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Singapore Deputy Prime Minister Heng Swee Keat announced additional support measures of S$8 billion ($5.8 billion) to cushion the blow from the coronavirus pandemic, extending wage subsidies and aiming to shore up the hard-hit aviation and hospitality sectors.
The new set of measures, announced almost three months after the last package, adds to Singapore's total pledged pandemic aid of almost S$100 billion, Heng, who is also finance minister, said in a taped speech aired Monday. The measures will be financed in part by unused expenditures from earlier budgets, and won't require additional funds.
While Singapore has managed to bring virus cases under control, the global economy “remains very weak,” Heng said. “We must continue to adapt to the rapidly changing situation. We designed our measures to give us flexibility for adjustments as the crisis progresses. Some of these measures are ending soon.”
The announcement comes as the city-state has fallen into a technical recession, retail and hospitality sectors are reeling from previous “circuit-breaker” restrictions and officials have warned that further retrenchments loom this year. Data last week showed Singapore's economy shrank a record 42.9% on an annualized basis in the second quarter from the previous three months, with Trade and Industry Minister Chan Chun Sing warning there could be “recurring waves of infection and disruption.”
| Singapore's Stimulus Amid Pandemic | ||
|---|---|---|
| Feb. 18 | S$6.4B | Health Ministry funds; targeted aid for sectors like tourism, aviation, food; household cash handouts |
| March 26 | The latest measures won't require any additional use of past reserves beyond what was already approved, Heng said. The government now projects a budget deficit of S$74.2 billion for this fiscal year, S$100 million less than when the fourth package was announced in May. “Extension and further tiering was anticipated given the weak state of the Singapore economy,” said Selena Ling, head of treasury research and strategy at Oversea-Chinese Banking Corp., of the extension of wage subsidies. “Hopefully, by March 2021, there may be greater clarity that things are turning around, especially if a vaccine has been found and more economic activities have normalized.” The Singapore dollar was 0.12% stronger on the day at 1.3692 to the U.S. dollar as of 5:53 p.m. in Singapore. Export figures released Monday showed tentative signs of recovery in July, with non-oil domestic shipments jumping 6% from the same time last year, beating estimates for a second straight month. Other measures announced Monday include:
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