Singapore’s stock exchange Straits Times Index is experiencing quite a plunge due to the recession that struck the country amid the new coronavirus (COVID-19) pandemic. From January 1, 2020 to August 30, 2020, the STI plummeted 22.03 percent making it the current weakest stock exchange in the Association of Southeast Asian Nations (ASEAN).
The average performance of ASEAN countries’ stock index from January 1, 2020 to August 30, 2020 is -12.51 percent, according to a study by Lifepal.co.id. The Indonesia-based insurance marketplace analyzed data on the movement of the stock price index of ASEAN member countries and the growth of COVID-19 cases in these countries except Brunei Darussalam, which is one of the sovereign countries that does not have a stock exchange.
Singapore, Malaysia, the Philippines and Thailand are the four ASEAN countries that have officially entered the second quarter of recession in 2020 due to the coronavirus engulfing the world since the beginning of the year. The COVID-19 pandemic has triggered a negative growth in these countries’ stock exchange, data shows.
The downfall of Singapore’s economy is due to the decline of the country’s manufacturing industry, which depended on exports. It is also affected by the decreasing rate of tourism and retail.
In terms of handling the COVID-19 pandemic, Singapore is not afraid to press penalties for a violation in lockdown restrictions and every single one of its residents, including those working in government, could be fined. The country also enforces strict supervision towards all of its borders including the port.
The World Bank projects that the growth of the world’s economy is going to experience a 5.2 percent decline due to COVID-19 because the pandemic can weaken every single economic activity in all countries. COVID-19 cases in Indonesia appear to be growing until today whereas Vietnam, Cambodia and Laos were claimed victorious in the battle against the deadly virus.