Circuit breaker can be eased, economy restarted after new Covid-19 numbers come down: PM Lee

Once the number of new Covid-19 cases is brought down, Singapore can take steps to ease the circuit breaker measures and progressively restart the economy, said Prime Minister Lee Hsien Loong on Thursday evening.

The process, however, will not be a straightforward one, as the authorities will need to step up Covid-19 testing and speed up contact-tracing too. "We must proceed cautiously, with safeguards, so infections do not flare up again," he said in his annual May Day Message.

Mr Lee said that while essential services have continued during the circuit breaker, the rest of the economy will have to open up step by step, with some industries opening up earlier than others and recovering sooner.

This includes sectors critical to keeping the economy going domestically, and those that keep the country connected to the world and to global supply chains, he said.

Other sectors, however, will have to wait, especially those that attract crowds or involve close contact with other people, such as entertainment outlets and large-scale sporting events.

"We must keep all these industries intact, ready to resume business when conditions allow. This demands close cooperation between companies, workers and the government," said the prime minister.

In his televised message, Mr Lee noted that tourism and aviation are two of the sectors that "will take much longer" to recover than others, because global travel will remain restricted as long as Covid-19 remains a problem.

He described air transport as a strategic sector that is fundamental to Singapore's role as a global and regional hub, and this is why the government is providing extra support for aviation.

With Singapore Airlines (SIA) being "severely hit" by the pandemic, Mr Lee stressed that the government is determined to help the national carrier get through the crisis.

"SIA has always flown Singapore's flag high all over the world, and made us proud. We will spare no effort to enable it to do so again," he said.

While the government has tapped on the past reserves to save jobs and reduce costs for companies, many firms still have other costs to bear.

He said it is "unavoidable" that many workers will experience a pay cut, either due to lost overtime or direct wage reductions.

But he encouraged both employers and workers to take a longer-term view of the situation. He said workers should accept wage sacrificies in order to keep businesses running, and employers should do all they can to retain their staff.

"They should not drop workers at the first sign of trouble. This way, workers will remember and return the kindness, serve loyally, and help their businesses survive. Companies will also be in a better position to rebuild, when the economy begins to recover," said Mr Lee.