On average, a global recession happens once every eleven to twelve years. The writing is certainly on the wall for 2020 to record the next global recession after the global financial crisis of 2008. Data from the Ministry of Trade and Industry show that the Singapore economy shrank by 3.4 per cent on a quarter-on-quarter basis in Q2.
On closer look, sectors such as electronics, precision engineering and wholesale trade have slowed but the service sector with components like finance, insurance and information & communications technology (ICT) showed some bright sparks. There are three areas for Singapore to look at to weather the economic slowdown:
Firstly, implement programmes and initiatives for companies, businesses and workers to strengthen core competencies and build new capabilities. Secondly, continuously attract global companies to either invest or set up bases in Singapore. Finally, assistance from the government in the form of an expansionary budget in FY2020 to weather any incoming storms.