Singapore inches towards first recession in two decades amid COVID-19, Malaysia travel ban

Singapore inches towards first recession in two decades amid COVID-19, Malaysia travel ban

Photo by Duy Nguyen on Unsplash

Singapore is edging towards its first full-year recession in nearly two decades as neighbouring Malaysia’s travel ban cuts off a key source of labour and the coronavirus pandemic hits the economy, firming the case for the central bank to loosen policy.

The Southeast Asian nation has been widely praised for its response to the outbreak, but spiking cases elsewhere are adding pressure on the small and open economy. It has already signalled a chance of a recession this year and cut its growth forecasts.

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