The Covid-19 pandemic of 2020 is by far the biggest economic challenge the world has faced in the last decade. The disease caused a sudden shutdown of entire industries, both in Singapore and the rest of the world. Everything has changed, from global trade to tourism to work arrangements. Until now, Singapore’s economy is still reeling from its effects.
You may be affected as well, and you probably had to take out a loan from a money lender in Singapore. Here are the top three reasons why the economy is still not in very good shape until now.
Several businesses closed down
Covid-19 has forced thousands of businesses to permanently shut their doors. At the height of the pandemic in 2020, stay-at-home orders compelled establishments like bars, coffee shops, restaurants, cafes, hotels, and resorts to stop their operations indefinitely – at least until pandemic restrictions were lifted.
However, 2020 and even 2021 proved to be unpredictable years. At times, restrictions were eased, then some days later, they were heightened again. This kind of uncertainty is bad for business, so many business owners decided to just stop operating outright. Especially those that were not allowed to operate, such as entertainment centres, F&B outlets, and accommodations.
With a lot of business closures, the entire Singaporean economy was adversely affected. People lost jobs and livelihoods. Many went into debt just to survive. Until now, the economy is still suffering in some ways from the pandemic downturn.
Remote work arrangements
Covid-19 has also left several companies with no other option but to arrange remote working setups for their teams. Since everyone was ordered to stay at home, most people had to work from home for the duration of the pandemic. That means most offices have become empty spaces during the height of the pandemic. Many companies had to terminate their leases for office space as a result.
With fewer leases on office space, the economy took another big hit. Even now, when pandemic restrictions are nearly gone, many companies have already adapted remote and hybrid work arrangements. The demand for office space today is no longer as high as it was before Covid-19.
Government-funded financial assistance
Because of business closures and forced stay-at-home orders, many people have found themselves lacking a source of income. The Singapore government had to release financial stimulus packages to help meet their needs. Several billions of dollars have been spent on these stimulus packages since 2020.
This much money is hard for the government to recover, so the entire Singaporean economy is still suffering the effects today. Though things are better today, the damage done by Covid-19 can still be felt.
Conclusion: What does this mean for you?
Economic downturns will always affect everyone. Even if you have a stable source of income, it’s not a guarantee that you will have that for life. If a financial emergency hits and you find yourself unprepared, it’s okay to approach a money lender in Singapore for a loan. It might just spare you and your family from a bigger financial burden.
The good thing is the Singaporean economy is bouncing back well. Businesses are reopening, tourism is thriving once again, and more people are earning, spending, and contributing to the economy. Your financial prospects are better now, but it still pays to be prepared.
The economy can flop at any time, so a financial safety net is key. Build an emergency fund right away, and continue saving money for those proverbial rainy days. If you find yourself in a bind, go to a reliable money lender in Singapore for a quick boost of cash.