Economists Yeoh Lam Keong, Manu Bhaskaran, Donald Low and Tan Kim Song set out key principles that should guide the state’s support for the private sector in what is turning out to be a cataclysmic disaster.
Yeoh Lam Keong, an independent economics consultant, is the former chief economist of GIC; Manu Bhaskaran is CEO of Centennial Asia Advisors; Donald Low is professor of practice in public policy at the Hong Kong University of Science and Technology; Tan Kim Song is an associate professor of practice in economics at the Singapore Management University.
Full article link is here: https://www.academia.sg/coronavirus/smes-and-the-poor/
Below are extracts from the article:
‘Second, in a severe natural disaster, the burden of adjustment should be shared between companies, landlords, the state and workers in a sustainable and equitable way.’
‘Much stronger support is also needed for rental costs—a huge burden for many SMEs and local businesses. Postponing rental obligations for six months, only for firms that have no reserves, is insufficient to avert widespread closures.
Measures could include legislation to enable effective annulment of commercial rent, extended to all companies forced to stop business by the lockdown. This should be of two months’ duration at minimum, and longer if the lockdown compels future business cessation. It should also be obligatory to pass the existing property tax rebates to tenants through the annulment of one month’s rent.
In addition, for a few additional months, it may be necessary to reduce rentals, and enable their payment by deferred instalments over a period of three to five years. We should consider legislatively mandated “rent abatement” that permits tenants materially affected by COVID-19 to pay a reduced and fair proportion of rent during the temporary relief period.‘
The policy propositions above are in line with our petition requests. Once again, please share this petition with your friends and family. Every signature counts. We will need government legislation to mandate some support from landlords in this pandemic.