SMS Sim Ann Oral Reply to PQ on impact of Zika on tourism and economy

​Question

Assoc Prof Randolph Tan: To ask 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: To ask 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.

Oral Answer (to be attributed to Senior Minister of State Ms Sim Ann)

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

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

3. Zika’s impact on visitor arrivals is currently contained. Nevertheless, STB is working closely with in-market travel trade and tourism partners to proactively address concerns from potential visitors regarding traveling 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.

4. While it is too early to consider Zika-specific support measures for businesses, they can tap on existing schemes if needed. For example, SMEs facing short-term cashflow issues may apply for the Working Capital Loan programme administered by SPRING Singapore, 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 (SBF) 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.

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