Government Does Not Expect 'outright Recession' For Singapore

In the local Singapore news, its been mentioned that a recession is unlikely. Yet it also stated that there is a possibility of Singapore economy having negative growth. This was discussion in Parliament by the Minister of Trade and Industry (Trade) Lim Hng Kiang on 10 October 2016

During parliament Marine Parade GRC MP Mr Seah Kian Peng said that there was indications of weak economic activities and the mode on the ground was a sombre outlook for the economy. And Mr Seah Kian Peng asked if there was a sign off recession, if a recession was imminent and what were the measures that the Government would take?

This is when Minister of Trade and Industry (Trade) Lim Hng Kiang stated that while they baseline projection is not an "outright recession" yet the Government cannot rule out the possibility that the economy will experience some quarters of negative growth.

Mr Lim Hng Kiang said the global economic outlook is expected to remain weak. This is due to the slower growth in China, weak oil prices, lack of investment demands and weaker global trade flows.

He did mention that the Government is ready to respond if an economic downturn takes hold. Yet he did not go into details what the measures were. Mr Lim did state that SMEs can tap into the SME Working Capital Loacns that helps small companies with cash-flow concerns and financing needs for growth. He also stated that the the marine sector's foreign worker levy increases has been deferred for a year, amid challenging conditions faced by the sector.

Singaporeans should remember that when there was a downturn in the economy in 2007-2009, there were many training activities and training grants issued to companies and individuals. 2015-2016, Singapore has launched the SkillsFuture scheme which gives Singaporeans $500 to spend on approved courses.

Singapore Government has also launched the SME Working Capital Loans. Why? Does the mass public realise that there could be a slow down in the economy? How is the job market? 

There was a recent article that stated Singapore employees salaries will go up by a mere 4%, the lowest in the recent next year.  At the same time, there is a tightening of employment passes and foreign worker hiring. So that companies either hire locals or use technology. 

Then there was the pull out of some companies like Novartis (R&D) 

In August there was an article where recruitment experts said that 2016 will enter a slower job market than last year's.

As quoted Randstad Singapore country manager Jaya Dass said: "Fresh graduates are coming into a global economy that is... experiencing slow growth and where large multinational corporations aren't undergoing massive expansion."

So what should people in Singapore do? They should get their heads out of the sand and look around at whats happening. Instead of waiting to lose their jobs, stay stagnant or be retrenched- take the immediate chance to upgrade their knowledge and skills. Don't just go for courses, but also join groups or societies that encourage each other. 

Dont wait till you lose your job to find your place!

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