S$48b support package could be reviewed nearer year end: PM

Singapore

IT is "quite possible" that Singapore may have to do even more to help people and businesses cope with the coronavirus pandemic if the situation worsens, said Prime Minister Lee Hsien Loong on Friday, adding that the government is ready to turn to the reserves once again if need be.

He said the different components of the mammoth S$48.4 billion Resilience Budget, announced by Deputy Prime Minister and Finance Minister Heng Swee Keat in Parliament on Thursday, are designed to last until the end of this year.

"At the very least, as we approach the end of the year, we will have to think whether we need to extend that package. And if so, whether you want to modify it, increase or decrease it," he told reporters in an interview at the Istana.

"That we have prepared for, but we must also be psychologically prepared that if things actually get worse during the next few months before the end of the year, we may need to do something even before that. If it comes to that, we will go to the reserves."

On Thursday, President Halimah Yacob gave her in-principle approval for the government to draw up to S$17 billion from past reserves to fund the new stimulus package. Mr Lee said that the total size of Singapore's reserves are not made public, although he stressed that the country has "much more than (the S$17 billion)" and can "see us through for quite a long time".

Mr Lee described the economic challenges due to the pandemic as "very grave". He said the government is doing all it can to stabilise the economy, preserve jobs, and help companies stay in business.

Asked what assurances could be given to firms in the event of a drawn-out crisis, he said the government is ready to continue providing support in terms of wage and rental costs.

What is difficult to do, however, is "to bring back business when there is no business". "If I have to lock down the public entertainment, then is very difficult for the discos to operate. It is very difficult if you are a DJ, where do you get your gig? If there are no international flights, because other countries have locked down their borders, then it is very difficult to keep Singapore Airlines pilots and crew flying," he said.

He said it is important to find ways to redeploy those who are inevitably going to be, at the very least, under-employed during this period. This group, he added, could number in the tens or even hundreds of thousands.

During the interview, Mr Lee revealed that when Budget 2020 was presented in Parliament a little over five weeks ago, the government's thinking at the time was that the measures would be enough to last a few months before another package was needed.

"We did not expect within one month, the picture would totally change, and the health and economic pictures would totally change. Therefore, the policy response, the action from the Singapore government had to be totally changed," he added.

On the issue of Singapore's next general election, which is widely expected to take place in a matter of months, Mr Lee said he is weighing conducting a poll under "abnormal circumstances, against going into a storm with a mandate which is reaching the end of its term".

The current term of Parliament expires in January 2021. The release of the electoral boundaries review committee's report earlier this month is the closest sign that an election is imminent.

"I would not rule any possibility out. Once all the requirements are cleared, and that includes the electoral boundaries which has been reported, the electoral rolls have to be certified and republished. Once that is done, that means all possibilities are there. I will have to judge the situation," said Mr Lee.

With Singapore approaching a "very big storm" as the Covid-19 crisis unfolds, Mr Lee said it would be "very desirable" to have the strongest team and mandate, and the longest runway so that Singapore can have the best leadership to navigate the storm.

Giving his latest assessment on the country's fourth-generation leadership, Mr Lee said he was "very happy" that Ministers Lawrence Wong and Gan Kim Yong are chairing the task force to deal with Covid-19.

Mr Heng, the deputy prime minister who is poised to take over from Mr Lee at some point after the next election, is advising the task force and was instrumental in putting together Budget 2020 and the Resilience Budget.

"People have seen them and have watched them respond. They have watched them answer questions, deal with emergency situations - runs on food, runs on toilet rolls, big outbreaks, bad news - I think (the 4G leaders) have gained experience and confidence," said Mr Lee. "I believe that they have also gained . . . trust and rapport with people. It is a formative experience for the population and the leadership."

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