Finance

NTUC Warns Of More Retrenchments, As S’pore GDP Drops 12.6% In Q2

NTUC Asst Sec-Gen Patrick Tay Says Sharp Spikes In Unemployment Figures Expected After GDP Plunge

The Covid-19 measures enforced during Singapore’s ‘Circuit Breaker’ has led to Singapore slipping into a technical recession, with our gross domestic product (GDP) plunging 12.6% in the 2nd quarter (Q2) of this year (Apr-Jun), compared with Q2 of last year.

Worse still, the GDP dropped a massive 41.2% from the 1st quarter (Q1), following a 3.3% drop in the Q1 GDP.

These figures have worried NTUC assistant secretary-general Patrick Tay, who has now warned that more retrenchments may be coming.

Source

Plunge attributed to ‘Circuit Breaker’

The bad news was revealed in a press release by the Ministry of Trade and Industry (MTI) on Tuesday (14 Jul).

It attributed the decline to the ‘Circuit Breaker’ measures and the global economic downturn due to the Covid-19 pandemic causing weak external demand.

Here are the full figures released by the MTI based on advance estimates:

Source

In May, MTI downgraded the GDP growth forecast for this year to -7% to -4%.

NTUC assistant chief worried by GDP results

In a Facebook post on Tuesday (14 Jul), Mr Tay struck a sombre tone, saying the GDP results were “worrying”.

 

He also said based on these figures, the outlook wasn’t good for Singapore’s economy for the rest of the year.

Source

Warning over sharp spike in retrenchments

Mr Tay, a People’s Action Party candidate who contested and won Pioneer Single-Member Constituency in the recent general election, also urged workers to brace themselves for “a rough ride ahead”.

He warned that he expected there to be a “sharp spike in retrenchments and unemployment figures”.

Chan Chun Sing says Govt will walk with S’poreans

Minister for Trade and Industry Chan Chun Sing struck a more reassuring tone, saying the Government would walk this journey with Singaporeans.

Commenting on the results in a Facebook post on the same day, Mr Chan said they were “expected” given the ‘Circuit Breaker’ measures.

Source

He also said recovery would be “challenging”, and a “slow and uneven journey”, but the Government will provide support to businesses and guidance to help companies and workers adapt.

Disheartening GDP figures

While the poor GDP figures weren’t unexpected, they’re still disheartening to hear.

As they are advance estimates, most of the data taken in was from April and May — exactly corresponding to the ‘Circuit Breaker’ period.

Revised estimates for Q2 will be released in August, and will probably take in results from Phase 1 and 2. We’re hoping they’ll be more optimistic.

Featured images adapted from Facebook and MS News.

Jeremy Lee

Analog person making do with a digital world.

Recent Posts

4 winners split S$13M TOTO jackpot on 14 Nov, 1 winning ticket bought from Tong Aik Huat again

Tong Aik Huat also sold a winning ticket for the 21 Oct draw.

15 Nov 2024, 1:39 am

Online model seller in Japan scammed by buyer who returned different kit with pieces cut out

The seller was soured by the experience with Mercari, saying the platform only provided compensation…

14 Nov 2024, 6:57 pm

Woman in Indonesia steals formula milk by placing them between thighs

The woman walked away naturally despite the boxes between her thighs.

14 Nov 2024, 6:20 pm

Leopard in Thailand caught wriggling on zoo visitor’s pickup truck, netizens joke driver should bring it home

The leopard reportedly jumped off the truck once it saw zoo staff approaching.

14 Nov 2024, 5:53 pm

Motorist in M’sia crushed to death after container falls from trailer, lorry driver arrested

The trailer driver made a V sign for the media while being escorted to the…

14 Nov 2024, 5:42 pm