A nine per cent fall negates three years of three per cent growth. It also means that it is likely that one in every ten persons loses his job. In addition to that, thousands of graduates from the universities and polytechnics are due to enter the work force once semester ends, right about now. Unemployment has been on the steady rise.
According to official figures, as of March 2009, unemployment for the resident population stands at a whooping 4.8 per cent! The situation is likely to get worse in the coming quarters.
Negative growth, increased unemployment, what could be worse? So should Singaporeans react to the swine flu with disdain? This economist doubts the swine flu will affect Singapore too badly. After all, Asia as a continent has only been tainted with a few cases so far. Death and sickness should not be taken lightly and should not be used as a tool for economic growth.
Yet, economic growth could be a byproduct of the sickness. Pharmaceutical companies in Singapore will benefit (recall the Japanese firm that received a sudden order of thousands of thermometers from the Singaporean Ministry of Education when SARS hit). The government will spend money. The economic slide will slow.
Unless the swine flu situation in Singapore becomes serious enough to warrant a stopping of activity (like in Mexico or Texas), otherwise the overall economic impact of the virus on the Singaporean economy could well be a positive one.
