of Commerce.
combustion engines and the introduc- and introduce a road users charge—inW W W. C A L C H A M B E R A L E R T. C O M
CALIFORNIA CHAMBER OF COMMERCE FEBRUARY 5, 2021 • PAGE 6
CalChamber Urges Pull Back of Emergency COVID Rules
From Page 1 Moreover, under these regulations, a were a result of social spread (such as
sion such that employers are not forced COVID-19 case in the workplace is not three employees living together and all
to provide potentially months of pay limited to employees. Accordingly, an catching it socially) or workplace spread.
to excluded employees who are not employer could literally be paying multi- The regulation contains a similar “Major
sick while simultaneously paying a ple groups of employees to stay off work Outbreak” provision which requires twice
second workforce to take their places or for being “exposed” simply because an weekly testing for all employees in the
completely shut down; and asymptomatic customer came to their “exposed workplace” area.
• Correct testing requirements that are location. These requirements ignore the realities
overly complicated and punish well-inten- Unlike other leaves of absence, of testing availability, the CalChamber
tioned employers who are at the mercy of there is absolutely no limit in the emer- explains. First, tests may not be publicly
medical logistics over which they have no gency regulation on how many hours an available in certain rural areas and may
control. employer must pay an employee due to be a serious expense for smaller employ-
exposure. Because the regulations may ers. Second, even if tests are available,
Unlimited Time Off be in effect until early 2022, this means employers cannot compel medical facili-
The emergency regulations require California employers—including the ties to prioritize testing of cases showing
employers to exclude anyone who was a smallest rural family businesses—may no symptoms.
“close contact” of a COVID-19 case from end up paying for months of paid time off For example: if an employee is
the workplace for 10-14 days, during to employees who never catch COVID- instructed to get tested because they were
which time the employer must “maintain” 19—all while simultaneously paying their potentially exposed, and calls their doctor/
their earnings. replacements. And this paid leave will local medical provider, the provider will
This means that an entire working exist entirely outside of California’s exist- commonly tell them: (a) that no testing
group or unit may need to be excluded ing framework of paid and unpaid sick is available in the timeline required by
for a 10–14 day period with paid time leave. the regulation, and (b) that the medical
off if they work in a relatively proximate provider does not recommend testing
workspace. And such exposures may Testing Requirements given no symptoms and the need to priori-
occur more than once, the CalChamber The emergency regulations also tize tests to higher risk individuals.
explains. require employers to provide (or ensure These complications mean that even
By way of example: if social spread employees have access to) testing to well-intentioned employers are at the
creates one COVID case in a workplace employees at no cost and on paid time in mercy of medical logistics over which
per month—even with no actual spread a variety of circumstances. If an employee they have no control—unless they can
in the workplace—the employer will be is a close contact of a COVID-19 case, hire their own testing company, which
forced to remove all workers who were then they must be excluded (as discussed many will not be able to do. As a result,
close contacts of the positive case from above) and receive testing at no cost. good employers will fail to meet the
the workplace for 10–14 days. In that Alternatively, if three cases occur in an requirements of the regulation despite
time period, the employer must: exposed workplace area over a 14-day doing what they can.
• Provide paid time off to the excluded period then it is considered an “outbreak,”
employees; and and all employees in that area must be Letter to Legislature
• Hire (and potentially train) tempo- tested on a weekly basis. To read the CalChamber letter in full,
rary help to fill those roles and pay their The outbreak provisions are trig- click here.
wages, pay current employees overtime gered regardless of whether the cases are Staff Contact: Robert Moutrie
wages to make up that labor shortage, or among employees or customers, and are
shut down their business. triggered regardless of whether the cases
State Supreme Court Rejects Challenge to Prop. 22
From Page 1 system, limits the California courts’ tion on February 3. The case docket
power to determine whether legislation provides that Justices Goodwin Liu and
Challenge constitutes an amendment to a statu- Mariano-Florentino Cuéllar voted to ask
The petitioners presented a myriad tory initiative, violates the California the state to submit a response, but were
of arguments, including that voters were Constitution by embracing more than one outnumbered.
misled by Proposition 22’s title and that subject in violation of the “single-sub- The court rejected the petition “with-
the ballot measure withdraws certain ject rule,” and restricts the California out prejudice to refiling in an appropriate
mandated employment benefits. Legislature’s ability to enact legislation court,” so it remains to be seen whether
They also argued that the measure by majority vote. the plaintiffs will now try to file the legal
impermissibly removes the California challenge in one of California’s superior
Legislature’s authority with regards to Court Decision courts.
establishing a workers’ compensation The Supreme Court denied the peti- Staff Contact: Ashley HoffmanW W W. C A L C H A M B E R A L E R T. C O M
CALIFORNIA CHAMBER OF COMMERCE FEBRUARY 5, 2021 • PAGE 7
A View from Singapore
Synergy in Many Fields, from Tech to Food,
Boosts Ongoing Trade/Investment Success
The following Singapore technology startups like region’s recovery from the pandemic. For
responses to Venture Corporation, which has a manu- Singapore, multilateral pacts like RCEP
questions posed facturing plant in the Bay Area. will play a vital role to reinvigorate coop-
by the California At the same time, many major eration in areas like connectivity, smart
Chamber of Californian tech companies have made city development and digital economy,
Commerce are significant investments in Singapore, which will in turn open opportunities for
from Consul General William Chik, including Micron, HP Inc, HP Enterprise, California.
Consulate General of the Republic of Seagate, Qualcomm, Apple, Alphabet, There is also synergy in the area
Singapore in San Francisco. Genentech and Chevron. Californian of climate change. As a city-state with
and Singaporean students, scientists limited access to alternative sources of
and academics frequently interact energy, Singapore recognized the urgency
Singapore-California Relations through research collaborations, student of achieving climate resiliency. We are
Please describe your thoughts on the exchanges and joint projects on the therefore interested in California’s bold
unique relationship between Singapore academic and industry fronts. and forward-looking measures in the area
and California. of climate change which continue
Singapore and California have to pose the greatest challenge to
extensive linkages and synergy in sustainable development.
many fields, ranging from technol- As avid foodies, enterprising
ogy, education, international trade, Singaporeans have opened F&B
climate change and food. Because retail outlets across California,
of their strategic locations, both are including the iconic Killiney
gateway hubs for trade, commerce, Kopitiam Café in Palo Alto. Like
finance, innovation, technology, California, Singapore has a vibrant
tourism, culture, education and food culture with a melting pot and
tourism links for their respective fusion of different cuisines from
regions. California is also a gateway the ASEAN region and beyond.
to the U.S. West Coast for Singapore Singapore’s “hawker” food culture
and our Southeast Asian neighbors. or communal street dining was
This was evident even during the recently added to the United Nations
ongoing COVID-19 pandemic. Educational, Scientific and Cultural
As a newly arrived Consul Organization (UNESCO) cultural
General, I am happy to see the heritage list.
continuing strong trade and busi- It is natural that California and
ness links between Singapore and Singapore should collaborate in
California. Singapore is among food innovations to bring together
California’s largest export destina- food companies and investors from
tions for goods: sixth largest in Asia across our regions to explore the
and the largest in Southeast Asia Consul General William Chik, Consulate General of the Republic latest trends and build partnerships
or Association of Southeast Asian of Singapore in San Francisco for sustainable food systems. There
Nations (ASEAN). California remains a Singapore is also a natural economic is scope for more California-based food
top investment destination for our compa- partner of California in Southeast Asia companies to use Singapore to launch
nies worldwide, with more than 70 major and beyond, providing a springboard to their businesses into ASEAN and beyond.
Singapore companies having a permanent the larger ASEAN economic commu-
presence in the Golden State in sectors nity. A region of over 650 million people COVID-19 Impact
like consumer, technology, logistics and with a combined gross domestic product As countries all over the world feel the
real estate. (GDP) of over US$2 trillion which is pandemic, what is the economic impact of
California and Singapore have predicted to rise fourfold to US$10 tril- COVID-19 on Singapore?
wide-ranging links in the technology lion by 2030, Southeast Asia presents The economic impact of COVID-19
sector. California is home to a large enormous opportunities for California. has been significant. Like many coun-
Singapore community, including students The recent signing of the Regional tries, industries that rely on travel and
and professionals in the tech industry. Comprehensive Economic Partnership hospitality have been adversely impacted.
Silicon Valley, a unique ecosystem for (RCEP) Agreement, the world’s largest Consumer-facing sectors such as retail
tech innovations, continue to attract trade pact, will be a major boost to the See Synergy: Page 8W W W. C A L C H A M B E R A L E R T. C O M
CALIFORNIA CHAMBER OF COMMERCE FEBRUARY 5, 2021 • PAGE 8
Synergy in Many Fields Boosts Ongoing Trade/Investment Success
From Page 7 close to S$100 billion (approximately air hub. We have remained open to the
and food services have also been affected US$75.37 billion) to support businesses world throughout this pandemic and did
by the cutback in domestic consumption and workers during this difficult period, not impose export restrictions to boost
amidst progressively stricter safe distanc- including cash incentives for busi- confidence in Singapore’s efforts to keep
ing measures. The Singapore Ministry nesses to adopt e-payment methods and supply chains moving.
of Trade and Industry announced on advanced digital solutions to reinvigo- In terms of new opportunities,
November 23, 2020 that Singapore’s rate the economy. These measures have Singapore is ready to be a distribution
GDP for 2020 is expected to contract by started to reap results, with more than hub for the COVID-19 vaccines in the
6.5% to 6%. 33,000 local job seekers placed in posi- region as we have capabilities to main-
Beyond just the direct impact on tions so far. tain the cold chain and our firms have
Singapore, we have also been deeply The COVID-19 pandemic has been trained up to the World Health
impacted by the slowdown of the regional also served as a catalyst to accelerate Organization standards to be able to
and global economy as countries have Singapore’s digital transformation and handle such air cargo safely.
focused on dealing with the pandemic. productivity growth. From January to Singapore will continue to attract
We hope that 2021 will offer us an oppor- September 2020, enterprises embarked high-value, long-term investment to
tunity to work with the United States on more than 20,000 projects to improve create good jobs for our people. High-
and other partners to begin the process productivity and build capabilities. tech firms such as Amazon have recently
of economic recovery and reinforce the On a multilateral level, Singapore announced expansion of their operations
presence of U.S. businesses in ASEAN. has worked with like-minded countries and presence in Singapore. For trade, we
to keep our global supply chains open to will continue to grow our networks of
Focus on Economic Recovery facilitate the movement of essential goods free trade agreement areas to strengthen
What are the challenges and opportuni- and services across borders without under- our companies’ access to global markets.
ties facing Singapore? mining public health efforts. We continue Singapore has weathered many crises
Our key priority has been to preserve to support multilateral efforts to build the in our 55-year history and while COVID-
jobs and capabilities by helping our busi- rules and standards for global trade. 19 has created a crisis like no other, our
nesses restart and recover safely, staying As the pandemic situation in focus will now be on economic recovery
open and connected to the world, while Singapore has now improved, Singapore and emerging from this crisis stronger.
creating job opportunities and helping our will focus on resuming our economic Staff Contact: Susanne T. Stirling
workers capitalize on them. activities and reconnect with the world
The Singapore government spent to preserve our status as an international
FEBRUARY 18-19, 2021 | MARCH 18-19, 2021 | APRIL 22-23, 2021
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