With Singapore’s trade-reliant economy expected to continue facing uncertainty in 2021, the Singapore government is looking to add an additional SGD 100 billion (approximately USD 74 billion) worth of fiscal stimulus initiatives to its 2021 budget. This is equivalent to the total amount of aid pledged by the government so far in 2020, which was spread across 5 aid packages.
The fiscal support provided so far has cushioned the impact of the global pandemic, particularly in the aviation and hospitality sectors. However, Singapore’s economy still experienced a 7% contraction year on year in Q3 2020, and is estimated to record a 5-7% contraction for the whole of 2020.
To complement this financial stimulus, the Singapore government will look at tapering down its universal job support scheme, moving from providing stimulus and instead towards encouraging hiring employees.
(Sources: Business Times; Bloomberg)