A stimulus this large is justified. Globalisation can turbocharge prosperity, but can also amplify shocks such as a subprime crisis in the US or a viral outbreak in China. The Southeast Asian country’s small, open economy makes a living by facilitating flows of goods, money and people. It’s a transport hub and has trading links to China. As movement is disrupted, the epidemic will be costly, perhaps more so than during the Severe Acute Respiratory Syndrome crisis.
(Feb 12): With more than two-score coronavirus infections and the threat raised to the second-highest level of severity, Singapore may not want to leave anything to chance when the budget is unveiled next week. The city-state is building an early reputation for handling the crisis professionally. Hong Kong, which is getting brickbats for ineptitude, will take note of its arch-rival’s fiscal defence.
Finance Minister Heng Swee Keat will aim for a $7.9 billion deficit in the year starting April 1, the biggest in a decade, according to DBS Group Holdings, Singapore’s biggest bank.
