Fiscal firepower notwithstanding, soft landing will still be a challenge

Singapore

IN April, the Singapore government implemented stringent social distancing measures to stem the transmission of the Covid-19 among residents. The bid to flatten the curve, instead of letting the virus rampage through the city-state, has succeeded in bringing down new infections, relieving some of the pressure on public health workers and hospitals.

But closing down businesses and safe distancing come at a substantial economic cost. Not everyone is able to engage in work - and certainly not social activities - and those that can continue do so far below the levels that had fuelled the economy before the circuit breaker kicked in.