Home News Singapore economy

Uneven recovery raises spectre of widening income gap

Amala Balakrishner
Amala Balakrishner10/16/2020 07:00 AM GMT+08  • 4 min read
Uneven recovery raises spectre of widening income gap
How Singapore’s economy recovers from the pandemic will affect income inequality here.
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.

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.

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.