Channel NewsAsia - 1 hour 30 minutes
ago
SINGAPORE: Acting Manpower Minister Gan Kim Yong
has said the unemployment rate due to the current recession in
Singapore could reach the levels recorded during the Asian
financial crisis in 1998 and the economic downturn in
2001.
And, with the US and European economies likely to recover only
in the second half of this year, Trade and Industry Minister Lim
Hng Kiang warned that recovery will be a slow process.
Both ministers laid out the jobs situation in Singapore in
Parliament on Monday.
The industries that may be most affected by job losses are
manufacturing, tourism, transport and wholesale trade. These are
the sectors that are most exposed to the external economic
environment. The financial services sector will also remain
weak.
Mr Gan said based on preliminary numbers, some 8,100 workers
were either laid off or facing retrenchments in the fourth quarter
of last year and over the next few months.
Already, some 7,400 workers lost their jobs in the first three
quarters of last year, two thirds of whom are locals.
The silver lining is that more than 30,000 new jobs will be
available in growth sectors such as construction, healthcare,
public administration and the integrated resorts.
Mr Gan said: "Close to 30,000 workers were retrenched in 1998
due to the Asian financial crisis, and about 26,000 workers were
retrenched during the economic downturn in 2001. If our economy
were to contract sharply this year, it is possible that
retrenchments could reach these levels seen in previous
recessions."
Also speaking in Parliament, Minister Lim said Singapore’s job
losses will increase and consumer sentiment will weaken as the
manufacturing and financial industries slow further this year.
He said the economic slump has spread to all parts of the
economy.
Mr Lim said 2009 will be a difficult year with consumer demand
in key exports markets such as the US and Europe expected to remain
weak.
As such, the manufacturing sector will continue to face a
slowdown.
The financial sector meanwhile is expected to see a sharp
decline because of the impact of the financial crisis.
Mr Lim also said weaker consumer sentiment among Singaporeans
has affected the retail sector and the property market.
But he said there are still sectors that are showing positive
growth.
These sectors collectively make up slightly less than 10 per
cent of the economy. As such, Mr Lim said their growth will not be
able to compensate for the decline in other sectors.
Mr Lim also said the government’s S$2.3 billion loan support
package for businesses in Singapore has been "promising".
Giving an update in Parliament, Mr Lim said banks’ loan
commitments increased even before the scheme was introduced in
December last year.
For the whole of last year, loan commitments rose by 50 per cent
to over
S$1 billion, compared to S$680 million registered in the previous
year.
Since the government—backed loans for businesses were launched
in December, some 500 applications were received in that month
alone.
Mr Lim added that the approved loans for December last year
increased by 30 per cent over the same period in 2007, rising to
S$80 million from S$62 million.
— CNA/938LIVE/ir
