Lars Voedisch, Founder and Managing Director of PRecious Communications was featured in Business Times’ “Views from the Top” section on Monday, February 24, 2020, titled “Silver bullets from the Budget.” The question was – Will Singapore’s 2020 Budget measures go far enough to cushion businesses against the economic slowdown this year?
Here is Lars’ comment as featured in The Business Times’ Views from the Top
While the Singapore Government has consistently shared accurate, timely and relevant updates on the current health and economic situation, the 2020 Budget is a massive call for confidence, providing a clear vision and robust evidence on the direction of the nation. It is a clear message to citizens, businesses and the international community that Singapore is prepared and willing to do what it takes to overcome the fallout of the Covid-19 outbreak and boost the economy.
Taking control of the communication process and incorporating swift and concise measures to affirm trust will ensure that the impact on businesses is reduced and improves confidence in the economy.
Why Are We Talking Singapore’s Latest Fiscal Package?
The official 2020 economic growth forecast for Singapore has been downgraded to between minus-0.5% and 1.5%, indicating a chance of negative growth if the Covid-19 outbreak proves to be prolonged and more severe than expected.
For now, the Ministry of Trade & Industry sees GDP growth this year coming in at around 0.5%, the mid-point of the forecast range. That would be lower than the 2019 growth of 0.7% — the slowest since 2009 when the economy barely grew.
MTI recently said Singapore’s growth outlook has weakened amid uncertainty over the impact of the Covid-19 outbreak, which is likely to dampen growth prospects of China and other affected countries in Asia.
The ministry made clear that at this point, it is not expecting a full-year recession for Singapore but slow growth due to uncertainty.
And the 2020 Budget soon to be unveiled by the Finance Minister this afternoon will contain — among its raft of measures to address various priorities and concerns — possibly rebates and relief packages to help businesses cope with the near-term economic difficulties.