The coronavirus pandemic became one of the biggest challenges for the global economy. The economy of Singapore is also struggling to deal with multiple problems. It won’t be easy to cope with all of the issues associated with the coronavirus pandemic.
Importantly, Singapore expects to reopen the biggest part of the economy, if not all by June. Moroever, starting from Tuesday restrictions are set to be eased in three phases. As a reminder, the city-state imposed restrictions in early April to contain the spread of the virus. The country temporarily closed schools, and many people started to work from home.
According to the trade minister Chan Chun Sing, by phase one, 80% of the economy will get back on track. Moreover, the last sectors to reopen will be retail and beverage. Based on the preliminary information, customers will be able to visit restaurants by the end of June.
Unfortunately, the city-state has one of the highest numbers of coronavirus cases. Moreover, most cases are linked with infection clusters in dormitories. Most of the residents are foreign workers who work at construction sites.
People should take into account that as part of phase one, some people will return to work. Nevertheless, it is better to work from home whenever possible, as businesses are encouraged to work from home. Furthermore, schools will be reopening but students will continue to study from home on some days.
Singapore and the main challenges
Hopefully, the country was able to stabilize the situation when it comes to containing the spread of the virus. Nevertheless, it would take more time to identify all of the cases in the worker dormitories. However, the government, as well as society, are ready to take care of migrant workers who contracted the infection.
In the first four months of this year, Singapore secured 13 billion Singapore dollars ($9.2 billion) worth of investment commitments. Interestingly, that amount surpassed its full-year target of between S$8 billion and S$10 billion.
Nevertheless, the short-to-medium term outlook for the economy remains vulnerable. It is worth mentioning that, the economy of Singapore heavily relies on international trade. Moreover, according to the trade ministry’s projections, Singapore’s growth will shrink by between 4% and 7% in 2020. The country’s government announced four successive stimulus packages worth almost $70 billion. Last but not least, the country’s government is working hard to support the local economy. Moreover, it has the resources to accomplish this goal.