Connect with us

Current Affairs

Economists: Singapore’s tourism industry may suffer from Wuhan outbreak, but impact on overall economy remains hazy

Published

on

The Wuhan Coronavirus epidemic will likely have some adverse effects on Singapore’s tourism-related sectors in the coming months, while also throwing a spanner in the works of economic growth in the first quarter of this year, according to some economists.

With uncertainties still enshrouding the reach and spread of the virus, it is yet too early ascertain how much the overall economy will be impacted this year, the economists said to Channel News Asia (CNA).

Up until Tuesday (28 Jan), there are seven confirmed cases of the coronavirus virus in the country.

The Minister for Trade and Industry, Chan Chun Sing spoke at a multi-agency press conference on Monday (27 Jan) regarding Singapore’s economy, consumer and business confidence being affected, particularly the “immediate concerns” of the tourism sectors.

The effect on tourism will start appearing as early as February, as Song Seng Wun, the CIMB Private Banking economist remarked. This is especially due to the cessation of all group tours locally and abroad by the Chinese authorities which came into effect on Monday. The ratio of Chinese foreign tourists in Singapore is almost one fifth of the total visitors, Mr Song said.

“The latest measure will see visitor arrivals for February being affected and other frontline sectors, like retail and F&B (food and beverage), will also take some impact,” he further added and that  “the longer this ban stays in place, the bigger the impact…And if the developments over the next month prove to be not as favourable, then it won’t just be the Chinese that are travelling less but across all nationalities. That will further impact the tourism-related sectors here.”

Over the past few days, mass cancellations of travel plans have been made from China. Alicia Seah, the director of public relations and communications of Dynasty Travel stated that February’s bookings from China have “all been cancelled.”

OCBC’s head of treasury and strategy, Selena Ling opined that the fall in economic and business confidence as well as tour cancellations will probably “cast a shadow” over the country’s growth trajectory in quarter one of this year.

China has also extended the holiday break for Chinese New Year, which has meant that factory output will decline, as well as consumer spending because people will remain at home. These will lead to the slowdown, a “significant hit” on the Chinese economy in quarter one, HIS Markit economist Rajiv Biswas remarked.

In light of this, Singapore’s manufacturing exports such as intermediate, finished goods and raw materials will suffer due to “flow-on” effect of the fall in import demand from China, Mr Biswas added.

Economists: Net impact is yet too early to determine

 The three aforementioned economists agree that it is too early to determine the net impact of the outbreak on the country.

“The key questions are how long this will last, whether it will get more severe from here and what control measures are taken that might disrupt productivity…While people seem to be looking to SARS (Severe Acute Respiratory Syndrome) as a proxy, it is still too early to tell the full impact for now,” Ms Ling stated.

In a similar vein, Mr Biswas said that the overall impact on the economy is “highly uncertain, depending on the speed with which the Wuhan virus epidemic is contained.”

Consumer confidence yet appears to be unaffected currently, Mr Song added: “The thing to note is whether people are reassured by the immediate remedial measures that have been implemented. Compared with the SARS period where we were dealing with a virus outbreak for the first time, we’ve since had Zika and MERS (Middle East Respiratory Syndrome Coronavirus) and I think we are far better prepared in our preventive measures.”

“People seem to have gone on with their daily activities for now, though more are wearing masks. As long as people carry on with their daily lives, the impact on domestic activities won’t be as severe.”

A noticeable point according to economists is that, the contraction in economic growth and overall exports do coincide with the viral outbreak, meaning that there is less room for adjustment if a worst case scenario does occur.

Ms Ling is considering revising downwards her full-year growth estimate: “We were looking at 1 to 2 per cent for Singapore’s economy in 2020, but we may adjust to 0 to 2 per cent to accommodate the potential downside risks.”

Aid for businesses – how early and how large?

 On Monday, Mr Chan voiced that the government will put in place the necessary measures to aid businesses creaking under the impact of the viral outbreak, as was similar during the SARS epidemic in 2003.

Specifically for the tourism-related industries, measures include enhanced training grants, property tax rebates, a bridging loan programme for SMEs, and a reduction in foreign worker levy.

Waivers of taxi operator license fees and diesel tax rebates for taxis are also some of the targeted measures for the transport sector.

Whether the government will introduce a relief package of that magnitude in the coming Budget 2020, economists believe that it is still too early to tell.

There might be budget provisions to aid vulnerable travel sectors and tourism, Mr Biswas opined.

On the flip side, the government could be adopting a “wait and watch” approach to the whole epidemic issue as it is still in the early stages, Ms Ling remarked.

Continue Reading
Click to comment
Subscribe
Notify of
0 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Current Affairs

Farewell to Dr Lee Wei Ling: Rain marks solemn tribute, echoing her father’s funeral

Dr Lee Wei Ling’s funeral was conducted on 12 October 2024, in Singapore, with family members leading the procession in the rain. In a heartfelt eulogy, her brother, Lee Hsien Yang, remembered her dedication to medicine and family. Dr Lee had requested a simple ceremony, with her ashes to be scattered at sea.

Published

on

Li Huanwu and Li Shaowu sending off their aunt, Dr Lee Wei Ling in the rain (Photo: Lianhe Zaobao/唐家鴻)

Dr Lee Wei Ling was farewelled on 12 October 2024, in a solemn funeral ceremony attended by close family members and friends.

The weather was marked by light rain, drawing comparisons to the conditions during her father, Lee Kuan Yew’s funeral in 2015.

Her nephews, Li Huanwu and Li Shaowu, led the procession, carrying Dr Lee’s portrait and walking side by side under the rain, symbolically reflecting the loss felt by her family.

In his emotional eulogy through a recorded video, her brother, Lee Hsien Yang, spoke of Dr Lee’s profound contributions to medicine and her unshakable devotion to family.

He described her as a remarkable individual whose life had left an indelible mark on those who knew her, as well as on Singapore’s medical community.

Expressing deep sorrow at her passing, Lee Hsien Yang reflected on their close bond and the immense loss he felt, having been unable to attend her final farewell.

He recalled his private goodbye to her in June 2022, a poignant moment that stayed with him during her last months.

Lee Hsien Yang also reiterated Dr Lee’s wish for a simple funeral, a reflection of her humility.

In accordance with her wishes, her body was cremated, and her ashes will be scattered at sea, symbolising her desire for a modest and unobtrusive departure from the world.

LHY acknowledged the efforts of his sons, Li Huanwu and Li Shaowu, for their role in managing their aunt’s care during his absence, thanking them for their dedication to her comfort in her final days.

During his eulogy for his sister, Lee Hsien Yang also conveyed a message from Dr Lee regarding the family’s long-standing issue surrounding their home at 38 Oxley Road.

Quoting from Dr Lee’s message, LHY said: “My father, Lee Kuan Yew, and my mother, Kwa Geok Choo’s, unwavering and deeply felt wish was for their house at 38 Oxley Road, Singapore 238629, to be demolished upon the last parent’s death.”

Dr Lee had been a vocal advocate for ensuring that this wish was honoured since Lee Kuan Yew’s death in 2015.

Dr Lee and LHY had strongly supported their father’s wishes, while their elder brother, Prime Minister Lee Hsien Loong, took a different stance. This disagreement led to a public and highly publicised rift within the family.

In her final message, Dr Lee reiterated: “Lee Kuan Yew had directed each of his three children to ensure that their parents’ wish for demolition be fulfilled. He had also appealed directly to the people of Singapore. Please honour my father by honouring his wish for his home to be demolished.”

Dr Lee had maintained a private life, focusing on her medical career as a respected neurologist. She was known for her candid views, often unflinching in her advocacy for transparency and integrity.

Her professional accomplishments, combined with her strong commitment to her parents’ legacy, made her a significant figure in both Singapore’s medical community and public discourse.

Diagnosed in 2020 with progressive supranuclear palsy (PSP), a rare neurodegenerative disorder, Dr Lee faced immense physical and emotional challenges in her final years.

The illness progressively affected her movement, speech, and ability to swallow.

Despite her health struggles, Dr Lee remained actively involved in public discussions, particularly on matters concerning her father’s legacy, until her condition worsened to the point where communication became difficult.

By March 2023, her brother LHY revealed that her condition had deteriorated significantly, and he feared he might not be able to see her again due to his own circumstances.

Even in her final months, Dr Lee maintained a close relationship with her immediate family, who cared for her during her illness.

Dr Lee’s funeral and cremation mark the end of a significant era for the Lee family and Singapore.

Her legacy as a dedicated neurologist and a firm advocate for her parents’ values will continue to resonate, even as the debates over the future of the Oxley Road property remain unresolved.

The rain that fell during her funeral, so reminiscent of her father’s final farewell, added a symbolic layer to this momentous chapter in Singapore’s history.

Continue Reading

Current Affairs

TJC issued 3rd POFMA order under Minister K Shanmugam for alleged falsehoods

The Transformative Justice Collective (TJC) was issued its third POFMA correction order on 5 October 2024 under the direction of Minister K Shanmugam for alleged falsehoods about death penalty processes. TJC has rejected the government’s claims, describing POFMA as a tool to suppress dissent.

Published

on

The Transformative Justice Collective (TJC), an advocacy group opposed to the death penalty, was issued its third Protection from Online Falsehoods and Manipulation Act (POFMA) correction direction on 5 October 2024.

The correction was ordered by Minister for Home Affairs and Law, K Shanmugam, following TJC’s publication of what the Ministry of Home Affairs (MHA) alleges to be false information regarding Singapore’s death row procedures and the prosecution of drug trafficking cases.

These statements were made on TJC’s website and across its social media platforms, including Facebook, Instagram, TikTok, and X (formerly Twitter).

In addition to TJC, civil activist Kokila Annamalai was also issued a correction direction by the minister over posts she made on Facebook and X between 4 and 5 October 2024.

According to MHA, these posts echoed similar views on the death penalty and the legal procedures for drug-related offences, and contained statements that the ministry claims are false concerning the treatment of death row prisoners and the state’s legal responsibilities in drug trafficking cases.

MHA stated that the posts suggested the government schedules and stays executions arbitrarily, without due regard to legal processes, and that the state does not bear the burden of proving drug trafficking charges.

However, these alleged falsehoods are contested by MHA, which maintains that the government strictly follows legal procedures, scheduling executions only after all legal avenues have been exhausted, and that the state always carries the burden of proof in such cases.

In its official release, MHA emphasised, “The prosecution always bears the legal burden of proving its case beyond a reasonable doubt, and this applies to all criminal offences, including drug trafficking.”

It also pointed to an article on the government fact-checking site Factually to provide further clarification on the issues raised.

As a result of these allegations, both TJC and Annamalai are now required to post correction notices. TJC must display these corrections on its website and social media platforms, while Annamalai is required to carry similar notices on her Facebook and X posts.

TikTok has also been issued a targeted correction direction, requiring the platform to communicate the correction to all Singapore-based users who viewed the related TJC post.

In a statement following the issuance of the correction direction, TJC strongly rejected the government’s claims. The group criticised the POFMA law, calling it a “political weapon used to crush dissent,” and argued that the order was more about the exercise of state power than the pursuit of truth. “We have put up the Correction Directions not because we accept any of what the government asserts, but because of the grossly unjust terms of the POFMA law,” TJC stated.

TJC further argued that the government’s control over Singapore’s media landscape enables it to push pro-death penalty views without opposition. The group also stated that it would not engage in prolonged legal battles over the POFMA correction orders, opting to focus on its abolitionist work instead.

This marks the third time TJC has been subject to a POFMA correction direction in recent months.

The group was previously issued two orders in August 2024 for making similar statements concerning death row prisoners.

In its latest statement, MHA noted that despite being corrected previously, TJC had repeated what the ministry views as falsehoods.

MHA also criticised TJC for presenting the perspective of a convicted drug trafficker without acknowledging the harm caused to victims of drug abuse.

Annamalai, a prominent civil rights activist, is also known for her involvement in various social justice campaigns. She was charged in June 2024 for her participation in a pro-Palestinian procession near the Istana. Her posts, now subject to correction, contained information similar to those presented by TJC regarding death penalty procedures and drug-related cases.

POFMA, which was introduced in 2019, allows the government to issue correction directions when it deems falsehoods are being spread online.

Critics of the law argue that it can be used to suppress dissent, while the government asserts that it is a necessary tool for combating misinformation. The law has been frequently invoked against opposition politicians and activists.

As of October 2024, Minister K Shanmugam has issued 17 POFMA directions, more than any other minister. Shanmugam, who was instrumental in introducing POFMA, is followed by National Development Minister Desmond Lee, who has issued 10 POFMA directions.

Major media outlets, including The Straits Times, Channel News Asia, and Mothership, have covered the POFMA directions. However, as of the time of writing, none have included TJC’s response rejecting the government’s allegations.

Continue Reading

Trending