The Government has come up a generous budget consisting of rebates, bridging loans and cash payouts to help Singaporeans and businesses during this uncertain times. This Budget is also seen by many as a sweetener for the election-year budget, which is anticipated to be in 2020. We did a GE comparison of the 2015 vs 2020 budget (table below) for your reference.
With the COVID-19 outbreak expected to have a much greater impact than the 2003 SARS pandemic, will these measures be enough?
While Singapore managed to recover strongly following the SARS outbreak to expand 4.5% in 2003. The economy still shrank sharply by 4.2% yoy during the April-June quarter (Singapore’s first case of SARS was detected in March 2003, with the outbreak being contained by May 2003). The world is also a much different place compared to 2003.
Prior to the outbreak, China is struggling with its lowest economic growth in 30 years as the world’s second largest economy expanded only 6.1% in 2019. This is compared to 2003 where the Chinese economic system is growing at a rapid 9.1%, a 7-year high. China’s economic influence over the world and Singapore has also risen significantly since 2003 from 4% of global GDP to about 20%. China is also currently Singapore’s largest non-oil export destination, at 17.3% of the Singapore’s overall exports.
The generous budget is well-received and will provide some relief to Singaporeans and businesses, nonetheless it is expected to be a uphill road ahead for some industries in MICE, Aviation and Tourism.
Can the smaller players survive this phase?
Have faith and walk the miles!
Alliance Healthcare focuses on affordable and accessible clinics; banks on telemedicineMar. 27, 2020
3 women break through gender barriers in finance and business- AsiaOneMar. 18, 2020