DUBLIN — Ireland’s investment promotion agency warned on Wednesday of a “very challenging” two years for the country’s economy if the coronavirus pandemic leads to investment plummeting along predicted lines. Though Ireland is a hub for US businesses operating in the European Union, a looming plunge in global foreign direct investment (FDI) will leave ireland facing “heightened competition,” according to state body IDA Ireland. The United Nations Conference on Trade and Development warned in June of a 40 per cent drop in worldwide FDI due to the pandemic. “We will have to fight harder than ever before for new investment projects,” said Leo Varadkar, Minister for Enterprise, Trade and Employment.
DUBLIN — The novel coronavirus pandemic and related restrictions could shrink the Irish economy by nearly 14 per cent in 2020, according to the country’s central bank. In a report published on Friday, the Central Bank of Ireland said that a “widespread shutdown of businesses caused by the pandemic” led to “sudden and large-scale job losses” and a “severe negative shock to both consumer spending and investment.” The worst-case scenario of a 13.8-per-cent recession is based on the virus lingering through the year and prompting some restrictions to be reimposed. The bank’s best-case outcome would see Ireland’s gross domestic product (GDP) down by 9 per cent, slightly better than the 10.5 per cent projected earlier by the Finance Ministry.
CLAREMORRIS — Some of Ireland’s pubs were pouring pints on Monday for the first time in nearly four months as the country lifts most coronavirus-related restrictions. Speaking over the evening chatter of customers in The Western, a pub and hotel in Claremorris – a town of around 4,000 people in the west of Ireland – manager Patrick Mitchell said “we had no idea what to expect today, we have been quite busy, but it is a bit different.” Patrons are allowed one hour and 45 minutes drinking-time in bars that serve food – as long as they splash out on a “substantial meal” priced at 9 euros (10 dollars) or more and adhere to social distancing requirements. Inside The Dalton Inn, about 100 metres down the street from The Western, owner Andrew Cooper said “we’re sticking strictly to those rules.” The regime means that only bigger pubs equipped with kitchens will reopen for now – with the food tab so far a deterrent to would-be punters.
DUBLIN — Citing a slump in air travel due to the coronavirus, Aer Lingus on Friday announced it will fire 500 workers and slammed Ireland’s interim government for failing “to take steps that other European [Union] member states have taken.” Citing a “catastrophic” collapse in air travel that has reduced it to 5 per cent of its pre-pandemic operations, the airline said that other European countries “have progressively restored transport services and connectivity in response to a European Commission invitation to do so.” The 30 flights undertaken by Aer Lingus in the past week amount to around 10 per cent of the level of activity the same week one year ago, the airline said. Friday’s jobs cull followed a Monday announcement by Aer Lingus that pay and working hours will be cut to 30 per cent of pre-pandemic levels.
KUALA LUMPUR — Malaysia’s exports dropped 23.8 per cent year-on-year in April, the biggest fall for South-East Asia’s third richest economy since the height of the global financial crisis more than 10 years ago. The government’s chief statistician Mohd Uzir Mahidin said on Thursday that April exports tallied “the largest decline since September 2009,” a slump he put down to Malaysia’s economy largely closing from March 18 to May 4 during a strictly-enforced lockdown aimed at stemming a rise in new coronavirus cases. Malaysia’s total trade for April fell 16.4 per cent, which the Ministry for Trade and Industry said was due to “major disruptions to global supply chain” caused by the pandemic. Key sectors such as oil and liquefied natural gas shrank by over 20 per cent each as global demand receded and prices fell. Also down by a fifth were electrical and electronics exports, hit hard by disruptions to global supply chains.
KUALA LUMPUR — Commerce in Singapore hit a new low in May due to the coronavirus pandemic and worldwide lockdowns, going by a widely-cited business yardstick published on Wednesday. The IHS Markit Purchasing Managers’ Index (PMI) – based on a survey of 400 businesses about new orders, output, employment, suppliers’ delivery times and stocks of purchases – dropped to 27.1 during May. Any reading below 50 suggests economic contraction. IHS Markit said that the decline was because “demand for goods and services plummeted at an unprecedented rate” due to the pandemic. The impact of a lockdown that ran from April 7 until Tuesday saw new orders collapse in May – when “firms remained firmly in retrenchment mode, reducing staff numbers and input purchasing.”
KUALA LUMPUR — Singapore on Tuesday began allowing activities that “do not pose high risk of transmission” to resume after two months of lockdown, despite reporting the second-highest number of coronavirus cases in East Asia. Some offices and factories resumed operations, children went back to school, while places of worship began to open their doors. Singapore’s Prime Minister Lee Hsien Loong said on Monday that the relaxation will likely prove “a big relief to all” but one that is “certainly not without its risks.” The wealthy city-state, an investment and trade hub whose seaport and airport rank among the world’s busiest, has diagnosed 35,292 cases of the new coronavirus, more than any country in East or South-East Asia except for China. Most of the cases are among foreign migrants confined to dormitories, though the related death toll, at 24, is one of the world’s lowest.
KUALA LUMPUR — Business and consumer activity in South-East Asia’s third-wealthiest economy is inching back towards pre-pandemic levels, going by data published almost a month after the end of a strictly-enforced lockdown. Monday’s IHS Markit Purchasing Managers’ Index (PMI), a widely cited survey of businesses, showed manufacturing rising in May after a record low in April, when Malaysia was in lockdown. According to IHS Markit, the May rebound in business activity came “amid reports that some firms had restarted production following a partial lifting of lockdown rules.” However, the PMI survey showed the May bounce-back as “indicative of a further deterioration in manufacturing sector conditions” – as overall performance remained below the 50 mark, which Malaysia last hit in January. If the PMI reads below 50, it suggests businesses are cutting back.
KUALA LUMPUR — A “fast lane” for business and “essential” travel between Singapore and China will open next week, allowing some flights to resume between the two countries after a four-month hiatus due to the coronavirus pandemic, according to officials. A Singapore Foreign Ministry statement released late Friday said that travel will initially be allowed between Singapore and six Chinese cities and regions, including Shanghai and Guangdong. Though the two countries have reported the most coronavirus cases in East Asia, Singapore believes “the prevention and control of Covid-19 and the economic and social recovery” in both to have “entered a new phase.” While the majority of China’s 84,160 reported coronavirus cases were diagnosed early in the year – after the virus first emerged in the Chinese city of Wuhan before spreading around the world – Singapore’s caseload has increased 33-fold since April 1, with thousands of foreign workers infected.
KUALA LUMPUR — Singapore will spend an additional 33 billion Singapore dollars (23.2 billion US dollars) to offset the economic impact of coronavirus, Finance Minister Heng Swee Keat announced in parliament on Tuesday. The revised fiscal plan is the wealthy city-state’s fourth budget announcement since February and takes total spending pledges to just under 100 billion Singapore dollars – equivalent to almost 20 per cent of gross domestic product (GDP). Labelling the projected spending as a “fortitude budget,” Heng, Prime Minister Lee Hsien Loong’s deputy, said the outlay is necessary due to the “unprecedented uncertainty” caused by the pandemic. Earlier on Tuesday, Singapore’s Ministry of Trade and Industry said that GDP shrank 4.7 per cent in the first quarter of the year – indicating that the pandemic ravaged the trade-dependent economy even before the lockdown was imposed in April.