Singapore hopes package will lower damage to its economy

Tourism and transport sectors will get financial support as pressure grows on the Tung administration to follow suit

Singapore yesterday announced a comprehensive S$230 million (HK$1 billion) package of measures to help counter the economic impact of the severe acute respiratory syndrome (Sars) outbreak.

The measures, which focus on providing help for the hard hit tourism and transport sectors, come as pressure builds on the Hong Kong government to take similar steps.

Property tax rebates are to be given for commercial property, there will be additional landing fee rebates to help airlines and grants will be stepped up for training courses in the tourism sector.

Deputy Prime Minister Lee Hsien Loong said everything depended on getting the outbreak under control.'If we don't do that, all bets are off,' he warned, after downgrading the government's growth forecast for 2003 to between 0.5 and 2.5 per cent. 'The package will help, but it will not fully offset the hardship from Sars.'

Visitor arrivals in Singapore dropped by 15 per cent in March and 61 per cent in the first 13 days in April, decimating the hotel industry. Retail sales have also declined by between 10 and 50 per cent, while revenues at some restaurants have halved. Similar problems have hit the Hong Kong economy.

Mr Lee said: 'I don't think this is a situation where more government money will solve the situation. The tourists have disappeared ... so nothing we do can make up for this.'