The bulk of Singapore's economy should be able to bounce back this year, following the heavy hits it took last year with the Covid-19 pandemic, Prime Minister Lee Hsien Loong said.
Such a rebound will however be uneven, and PM Lee cautioned that sectors like tourism, transport, aviation and construction will take longer to recover.
"We are expecting some rebound this year. Last year was minus 5 to 6 per cent. That was particularly also because we had a circuit breaker period, which had a big impact on activity," he told reporters at Changi General Hospital, after visiting workers in essential services on the first day of Chinese New Year on Friday.
"This year, we expect to bounce back. The Year of the Ox should be better than the Year of the Rat in terms of the economy."
But the Prime Minister added that while Singapore is likely to perform better, it is not guaranteed that it can get to an economic level beyond where it was in 2019, before the pandemic hit.
The most recent official forecasts project the economy to expand by between 4 per cent and 6 per cent this year, after shrinking by an unprecedented 5.8 per cent in 2020.
The country's recovery will depend on its progress in getting its people vaccinated, as well as the vaccination progress of other countries, particularly the United States and in Europe, said PM Lee.
This will allow their economies to open up again and let Singapore, which depends heavily on international trade, get much closer to normal, he noted.
PM Lee, however, pointed out that transport, tourism and aviation, all of which were ravaged by coronavirus-related disruptions and the drop in international travel, will take longer to recover.
He said the construction sector has specific difficulties as well, due to the need for migrant workers and safe management measures, and the Government will address these concerns separately.
Responding to a reporter's question on whether various sectors will be able to cope with stricter measures, PM Lee said he hopes to not have another lockdown, and that the Government will try very hard not to impose one, given the big impact it will have on the economy.
"If we have to lock down again... it will have a big impact," said PM Lee.
"You can be resilient, you can have capabilities, but if we cannot do business for two, three months, it is going to hurt."
He added that Singapore is making sure that it builds up its people with skills training and that companies here strengthen their capabilities so that they can do business in a new post-Covid-19 world.
But keeping people safe is the priority and PM Lee noted how this Chinese New Year, safety measures were tightened to allow people to receive at most eight visitors a day, and how individuals should also limit themselves to visiting at most two other households.
"Our focus should be to keep people safe, ensure that safe management measures are complied with... and we avoid having another lockdown," he said.
"There will be time to celebrate in a more carefree way later on."
On Friday morning, PM Lee, together with Mrs Lee, Transport Minister Ong Ye Kung, National Trades Union Congress secretary-general Ng Chee Meng, NTUC president Mary Liew and union leaders, met Singapore Airlines cabin crew and pilots, who were flying to London and Manila, as well as support staff on shift at the SIA Cabin Crew Control Centre.
He then went to Changi General Hospital, to offer festive wishes and present Chinese New Year gifts, including red packets and mandarin oranges, to healthcare workers.
Hariz Baharudin
