Lee: COVID-19 puts governments of the world in unprecedented situation

Singapore Prime Minister, Lee Hsien Loong has warned that like other governments, the republic’s huge financial support measures could not shield it from the tectonic shifts taking place in the global economy due to COVID-19.

“Governments have spent trillions of dollars to support businesses, economies and jobs. Yet, tens of millions of jobs have been lost. Families are experiencing hardship.

“We are in a totally unprecedented situation,” Lee said today in the first of six national broadcasts on Singapore's future after the COVID-19 pandemic.

From today till June 20, Lee, Deputy Prime Minister, Heng Swee Keat and four other ministers will deliver a series of national broadcasts.

They will explain what a post-COVID-19 future looks like for Singapore and lay out plans to see the country through the storm and emerge stronger.

Lee noted that Singapore had taken a severe hit with its Gross Domestic Product (GDP) likely to shrink between 4.0 and 7.0 per cent this year, “our worst contraction ever.”

To protect workers, households and companies, the Singapore government had intervened decisively through four successive Budgets, the prime minister said.

“We are injecting almost S$100 billion or 20 per cent of our GDP, the largest fiscal intervention in our history,” he said.

Nevertheless, the prime minister still believed that the republic could still secure a bright future despite the current immense challenges.

“International trade and investments may shrink, but they will not disappear entirely.

“Some flows will be diverted or dry up, but other new channels will open up. There will still be overseas markets, and opportunities for international partnerships,” he said.

Beyond COVID-19 and the economic challenges, Lee noted that Singapore had to deal with other important external and domestic issues.

“Externally, we have to navigate the changing strategic landscape. COVID-19 has worsened relations between the US and China. Actions and counteractions are raising tensions day by day.

“It will become harder for countries to stay onside with both powers. It will be a more dangerous world for a small country like Singapore,” he said.

Therefore, the republic must, among others, work with like-minded countries to support free trade and multilateralism, Lee said. - BERNAMA