Singapore’s economic rebound not likely ‘vibrant,’ PM Lee says

Singapore’s economic system is unlikely to choose up in a “very vibrant sort of way very soon” as key export markets in Europe and the US face renewed coronavirus outbreaks, Prime Minister Lee Hsien Loong stated.

While many sectors have proven enchancment since lockdown measures have been relaxed, some akin to aviation, transport and tourism are more likely to stay in “suspended animation” for a while due to second waves in different components of the world, Lee stated in a speech to members of his ruling get together on Sunday. For Singapore, the federal government must stability an easing of restrictions because it runs the chance of circumstances capturing up once more, he stated.

“We can’t simply relax the current restrictions, and hope that Covid-19 cases will remain low,” Lee stated. “The more we open up and resume normal activities, the more likely it is that we will have new cases, including from overseas, either from visitors or returning Singaporeans.”

The island nation’s economic system contracted 7% within the third quarter from a 12 months in the past and the general unemployment price climbed to its highest stage since 2004.

Lee’s People’s Action Party received one other majority at a normal election in July, although with much less assist. The prime minister stated Sunday that voter nervousness and the downbeat temper in the course of the pandemic “cost us votes” because the lockdown within the months earlier than the polls led to job and earnings losses.

“Managing this protracted economic downturn is another major political challenge, because some businesses will find they can’t carry on without government support and government support cannot last forever,” he stated. “Some workers will have to look for new jobs. Insecurity over livelihoods will stay high.”

The authorities is strengthening its testing and speak to tracing capabilities to stop additional outbreaks, Lee stated. The measures are aimed toward detecting new circumstances early and stopping the creation of clusters. The nation is at the moment in its second part of a reopening of the economic system.

“Then we will be able to progress into phase three without suffering a big second wave of infections and get back to a more normal life, or at least a new normal,” he stated. “We can then permit larger social gatherings including bigger groups at weddings and resume more international travel.”

Lee reiterated on Sunday that management renewal stays considered one of his high priorities. He had beforehand signaled he would step apart by the point he turns 70 in 2022, but additionally later stated he was decided to see the pandemic by means of and needed handy over Singapore “intact” and in “good working order” to the following technology of leaders.

“As I have explained, because of the Covid-19 pandemic and its economic impact, it’s my duty to see our nation through this crisis, before I hand over responsibility for Singapore in good shape to the next team and into safe hands,” he stated Sunday.