City-state plans phased emergence from lockdown to revive a collapsing economy but risks of a 'third wave' are apparent
Faced with contracting growth and the worst recession in its history, Singapore is preparing to gradually reopen its economy as it struggles to contain a Covid-19 outbreak that has rapidly spread among foreign workers, resulting in the highest per capita infection rate in Asia.
The city-state’s Ministry of Trade and Industry (MTI) on Tuesday (May 26) downgraded its full-year growth forecast for 2020 to between -4% and -7%, down from an initial projection of -1% to -4% in March. MTI cited deep uncertainties in the global economy and risks of subsequent waves of infections in major economies as reasons for its revised outlook.
Deputy Prime Minister Heng Swee Keat shortly after unveiled an unprecedented fourth budget, dubbed the “Fortitude Budget”, containing various measures to bolster job creation and support affected workers and businesses that will be unable to immediately open as Singapore begins a three-phase plan to lift virus-curbing restrictions from June 2.
The city-state’s strategic national reserves will be drawn upon to fund the additional S$33 billion (US$23.2 billion) spending package. Singapore has thus far committed S$92.9 billion ($65.4 billion) – equivalent to around 20% of annual economic output – to stoke its economy since the beginning of this year.
Faced with contracting growth and the worst recession in its history, Singapore is preparing to gradually reopen its economy as it struggles to contain a Covid-19 outbreak that has rapidly spread among foreign workers, resulting in the highest per capita infection rate in Asia.
The city-state’s Ministry of Trade and Industry (MTI) on Tuesday (May 26) downgraded its full-year growth forecast for 2020 to between -4% and -7%, down from an initial projection of -1% to -4% in March. MTI cited deep uncertainties in the global economy and risks of subsequent waves of infections in major economies as reasons for its revised outlook.
Deputy Prime Minister Heng Swee Keat shortly after unveiled an unprecedented fourth budget, dubbed the “Fortitude Budget”, containing various measures to bolster job creation and support affected workers and businesses that will be unable to immediately open as Singapore begins a three-phase plan to lift virus-curbing restrictions from June 2.
The city-state’s strategic national reserves will be drawn upon to fund the additional S$33 billion (US$23.2 billion) spending package. Singapore has thus far committed S$92.9 billion ($65.4 billion) – equivalent to around 20% of annual economic output – to stoke its economy since the beginning of this year.
Read the full story at Asia Times.
Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.
