Highlights – Singapore Trade Minister Chan Chun Sing
- The new package should be able to help the companies swivel new markets and product range
- The measured adopted must help the people retain their jobs, says Chan
- The second quarter saw a record recession, deeper than the first one
Singapore’s Trade and Industry Minister Chan Chun Sing on Thursday said that targeted measures are required to support different types of businesses to mitigate the impact of Coronavirus Pandemic.
In an interview given to CAN’s Asia First, Chan listed the three types of businesses that needs different support procedures. He divided industries in an ascending order on the basis of impact Cocid-19 had on them.
He said that biopharma and precision engineering industries have witnessed a growth in the market despite the downturn by the Pandemic. The retail, food and beverage industry will eventually recover, even though their demand has shrunk temporarily. The worst affected during the pandemic are the social entertainment industry. The demand of this industry is likely to recover on a short to medium term basis.
“We need different measures for the different types of companies – some to help them grow faster, some to help them consolidate their capacity while preserving their core capabilities, and some to help them pivot into new products and new markets.” He said
So, the measures are quite different and must be targeted in order for them to be useful to the respective companies” He added.
He said that it will be difficult to replace the external demand that Singapore used to have despite the efforts put in domestically.
New opportunities for companies
Chun said that the need of the hour is to help the different companies to glide into new markets and new product ranges so that they can seize the new opportunities in the new environment.
The Minister also said that the only restructuring of production and supply chains by the global companies can confirm that Singapore will obtain new opportunities.
A long path to recovery
In a Press Conference held on Monday, Chun had made clear that the return to the pre Covid-19 time will not be quick.
The country had a record recession in the second quarter and is in a long path of recovery as the Coronavirus had a major impact on Asia’s trade reliant economies.
Government data showed a 13.2 per cent fall in Gross Domestic Product (GDP), which deviated from the estimated 12.6. The government said that it now expects the GDP to contract by 5-7 per cent over the whole year, versus previous forecast of 4-7 per cent.
The government had pumped nearly $100 billion Singapore dollars ($72 billion) while easing its monetary policy in March to deal with the impact.
The country has been hard hit by the virus and is hoping for recovery.