By Kenny Chee

THE Jobs Credit scheme, which subsidises the wages of Singaporean workers, will be extended for six months but the payouts will be smaller, said Prime Minister Lee Hsien Loong yesterday.

Newmeasures to help companies grow and become more productive will be introduced in next year's Budget, he promised. The new Budget will also reward companies that spur job creation, he added.

Speaking yesterday at the National Trades Union Congress Ordinary Delegates' Conference, Mr Lee said that the Jobs Credit scheme, introduced in January to stem retrenchment by companies, is no longer needed.

'The economy is recovering and some companies are hiring again,' he said. 'But if we withdraw the Jobs Credit suddenly and completely, some companies may have difficulties adjusting.'

The Government had received feedback from employers and unions that they understood the need to withdraw the scheme, but hoped that it could continue for a few more months, he explained.

So, instead of allowing the Jobs Credit scheme to expire in December as planned, the Government will extend it and make two more rounds of payments - in March and June next year.

But instead of paying companies 12 per cent of the first $2,500 of each worker's salary, the payouts next March and June will be 6 and 3 per cent respectively.

Mr Lee also gave updates on other measures introduced to help companies and workers tide over the recession.

A programme that subsidises the training costs of workers will be allowed to run its full two-year course, while a scheme that encourages banks to lend to companies will be reviewed to determine what measures should follow it when it expires next January, he said.

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