A Monthly Variable Component (MVC) is also introduced in the wage system to enable employers to make quick adjustment to their wage costs in the event of a severe business downturn to stay competitive. (Manpower News, 2001) .
The Government also introduce more policies where they provide grants and incentives to ensure that Skills Redevelopment Programme (SRP) is affordable to all companies and they strongly encourage employers to take advantage of such assisted government funded training schemes to manage their excess labour and minimize the need for retrenchment. The New Singapore Shares scheme is also a new initiative specially weighted in favor of less well-off Singaporeans to help them during the current down turn. (Manpower News, 2001).
Other off-budget measures introduced by the Government include the employers' CPF contribution rate cut from 20% to the current contribution rate of 16%. Also there are reductions in Petrol Excise Duty and Diesel Tax, as well as one-time road tax rebates for all motorists. Other cost-cutting measures include JTC rental rebates, a property tax cut of 2% and lowering of corporate tax rates especially for small medium enterprises. All these were part of the government's cost cutting package to cushion the impact of the Asian economic crisis on businesses. (Market Alert, News Release 2001).
During recession, management often makes better use of human capital by correctly assigning workers to areas where they have higher productivity to survive. Reengineering human resources activities and job redesigning change the organization into a form that is flexible, adaptive, responsive and value adding. Such reengineering reinforce behaviors, which are important to teamwork and customer service and better aligning HR with business goals and objectives, thus bring the organization out of recession. .
Alternative Work Arrangements helps management survive the recession as they can vary their labour costs according to their cash flow demands and yet maintain an edge in hiring because these programs help the firm stand out as an innovative and entrepreneurial employer.