The government has announced that it would provide an additional S$48 billion ($33.36 billion) in support measures to mitigate the extent of the economic downturn.
Singapore has announced a supplementary budget that would raise its Covid-19 support package from S$5.6 billion, which was announced in February, to a total of $55 billion, or 11 percent of GDP.
The «Resilience Budget,» announced Thursday by Deputy Prime Minister Heng Swee Keat, focuses on three areas: 1) saving jobs, supporting workers and protecting livelihoods; 2) helping enterprises overcome immediate challenges; and 3) strengthening economic and social resilience.
The government said it would draw up to S$17 billion from its reserves to fund the part of the package.
«Extraordinary Measures»
The DPM said the Covid-19 outbreak is «likely the worst economic contraction since independence» and said that it was an «extraordinary situation that calls for extraordinary measures.»
He called the additional measures a «landmark package and necessary response,» but added that while government support cannot prevent an economic recession, it would help mitigate the extent of the downturn.
Growth Forecast Downgraded
Earlier this morning, the Ministry of Trade and Industry downgraded its 2020 GDP growth forecast from 0.5 percent, to -1 to -4 percent to «account for heightened uncertainties in the global economy,» citing the «unprecedented nature of the Covid-19 outbreak.»
According to advance estimates, Singapore's economy contracted 2.2 percent in the first quarter of the year, or 10.6 percent on an annualized basis.
