‘We’re not returning to a pre-COVID-19 world’: Chan Chun Sing maps out ‘new path’ for Singapore

SINGAPORE: “We’re not returning to a pre-COVID-19 world … We should chart a brand new route now,” stated Commerce and Business Minister Chan Chun Sing on Tuesday (Aug 11), after Singapore introduced what he described as its “worst quarterly efficiency on file”.

Information confirmed that the Singapore financial system had contracted by 13.2 per cent on a year-on-year foundation within the April to June quarter, worse than the 12.6 per cent decline seen within the Authorities’s advance estimate and a pointy deterioration from the 0.three per cent contraction within the earlier quarter.

“To place issues in context, that is our worst quarterly efficiency on file. The forecast for 2020 basically means the expansion generated over the previous two to a few years shall be negated.

“The numbers replicate the influence of COVID-19, in addition to deeper forces reshaping the worldwide financial system and our place within the international worth chains,” stated Mr Chan in a press convention.

https://www.youtube.com/watch?v=gb6kTJWRTL8

READ: Singapore narrows 2020 GDP forecast vary, financial system to contract between 5%-7%

The minister stated he knew that some are nonetheless hoping for a fast restoration and a return to the “familiarity of the previous regular”, however the “painful fact” is that “we aren’t returning to a pre-COVID-19 world” and that restoration shall be a while but and “not prone to be easy”.

“We will anticipate recurring waves of an infection and disruption,” he stated.

“WORLD HAS CHANGED IRREVOCABLY”

Mr Chan additionally highlighted the importance of a number of international modifications past the outbreak.

The geopolitical setting that has allowed Singapore to thrive within the final 50 years has modified.

“The tensions amongst the most important powers are rising,” he stated.

Mr Chan stated he hoped geopolitical points won’t spill into “open battle, additional (destabilising) the remainder of the world”.

“We should keep away from being caught between the conflicts of main powers or be stranded in a fragmenting world of commerce relations and technological requirements,” he added.

World corporations are additionally reorganising their manufacturing and provide chains, with some reviewing the necessity for regional hubs and the way in which they organise their manufacturing to serve totally different markets.

“New investments will come our method … some current ones may additionally diversify away from Singapore … It’s a fluid panorama and we should do every thing we are able to to defend our capabilities and capacities.” stated Mr Chan.

Mr Chan additionally identified how the character of jobs has modified.

“With distant work, extra international job alternatives for our staff will come. Nevertheless it additionally implies that different staff, in different international locations, can do our jobs from their houses.

“You might need observed that some jobs within the regional headquarters listed here are being marketed as ‘can work in Singapore’ or ‘can work remotely’. This can have an effect on many PMET jobs, which could be executed nearly or via automation and AI,” he stated.

Lastly, modifications within the financial system “will trigger extra societal frictions and tensions” – between those that have extra and people with much less, between international and native, and even a Singaporean and a everlasting resident, stated Mr Chan.

“We might want to higher handle these affected by job and enterprise losses.

“We’ve and can proceed to do these in a sustainable method that’s not divisive, affirm the dignity of labor and strengthen our social cloth. These tensions, except properly managed, can divide our society,” he stated.

THE WAY FORWARD

“We shouldn’t have all of the solutions but and the bottom realities are quick evolving, usually with out priority, however we all know that staying nonetheless isn’t an possibility,” stated Mr Chan, including that the Authorities will work along with the individuals to “assist them perceive the necessity for modifications and to implement them easily”.

Within the subsequent few months, the Authorities will present “common updates” on the financial system and job scenario, “sector by sector”, stated Mr Chan.

“We’ll contain the unions, commerce associations and employers. We’ll go to corporations in varied sectors, work with unions and associations, talk about with them the modifications and chart the way in which ahead to get us via this disaster,” he added.

Mr Chan outlined three ideas Singapore will maintain on to because it makes an attempt to chart a brand new path forward.

First, the nation will open for enterprise, “safely and sustainability”. “It won’t be a binary possibility of open or shut. It may be executed. We should keep open whereas isolating the impacted clusters rapidly and tightly,” stated Mr Chan. 

Second, the Authorities will assist companies and staff make sense of and regulate to the brand new world.

Corporations with alternatives, however COVID-19 and maybe due to COVID-19, shall be given a lift to allow them to develop. “As a result of as you develop, we’ll create extra jobs and alternatives for our staff,” stated Mr Chan.

Examples of such corporations are these in infocommunications expertise, biopharma, provide chains and precision engineering.

Corporations struggling a drop in demand now however will ultimately get better can have their core capabilities preserved to allow them to “emerge stronger”, stated Mr Chan.

Total efforts to assist such corporations embody serving to them with their money flows, from the Jobs Assist Scheme to rental aid schemes. Over time, assist must be redirected to those corporations to assist them generate recent income and develop into extra cost-efficient.

Lastly, the Authorities will assist corporations whose industries have completely modified to reinvent themselves, and pivot into new markets and markets, stated Mr Chan. 

A 3rd precept the Authorities will go by is assist for companies via establishing the “proper macro circumstances”, stated Mr Chan.

“To protect Singapore’s capability to compete for jobs for our individuals, we’ll strengthen our hyperlinks with the world for markets, provides, expertise and expertise,” he stated, including that Singapore’s aviation and port hub standing “can by no means be taken as a right”.

Singapore may even break new floor for digital free commerce agreements to open extra markets for its companies whereas preserving current entry to traditional markets, stated Mr Chan.

The minister stated that whereas the longer term could also be unsure and circumstances difficult, the Authorities’s dedication to each Singaporean stays unchanged.

“We’ll do our utmost to arrange our individuals … We won’t look ahead to the COVID-19 scenario to blow over. We’ll begin now,” he stated.

Watch the complete information convention and subsequent Q&A session:

https://www.youtube.com/watch?v=LCh5Tx36eAk

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