Worst hit by Wuhan coronavirus outbreak, tourism and transport sectors to get targeted help in Budget: DPM Heng
DPM Heng speaking to staff of Shangri-La Rasa Sentosa Resort & Spa on Saturday.
SINGAPORE – The tourism and transport sectors, which are worst hit by the ongoing Wuhan coronavirus outbreak, will get targeted help in the upcoming Budget, said Deputy Prime Minister Heng Swee Keat on Saturday (Feb 1).
At the same time, Singapore must also be prepared for a broader slowdown across the economy, he cautioned.
"For that, we will have a strong Budget in 2020," he said, adding that he understands that Singaporeans are concerned about the economic uncertainties during this period.
“Our priority is to ensure that our workers remain employed and employable. So what we will be doing is to work together with the companies to make sure that our companies remain viable.”
Some measures that will be rolled out include helping companies with their short-term cash flows and wage costs, retaining and training workers and restructuring their operations.
Details will be announced during the Budget on Feb 18.
Mr Heng was speaking to reporters while on a visit to the Shangri-La’s Rasa Sentosa Resort & Spa with National Trades Union Congress Secretary-General Ng Chee Meng to meet hotel staff and taxi drivers.
The hotel was where the first confirmed case of the Wuhan virus in Singapore had stayed. On Saturday, the Ministry of Health announced two new infection cases here, bringing the total to 18.
In a joint statement on Saturday, the Ministry of Finance and the Ministry of Trade and Industry said that the tourism and transport industries were the most badly affected due to the decline in air traffic through Changi Airport and an increase in hotel room cancellations.
The ministries warned of knock-on effects on related industries and firms, adding that the Government stands ready to help viable firms stay afloat and workers stay in their jobs in the event of a broad-based slowdown in the coming months.
“Even as the Government helps our firms and workers tide through this challenging period, it will continue to work together with tripartite partners to restructure our economy, build new enterprise capabilities, and upskill our workers for the future,” the statement added.
Mr Heng, who is also Finance Minister, stressed that the situation is “fast evolving”, and the Government will continue to look at what needs to be done and refine its plans when necessary.
"I want to assure Singaporeans that we are ready to take action, and that we will have a strong Budget that will help us manage this challenge," he added.
“We have been working very closely with each sector, with all our key business leaders, with our unions, and with our workers. I think this spirit of working together will enable us to emerge stronger from this challenge.”
Some of the Budget measures would be similar to the Government’s S$230 million relief package during the severe acute respiratory syndrome (Sars) crisis in 2003, he added.
But initiatives such as SkillsFuture did not yet exist then, and it is something that the Government can now build on.
“While there are important lessons that we have learnt from previous packages, we must keep a very sharp analysis of what is the current situation and what is likely to evolve,” Mr Heng said.
The new package will have to address the specific needs of Singapore’s current economy, given that linkages to the Chinese economy are now stronger and that the tourism sector here has expanded.
“The economic structure is also changing so we need to look at the latest data and to the best of our knowledge, see what are the most appropriate measures.”
