Economists, citing 3Q GDP numbers, expect Singapore’s Covid-19 ravaged economy to recover soon. But while that idea is a positive one, it also brings about its own set of challenges. Recently, Monetary Authority of Singapore (MAS) managing director Ravi Menon
warned that as much as a fifth of the city-state’s economy faces “deep scarring” as a result of the pandemic. “Ten to 20% of the economy is probably going to face some deep scarring from which they may not recover,” Menon said at a virtual event hosted by the Institute of International Finance on Oct 12. Pointing to the aviation industry, Menon added: “A big chunk of the rest may not go back to underlying potential pre-crisis for quite some time”.
In spite of the close to $100 billion in stimulus doled out by the government, the MAS chief says Singapore has yet to see the full extent of the crisis. For example, more bad loans and bankruptcies are also expected through the start of 2021.