Singapore pumps in extra stimulus to fight coronavirus – UOB

UOB Group’s Economist Barnabas Gan gives his views on the new stimulus package in Singapore.

Key Quotes

“Singapore announced a second stimulus package, also known as the Resilience Budget, worth S$48.4 billion to deal with the COVID-19 outbreak. Coupled with the policies announced in the Unity Budget, Singapore has dedicated close to S$55 billion (or 11% of GDP) to save jobs, help enterprise overcome challenges and to strengthen economic and social resilience.”

“The Resilience Budget is aimed to “save jobs and support companies” although “more will be given to those who have been hardest hit”. It adopts a three-thrust approach: (1) Save jobs, support workers and protect livelihoods, (2) help enterprises overcome immediate challenges and (3) strengthen economic and social resilience.”

“Given the size of the Resilience Budget, we will see the largest budget deficit in history, although a full-year recession in 2020 will almost certainly materialise. Market-watchers will now eye closely on Monday’s MAS monetary policy meeting where policy-makers are expected to further loosen policy to support economic growth.”