Impact of Zika Outbreak on Singapore Economy

Assoc Prof Randolph Tan asked the Minister for Trade and Industry (Industry) what strategies is the Ministry pursuing to limit the impact of the Zika outbreak on the tourism industry in particular and the economy in general.

Mr Thomas Chua Kee Seng asked the Minister for Trade and Industry (Trade) in the event that the Zika outbreak affects the economy, whether the Government will introduce relevant measures to help affected businesses, similar to the situation in 2003 when SARS took a heavy toll on the economy.

Madam, it is premature to determine the impact of the Zika outbreak on the tourism industry and the broader economy. Singapore remains a safe travel destination, and there is no travel restriction by the World Health Organization (WHO) to Zika-affected areas.

The Government is taking strong coordinated actions to contain the Zika outbreak and any possible impact it might have on the economy.

Zika's impact on visitor arrivals is currently contained. Nevertheless, the Singapore Tourism Board (STB) is working closely with in-market travel trade and tourism partners to proactively address concerns from potential visitors regarding travelling to Singapore. STB's frontline operations, such as the Call Centre and Singapore Visitor Centre, have also been monitoring daily visitor feedback and responding to queries on the Zika outbreak.

While it is too early to consider Zika-specific support measures for businesses, they can tap on existing schemes if needed. For example, small and medium enterprises facing short-term cash flow issues may apply for the Working Capital Loan programme administered by SPRING Singapore (SPRING), which provides loans of up to $300,000. To ensure enterprise resilience in the event that operations are affected, SPRING is working with the Singapore Business Federation to help companies develop business continuity plans under the ongoing business continuity management (BCM) programme. Companies can also tap on SPRING's Capability Development Grant (CDG) to adopt BCM standards.

The Ministry of Trade and Industry (MTI) and its agencies will continue to closely monitor developments through the Ministry of Health (MOH) and the National Environment Agency (NEA) and are prepared to develop and activate further support for businesses should these prove necessary.

Madam, I would like to thank the Senior Minister of State for her response. I would like to ask specifically about tourism arrivals. Do we know the risk posed by negative sentiments when countries issue travel advisories to their citizens for travel to Singapore? Do we know whether these risks amount to a significant impact on tourism arrivals?

At the moment, our discussions with stakeholders indicate that there is no clear indication or trend of decline in arrivals.