Coronavirus update: Globalised Singapore drops into deep downturn

No country however successful in years past, is immune from the impact of the pandemic.

Widely regarded as one of the success stories in growth and development in recent decades, data shows that the city-state Singaporean economy has contracted at a year-on-year rate of 12% in the second quarter of 2020, representing its worst recession since independence from Malaysia in 1965.

There are concerns that Singapore is going to be one of the hardest hit economy in Asia.

Singapore is a high-income and low-unemployment, export-driven economy with a trade-to-GDP ratio in excess of 300%.

The city state is one of the most deeply integrated into the world economy and is therefore highly susceptible to a steep decline in the volume of world trade which is expected to fall by 12% in 2020.

Their construction sector also relies heavily on migrant workers from Malaysia and stringent border controls during lockdown has led to the virtual closing down of the construction sector.

Tourism has also been hit affecting hotels, restaurants and transport.

The world-renowned Singapore Airlines was prompted to raise Singapore $9bn via a rights issue of equity and convertible bonds to counter the worst of the fallout of the pandemic.