Singapore: Extra measures to support the economy – UOB

Economist at UOB Group Barnabas Gan gives his views on the recently announced extra stimulus measures to support the economy in Singapore.

Key Quotes

“Singapore’s Finance Ministry has announced a fourth round of support measures in the Fortitude Budget to provide further help to businesses, workers and households affected by the COVID-19 outbreak. It plans to inject an additional S$33.0 billion as Singapore embarks on phase 1 easing of the Circuit Breaker measures on 2 June 2020.”

“The focus of the Budget is three-fold: (1) to enable Singapore businesses and workers to adapt and to transform; (2) to provide additional support to Singapore’s households and community which have been adversely affected by the COVID-19 pandemic; and (3) to provide funding to frontline agencies to bolster Singapore’s fight against COVID-19.”

“To finance this package, the Government will propose a further S$31.0 billion draw from past reserves. This is on top of a plan to draw S$4.0 billion and S$17.0 billion from past reserves as mentioned in the Solidarity and Resilience Budgets respectively. Altogether, a total of S$52.0 billion will be drawn from reserves.”