Asian Insider, May 26: Singapore’s Fortitude Budget, Stanley Ho dies, rich Chinese snap up Asia’s luxe homes, and Hong Kong quakes over new laws

Asian Insider brings you insights into a fast-changing region from our network of correspondents.

Hi all,

In today's bulletin: Singapore is headed for its deepest recession since independence, Hong Kong's Carrie Lam says there's nothing to fear about the proposed national security laws, loaded Chinese investors have a good hiding place for their cash, and more.

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SINGAPORE HEADS FOR WORST RECESSION SINCE 1965; ROLLS OUT FORTITUDE BUDGET

Singapore will sink into a deeper-than-expected recession this year as global demand deteriorates due to the coronavirus pandemic and the impact from the circuit breaker measures at home. The Ministry of Trade and Industry forecasts that the economy will shrink by 7 to 4 per cent, worse than the 4 to 1 per cent contraction earlier predicted - making it the city state's deepest recession since independence in 1965.

The outlook for the overall economy and especially the jobs market may worsen even more in the second quarter and possibly beyond. The government is rolling out a new S$2 billion jobs and training package to create nearly 100,000 opportunities for workers affected by the economic slowdown. More firms will be eligible for higher tiers of wage subsidies under an additional S$2.9 billion enhancement to the Jobs Support Scheme.

Factory output in April showed a surprise gain of 13 per cent year-on-year, with biomedical manufacturing the main bright spot propping up the sector's recovery for a second straight month. But the Singapore dollar is likely to stay under pressure amid global headwinds even as the country's economy is set to reopen. The currency has already weakened more than 5 per cent against the US dollar so far this year.

Read more:

Key highlights from the Fortitude Budget, Singapore's 4th Covid-19 support package

Manufacturing sees 6.6% growth in Q1 after pharma boost amid overall weak economy

FEARS OVER HONG KONG SECURITY LAWS

Hong Kong's leader Carrie Lam says proposed national security laws will not affect the city's rights and freedoms, adding to a raft of attempts by local and Beijing officials to provide reassurance amid widespread concerns. The draft legislation that aims to tackle secession, subversion and terrorist activities and may see Chinese intelligence agencies set up bases in the semi-autonomous Chinese city, sparked a new wave of pro-democracy protests over the weekend. But not everyone is against it.

Victor Li, the elder son of Hong Kong's richest man Li Ka Shing, says he hopes the new laws will help the society and economy bounce back from months of social unrest. The junior Li is one of the city's first tycoons to speak out on the recent political developments. During last year's unrest, the senior Li pleaded with Beijing to show leniency towards the youth while imploring protesters to show more understanding. The comments prompted China's highest law enforcement body to lash out on social media, accusing him of encouraging crime.

Meanwhile, Hong Kong authorities are loosening more social distancing measures as its coronavirus situation stabilises, reopening karaoke parlours and resuming airport transit services. The relaxation of restrictions may pave the way for more protests in the coming days, though a ban on public gatherings of more than eight people remains until June 4, the anniversary of the Tiananmen Square crackdown, when vigils are held annually.

Read also:

China media seize on video of Hong Kong protesters beating lawyer

Speculators target Hong Kong's currency on outflow concern

POOR FOREIGN WORKERS AT RISK AROUND THE WORLD

The coronavirus pandemic has exposed the unique vulnerabilities of the world's estimated 164 million low-wage migrant workers. From Asia to the Middle East, these migrants who toil at the jobs that locals do not want, face poor living conditions and limited access to healthcare, regional correspondent Jeffrey Hutton writes.

Just as Singapore has struggled to deal with a coronavirus outbreak that spread quickly through its population of foreign workers in dormitories, other countries with large numbers of such workers are also grappling with similar issues. Saudi Arabia has deported thousands of Ethiopian workers, Malaysia has swept up hundreds of undocumented workers in raids amid its movement control order, and Indonesia, home to a large part of the world's foreign labour, is repatriating its citizens.

In the tourist paradise of the Maldives, tens of thousands of impoverished foreign labourers have been left stranded and ostracised after a government order to close all resorts. These now-jobless migrant workers, many of whom have not been paid for months, are being cooped up in teeming alleys that are a haven for the coronavirus, as security forces outside stop them from going out on the streets.

Good examples of how to manage this segment of countries' population are few and far between, and more needs to be done, activists say.

RICH CHINESE SNAP UP ASIA'S LUXE HOMES

Rich Chinese investors are snapping up luxury homes across Asia amid the global economic fallout from the coronavirus pandemic. For the well-heeled Chinese, top-end housing is providing not just a good hiding place from the impact of the coronavirus, but also a safeguard against anticipated inflation and a weakening yuan.

In Singapore, three Chinese clients bought six apartments worth a combined S$20 million at Marina One Residences this month. In China's four biggest cities, luxury home prices rose 1 per cent in April. Chinese buyer inquiries for South Korean property soared 180 per cent in the first quarter compared with the previous quarter, while inquiries on New Zealand real estate jumped 75 per cent.

Hong Kong, however, has fallen out of favour with the Chinese due to its pro-democracy protests: prices of top-end housing in the city dropped 4.5 per cent in the first quarter, double the decline in Singapore.

Delve deeper:

Loaded with cash, global property buyers wait for sellers to crack

Singapore's new home prices likely to remain unchanged

CASINO TYCOON STANLEY HO DIES

Macau gambling kingpin Stanley Ho has died, aged 98. Mr Ho built Macau's casino empire, dominating gaming in the former Portuguese colony after winning a monopoly licence in 1961 and propelling the city past Las Vegas as the world's biggest gambling hub. So successful was he that Macau's gaming revenue has become a barometer of the economy of China, where two-thirds of its gamblers are from.

Mr Ho's SJM Holdings controls 20 casinos on the island of just 26 sq km. The one-time kerosene trader fathered 17 children with four women, and when he retired around mid-2018, he passed some of SJM's top roles to his heirs.

IN OTHER NEWS

Australia bushfire smoke linked to hundreds of deaths: Smoke from Australia's recent deadly bushfires is linked to an estimated 445 deaths and more than 4,000 hospitalisations over several months, a government inquiry heard on Tuesday (May 26). More than 30 people died as a direct cause of the blazes and thousands of homes were destroyed in late 2019 and early 2020, leaving affected communities devastated.

New Zealand PM unruffled by mid-interview quake: A moderate 5.6-magnitude earthquake rattled New Zealand's North Island on Monday but failed to crack Prime Minister Jacinda Ardern's trademark composure as she conducted a live television interview. There was sustained shaking in Wellington, where Ms Ardern was being interviewed, but she appeared unruffled, keeping her composure and smiling as she reassured her audience.

There were no reports of injuries or damage.

Huawei CFO gets first chance at release in extradition fight: Huawei Technologies' chief financial officier Meng Wanzhou, who is fighting extradition to the United States, gets her first shot at release this week in a case that has triggered an unprecedented diplomatic tussle between the US, China and Canada. The Supreme Court of British Columbia is on Wednesday set to release a decision on whether Meng's case meets a key threshold of Canada's extradition law.

That's it for today. Thank you for staying with us, and we'll be back with more insightful reads for you tomorrow.

Magdalene

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