Coronavirus pandemic: May Day

Singapore to take a step by step approach to restarting economy

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Not all businesses will be able to start work immediately when the coronavirus situation improves, as Singapore plans a "step by step" approach to restarting its economy, said Prime Minister Lee Hsien Loong yesterday.

Sectors deemed critical for the domestic economy, as well as those connecting Singapore to the world and global supply chains, will be allowed to open up first.

But others will have to wait - especially those that attract crowds or involve close contact with other people, such as entertainment outlets and large-scale sporting events.

"We have kept essential services going. But the rest of the economy will have to open up step by step, and not all at once," PM Lee said. "Some industries will open up earlier than others, and recover sooner."

The others must be kept "intact" and ready to resume business when conditions allow, he added in his May Day message to workers, aired on national television for the first time yesterday.

"This demands close cooperation between companies, workers and the Government," he said.

PM Lee had, on April 3, announced significantly stricter measures - like a circuit breaker - that would apply for one month to stem the spread of Covid-19 transmission in the community.

Most workplaces, except for essential services and key economic sectors, have been closed since April 7. Restrictions on gatherings and people movement were also tightened.

On April 21, PM Lee announced the extension of these circuit breaker measures to June 1, with rules tightened for two weeks. More workplaces had to close too.

PM Lee added then that any lifting of restrictions had to be done incrementally and in small steps. Singapore also had to step up testing substantially and make better use of technology to track and trace Covid-19 infections, he said.

In his speech last night, the Prime Minister laid out his strategy to get Singapore through the current crisis and help it adapt to the longer-term structural changes ahead.

The pandemic has taken a heavy toll on the global economy and Singapore, as an open economy, has borne the brunt of the downturn, he said.

"After we bring down the number of new Covid-19 cases, we can ease the circuit breaker measures, and progressively restart our economy," PM Lee added.

"This will not be straightforward. We need to step up Covid-19 testing and speed up contact tracing. And we must proceed cautiously, with safeguards, so infections do not flare up again."

Meanwhile, tourism and aviation are likely to take much longer to recover than other sectors, as international travel will remain restricted as long as Covid-19 poses a threat to the rest of the world, he said.

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A version of this article appeared in the print edition of The Straits Times on May 01, 2020, with the headline Singapore to take a step by step approach to restarting economy. Subscribe