DPM Heng to give outline of Budget moves to mitigate virus impact

Singapore

THREE weeks before the national Budget, Deputy Prime Minister Heng Swee Keat is already on his way to outlining the support that businesses can expect, as Singapore digs in for a tough time from the impact of the Wuhan virus outbreak on growth.

Mr Heng, who is also Finance Minister, wrote on Facebook on Friday that "we stand ready to help businesses and workers affected by the outbreak".

While he will go into detail in the Budget on Feb 18, "over this weekend, I will share an outline of some of the key measures that we are planning".

Separately, Minister for National Development Lawrence Wong, who indicated that "we are looking at a strong Budget for 2020" at an industry lunch earlier on Friday, told reporters that Mr Heng will speak today "on what we can do to assist Singaporeans impacted by this Wuhan virus".

He said at an evening briefing: "What is clear is that the Wuhan virus is already having an impact on the economy, and we have to be prepared for this to go on for some time."

And he added that the government is "looking at an economic package to help businesses - but, importantly, to help Singaporean workers".

Mr Wong, the co-chairman of a multi-ministry taskforce on the Wuhan virus, had earlier said at a Chinese New Year lunch that - while the hospitality, tourism, retail and food and beverage (F&B) industries will be the hardest hit - "there will also be an overall impact on the economy" from the Wuhan virus.

While China nationals make up the biggest in-bound tourist market for Singapore, visitor arrivals have already come down by 80 per cent since China introduced exit controls on Jan 23, according to the Immigration and Checkpoints Authority.

Maybank Kim Eng senior economist Chua Hak Bin told The Business Times: "The government will have to release a big relief package for businesses hit by the Wuhan virus and the extreme border control measures, particularly for the hospitality, transport, retail and F&B sectors."

Taking a cue from the S$230 million relief package that was unveiled during the severe acute respiratory syndrome (Sars) crisis in 2003, private-sector watchers now expect the government to offer rescue measures such as property tax rebates and working capital bridging loans.

Patrick Fiat, general manager of the Royal Plaza on Scotts hotel in Orchard, told the press in the wake of the announcement that management was "in close communication with our China business partners" and will waive cancellation fees for travellers from China affected by the entry bar.