Home News Budget 2021

Singapore economy looks to rebound in 2021; experts caution against addiction to grants

Amala Balakrishner
Amala Balakrishner1/15/2021 7:0 AM GMT+08  • 5 min read
Singapore economy looks to rebound in 2021; experts caution against addiction to grants
What lies ahead in Budget 2021?
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

What a year 2020 had been, with the coronavirus upending industries, supply chains and the livelihoods of many across the world. Latest forecasts by the International Monetary Fund (IMF) put the contraction in the global economy at 4.4% for 2020 while growth is expected to “remain weak for years to come,” says Kon Yin Tong, president of the Institute of Singapore Chartered Accountants (ISCA). He was speaking at the Virtual Pre-Budget 2021 Roundtable on Jan 14 organised by the institute. However, things seem to be improving as the city-state’s unemployment rate last year had — for the first time — inched down to 3.3% in November 2020 from 3.6% in October 2020.

The drop follows the close to $100 billion in rescue and support measures doled out by the government across five key instalments. A key feature was the $23.5 billion Jobs Support Scheme (JSS) where the government co-pays the wage bills of 1.9 million Singaporeans across 140,000 companies, till March. Other initiatives included rental rebates, particularly for smaller businesses, as well as grants facilitating companies’ digitalisation efforts.

Market watchers argue that these efforts have prevented a further slowdown in Singapore’s economy by giving businesses much needed support. For instance, the JSS has “helped companies avoid layoffs, unless they were absolutely necessary,” says Lam Yi Young, CEO of the Singapore Business Federation (SBF), and a panellist at ISCA’s roundtable.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.