Singapore 'not returning to a pre-Covid-19 world': Chan Chun Sing

SINGAPORE cannot afford to wait out the coronavirus crisis, as permanent changes mean that there will be no going back to a pre-Covid-19 economy.

That was the warning from Minister for Trade and Industry Chan Chun Sing on Tuesday, after Singapore posted a record 13.2 per cent plunge in second-quarter gross domestic product.

Even so, he pledged that the Republic "will open for business safely and sustainably", while supporting business growth, job creation and market access.

"To preserve Singapore's ability to compete for jobs for our people, we will strengthen our links to the global markets for supplies, technology and talent," Mr Chan told a press briefing.

Saying that "our aviation and port hub status can never be taken for granted", he added that plans will be shared in the weeks ahead on defending Singapore's networks and capabilities.

With industries such as information and communications technology, biopharma and precision engineering still poised for growth, Mr Chan committed to a conducive and attractive business environment and to "building resilient and sustainable systems" beyond dollars and cents.

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For companies that are facing a near-term drop in demand, such as food and beverage services, the government's strategy is to help them with their immediate cash flows while working towards improving revenue and cost efficiency in the longer run.

As for sectors such as mass-market tourism, business events and social entertainment, which Mr Chan called "industries that have permanently changed", the minister said: "We will help them reinvent themselves, pivot into new markets and new products."

That's even as he stressed that the recovery from the coronavirus pandemic "will still be some time yet" and is expected to be both bumpy and uneven across sectors.

On top of headwinds such as geopolitical tensions, protectionism and social friction from economic inequality, Mr Chan noted that global production and supply chains are also being disrupted by the ongoing situation.

Such shifts could be a double-edged sword; for example, remote work may offer Singapore workers more international job opportunities, "but it also means that other workers, in other countries, can do our jobs from their homes", he said.

Similarly, Singapore may benefit from diversification by manufacturers that are branching out of China and actively considering South-east Asian markets; yet some existing investors may move out from Singapore as well, especially if it is their sole production site.

"This is not the Asian financial crisis or the global financial crisis, where, if we hunker down, things will improve in a few months," said Mr Chan.

"If we wait it out, we will likely be in worse shape than we are now. Therefore, we must chart a new direction now, for a very different and uncertain future.

"We do not have all the answers yet, and the ground realities are fast evolving, often without precedence. But we know that staying still is not an option."

While he acknowledged that "some are still hoping for a quick recovery, and a return to the familiarity of the 'old normal'", Mr Chan told reporters: "The painful truth is this: We are not returning to a pre-Covid-19 world."