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Income Relief Loan - a working example
10 Apr 2020 (101 views)

I prefer an income relief loan to be given to workers who are retrenched or suffer a drop of income during an economic downturn.

The attached paper shows how the relief loan can work. It is based on a sample of 1,000 workers and is projected over a period of 12 months of the economic downturn.

The total amount required for the relief loan for 1,000 workers is $13 million. If this is computed for 1 million workers (i.e. one third the workforce in Singapore that is affected), the required budget is $13 billion.

This relief loan ensures that all the workers are able to maintain their income at 80% of the level for the past year and that the monthly income is sufficient to meet the living expenses.

 


Income Relief Loan - a working example
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I prefer an income relief loan to be given to workers who are retrenched or suffer a drop of income during an economic downturn.

The attached paper shows how the relief loan can work. It is based on a sample of 1,000 workers and is projected over a period of 12 months of the economic downturn.

The total amount required for the relief loan for 1,000 workers is $13 million. If this is computed for 1 million workers (i.e. one third the workforce in Singapore that is affected), the required budget is $13 billion.

This relief loan ensures that all the workers are able to maintain their income at 80% of the level for the past year and that the monthly income is sufficient to meet the living expenses.