COVID-19 epidemic: Singapore faces the risk of economic recession

Economist Prakash Sakpal said that the Malaysian government’s ban on citizens who go abroad that represents quite a big blow to services and small and medium enterprises of Singapore.

Singapore is edging towards its first full-year recession in nearly two decades as neighboring Malaysia’s travel ban causing the “Lion island nation” loses a key source of labor and the coronavirus pandemic hits the economy, firming the case for the central bank to tighten policy.

“Financial conditions have tightened considerably in recent weeks, and the lockdown being imposed by countries to contain the COVID-19 outbreak means a recession in Singapore cannot be avoided,” said ANZ economist Khoon Goh.

Meanwhile, economist Prakash Sakpal said that the Malaysian government’s ban on citizens who go abroad until March 31. It represents quite a big blow to services and small and medium enterprises that depend on the workforce from Malaysia. Singapore businesses currently employ about 300,000 Malaysians.

Singapore has long been known as a country that always has effective measures to cope with outbreaks.

However, in the context of the increasing number of COVID-19 infections in many countries around the world, this economy is under many pressures and start to show signs of recession in 2020, forcing the government to lower the growth forecast.

The Government of Singapore also set to unveil a second economic package within the past 2 months to help businesses and workers.

Economists said that the new stimulus package will be more effective than the monetary measure in the past term.

According to the latest announcement from the Ministry of Health of Singapore, on March 17 this country reported 23 new cases of SARS-CoV-2 virus. It is the highest number of cases per day in Singapore, bringing the total number of COVID-19 cases to 266 people.

However, compared with many other countries, the spread of COVID-19 in this island nation remains relatively low.