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In Asia, Hopes for COVID-19 Stimulus Plans That Can Recoup Half of Losses

Ralph Jennings

   TAIPEI, TAIWAN - A dozen Asian countries plan to offer economic
   stimulus aimed at helping companies cover lost business during the
   COVID-19 pandemic, but not all of them are expected to help employers
   retain workers and reopen once the outbreak subsides.
   Japanese, Singaporean, South Korean and Taiwanese efforts are expected
   to make the biggest difference because those countries are seen as
   managing their budgets well and giving aid in a fair way. Stimulus
   packages in those countries should make up for 40% to 50% of losses
   among companies, said Anwita Basu, head of Asia country risk research
   with Fitch Solutions, an investment rating firm.
   "They do have enough to sort of see them through without a massive
   employment and economic hit at the moment," she said.
   Countries with smaller budgets or less practice in dispersing funds to
   companies in the most need would prove less effective, analysts say.
   They point to India, Indonesia, the Philippines and Vietnam as likely
   problem points.
   Singapore's state reserves
   Singapore's combined stimulus of $37.57 billion will prop up major
   companies and give money directly to citizens. Some funding will come
   from the Asian financial hub's reserves. Singaporean companies have
   lost money because of slowdowns in tourism and conferences during the
   global virus outbreak.
   Singapore's budget is "not an issue," said Song Seng Wun, an economist
   who lives there and works in the private banking unit of CIMB, a bank
   headquartered in Malaysia.

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