On 7 Apr 2020, Singapore implemented “circuit breaker” measures – a version of “lock-down” that kept locals at home and controlled visitor arrivals & departure. These were necessary as part of the controls against the spread of Covid-19.
As a result, only 748 short-term visitors entered Singapore in the month of Apr 2020 – the lowest ever in its history as a nation. This is what Covid-19 did to Singapore and other countries in the way in “killed demand”. Retail sales fell 40.5% – every industry was impacted, except for grocery and convenience stores which sold essential items.
Even the iconic leisure brand Banyan Tree has laid off 30% of its Singapore workforce. Singapore airlines cut more than 90% of its flights. Take note that these results were only for the month of Apr 2020. Singapore’s circuit breaker continued for the entire month of May 2020. Economic activities only gradually restarted from 2 Jun 2020. Hence, from a reporting standpoint, expect more bad news before things turn around. The stock market seems to be in a rally and appears to be disconnected from the harsh realities all around. Hence, just as we stay cautious from being infected by the virus, we need to be cautious when investing in these uncertain times….