Singapore's Economy In Its Worst Shape Since The Global Financial Crisis

With Singapore’s economy in its worst shape since the Global Financial Crisis, there are signs that its status as a hub for expatriate workers may be threatened

- Liam Aran Barnes

When Cécile swapped Canada for Singapore last November, she found apartment hunting to be a much smoother experience than during her previous stint in the Lion City four years earlier.

“Agents showed me a lot of downtown options, including larger family-style units, many of which were newer, cheaper and kitted out with better amenities and fittings than when I was looking in 2017,” says the epidemiologist, who didn’t want to give her full name.

Singapore has long been one of the most alluring Asian bases for foreign professionals. Low tax rates, high quality of living, and a largely English-language business landscape have all contributed towards the Little Red Dot’s big appeal for decades.

Non-residents currently comprise almost 29 per cent of the country’s 5.69-million population, while there are about 521,000 permanent residents—foreigners permitted to live, work, study and retire without any time limit—according to the latest government data. There are, however, signs that the sun may gradually be setting on its reputation as a welcoming haven.

As it has the world over, the pandemic has shattered Singapore’s short-term economic outlook. In January 2021, the country fell into recession for the first time since the Global Financial Crisis, recording a year-on-year economic decline of 12.6 per cent in 2020.