Singapore unveils $3.5 billion in economic spending to combat coronavirus

SINGAPORE - Singapore announced S$5.1 billion ($3.55 billion) in additional economic spending such as wage support, waiver of levies and one-off payments to combat the coronavirus pandemic.

"This is an unprecedented budget for extraordinary times," Finance Minister Heng Swee Keat told parliament on Monday, just over a week after the city-state unveiled more than $30 billion in new support measures as it braces for its worst recession.

On Friday, Singapore said it will close schools and most workplaces for a month as part of stricter measures to curb a recent jump in coronavirus infections. Singapore has reported a total of 1,309 infections and six deaths from the coronavirus.

Heng said the new measures unveiled in the third budget will increase the total spending on coronavirus relief to S$59.9 bln or 12% of gross domestic product (GDP). He said Singapore will draw an additional S$4 billion from its past reserves to fund the new measures.

"The situation remains highly fluid and uncertain. The government stands ready to provide further support should it become necessary," Heng said.

Heng said Singapore's overall budget deficit for financial year 2020 is expected to increase to S$44.3 billion, or 8.9% of GDP. ($1 = 1.4356 Singapore dollars) (Reporting by John Geddie and Aradhana Aravindan; Writing by Anshuman Daga; Editing by Christian Schmollinger and Raju Gopalakrishnan)

-Reuters-

Central banks urged to ‘print lots of money’ to support world economy

MANILA – Central banks should take advantage of low inflation to “print lots of money” to support their economies as governments around the world implement lockdowns to check the spread of COVID-19, an analyst said on Tuesday. 

The risk of sparking hyperinflation, similar to what happened in Zimbabwe and Argentina is very low right now, according to Jeffrey Halley, senior market analyst at currency trader OANDA.

“It's actually not a bad time to do it because we basically have zero to no inflation in the world,” Halley said in an interview with ANC. 

"There’s never been a better time for governments to go and print lots of money and throw it at the economy."

Halley said small businesses could benefit from central banks “directly giving money” to businesses because firms are more concerned about cash flow rather than interest rates. 

“Small businesses don’t care what their borrowing costs are. They care about having enough money to pay their staff and their invoices at the end of the month.”

He said that some of the major world economies might be in for a “hard landing” despite the stimulus programs they have announced. 

“I think what we really have to understand here is that these stimulus packages are here to keep the lights on in the global economy they’re not there to be a magic panacea that turns that ship around and immediately starts growth up again.”

source: news.abs-cbn.com