Commentary: The heavy lifting needed to get Singapore through the COVID-19 slump

Global growth forecasts have been slashed and now a global recession appears to be on the cards for 2020.

They were joined in lockstep by the European Central Bank , the Reserve Bank of New Zealand, among others.monetary policy settings by flattening the slope of the trade-weighted Singapore dollar nominal effective exchange rate back in October 2019, with another easing to a zero appreciation slope announced on Mar 30.In addition, the establishment of the US$60 billion swap line with the US Federal Reserve has calmed some market concerns about the ongoing US dollar funding squeeze.

However, economic theory has always accepted the role of counter-cyclical fiscal policy – of government discretionary spending and changes in tax policy to counter an economic downturn.With a bigger role played by the Government in the economy in this COVID-19 slowdown, some may wonder if businesses and households may start taking the ability and willingness of the Government to bail them out for granted.

The public sector’s involvement is crucial to help Singapore manage the risks and impact of this projected slump. Moreover, the current draw on reserves does not mean that the baby is being thrown out with the bath water. The golden rule about balancing the budget for each term of Government has been upheld, with the President’s approval sought for the draw on past reserves.

For instance, will the 10,000 jobs created fall mainly in the public or private sector? What is the proportion of permanent or temporary employment, and if they will be in economically viable growth industries?

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Resilience Budget: Income support criteria too ‘narrow’, say some freelancersSINGAPORE — The qualifyiing criteria for the Government’s recently-announced support measures for the self-employed are too narrow, say some freelancers whose incomes have been reduced by the Covid-19 outbreak.
Source: TODAYonline - 🏆 1. / 99 Read more »

Facebook user issued correction direction for post containing falsehoods about Resilience BudgetSINGAPORE — Finance Minister Heng Swee Keat has instructed the Protection from Online Falsehoods and Manipulation Act (Pofma) office to issue a correction direction to a Facebook user for a post containing false statements about Singapore's Resilience Budget.
Source: TODAYonline - 🏆 1. / 99 Read more »

Facebook user issued Pofma notice for false claims on Resilience BudgetSINGAPORE - The $48 billion Resilience Budget will not go specifically to Singapore Airlines (SIA) and Temasek Holdings, said the Government on Wednesday (April 1) as it invoked Singapore's law against fake news against a Facebook user.. Read more at straitstimes.com. Shame on the person for deliberately creating fake news.
Source: The Straits Times - 🏆 8. / 63 Read more »

Finance Minister orders correction direction for Facebook user over supplementary Budget postSINGAPORE: Finance Minister Heng Swee Keat has instructed that a correction direction be issued to a Facebook user for a post about Singapore's ... wondering why those assholes who post on fb , they want attention is it ? Knowing fake news wont work in Sgp one
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Commentary: The COVID-19 pandemic will accelerate a shift to digital paymentsMore than half of people in developed economies believe that cash will always be around, but COVID-19 may change this, say observers.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Commentary: COVID-19 could shrink earnings of 2020 graduates for years to comeThe looming economic downturn could have distinct consequences for the Class of 2020 that outlast the economic downturn itself, say observers. WHAT
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »