Stimulus Packages To Ease The Impact Of Coronavirus Outbreak

As of 16 February 2020, 3.14pm, global death toll of COVID-19 has hit 1,666, with 68,586 confirmed cases. Travel restrictions worldwide and factory shutdown in China have cast a shadow on the global economic outlook, especially in Asian countries hard hit in this global epidemic. Apart from China, Singapore, Malaysia and Japan also foresee a sharp contraction in their first quarter economic growth as a result of the coronavirus outbreak. With guidance from your economics tutor Singapore in your economics tuition Singapore class, explain the negative economic impact of Coronavirus outbreak on the world economy. You may sign up for economics tuition Singapore with a reputable economics tutor Singapore should you need help in this subject.

Singapore

As of 16 February 2020, Singapore has reported 72 confirmed cases and mild local transmission. The local outbreak started with imported cases from China. However, local transmission was confirmed thereafter and the number of local confirmed cases has soon surpassed that of imported cases. Risk assessment level was raised to DORSCON Orange on 7 February 2020. In discussion with your economics tutor Singapore in economics tuition Singapore, assess the economic implications of the government’s decision to raise the risk assessment level to DORSCON Orange.

Singapore’s Prime Minister Lee Hsien Long warmed that the impact of Coronavirus outbreak could be bigger than that of the SARS outbreak in 2003. To learn more about the economic impact of a global pandemic like SARS, please contact Mr Edmund Quek, principal economics tutor Singapore of Economics Cafe Learning Centre, the best economics tuition Singapore centre. The economics tuition Singapore centre is conveniently located within five minutes’ walk from the Bishan MRT Station. The Singapore government is set to roll out a hefty stimulus package on Tuesday, 18 February 2020 as part of its annual budget. Some economists expect the stimulus package to be at least S$700 million or US$505 million, which will lead to its biggest deficit in more than 10 years. Singapore is among the very few governments in the world that run a budget surplus year on year. Please discuss with your economics tutor Singapore in your economics tuition Singapore class to explain why. The stimulus package will be channelled to the directly affected sectors such as tourism and transport, according to Singapore’s Deputy Prime Minister Heng Swee Keat. The government has already announced a $100 allowance per staff per day for employers who place their staff on 14 days Leave of Absence in a bid to contain the further spread of the Coronavirus in Singapore. In consultation with your economics tutor Singapore in economics tuition Singapore, discuss the possible government measures to help retail business owners tide over this difficult period. Singapore registered its lowest growth of 0.7 per cent in 2019. Its growth forecast for 2020 is expected to be between 0.5 and 2.5 per cent.

Malaysia And Japan

Its neighbouring country Malaysia so far has 22 confirmed cases. Its Minister of Finance Lim Guan Eng said that the government would announce a stimulus package on 27 February 2020 to mitigate the negative economic impact of the coronavirus outbreak. Assistance will be provided to the affected sectors such as the aviation, retail and tourism sectors. Mr Edmund Quek, principal economics tutor Singapore of Economics Cafe Learning Centre is renowned for incorporating current affairs into his economics tuition Singapore. To find out more about this economics tutor Singapore and his economics tuition Singapore, please visit his website at www.economicscafe.com.sg.

Japan is the worst affected country outside China, with 410 confirmed cases so far. Analysts have expected its economy to shrink 3.7 per cent year on year for the fourth quarter of 2019. The onset of the coronavirus will give its already sluggish economy another blow as tourist receipts are expected to drop drastically, hurting not only the tourism related industries, but also overall exports, output and consumption. For the whole year of 2020, Japan’s economic growth is expected to shrink 0.2 percentage points. On 14 February 2020, the Japanese government announced a 10.3 billion yen or US$93.8 million stimulus package to ease the negative impact of the coronavirus outbreak. Additional steps will be taken if the situation worsens in future.

Linda Geng

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