Opening Remarks by Senior Minister of State Dr Lam Pin Min at The International Air Transport Associ

Distinguished delegates,
Ladies and Gentlemen,

1. Good morning. It is my pleasure to join you today for the opening of this IATA Aviation Resilience and Health Workshop. To all international delegates and friends, a very warm welcome to Singapore. Considering what the world is currently facing, this workshop is very apropos to the present time.

The COVID-19 outbreak: current global situation

2. The outbreak of coronavirus disease 2019 (COVID-19) has been the foremost preoccupation around the world in the past two months. In the space of 9-10 weeks, 72 States in all regions of the world have reported cases of COVID-19 to the World Health Organization (WHO). The WHO declared the outbreak a Public Health Emergency of International Concern on 30 January 2020, and just 28 days later, raised its assessment of the global risk of spread and impact of COVID-19 to its highest level.1

3. In addition to the public health dangers of COVID-19, the economic impact is turning out to be sizeable. In a world of complex supply chains that cross borders multiple times and cross-border human interactions, any prolonged shutdown of economic activity in a specific region will be felt across the global economy. We are already witnessing slowdowns in manufacturing, for instance in the automotive2 and smartphone sectors where some links in the supply chains are being disrupted. Smartphone production, for instance, is forecast to be 12 per cent lower in the first quarter of 2020 compared to the same period in 2019.3 The International Energy Agency has also predicted a year-on-year drop in global oil demand for the first quarter of 2020-this would be the first quarterly drop in over 10 years.4

4. More immediately, tourism has been severely impacted by the spread of COVID-19. This is due both to official exhortations and the psychological fear factor among travellers, which cannot be discounted. On 27 February 2020, the World Travel and Tourism Council estimated that COVID-19 will cost the global tourism industry at least USD22 billion under the most optimistic scenarios.5 Regular business activity has also been affected, with major industry events being cancelled worldwide, including the Mobile World Congress 2020 that was to have taken place last week6 in Barcelona, and the Geneva Motor Show that was scheduled to open this week.7 Even the International Monetary Fund (IMF) and World Bank are now considering holding their 2020 Spring Meetings virtually, via teleconference, instead of in person.8

5. All this has negatively affected civil aviation. With corporate events cancelled and tourist movements reduced, passenger demand has fallen and continues to do so. As global supply chains are disrupted, air cargo demand will inevitably be affected as well. According to the Association of Asia Pacific Airlines, international air cargo volumes fell by 4 per cent in January 2020, compared to the same period the year before.9 Boeing, the world's biggest manufacturer of freighter aircraft, also forecasts that the global air cargo industry will remain stagnant this year.10 On the passenger side, IATA expects a drop in passenger traffic of 4.7 per cent over 2020 due to COVID-19, and the corresponding loss of revenue to be around USD29.3 billion.11

6. Many airlines are already feeling the impact of the COVID-19. Some airlines have implemented cost reduction measures, including aviation leaders taking pay cuts, voluntary no-pay leave for crew, and a hiring freeze.12 Singapore, as an open economy and trading nation, has been doubly impacted by these negative economic headwinds. Specific to aviation, passenger traffic at Singapore Changi Airport fell by more than 25 per cent over the first two weeks of February, compared to the same period in 2019.13 The International Civil Aviation Organization (ICAO) estimates that passenger capacity fell by about 40 per cent from projected levels for the first quarter of 2020.14

Singapore's response

7. Let me now share how Singapore has responded to the COVID-19 outbreak, before I touch on some ideas on how the global aviation community can work together to adapt to this threat.

8. The Singapore government has been taking a proactive, risk-based approach in countering COVID-19. We were able to draw from our experiences from past outbreaks over the last 17 years, including SARS, H1N1, Ebola, and Zika. On 22 January 2020, we set up a Ministerial Task Force, co-chaired by our Ministers for Health and National Development, consisting of representatives across different ministries, and shifted our Disease Outbreak Response System Condition, known as the DORSCON level, from green to yellow. Just in time, because, the next day on 23 January 2020, the first imported case in Singapore was confirmed.15 Since then, the Multi-Ministry Task Force on COVID-19 (MTF) has put in place various prevention and containment measures. These include:

a. Detection measures, such as explicit medical case definitions, and surveillance testing;

b. Containment measures, such as active case finding, contact tracing, and quarantine of close contacts;

c. Border control measures to limit importation of new cases, such as temperature and health screening at checkpoints, travel advisories and travel bans, as well as suspension of visa issuance to new visitors from at-risk countries; and

d. Social distancing measures, such as cancellation of inter-school activities and non-essential large-scale events, and introduction of the Leave-of-Absence and Stay-Home-Notice regimes, and 5-day MCs.

9. However, Singapore raised our DORSCON level to Orange on 7 February 2020 following several cases of COVID-19 infection without any links to previous cases or travel history to mainland China, indicating some form of local transmission in the community.

10. Our healthcare workers are on high alert to identify suspected cases, who are quickly assessed, isolated and cared for in hospitals, and tested for the virus. For each confirmed case, detailed contact tracing is performed, which is a collective effort between the Ministry of Health and the Singapore Police Force. Close contacts of infected persons are also tested for the virus, and then quarantined, either in Government Quarantine Facilities, or at home.16 Singaporeans are also encouraged to monitor their temperature twice a day. The government also activated 900 Public Health Preparedness Clinics (PHPCs) which provides subsidised care for patients with acute respiratory illnesses, so that our emergency departments will not be overwhelmed with patients with flu-like illnesses.

11. We also took the difficult decision to impose restrictions on passengers travelling from places considered at risk of COVID-19 infection.17 These temporary measures are nationality-blind and were taken only after much careful deliberation. They are part of the Singapore government's overall strategy to combat COVID-19. As a responsible citizen of the world, we felt we had to bite the bullet and try to nip the problem in the bud.

12. All our measures are backed by legal powers and strictly enforced. For instance, actions have been taken against those who breach their requirements, including employers who instructed their workers to report to work in contravention of quarantine or stay-home orders.18 Our hope is that every individual and organisation undertakes the responsibility to observe good hygiene and play their part as a community to combat the virus.

13. Meanwhile, the government has been providing timely and comprehensive information on a daily basis. This is in the form of background media briefings, and press conferences at the ministerial level to inform the public about the COVID-19 situation, and our response measures, and regular bite-sized updates via the gov.sg Whatsapp messaging to Singaporeans. In a crisis situation, information transparency is key to gaining people's trust. It does not matter that medical experts and scientists are still grappling and learning something new about COVID-19 everyday. The experts share what they know and what they do not know. I think this frank communication between the government and the public helped to fill gaps that that could otherwise have been taken over by misinformation and rumours. At the same time, it is important to actively refute any such misinformation, rumours, and fake news, which we continue to do. We also had to address the psychological aspect, and allay public fears that led to hoarding of basic necessities and worry about the availability of cleaning and medical supplies.

14. In the transport sector, and in aviation specifically, we are also taking a calibrated approach to ensure public safety, while not adversely impacting air connectivity. Singapore has not imposed any restrictions on airlines flying to and from Singapore because of the COVID-19 outbreak. The airport operator, Changi Airport Group, has intensified cleaning across airport facilities: for instance, they coat commonly touched surfaces such as lift buttons and check-in kiosk screens with a powerful and long-lasting disinfectant, and clean common areas more frequently. In addition, Changi Airport has installed more than 1,000 hand sanitisers across the airport and doubled the frequency of cleaning.19

15. At all our border crossings, whether by land, sea, or air, a co-ordinated set of border health control measures has been put in place. This includes temperature screening for all inbound travellers, and the targeted use of Health Declaration Cards for inbound travellers. At the airports, temperature screening is being done not only for all inbound and outbound passengers, but also all airport staff and visitors entering transit areas. International co-operation is also vital in this effort-on our part, given the high volume of travel between Singapore and Malaysia, our two countries have set up a Joint Working Group to strengthen collaboration in tackling the spread of COVID-19.

16. We hope that these measures have helped to mitigate the worst effects of the COVID-19 outbreak. As of 5 March 2020, there are 112 confirmed cases in Singapore. More than 70 per cent of the confirmed cases in Singapore have recovered fully and have been discharged from hospital. The number of new cases notified each day has also remained low in Singapore, averaging about 2-4 for the past two weeks. These figures indicate that our measures, along with China's stringent containment measures, have been effective in containing the first wave of imported cases from China.

17. We were encouraged by the recent comments of Dr Tedros Ghebreyesus, Director-General of the World Health Organization, who alluded to our "Leaving no stones unturned" containment strategy, and researchers from Harvard University, complimenting Singapore's efforts in detecting and isolating viral cases and minimising the risk of community spread.

18. However, we should not be complacent. We are seeing signs of outbreaks in many other countries, such as the Republic of Korea, Iran, and Italy. It is likely that we will see a surge in confirmed cases in more parts of the world, including US, Europe, the Middle East, and the rest of Asia. Given the global situation, the number of cases may increase locally, and it will become increasingly difficult to continue with the strategy of imposing more and more travel restrictions without effectively closing our borders.

Government-industry partnership

19. However, the government cannot do it all alone. Singapore's unique tripartite model of collaboration between the government, employers, and unions has helped Singapore to stay open for business. Our model has allowed us to work actively with the relevant stakeholders to effectively implement measures against the spread of COVID-19, and to protect staff and customers. One example is CAAS's facilitation of special arrangements for affected air crew to rest in airport transit hotels that meet the safety regulations of the Fatigue Risk Management System.

20. Further, as part of Singapore's Budget 2020 two weeks ago, Deputy Prime Minister and Minister for Finance Mr Heng Swee Keat announced a suite of measures in response to the challenging economic situation arising from the COVID-19 outbreak. Several economy-wide measures will be implemented as part of the SGD4 billion Stabilisation and Support Package for workers and enterprises, including a corporate income tax rebate for 2020 to help companies with cash flow. In addition, given that aviation is a vital sector to the Singapore economy that is disproportionately affected, we have put together a SGD112 million Aviation Sector Assistance Package. The package provides assistance for 6 months, and includes a 100 per cent parking charge rebate for passenger flights, 10 per cent landing charge rebate for freighter flights assistance to ground handling agents, and rental rebates for shops and cargo agents at Changi Airport.20

21. These initiatives were developed following consultation with the industry and hearing their feedback on the immediate challenges the aviation sector faces in the fight against COVID-19. While we respond to the immediate crisis, however, it is also important for the aviation community to prepare for the next stage. The critical question is how we can restore confidence in aviation in this new environment.

Looking forward

22. Let me explain. COVID-19 is now spreading to more and more countries and may become a full-blown pandemic. We cannot assume that we will be able to go back to things as they were before COVID-19, any time soon, if at all. We therefore have to prepare ourselves for a world where the COVID-19 threat continues to be present in the medium- to long-term. The key issue is how governments, civil aviation authorities, airlines, airports, and other aviation sector stakeholders can work together to mitigate its impact on civil aviation. Let me offer some initial ideas, which I hope will help stimulate discussion over the course of this workshop. I believe this event is a good opportunity for all in this room to brainstorm and start to develop some responses.

23. First, all of us have invested much resources in implementing various precautionary measures to protect our staff and customers. We should not be shy about telling the travelling public about them. This will assure our customers and show that the industry is taking the threat seriously and making the effort to react appropriately, while continuing to facilitate the trade, travel, and business and people-to-people exchanges that keep the global economy going.

24. Second, we have to recognise that we cannot sustain all the precautionary measures we have put in place thus far, indefinitely. In the initial phase of this outbreak, many countries, including Singapore, imposed travel restrictions to protect our own citizens and to be responsible global citizens so that we do not spread the disease. These travel restrictions are highly targeted and give us space and time to put in place other measures that allow us to detect imported cases and contain the risk of local transmission. However, when COVID-19 becomes a pandemic that affects us all and will be with us for a long time to come, we cannot be imposing travel restrictions on every country and isolate ourselves from the world. In a pandemic scenario, we will need to find alternative ways to mitigate the risk of spread and get on with life. For example, in lieu of travel restrictions, we may have to step up entry and exit screening at the airport so that we can actively and rigorously separate the unwell from the well. To implement this well will require commitment from all and close co-operation amongst civil aviation authorities, airports and airlines.

25. Third, as with all common challenges, the aviation community, including regulators and industry, should continue to come together to exchange information and share best practices on our responses, as we are doing today. If reviews of existing industry and international guidances are necessary once the immediate crisis has progressed to the next stage, we should do so in the spirit of improving industry practices for the benefit of all stakeholders and the travelling public.

Conclusion

26. The global aviation community must continue to work together in this difficult period. I have full confidence that the aviation community, aided by the efforts of those of you represented here today, will be able to overcome the challenge of COVID-19, and emerge stronger than before.

27. In closing, I would also like to express our appreciation to IATA for organising this meaningful and very timely event here in Singapore. I also commend the IATA, the ICAO, the WHO, and all of you here present today, for coming to participate in this workshop. Such events help to send the important messages that the aviation sector is working together to keep global air travel moving, and looking to the future to strengthen international air travel in a collaborative and co-operative manner. I do also hope all our friends who have joined us from abroad will have some free time to spend walking around, and shopping, in our city. I am sure you will see that life goes on in Singapore.

28. Thank you, and I wish you a very fruitful day of discussions ahead.

[1] "Coronavirus disease (COVID-2019) situation reports", World Health Organization, 2 March 2020 (https://www.who.int/emergencies/diseases/novel-coronavirus-2019/situation-reports). Accessed 2 March 2020.

[2] "Nissan to shut Japan factory due to shortage of Chinese parts", BBC, 11 February 2020 (https://www.bbc.com/news/business-51441344). Accessed 26 February 2020.

[3] "Owing to COVID-19 Outbreak, 1Q20 Notebook Computer Shipment Expected to Decline about 26% YoY", TrendForce, 27 February 2020 (https://press.trendforce.com/press/20200227-3337.html). Accessed 27 February 2020.

[4] "Oil Market Report - February 2020", International Energy Agency, February 2020 (https://www.iea.org/reports/oil-market-report-february-2020). Accessed 26 February 2020.

[5] "COVID-19 to cost world tourism at least US$22 billion", CAN, 28 February 2020 (https://www.channelnewsasia.com/news/business/covid-19-to-cost-world-tourism-at-least-us-22-billion-12478066). Accessed 28 February 2020.

[6] 24-27 February 2020

[7] "Geneva car show cancelled due to coronavirus woes", The Straits Times, 28 February 2020 (https://www.straitstimes.com/world/europe/geneva-car-show-cancelled-due-to-coronavirus-woes). Accessed 2 March 2020.

[8] "IMF, World Bank consider 'virtual' Spring Meetings as virus spreads", Reuters, 27 February 2020 (https://www.reuters.com/article/us-china-health-imf-meetings-exclusive/exclusive-imf-world-bank-consider-virtual-spring-meetings-as-virus-spreads-idUSKCN20K3CU). Accessed 27 February 2020.

[9] Preliminary figures in terms of freight tonne kilometres (FTK). Source: "Asia Pacific Airlines Traffic Results - January 2020", Association of Asia Pacific Airlines, 26 February 2020 (http://www.aapairlines.org/wp-content/uploads/2020/02/AAPA_PR_Issue04_JanTrafficResults_26Feb20.pdf). Accessed 27 February 2020.

[10] "Boeing sees airline profits hit, stagnant air cargo market due to virus", CNA, 12 February 2020 (https://www.channelnewsasia.com/news/business/boeing-wuhan-virus-singapore-airshow-12425720). Accessed 27 February 2020.

[11] "COVID-19: Initial impact assessment of the novel Coronavirus", IATA, 20 February 2020 (https://www.iata.org/en/iata-repository/publications/economic-reports/coronavirus-initial-impact-assessment/). Accessed 28 February 2020.

[12] "Airlines freeze hiring and investment as virus damps profit hopes", Financial Times, 27 February 2020 (https://www.ft.com/content/69525114-58db-11ea-abe5-8e03987b7b20). Accessed 27 February 2020.

[13] "Operating Indicators for January 2020", Changi Airport Group, 25 February 2020 (https://www.changiairport.com/corporate/media-centre/newsroom.html#/pressreleases/operating-indicators-for-january-2020-2975424). Accessed 27 February 2020.

[14] "Economic impact estimates due to COVID-19 travel bans", International Civil Aviation Organization, 13 February 2020 (https://www.icao.int/Newsroom/Pages/Economic-impact-estimates-due-to-COVID-19-travel-bans.aspx). Accessed 26 February 2020.

[15] "Ministerial Statement on Whole-Of-Government Response to the 2019 Novel Coronavirus (2019-NCOV)", Ministry of Health, Singapore, 3 February 2020 (https://www.moh.gov.sg/news-highlights/details/ministerial-statement-on-whole-of-government-response-to-the-2019-novel-coronavirus-(2019-ncov) ). Accessed 25 February 2020.

[16] "Frequently Asked Questions on the COVID-19 Situation", Ministry of Health, 26 February 2020 (https://www.moh.gov.sg/covid-19/faqs). Accessed 27 February 2020.

[17] "Updates on Border Control Measures in Response to the COVID-19 (Coronavirus Disease 2019)", Immigration and Checkpoints Authority, 26 February 2020 (https://www.ica.gov.sg/news-and-publications/public-education/updates-on-border-control-measures). Accessed 26 February 2020.

[18] Stay-Home Notices require those who have travelled to areas at risk of COVID-19 infections to quarantine themselves at home at all times for 14 days. According to the Immigration and Checkpoints Authority, as of 19 February 2020, 77 Stay-Home Notices have been issued.

On 26 February 2020, a male Singapore Permanent Resident, who had been served with a Stay-Home Notice after travelling to mainland China but did not abide by the Notice, had his Permanent Residence status revoked. He will also be barred from re-entering Singapore. "Singapore Permanent Resident Breached Stay-Home Notice Requirements; Loses Singapore Permanent Residence Status and Will Be Barred From Re-Entering Singapore", Immigration and Checkpoints Authority, 26 February 2020 (https://www.ica.gov.sg/news-and-publications/media-releases/media-release/singapore-permanent-resident-breached-stay-home-notice-requirements-loses-singapore-permanent-residence-status-and-will-be-barred-from-re-entering-singapore). Accessed 27 February 2020.

[19] "Coronavirus: Long-lasting disinfectant and 1,000 more hand sanitisers among measures introduced at Changi Airport", The Straits Times, 13 February 2020 (https://www.straitstimes.com/singapore/transport/coronavirus-long-lasting-disinfectant-and-1000-more-hand-sanitisers-among). Accessed 26 February 2020.

[20] "Stabilisation and Support Package", Budget 2020, 18 February 2020 (https://www.singaporebudget.gov.sg/budget_2020/budget-measures/stabilisation-and-support-package). Accessed 26 February 2020.