More business travel on the cards: Chan Chun Sing

SINGAPORE now has the resources to reopen its borders further, Trade and Industry Minister Chan Chun Sing said on Monday, outlining plans for more travel.

Still, with business support schemes set to taper off in the coming year, he told firms and workers that government measures "must be sustainable in the long run".

That's even as he noted that two key economic factors are beyond Singapore's control - geopolitical dynamics, and Covid-19 outbreaks elsewhere in the world.

After the Singapore economy shrank 5.8 per cent in the third quarter, Mr Chan said that the Republic had "acted decisively" to contain the economic impact of the virus.

"For us, flattening the unemployment and business closure curves was as important to us as flattening the infection curve," he said at a morning press conference, citing the Jobs Support Scheme wage subsidies as one critical measure.

"While we will not be able to save all jobs and businesses, the situation would have been a lot worse without the quick economic interventions."

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Yet, Mr Chan warned that "it is not possible for us to indefinitely support business models that are no longer relevant and competitive in a Covid world".

Stressing that the government will support businesses in building capacity, internationalisation and digitalisation, he added: "Going forward, our support must be more targeted and focused on positive outcomes for our businesses and workers."

For short to medium-term success, Singapore must balance the infection risks of Covid-19 while gradually restoring economic activity, the minister asserted.

This includes more border reopening, after travel curbs were imposed in the first quarter, as Mr Chan cited testing, isolation and healthcare capacity to manage imported cases.

As such, the government will allow more Singapore-based business people to travel abroad and will resume "bringing in the necessary professionals and workers".

"We will also be able to progressively host more significant Mice events to maintain our position as a leading business node," he added, referring to the meetings, incentives, conferences and exhibitions industry for business events.

Meanwhile, Mr Chan told the briefing that Singapore does not know what approach US President-elect Joe Biden will take in US-China relations at this point.

"But we hope both sides will dial down tensions, and return to a more open and inclusive global economic order. As I said a few weeks ago, the path forward lies in greater interdependence, rather than independence or autarchy," he said.

Mr Chan also called on governments to "muster greater political will and determination to stem the spread of the virus", as he noted that new and more frequent lockdowns will hit global demand and affect export-oriented economies such as Singapore.