atans1

Ground is not sweet economically/ Authorities may have to do something but no gd options

In Economy, Political economy, Public Administration on 28/06/2019 at 9:12 am

Winter is here and the White Walkers are expected to land at Changi Int’l or the port any time soon.

S’pore’s recent gloomy economic data

— Electronics exports, a major driver of Singapore’s growth over the past two years, saw their biggest decline in more than a decade, hit by a global downturn in the semiconductor industry, data showed last week.

— Overall exports in May declined the most in more than three years as shipments to China slumped.

— The number of retrenchments rose 40% in the first quarter of 2019 from a year ago, driven by cuts in the manufacturing sector, according to official data released this month.

The authorities have to act if there’s going to be a GE this yr. Problem is that there are no good options.

The Monetary Authority of Singapore closely tracks data and there is a growing chance it may ease its currency-focused monetary policy for the first time in nearly three years.

Some say the central bank could even ease outside of its bi-annual meeting schedule as it did in January 2015 when it sought to counter deflationary pressures amid slowing growth.

But a more accommodative stance won’t be enough to reinvigorate the economy, said CIMB Private Banking economist, Mr Song Seng Wun, as a weaker Singapore dollar will not necessarily push up exports.

“Singapore businesses won’t suddenly become so competitive that we are going to be selling a lot more of our goods and services,” he said.

The finance ministry also has limited space to help given already-low tax rates, along with numerous incentives and cost offsets and an expansionary budget this year.

Further stimulus could come in the form of tax cuts and more rebates but factory operators aren’t waiting for the government to come to their rescue.

Reuters

Reuters also reported Mr Sam Chee Wah, general manager at Feinmetall Singapore, whose products are used for testing semiconductor wafers, as saying

[H]e’s been bracing for a tech slowdown since last year – holding back hiring and major capital investments. He’s now considering offering discounts or delayed payment terms to customers.

With US-China hostilities showing no signs of abating, Singapore will have to weather the storm for some time to come.

We are not out of the woods yet,” said Ms Sian Fenner, lead economist at Oxford Economics. “We haven’t seen the worst.”:

— Winter is here, how big will the anti-PAP vote be?

— S’pore: the canary in the coalmine/ Is the ground sweet for the PAP?

How 4G leaders going to get 65% of the popular vote( the pass mark for bragging rights that they have the people’s mandate)?

Remember

— Another reason why ground is not sweet for the PAP.

And there’s the promised 2 percentage points GST rise coming possibly, when the economy’s in a recession. This when the PAP govt has huge budget surpluses.

Next week, will forecast what the PAP govt will do.

 

 

  1. Thanks to Trump, we’ll probably see a postponement of GST hike LOL!!

    Hmmm, remind me again why PAPies require the highest political salaries in the world if the country can only ride or sink with global economic waves & sentiments???

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