this is a targetted approach
- financial support from govt → cushions negative economic impacts on various sectors in short term
Example
COVID 19 highlighted econ vulnerability of countries → as they closed their borders to curb spread of virus. sectors like transport and tourism were directly affected. manufacturing + retail → indirectly affected. SG govt responded to cushion econ impact of COVID 19 crisis by providing Financial support for Singaporeans and Local businesses
4B$ Stabilisation and Support Package to support affected workers and firms with :
- retained jobs and wage support
- cash flow support
- property tax rebate for tourism sector
- defrayed business costs for aviation sector
- rental waivers for govt managed hawker centres and properties
1.6B$ Care and Support Package support Singaporean families with:
- up to 300$ cash for adult Singaporeans
- 100$ more for each parent with child below 21
- doubled utility rebates and more for larger families
- 100$ PAssion card top up for all seniors
- 100$ supermarket vouchers for lower income
2nd → govt agencies can be set up to provide resources + advice to help businesses innovate, develop expertise and talent + expand abroad
in long run → this enables businesses to adopt / transform their operations to become more resilient to disruptions and economic vulnerabilities brought about by globalisation
Example
2017 → small and medium enterprises (SMEs) Go Digital programme was launched → help SMEs adopt advanced digital solutions and tech.
- this would enable them to seize growth opp in an increasingly digital global economy.
- as of march 2022 → more than 80000 SMEs have adopted digital solutions through programme
SME owner Mrs Lily Loh → found it hard to sell products. usual sales channels, such as physical venues, were suspended → due to safe management measures. she turned to IMDA’s go digital programme + learnt to digitise her business operations → increase productivity and boost efficiency.
through programme → was able to expand her home based business selling premium ikan bilis bowder → into full scale factory catering to customers from singaporea overseas