Economic Impact of Sars on the Singapore Economy

2129 Words9 Pages
Topic: Impact of Severe Acute Respiratory Syndrome (SARS) on the economy of Singapore.

TABLE OF CONTENTS

1. Introduction to SARS Page 3

2. Impact on Export and Local Consumption Page 4

3. Impact on Employment and Wages Page 8

4. Impact on Government Expenditure Page 10

5. Impact on the Gross Domestic Product (GDP) Page 11

6. Conclusion. Page 14

7. References Page 15

Introduction to SARS

Severe Acute Respiratory Syndrome (SARS) first surfaced in Guangzhou, China, in November of 2002 and quickly spread throughout China, Asia and eventually to most parts of the world because of its transmission through close contact with anyone who has SARS. Studies concluded that it was
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Although the manufacturing sector which contributes much of our export economy is not adversely affected, there were some spillover effects, but these effects are not easily measured due to the complexity of too many variables involved, the spread across a wide variety of industries and the short period which people were quarantined and some of the productivity lost could have been replaced by co-workers putting in more effort.

Impact on Local Consumption

The drop in consumption is largely contributed by a change in the consumption habits of Singaporeans during the SARS period. Due to the transmission pattern of SARS, compounded by the fact that the virus can survive in the environment for up to twelve hours, anyone can be infected simply by touching an infected surface in public areas, and use their hands to rub their nose or lips. This caused a panic among the general public and people shunned public places, like shopping malls, restaurants, food courts and hawker centers.

According to the Economic Survey of Singapore, published in the third quarter of 2003 by the Ministry for Trade and Industry, businesses in retail shops and food establishments decline by as much as 50 per cent in the months of March to May 2003. Even taxi companies are not spared, Comfort Taxi, the largest taxi operator in Singapore reported that daily bookings
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