The ongoing coronavirus scare has not just affected China, but has also affected the economy of Singapore. The island city-state has a threat from the virus and the economy of it is in danger. Looking at the current situation, the government of Singapore is all set to introduce a fresh budget that will help to soften the ill effects of coronavirus.
Heng Swee Keat, the finance minister of the country will soon be delivering his annual budget speech on February 18, 2020. The current situation comes as the country is also dealing with the coronavirus scare and has the highest number of coronavirus cases outside China. The challenge here is that the virus has put up a challenge for the country and an economically difficult situation and year for Singapore.
The island city-state is a trade dependent economy that was already dealing with the trade-war between the US and China. This also lead to a decline in the demand for semiconductors, which are one of the main exports. The additional issue of coronavirus has added to the already existing problems. Irvin Deah, a senior economist in Singapore had earlier mentioned that the ongoing outbreak is expected to have a deeper impact on Singapore and is compared to the SARS epidemic that his in 2003.
This is because since then, the country has improved the economic links with China which has proved to be Singapore’s biggest export market and also the biggest source of international tourists. Economists have opined that the government of Singapore is rich enough and has accumulated a lot of funds and has a surplus of 17 billion Singapore dollars in the current term. However, the government is not expected to spend it all. At the same time it is mandatory for the government to transfer surplus amount to reserve. This year, the focus would be in the measures that would help the businesses and workers to help during the ongoing virus scare.
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