Chan Chun Sing: S’pore economy not greatly affected by Hong Kong protests. Yet.
However, if the situation persists, the impact on Singapore could be bigger.
Singapore’s economy has not been significantly affected by the recent unrest in Hong Kong so far, Minister for Trade and Industry (MTI) Chan Chun Sing said in Parliament on Sept. 2, in a written answer.
Chan was responding to a question raised by MP Desmond Choo on the impact of the recent protests in Hong Kong on Singapore’s economy.
Chan added that the government was continuing to monitor the situation in Hong Kong closely, given that continued disruptions to the city’s stability will eventually have a larger negative spillover on Singapore as a result of close ties.
Impact on Singapore might vary from business to business
Chan elaborated that the total value added to Singapore’s economy from demand in Hong Kong came to about 1.2 percent of Singapore’s GDP, according to MTI estimates.
But he acknowledged that businesses with a stronger dependence on Hong Kong might see a greater impact.
Such businesses included Singaporean entities with operations in the lifestyle and retail sectors in Hong Kong.
Chan pointed out that the government’s economic agencies were in touch with these businesses and monitoring the situation closely, given that they were more directly affected.
Chan also noted that wholesale trade, transportation, as well as storage services, were also exposed to the unrest, given the city’s status as a significant exports destination for Singapore.
However, feedback from companies in these sectors thus far have indicated that they have not been severely affected.
Singapore hopes for peaceful resolution in Hong Kong
Chan further said Singapore hopes for a peaceful resolution to the situation in Hong Kong soon.
He added that should the unrest persist and add to global economic uncertainty, investor confidence will be affected.
This will then weigh on investments and economic activities in the region in turn.
As such, economies in the region ultimately benefit from a stable and predictable operating environment.
Top image collage from Gov.sg YouTube and via