Singapore still in 'transition phase', should not reopen prematurely: Lawrence Wong

BEFORE reaching the "new normal" of endemic Covid-19 with sufficiently high vaccination rates, Singapore is still in a transition phase, Finance Minister Lawrence Wong said in a closed-door dialogue held by the Singapore Business Federation (SBF) on Tuesday.

Responding to calls for the reopening of borders and the resumption of travel with significantly shorter or no stay-home notice (SHN) requirement, Mr Wong said: "Countries that open up too quickly or prematurely, without sufficient protection for the seniors, will not only see high infection rates - another wave, another cluster - but potentially higher hospitalisation and even fatalities, which is what we are trying to avoid."

The online dialogue, held in conjunction with SBF's 19th annual general meeting, involved some 350 business leaders, including SBF council members as well as C-suite and senior representatives from SBF member companies.

In the dialogue, firms had highlighted the need to safeguard Singapore's position as an international business hub, and the importance of staying open and connected, while asking for due consideration to be given the global business interests of many companies here.

Before Singapore reaches a new phase of high levels of vaccine coverage, it is in a transition phase, said Mr Wong. In this phase, restrictions such as the prevailing ones on dining or meeting in groups remain, but will be eased as vaccination rates go up.

There will be differentiated treatment for vaccinated persons, with the possibility of larger events or gatherings if everyone is vaccinated. Vaccinated travellers may also face shorter quarantine or SHN periods, or even no SHN at all, depending on the country that they visit.

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"Thirdly, we will progressively open our borders to allow more travel, not just for Singaporeans to go overseas and come back, but also people from around the world to come to Singapore," said Mr Wong. "As a small and open economy, we need to reconnect to the world safely, including to be able to resume the flows of workers for sectors which sorely need them, such as construction and marine."

Other issues raised in the dialogue, on emerging stronger in a post-Covid-19 economy, included the need for agility and contingency plans as firms must be prepared for Covid-19 measures to be tightened from time to time.

Beyond the pandemic, participants expressed interest in opportunities in areas such as advanced manufacturing and sustainability.

Mr Wong said that Singapore plans to position itself to attract global companies that wish to develop new urban sustainability solutions for Asia. Firms stand to gain in areas such as sustainable design, electric transportation, and green construction. Legal, consultancy and financial services providers can also support such green financing infrastructure projects, he added.

Said SBF chairman Lim Ming Yan: "Businesses and workers must recognise that Covid-19 is here to stay. They must put in place more resilient business models and long-term growth plans to remain viable and seize new opportunities. In the immediate term, they will also need to adjust their day-to-day operations, staff deployment and stakeholder relationships."