It’s only been 5 days since Singaporeans’ current favourite minister, DPM Heng Swee Keat, announced the government’s second stimulus package for Singaporeans.
Look at that handsome face tripling our cash payout. *heart emoji*
And yet, on 30 Mar, DPM Heng said that if needed, the government will deploy a third stimulus package.
We Still Have The Resources To Provide More
The government is monitoring the situation closely as you can tell from the various ministers’ eyebags at each public announcement.
Should the situation worsen, the government is ready to provide a third stimulus package to help Singaporeans and businesses tide over the Covid-19 outbreak.
As for whether Singapore has the ability to do so? Minister Heng assures the people that Singapore has.
Make Use Of Whatever’s Available First
However, he cautioned, let’s make use of whatever is “on the table first“.
In his opinion, the resilience package is “substantial” and should be of much help to Singaporeans and businesses if they make use of the resources wisely.
However, he has been told by “medical experts” that the outbreak will not end anytime soon, and has been discussing measures that can be implemented when required.
MAS has eased Singapore’s monetary policy yesterday. Here’s an article that’ll explain what it’s all about in simple English.
So then, you’re wondering, why are they announcing a third package so quickly if the second package’s substantial?
Probably because of this.
MAS Predicts More Unemployment & Fewer Pay Raises Amidst Poor Economy
We all know that Singapore’s not doing really well economically.
But nothing brings it home better than Singapore’s very own moneymaker (literally), the Monetary Association of Singapore (MAS).
On 31 Mar 2020, MAS asks Singaporeans to be prepared for more job losses and slower wage growth.
“The resident unemployment rate is expected to rise and wage growth ease.”
In layman terms, more people are going to be unemployed and if you’re hoping for a $500 pay raise from your boss, you can kiss it goodybye for the time being.
With the drop in economic activity (people going out to shop, eat and play) and a drop in demand for goods outside of Singapore (countries too busy fighting Covid-19 and going on lockdown), MAS is predicting higher retrenchment rates, lesser hiring and a salary freeze that many companies have already been engaging in.
Unemployment Rate Predicted To Increase
The unemployment rate is predicted to increase from 2.3 per cent to 3.5 per cent according to United Overseas Bank economist Barnabas Gan.
Now, 1.2% doesn’t sound like much but let me put it into perspective for you:
Let’s say Singapore has 3.8 million people willing to work in Singapore.
1.2% is equivalent to 45,600 people.
Retrenchments have also increased in the last three months of 2019.
And according to stats, there are now more unemployed people compared to available vacancies.
But Don’t Cry And Panic Just Yet
Experts spoke to also said that their predictions are based on the scenario that the government does nothing to help the situation.
With the Singapore government giving twice the amount of support they had given during the global financial crisis back in 2007, they were certain that some of the negative impacts will be lessened.
Now you know why DPM Heng said that they’re prepared to come out with even more help liao, right?
As for the lack of jobs:
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Temp Jobs Available For People Who Lose Their Jobs To Covid-19
As we’ve previously said, Singapore doesn’t believe in handing out fishes to feed their people.
They expect them to work for it themselves.
So instead of going the route of, say, the US where people who lost their jobs are given about $3,500 per month on top of their unemployment benefits, Singapore is creating temporary jobs for their people instead.
According to Manpower Minister Josephine Teo, 70% of the jobs are for Professionals, Managers, Executives & Technicians (PMETs) while 30% is for the rank-and-file workers.
The jobs’ monthly salaries range between $1,700 and $5,000 and are designed to last for less than a year. So no quitting your current job just to enjoy the $5,000 pay, yeah.
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So, yes, it seems like all of us has to tighten our belts for the coming few months but as long as we’re willing to work hard, we’ll pull through this together.
If you’re in need of some motivation, here’s a clip of the Clap For #SGUnited movement that happened yesterday.
Aww, doesn’t watching the clip just give you warm, fuzzy feelings?
You can do your part as a responsible citizen through helping out in contact tracing by downloading the TraceTogether app.
In the meantime, keep yourself updated by bookmarking MOH’s website here and registering for the Gov.sg’s WhatsApp service here.