Speech by Minister Khaw Boon Wan - Emerging Stronger Post-COVID-19

1.     When I took on the MOT portfolio in 2015, my team and I had to deal with the frequent MRT breakdowns.  We focused on that and improved MRT and bus services.  We also pushed hard for a car-lite Singapore, rolling out major extensions to the MRT network and cycling paths.  We also worked hard to enhance Singapore as an air and sea hub.  

2.     Last December, my family got me to take a short break.  My third grandchild was born on my birthday in December a year before and the family gave us a joint birthday celebration in Melbourne.  While there, I reflected with some satisfaction how everything was coming along nicely.  Tuas mega port, Terminal 5 (T5) and several MRT projects were on track.

3.     Then out of the blue, hell broke loose!  How the world changed in four short months.  COVID-19 is spreading around the globe.  Half the world is under lockdown.  Here in Singapore, we are seeing community spread and we have to apply a “circuit-breaker”.  

4.     COVID-19 is destroying both lives and livelihoods.  As countries try to protect lives through isolating them, the global economy grinds to a standstill.  The impact on the Changi air hub is severe. Changi Airport is deserted.  Airlines, ground handlers, airport shops and restaurants have all experienced a sharp fall in business. Their workers have seen huge pay cuts. I met them often, face to face, at the airport.  As the virus grew into a global pandemic, I saw increasing fear in their eyes.  The last time I experienced this was during SARS.  This time, it is even more serious. 

Preserving Connectivity and Capabilities 

5.     The Government is responding robustly. For aviation, we will help the companies so that they can retain their workers. They will get substantial cash grants to cover the bulk of their local workers’ payroll. We are providing other cost relief through generous rebates, deferments and rental relief.  

6.     The Government will also waive the Airport Development Levy (ADL) until the end of March 2021.

7.     The Changi community knows it is not business as usual.  The companies are reviewing their operations, to reduce cash burn.  For example, Changi Airport has four terminals. One terminal is enough to handle the current volume of demand.  We can close down one or two terminals.  But we must think about post-pandemic recovery.  While full recovery this year is unlikely, partial recovery next year is probable.  We must be ready to lead and ride the recovery when it happens.

8.     After much deliberation, we have decided to suspend operations at Terminal 2 (T2) for 18 months from 1 May 2020. We will save on running costs - for the airport operator, retail tenants, airlines and ground handlers.   Importantly, it also allows us to speed up the current upgrading works at T2 and shorten the project time by up to one year.   

9.     With the suspension of T2 operations, we will reallocate airlines across the remaining terminals. SIA will consolidate its operations in T3.  Other airlines will also be affected.  We will ensure sufficient capacity for all airlines to grow, when passenger traffic recovers.

10.    In managing this crisis, we are mindful that global connectivity is of fundamental importance to Singapore.  It links us to the rest of the world.  It defines us as a global city.  Domestically, the Changi air hub is crucial to Singapore’s role as a business, manufacturing and R&D hub.  In this ecosystem, SIA is the anchor. If it were to collapse, it will undermine our ability to recover from the crisis.  Many Singaporeans depend on Changi Airport for a living.

11.    That is why we took swift action to support the air hub, to prevent the loss of strategic capabilities and our hard-earned position as a reliable air hub. Prompt action by Temasek to back SIA’s fund-raising efforts, and the Government’s Resilience Budget have been viewed positively by many industry analysts. Their conclusion is that SIA “looks well positioned to emerge from the coronavirus crisis as an industry leader”.  

12.    Meanwhile, SIA, SilkAir, Scoot and their crew have not been sitting idle; they are actively engaged in our national battle against COVID-19.

13.    First, they continue to mount around 40 return passenger flights a week, to ASEAN capitals and the economic hubs in Asia, Australia, Europe and the US. They take precautionary measures to protect the crew.  For short haul flights, the crew do not leave the plane during turnaround.  For long haul flights, the crew stay at airport hotels during the layover and do not leave their rooms.  On board flights, the serving crew wear masks and minimise contact with passengers. That was how we were able to evacuate two batches of Singaporeans from Wuhan in February. That was also how we flew our students back from the UK and the US last month.  

14.    Second, in addition to its passenger flights and freighter services, SIA is deploying some of its passenger aircraft to carry only cargo. Together, these services fly in essential goods amidst the global supply disruptions, such as medical supplies, food and other useful cargoes.   

15.    Third, their crew are volunteering to help, using their skills in many useful ways. We are facilitating “perfect matches” as suggested by Mr Ang Wei Neng. To-date, about 800 crew and ground staff from our aviation companies including SIA have come forward to help out at our hospitals as Care Ambassadors, at Social Service Offices to help process applications for social support, and at NTUC as Customer Service Associates. More are coming forward.  

16.     I came across one WhatsApp text from an SIA staff, “I am a flight attendant.  I am writing to volunteer.  Now that I no longer have flights to operate, I thought it would be best if I could render some kind of help to the community. Apart from queue management, temperature taking and other tasks, I can also help the elderly and other individuals who require assistance.”  It is a touching message! 

Impact on Land Transport

17.    Apart from aviation, the pandemic has also affected taxi, Grab and Gojek drivers.  Their incomes have plunged. As one taxi driver put it starkly: “There’s no work.  I cannot live like this.” 

18.    I met some of them when they came to apply for the Temporary Relief Fund.  Many have experienced SARS but unlike SARS, they know a speedy recovery is unlikely this time round.    

19.    Mr Lim Jit Poh chaired Comfort-Delgro during SARS. He saw the hardship coming as soon as the outbreak worsened in February.  His suggestion helped us shape the Point-to-Point Support Package, and Comfort-Delgro contributed more than its share.  When we suggested the Transport Ambassador scheme to help taxi drivers earn extra allowance, Comfort-Delgro chipped in readily.  SMRT too.  

20.    Meanwhile, we accept the fall in demand for buses and trains; it means that Singaporeans are staying at home more, and doing what they need to do around their immediate neighbourhood. This is not the time to use our public transport to get to the other end of Singapore for your favourite hawker dish! When the Transport Minister had to suspend ERP, COE and discourage the use of public transport, you know the situation is serious. With the “circuit-breaker” measures, we can now enforce safe distancing on public transport. We are deploying Transport Ambassadors to remind commuters of these measures. 

Keeping Supply Chains Intact

21.    To tackle the pandemic, countries must work together. Critically, trade flows must continue. It does not make sense for traditional food exporters to ban exports; it only hurts their farmers as their harvests rot in the field!  It is critical to keep global supply chains intact, so that goods can get to countries and people who need them.

22.    Unlike others, we have kept our sea port open throughout this crisis and are committed to keeping it open.  I can see Pasir Panjang Terminal from my office. It is busy with cargo activities. We had put in place precautionary measures to ensure a safe working environment for staff and crew.  With this, our port continues to service the world and safeguard our essential supplies.

23.    Nearer home, with bilateral cooperation, our land link with Johor remains open for essential goods despite the Movement Control Order (MCO). We thank the countries that have worked with us to ensure that trade flows continue during this difficult time.  

Transport United  

24.    Working tirelessly behind the scenes to keep Singapore moving and connected are our transport workers – our train and bus captains, taxi and private hire car drivers, seafarers and shore-based staff, pilots, cabin crew and airport ground staff. They are our unsung heroes. I would like to convey my deepest appreciation to them.

25.    I am also heartened by how our transport operators, the National Transport Workers’ Union (NTWU) and the Land Transport Authority (LTA) had rallied together to stand by our bus captains from Malaysia when the MCO was suddenly imposed. Our bus operators worked through the night, got the drivers checked into accommodation, and updated their duty rosters to replace those drivers who stayed back in Johor.  The next day, our bus services functioned normally.  Our amazing One Transport family came together to support the colleagues in their hour of need, and ensured the continuity of our public bus service.  

Post-Covid-19 Recovery

26.    Nobody knows how long the pandemic will last.  But recover we will.  It will however not be a simple return to status quo ante.  For instance, supply chain resilience will become even more important. Expect more local production to improve resilience. This will have implications for Singapore’s transhipment hub.  As global trade flows shift, we must still secure and strengthen our role as a major node in global supply chains. The efficiency and connectivity of our sea port and airport will become even more critical.

27.    Just as 9/11 changed aviation security forever, expect COVID-19 to impact air travel and airport operations.  This will have implications for our T5 planning and timeline.  I believe air travel growth will return, though a quick rebound is unlikely. Fortunately, T5 was designed to be modular so that its construction can be scaled up or down as necessary.  

28.    Meanwhile, we must revive international transport links.  This will be crucial to reviving the global economy and trade flows, and rebuilding people to people exchanges.  When the situation improves, we will see how to bring the relevant stakeholders to work on sustainable recovery. The International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) have a leading role to play and we will support them.  We will need to develop new global rules and guidelines to take into account the lessons learnt from this pandemic. We also have to think about how to enhance capability across all regions, because the connectivity network is only as strong as its weakest link.  

Conclusion 

29.    We have much to do to prepare Singapore for recovery.  The Transport sector plays a crucial role in the survival and prosperity of Singapore.  During this crisis, I will focus on three areas:

– keeping our air and sea ports operational so that we continue to play our pivotal role in global supply chain.  Even in crisis mode, we must work to enhance our reputation as among the most reliable hubs in the world;

- protecting the health of our transport workers and ensuring the safety of the commuters; 

-  enlisting the help of every Singaporean to get us through this difficult time to emerge stronger than before. This will strengthen our social bonds as one people.

30. The coming months will be very challenging and hard for all of us.  But the world is not coming to an end.  Better times will surely return.

31. Last month, my 4th grandchild was born.  With the “circuit breaker” in place, my wife and I cannot get near him.  My daughters are not visiting us like before.  Fortunately, we have two grandkids staying with us.  Yesterday, when my wife was about to pick up some items from the neighbourhood sundry shop, I heard my granddaughter yelling out her instruction: “remember to wear your mask; if there is a crowd, stand 1 m apart; ask Auntie Francis to do the same!” (Francis is our domestic helper.) Her teachers have taught her well. 

32. COVID-19 will pass.  Over my 42 years in Government service, I have seen how Singaporeans came together to confront and overcome a crisis.  Many years later, I am sure our children and our grandchildren will look back at 2020 as our finest moment, when Singaporeans again came together, defeated COVID-19 and emerged stronger as one people.