Support For Home-Based Businesses During COVID-19 Circuit Breaker Period

ADJOURNMENT MOTION

The Deputy Leader (Mr Desmond Lee): Mr Speaker, Sir, I beg to move, "That Parliament do now adjourn."

Question proposed.

Support For Home-Based Businesses During COVID-19 Circuit Breaker Period

7.48 pm

Dr Intan Azura Mokhtar (Ang Mo Kio): Thank you, Mr Speaker, for this opportunity to speak on this Adjournment Motion on providing support for home-based businesses during the current COVID-19 circuit breaker period.

Here, I would like to state for the record, deep appreciation for the work done by our Multi-Ministry task force and our frontline workers. Their dedication, courage and sacrifices in fighting the COVID-19 outbreak is admirable and will always be held in gratitude by all of us.

The COVID-19 outbreak has disrupted our lives on many levels. Our personal freedom has been curtailed and our livelihoods have suffered a beating. Some of us have had to change the way we work – whether it is working from home, doing flexi-work, working in split teams, or working extended shifts on the frontlines.

A vast majority of Singaporeans understand the need for these changes and restrictions. We understand that in order to reduce and eventually eradicate the COVID-19 infections, we need to restrict movement and interactions as much as possible, even though these restrictions will impact livelihoods. Definitely. Lives over livelihoods. No one will challenge that.

For some of us, we are not sure if work will still be there for us or if we are able to continue to provide for our families – when we go on sick leave, when we are asked to go on no-pay leave or worse, when we are retrenched or lose our only source of income.

For those among us who are retrenched or have had their source of income cut off, home-based businesses (HBBs) such as baking or cooking, or selling crafts or other items from home, allow them to earn a living despite the current COVID-19 circuit breaker (CB) measures in place. I know of individuals doing HBBs who steadfastly observed the CB measures as they went about delivering their orders, or when they engaged third-party delivery companies to deliver their orders.

However, the recent move to ban all deliveries by HBBs has cut off this income stream, and for some, the only source of income, for their families. For these HBBs, their choices are very limited, and they are the ones we worry about. They need time to make adjustments, especially where their income is concerned.

For many of the HBBs, orders have had to be cancelled or put on hold, refunds have had to be made, and to some extent, raw ingredients already purchased have had to be discarded. For the affected HBBs, they did not just suffer a loss of income, they also saw their own hard-earned savings put to waste. It is not an easy life for HBBs. I know because I grew up as the daughter of a home baker.

My mother used to sell pineapple tarts, peanut cookies and lapis cakes when I was growing up. She used to get only two or three hours of sleep so that she could fulfil her orders, which were aplenty during festive seasons. This was on top of her day job as a typist. I used to help her. I helped to put the little floral dough on top of the pineapple filling of the tarts and the little peanut pieces on the cookies, and I was the one to help her butter the baking sheets onto the baking tins. It was hard work. But it helped to supplement our family income especially when my late father lost his job for a period of time.

But then again, I was probably one of the lucky ones. My mother still had a day job and some income, and the home baking was to supplement what she earned. For some among us, it is not quite the case. Home baking or cooking, or selling their crafts or other items from home is their only source of income, without which, they will be unable to put food on the table or pay for daily expenses.

Like Mdm N. Mdm N is the sole breadwinner of her family of four. Her husband lost his job as a driver because of his diabetes and heart condition. Her mother-in-law, who lives with her, is advanced in age, of poor health and unemployed. Her son is in Primary school.

Mdm N has to take care of them and find ways to earn an income. So, she bakes from home and sells them. Her Nutella tarts and brownies are to die for. I have ordered from her and there was once when I offered to give some extra cash to help the family. She declined. Her sense of dignity in wanting to earn through her own toil and sweat and creativity, is admirable. She does not want handouts and she takes pride that she is able to put food on the table and pay for her family's expenses through her own hard work and creativity. She is dignified and empowered, knowing that the best help is in her hands.

Take also the example of Ms Sery, who is a home baker and single mother of five school-going children. She sells beautiful cakes with frosting through Violet Frost. She bakes from home so that she is able to earn an income to support her children and at the same time be at home to take care of her 10-year-old son who has spina bifida. Some may lament and say that she should work as there are childcare or after-school care arrangements for her children. But Ms Sery is so good at baking and decorating cakes, and like Mdm N, she is dignified and empowered, knowing she is able to use her creativity to put food on the table, and be there for her children as well.

Yet another home-based business owner is Ms Adeline Tan. Ms Tan has been selling cakes, brownies and cookies full-time since graduating from University last year. Ms Tan had to go through a couple of eye surgeries, which would have disrupted a more permanent form of employment. With her passion in baking, she decided to be a home baker so that she can hone her craft and have that dignity of being able to support herself through her passion and talent.

The dignified tenacity and resilience of home bakers and home business owners such as Mdm N, Ms Sery and Ms Tan, they are admirable. They embody self-reliance. They do not want to be a burden to society and they want to strike out on their own, on the path they all know well. Just like when we had to become self-reliant when we gained independence as a nation. Our HBB owners, they embody our nation's DNA.

I understand that from 12 May, HBBs will be allowed to resume operations, with some restrictions. May I seek clarity on and details of these restrictions from 12 May 2020? In addition, may I ask why introduce the blanket ban on 25 April in the first place, which was then back-pedalled on 2 May, when the announcement to ease restrictions was made – a matter of only one week? Did HBBs pose a serious COVID-19 related risk in the first place that required a blanket ban? The blanket ban imposed severe disruptions and inconveniences to many HBBs. As I mentioned earlier, orders have had to be cancelled or put on hold, refunds have had to be made, and to some extent, raw ingredients already purchased have had to be discarded. For the HBBs that were affected, they did not just suffer a loss of income, they also saw their own hard-earned savings put to waste. Why make them go through that?

Here, I wish to put forth a few suggestions for the Government to consider implementing, should restricted measures still need to be in place.

One, I understand the authorities will allow HBBs to engage the services of third-party delivery companies, much like how Food and Beverage (F&B) establishments are already doing to deliver their food and drinks. Hence, contactless collection and delivery can be arranged and carried out. This was what the HBBs were asking for when the ban was introduced. Going forward, the third-party delivery companies can even be assigned ones for HBBs to use, so that there is close monitoring of who the delivery personnel are. This will facilitate contact tracing efforts, if required.

Two, those HBBs who are already under HDB's Small-scale Business Scheme will continue to adhere to current food hygiene rules, if they are doing baking or cooking businesses. If, and only if, there is any worry or concern about their health during this COVID-19 circuit breaker period, these HBB owners can be asked to log their temperature checks and health declaration daily. This can be done through a mobile application that can be easily set up. This will give assurance to consumers and the authorities that the HBBs are generally in good health and do not pose any COVID-19 related risks.

Three, some F&B establishments are offering the use of their central kitchens to HBBs who may be keen to do so. In this way, hygiene, health and temperature checks, and centralised and monitored deliveries, can all be done more easily. This is a good initiative but we also recognise that not all HBBs can work in central kitchens or work away from home. But at least, this can be an option for some HBBs to continue operations during the period of restricted measures. However, this would also mean increased costs for those who run the central kitchens. Would the Government consider co-funding the cost of running these central kitchens for a defined period of time to allow the retail and home-based businesses involved some time to get back on their feet?

The suggestions above are in no way asking for special waivers of current CB measures. All along, HBBs have not asked for special treatment, exceptions or waivers of any of the current CB measures. All they ask, is for an equal opportunity to continue their business like other retail establishments whilst still observing restricted measures in place; as well as clarity and consistency in applying any restrictions that are in place. I think this is a fair request.

At this juncture, Mr Speaker, please allow me to speak in Malay.

(In Malay): [Please refer to Vernacular Speech.] I am particularly concerned about the fate of home-based businesses (HBBs) because I myself grew up as a child whose mother had a home-based business. At one time, my mother sold pineapple tarts, peanut cookies and lapis cakes to supplement our family’s living expenses, and the additional income from the sale of her cookies really came in handy when my late father lost his job temporarily.

My mother, who comes from our Merdeka generation, was an independent person who always displayed perseverance. Just like the rest of our Merdeka generation, our HBBs also displayed an unwavering spirit. This spirit must be encouraged because it is the same spirit that propelled us to develop Singapore after we achieved independence.

This is also the spirit emulated by our HBB owners like Mdm N.

Mdm N is a housewife who sells cookies and kueh from home. She supports her husband who lost his job as a driver because of diabetes and heart condition, and their son is studying in Primary school. Mdm N also takes care of her mother-in-law who has poor health and is unemployed.

I have ordered Nutella Tarts and brownies on several occasions from Mdm N. They are so yummy. I have also offered to give her some extra cash to help her with her expenses. Although grateful, she declined my help. She said she can still earn a living through her own toil and sweat. That is how determined Mdm N is. She does not simply hope for handouts and she wants to earn her own income to pay for her family's expenses and living.

Our HBB owners are not asking for exemptions from the current restrictions or regulations. They are just asking for an equal opportunity to continue their businesses, just like retailers who are allowed to use third-party delivery services, for instance. To me, this is reasonable request.

I shall not repeat the suggestions that I mentioned earlier. I hope the authorities can consider these suggestions seriously. Once again, I would like to emphasise that none of these suggestions are asking for any exemptions from the restrictions or regulations that must be implemented for the sake of public health and safety.

(In English): In conclusion, Mr Speaker, I wish to reiterate that our HBBs are not asking for special treatment or waivers of current CB measures in place. All they are asking for is equal treatment, clarity and consistency and an opportunity to carry on their businesses, while still observing restrictions that are in place. And all they are asking for is some empathy and understanding of their situation, and leadership in arriving at inclusive solutions.

I hope that in doing this Adjournment Motion, I am able to, in some small measure, highlight the challenges faced by, and the resilience and dignity of, our HBBs in taking charge of their lives and livelihoods, without expecting handouts or financial help from others. Their resilience and dignity to support themselves and their families ought to be celebrated, and they should not be admonished when they give feedback or ask for a level playing field to carry on their businesses.

I hope that in doing this Adjournment Motion and speaking for our HBBs, we are able to demonstrate empathy, understanding and leadership in finding ways to reconcile our differences and arrive at inclusive solutions for our HBBs, while still complying with the restrictions that need to be in place, in the interest of public health and safety.

More importantly, going forward, what are the lessons we can learn from this current episode that will help us manage, navigate and lead in future crises, where we listen and understand first, not have knee-jerk reactions, and co-create solutions in an inclusive manner?

Here, I would like to thank President Halimah Yacob and Minister Lawrence Wong for showing empathy and understanding of the hardship and challenges that HBBs face. It is the kind of leadership that people need in times of difficulty.

I would like to end with two quotes. First, by Barack Obama, and I quote, "I believe a stronger sense of empathy would tilt the balance of our current politics in favour of those people who are struggling in this society. After all, if they are like us, then their struggles are our own. If we fail to help, we diminish ourselves.

And another by Audrey Hepburn, and I quote, "Nothing is more important than empathy for another human being's suffering. Not a career. Not wealth. Not intelligence. Certainly, not status. We have to feel for one another if we are going to survive with dignity."

That is all from me. Thank you, Mr Speaker.

Mr Speaker: Mr Zainal Sapari

8.01 pm

Mr Zainal Sapari (Pasir Ris-Punggol): Mr Speaker, I would like to thank my parliamentary colleague, Dr Intan Azura, for this Adjournment Motion. I welcome the announcement made on Saturday on the easing off some restrictions to some businesses, including home-based business (HBB) which will be allowed to operate with some restrictions from 12 May onwards.

There are also many types of home-based business (HBB) owners. Some do it full-time and others may be seasonal and carry out their business during festive seasons. However, the impact of COVID-19 on home-based business (HBB) during the circuit breaker period varies, with some facing financial distress even with the lifting of restrictions.

As the Temporary Relief Fund has ended, can I have a confirmation that Home-Business Owners can apply for the Self-Employed Relief Scheme or SIRS if they are in financial distress? Second, is SIRS applicable to all HBB owners as they could be full-time or seasonal in carrying out their business?

Another problem home-based business (HBB) is the inability to fulfil the orders leading to customers asking for refunds. The orders are usually small amounting to less than few hundred dollars but when combined can amount a few thousand dollars. The deposit paid by customers may have been used to purchase materials needed to fulfil the orders. They will incur a loss if their customers insist on a refund instead of postponing the orders.

The advice given to these Home-Based Business (HBB) owners is to file for relief under COVID-19 Temporary Measures Bill for Ministry of Law to decide on the final settlement if the HBBs' agreements can be classified as a "Scheduled Contract". The reality is that most HBB do not have "Scheduled Contract" and will not be able to avail themselves of the reliefs under the Act.

Neither is seeking a legal recourse a practical option as legal fees are expensive. The best way forward is to negotiate with the counter party and try to arrange in such a way that they can postpone delivery. Here, I would like to make a call to HBB owners and customers, to be gracious and come to an amicable settlement, especially during this difficult time. Failing which, the HBB owner might lose a customer permanently and get bad reviews on social media and a customer that would just have to suck it up. In Malay, Mr Speaker.

(In Malay): [Please refer to Vernacular Speech.] During this COVID-19 crisis, there are Home-Based Businesses or HBBs that may encounter financial hardship even though several restrictions will be eased. May I seek confirmation that HBB owners can apply for the Self-Employed Person Income Relief Scheme or SIRS if they have financial difficulties?

Most HBBs do not have a "Scheduled Contract" and will not be able to avail themselves to the reliefs under the COVID-19 (Temporary Measures) Act 2020. Here, I would like to call on the HBB owners and customers to negotiate amicably in order to reach a settlement that will not burden any party.

(In English): I would like to end my speech by thanking our President Halimah Yaacob on her Facebook post where she connected well and showed great empathy toward the home-based business (HBB) owners.

I would also like to thank Mr Lawrence Wong and our Ministers in the Inter-Ministerial Task Force for their leadership in steering Singapore through this crisis. I believe great leadership is not only about making the hard decisions but, having empathy and the ability to relate to and connect with the people that are hardest hit to gain their trust and providing the support needed to cushion the impact on their lives. Without a doubt, our Ministers have demonstrated great leadership.

And to the thousands of frontline workers, your display of courage and tenacity is undeniable and we are immeasurably grateful to all of you. I hope, once this crisis is over, as a society, we will accord the due recognition for the important work of essential workers by ensuring fair wages and benefits are accorded to them. And to all of us, regardless whether you are a service buyer, service provider or end consumer, let us do the right thing and support efforts to boost their wages and improve their welfare, even if it means at a higher cost to us. We have the means through our Progressive Wage Model to make this happen.

Mr Speaker: Minister.

8.06 pm

The Minister for the Environment and Water Resources (Mr Masagos Zulkifli B M M): Let me catch my breath. It is hard speaking just after taking out the mask.

Mr Speaker, Sir, I thank Dr Intan and Mr Zainal Sapari for conveying the concerns of home-based businesses, or HBBs.

I too salute Mdm N, Ms Sery and Ms Tan for their spirit of self-reliance. I too can empathise with Dr Intan's mother who supplemented her income with a home-based business. This was what many Malay families and many of us in the Chamber have gone through. My mother, too, operated a home-based business when my father passed on.

So, when I empathise deeply with their challenges, I say this as someone who lived that life. Many housewives juggle, taking care of their children and elderly parents, and running these businesses to supplement their incomes.

The tightening of circuit breaker measures has put restrictions on many businesses, including HBBs. For HBBs catering to the Malay/Muslim community, I understand their disappointment, especially those who had been gearing up for Ramadan and Hari Raya celebrations.

But the COVID-19 crisis is not about preserving livelihoods alone. The crisis has forced many governments, many of us, to make stark choices between preserving livelihood and preserving life itself.

Indeed, their plight reflects the difficulties many Singaporeans currently face. Many have lost their jobs or have been placed on no-pay leave, so through no decisions of this Government. And even for those of us who still have our jobs, we are confined to our homes, going out only for essentials and exercise. But I believe many support the circuit breaker and agree that it is necessary. We are starting to see the results. I thank everyone for choosing to Stay United, to save lives and protect our community.

Let me share with the House our approach so far and the support available to those affected.

On 7 April, we imposed the circuit breaker to decisively curb the spread of COVID-19. Before this, we routinely had more than 50 new cases daily. Like many countries, the risk of cases growing exponentially was real and this is the reason why it is hard to plan and prepare our citizens for what comes next. We had to act fast and hard to minimise people movement and social interactions. We understand this has been painful for everyone.

The list of essential services was further tightened from 21 April as the infection rate had not reduced sufficiently. Barbers, laundromats as well as desserts, confectionaries and cake stores suspended their operations.

We also clarified that only HBBs that operated solely online were allowed, as these do not involve collection and delivery of goods.

Non-online HBBs could normally run without oversight or registration as they were typically small and do not disturb their neighbours. However, their informal and dispersed nature presents a special challenge during COVID-19. We cannot enforce safe distancing in them the same way we do for commercial orders. This poses a real risk when people move and interact in residential estates, as goods are collected and delivered.

It takes just one infected person to start a cluster. Lives, especially of our elderly, are at stake, and they can be right in the homes of this HBB operations. The circuit breaker would need to be extended if community transmissions remained high. So, we are not backpedalling. We are just making a decision because the situation has improved. Hence, as we made the difficult decision to restrict the operations of HBBs. I hope everyone understands why.

But what has been the outcome? Because everyone, including the HBBs, complied with the measures, we are seeing earlier results. The average daily number of new cases in the community has halved, from 25 in the week before to 12 last week.

We are therefore gradually relaxing restrictions from 12 May. Beyond allowing retail sale of cakes and confectionery for takeaway and delivery, we are resuming food HBBs for delivery and collection only. But we are not out of the woods yet, because clusters can still form as activities and interactions increase.

Food HBBs, their customers and delivery personnel have to comply with a set of safe distancing measures – practising contactless delivery and collection, and installing TraceTogether to help contact tracing.

Dr Intan suggested channelling HBBs is to central kitchens, but this is not necessary with the latest position and may result in even greater movement of people. Other non-online HBBs are to remain closed for now.

Food HBBs can now accept and start preparing orders to be fulfilled after 12 May. It is hoped – as I had expressed in my Facebook post – that you will be in time for Hari Raya Puasa, even if we must be prepared for a quieter Raya.

Because most are rapid and hit hard. Just to preserve lives, we know we still have to take care of those directly affected by the COVID-19 situation and those affected by decisions to curb is exponential growth in infection.

MOF has introduced schemes over three Budgets to support our businesses, workers and those in need. All Singaporeans aged 21 and above also received a once-off Cash and Support payout in April.

Many HBB operators would have benefited from the Temporary Relief Fund that was meant for relief in April. From May, as Mr Zainal inquired, self-employed HBB owners can apply for the Self-Employed Person Income Relief Scheme, or SIRS, or the COVID-19 Support Grant if they do not qualify for SIRS but are salaried employees who lost their jobs, suffered pay cuts or were placed on involuntary no-pay leave. SSOs will also extend other forms of support like ComCare for low-income families who need help.

Many members of the Malay/Muslim community have stepped up to calm worries and extended help to food HBBs. This is the correct spirit in the holy month of Ramadan. I would like to thank them all.

For instance, the Singapore Malay Chamber of Commerce and Industry (SMCCI) quickly got in touch with over 1,800 HBBs. SMCCI helped qualify HBBs so that they could access the Temporary Relief Fund automatically. They are advising them on how to tap on other Government support schemes. SMCCI is also looking to provide capability and capacity building for HBBs. If there is a silver lining, the HBBs now have SMCCI to champion and help them run viable and resilient micro-businesses. I wish them a fruitful relationship.

I also thank lawyers in the M³ community who, together with SMCCI, extended free legal advice to HBBs concerned about the legal implications of failing to fulfil their obligations, like issues around deposits and inability to deliver in time. Mr Speaker, allow me to speak in Malay.

(In Malay): [Please refer to Vernacular Speech.] I am deeply concerned and sympathise with those from our community who depend on their home-based businesses as a source of income. Those who have accepted orders during the months of Ramadan and Syawal will be most affected, especially since orders during Ramadan may have dipped slightly this year due to COVID-19. However, we need to minimise all movement and interactions so that we do not spread the virus to the elderly, to our families and to our friends. Some adjustments have to be made, just like how some of us have adapted to a very different Ramadan this year.

I thank the community for understanding and making adjustments. As we have already seen some results from the tighter measures to break the chain of transmission, the Government has allowed home-based businesses to resume operations from 12 May. This will give the business owners some time before Hari Raya Aidilfitri, even as this year’s celebrations will require some adjustments as well.

The Malay Chamber of Commerce and Industry (DPPMS) is engaging and advising the business owners to tap on the various Government schemes and is also working with lawyers from M3 to offer free legal advice. In its effort to help HBBs from the Malay/Muslim community, DPPMS is exploring ways to help this group for the long run.

(In English): Let me conclude by assuring Dr Intan, Mr Zainal and the House and the Government stands ready to support workers and businesses have been hit by COVID-19.

The situation has improved, not by chance, but because we stayed home and observed safe distancing. But we must not be complacent – we are dealing with a cunning virus and a difficult adversity.

If we have reaped anything from this, it was to give focus to food HBBs to do your part to enforce safe distancing during food preparation. I also hope that through the crisis, they will be reborn resilient, like Dr Intan's mother. For those HBBs that remain suspended, please be patient. Restrictions can only be lifted gradually and carefully when the situation continues to improve. We must prevent infections from spreading uncontrollably because when that happens, nature will take a tragic course. The more united we are in observing the circuit breaker, the sooner we can lift the measures.

Question put, and agreed to.

Resolved, "That Parliament do now adjourn."

Adjourned accordingly at 8.17 pm.