Economist at UOB Group Barnabas Gan assesses the progress of the pandemic in Singapore and upcoming measures to be implemented by the government.
“According to Singapore’s multi-ministry task force handling the COVID-19 pandemic, the city-state could enter Phase Three of its re-opening by the end of 2020. In addition, Phase Three, when implemented, will last for ‘potentially more than a year’.”
“There has been more clarity on how Phase Three could look like. These could include increasing the size of gathering permitted outside homes to eight persons, up from the current five limit. Similarly, up to eight visitors may be allowed on home visits. Moreover, capacity limits in specified venues and events may also increase.”
“Notwithstanding the potential further relaxation of social measures, the Singapore government remains cautious in handling the COVID-19 pandemic. The taskforce emphasised that Phase Three “will not mean a return to the pre-COVID-19 world”. More safeguards will also be in place to prevent a potential second outbreak.”
“We view that the implementation of Phase Three by the end of this year does not change our full-year growth outlook of -6.5% in 2020. We recognise that some services sectors especially in the food & beverage, retail and possibly accommodation-related industries may benefit as more relaxation are gradually seen.”
“To that end, Singapore’s economic environment has performed better compared to the periods between April to June, where the city-state imposed a circuit breaker and Phase One restrictions then. Bright-spots continue to be seen today, including in the manufacturing sector, as well as in pockets of services cluster such as the finance & insurance and information & communication industries.”