{"id":115132,"date":"2020-03-25T10:42:10","date_gmt":"2020-03-25T03:42:10","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/covid-19-second-stimulus-package-might-require-a-bigger-draw-down-on-reserves-than-in-2009\/"},"modified":"2020-03-25T11:03:00","modified_gmt":"2020-03-25T04:03:00","slug":"covid-19-second-stimulus-package-might-require-a-bigger-draw-down-on-reserves-than-in-2009","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/covid-19-second-stimulus-package-might-require-a-bigger-draw-down-on-reserves-than-in-2009\/","title":{"rendered":"COVID-19: Second stimulus package might require a bigger draw down on reserves than in 2009"},"content":{"rendered":"


\nThe second stimulus package may even exceed\u00a0the record $20.5 billion package introduced during the 2009 global financial crisis, economists say.\u00a0
\nAhead of the government\u2019s second stimulus package announcement, which will be unveiled on Thursday, 26 March, economists expect it to surpass the special packages rolled out in Budget 2020 and even exceed the record $20.5 billion package introduced during the 2009 global financial crisis.
\nWith the second stimulus package estimated to hover between $14 billion and $33 billion, the government may have to tap on the city-state\u2019s past reserves, subject to the President\u2019s approval \u2013 making it only the second time for Singapore (the first was in 2009, when about $4 billion was drawn down from past reserves), reported Today.
\nWith a larger supplementary budget, this would mean that there would be a bigger draw down on the reserves than the $4 billion made in 2009. Singapore currently has $7.7 billion in accumulated surplus, after taking into account the $10.95 billion projected deficit incurred by the government\u2019s total spending in Budget 2020.
\nDuring last month\u2019s Budget announcement, Deputy Prime Minister Heng Swee Keat, who also serves as Finance Minister, unveiled two special packages to cushion Covid-19\u2019s impact \u2013 the Care and Support Package for households, and The Stabilisation and Support Package for businesses and workers \u2013 totalling $5.6 billion.
\nSince then however, the Covid-19 crisis has worsened across the world while several key industries that rely on people\u2019s free movement, such as aviation, domestic commerce and tourism, are on the verge of collapsing.
\nRead:\u00a0Singaporeans are still optimistic with the current real estate climate, according to PropertyGuru\u2019s study
\n\u201cThe magnitude of the system shock we are experiencing now, with lockdowns of unknown duration being implemented around the world, are well beyond what was contemplated just two months ago,\u201d said Christopher Gee, Governance and Economy Department Head at the Institute of Policy Studies.
\nEarlier in the month, Heng said that much like the Budget 2020 measures, the second support package\u2019s key aspect would be helping workers keep their jobs. He also did not rule out the option of drawing down from past reserves.
\n\u201cPlainly, the focus has shifted from mitigating the impact of the Covid-19 outbreak to cushioning the economy from an imminent recession,\u201d said DBS Senior Economist Irvin Seah in a research note last week.
\nHe noted that Singapore will have to leave some amount in the tank since there may be a third stimulus, as a contingency fund in case the situation worsens.
\nOng Sin Beng, JP Morgan\u2019s Executive Director of Emerging Markets Asia, Economic and Policy Research, said further packages is possible given the openness of Singapore\u2019s economy to trade and travel-related services.
\n\u201cGiven that containment measures have been gradually increased, it also suggests a dynamic fiscal response calibrated to the severity of the containment measures. Thus, the supplementary budget on March 26 may not be the last,\u201d said Ong.
\nUOB economist Barnabas Gan said the question of touching the reserves is \u201cnot about prudence, but about necessity\u201d.
\n\u201cThe priorities of this second stimulus are likely to be similar to 2009 \u2014 to keep companies afloat and save jobs,\u201d he added.
\nCIMB Private Banking Economist, Song Seng Wun said that while the second stimulus measures may help \u2014 whether in the form of tax cuts or wage subsidies \u2014 they are ultimately temporary and will eventually need to be removed, citing the example of the governments of some Asian countries who are still in deficit today as they were not able to recover from the support measures imposed during the 1997 Asian Financial Crisis.\u00a0
\n\u201cIf you take away taxes, for example, you have got to put it back after the crisis blows over. When things normalise, it is essential to resume with the way things were,\u201d said Mr Song.
\nMs Sian Fenner, Lead Economist at Oxford Economics said that the government will likely return the money back into the reserves once the economy recovers. The $4 billion draw downs made in 2009 was returned to Singapore\u2019s reserves in 2011.\u00a0
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\n\u00a0
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…COVID-19: Second stimulus package might require a bigger draw down on reserves than in 2009<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The second stimulus package may even exceed\u00a0the record $20.5 billion package introduced during the 2009...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-115132","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-tWY","jetpack-related-posts":[{"id":115018,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapores-economy-to-fall-by-0-5-this-year-dbs\/","url_meta":{"origin":115132,"position":0},"title":"Singapore\u2019s economy to fall by 0.5% this year \u2013 DBS","date":"March 20, 2020","format":false,"excerpt":"\r Total retrenchments are also expected to hit 24,500 this year.\u00a0 DBS Bank expects a 0.5% drop in Singapore\u2019s economy this year, instead of the 0.9% growth forecasted last month, reported The New Paper. DBS Bank Economist Irvin Seah explained that the downgraded forecast might come with further downside risks,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":137275,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/chinas-stimulus-could-focus-on-its-dire-property-sector-heres-what-economists-expect\/","url_meta":{"origin":115132,"position":1},"title":"China's stimulus could focus on its 'dire' property sector. Here's what economists expect","date":"June 7, 2023","format":false,"excerpt":"\r Economists expect China's stimulus package to focus on the property sector amid continued weak economic data.\r \r Source : cnbc.com\r Read more...China's stimulus could focus on its 'dire' property sector. 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These measures should be particularly helpful to first-time buyers and\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2016\/01\/bangkok-government-property-stimulus-800x410.jpg?fit=800%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":137297,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/china-property-with-new-round-of-stimulus-on-the-horizon-analysts-differ-on-extent-of-beijings-speculated-rescue-package\/","url_meta":{"origin":115132,"position":3},"title":"China property: with new round of stimulus on the horizon, analysts differ on extent of Beijing\u2019s speculated rescue package","date":"June 9, 2023","format":false,"excerpt":"\r Beijing is expected to roll out a stimulus package for the property sector, after home prices and real estate investment began decelerating this quarter.\r \r Source : South China Morning Post\r Read more...China property: with new round of stimulus on the horizon, analysts differ on extent of Beijing\u2019s speculated\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":22009,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/bank-of-england-unveils-four-pronged-stimulus-package-in-bid-to-avoid-brexit-recession\/","url_meta":{"origin":115132,"position":4},"title":"Bank of England unveils four-pronged stimulus package in bid to avoid Brexit recession","date":"August 5, 2016","format":false,"excerpt":"\r \r \r Source : telegraph.co.uk\r Read more...Bank of England unveils four-pronged stimulus package in bid to avoid Brexit recession","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":26726,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/japanese-shares-jump-as-bank-of-japan-overhauls-stimulus-package-while-markets-wait-for-the-us-fed\/","url_meta":{"origin":115132,"position":5},"title":"Japanese shares jump as Bank of Japan overhauls stimulus package – while markets wait for the US Fed","date":"September 21, 2016","format":false,"excerpt":"\r \r \r Source : telegraph.co.uk\r Read more...Japanese shares jump as Bank of Japan overhauls stimulus package - while markets wait for the US Fed","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/115132"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=115132"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/115132\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=115132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=115132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=115132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}