According to a report by the Oxford Institute of Economics, Thailand’s domestic tourism, which largely relies on Chinese tourists, has been hit hard after China implemented a travel ban. The sudden halt in tourism also affects the Philippines, where the industry accounts for up to 25% of GDP.
Singapore ’s annual economic growth rate this year is estimated to be between 0.5% and 2.5%. This is after taking into account the trade war. The COVID-19 outbreak is an unexpected variable for the government.
Market demand and supply are the most basic elements of economics. When demand is greatly reduced, an economic recession occurs. In particular, Malaysia, a country that is more dependent on international exports and international trade, is bound to be affected.
Yes, a stimulus package is one way to cushion our fall, but it is only a stop gap measure. The government needs to also think of long term economic revitalisation.