DBS Bank anticipates a 0.5% fall in Singapore’s market this year, rather than the 0.9% increase forecasted past month, ” said The New Paper.
Bukit Sembawang Estate has acquired Mountbatten Residences Singapore, a residential property situated in District 15 of Singapore through its subsidiary for $345m.
DBS Bank Economist Irvin Seah clarified the downgraded prediction might include additional downside risks, if the coronavirus epidemic worsen.
In addition, he stated that complete retrenchments are anticipated to strike 24,500 this season, and this will be a bit over the 23,430 recorded throughout the international financial meltdown in 2009.
“Considering that the chaotic situation in many regions of the planet and the financial costs of these restrictive measures on trade, investment, consumption and traveling, this is evolving to a’self-induced’ international downturn.
He said another stimulus package of around $14 billion to $16 billion can be rolled out, financed by the rest of the budget surplus for this period of government of roughly $7.7 billion, in addition to an extra $6 billion to $8 billion dollars in the reservations.
But, Seah also anticipates the Monetary Authority of Singapore to react by possibly allowing the money to weaken amid the threat to increase.
Singapore has also broadened its journey limitations beyond China to add markets which accounted for approximately 69% of Singapore’s total tourist arrivals this past year.
Thus, he anticipates a substantial hit to tourism-related services along with also a weaker global demand for Singapore’s exports and the production industry also.
Meanwhile, the Maybank Kim Eng Senior Economist Chua Hak Bin stated Singapore’s market had been dealt a massive blow on account of the fall in tourism and demand, in addition to supply chain disturbance from China.
“This was the first jolt. The next shock was that the spread of this disease to Europe and the US, that can be big consumer markets for Singapore,” he explained.
“The next shock is that the spike in cases in Asean that’s forcing a number of our neighbors to inflict partial lockdowns… If two of our nearest neighbors are taking precautionary steps that will influence their savings, ours is going to be impacted also.”
Many economists, however, still expect the market to grow within the calendar year, at least for today.
OCBC Bank Chief Economist Selena Ling revealed the bank’s most up-to-date anticipation for Singapore’s full-year GDP growth stands in 0.3%.