Singapore Sees Labor Market Conditions Worsening Later This Year

(Bloomberg) -- Singapore’s labor market conditions are expected to deteriorate later this year, Singapore’s Ministry of Manpower said in a press conference Tuesday.

• There is “considerable uncertainty” and the country must be prepared for retrenchments, the manpower ministry said.
• Singapore’s monetary policy remains unchanged and appropriate with the next policy review scheduled for October, the Monetary Authority of Singapore said.
  • MAS expects interest rates in Singapore to remain low given very accommodative monetary policy stances pursued by major central banks, MAS’s Chief Economist and Deputy Managing Director Edward Robinson said.
• Country is expected to see a very gradual recovery in 2H, depending on infection spikes and the global economy, Ministry of Trade & Industry said.
  • If Singapore’s economy were to contract by 7% this year, it would be the worst recession on record since the country’s independence, MTI said.
  • There is a risk that subsequent virus infection waves in major economies such as U.S. and Eurozone may further disrupt economic activity, MTI said.

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