Aviation and travel-related stocks up after Singapore announces easing of COVID-19 border measures

PandoraHaggai
2022-04-07

$SINGAPORE AIRLINES LTD(C6L.SI)$

Singapore announced several key changes to its COVID-19 measures , including larger group sizes and making mask-wearing optional in outdoor settings from Mar 29, as part of what Prime Minister Lee Hsien Loong described as taking a “decisive step forward” towards living with COVID-19.

Testing and quarantine rules for travellers will also be drastically streamlined – a move that will help reconnect Singapore with the world and reclaim the country’s position as a business and aviation hub, Mr Lee said.

Under the new vaccinated travel framework – where countries and regions will be classified into either the general travel or the restricted category – all fully vaccinated travellers, as well as children aged 12 and below, will be able to enter Singapore with just a pre-departure COVID-19 test from 11.59pm on Mar 31.

The new simplified framework will replace the existing vaccinated travel lanes (VTLs) and unilateral opening arrangements.

This means that travellers will no longer need to apply for entry approvals or take designated flights to enter Singapore quarantine-free. There will also be no more quotas on the number of daily arrivals.

In a report following the announcement, OCBC’s chief economist Selena Ling said the new measurements should pave the way for a faster improvement in the number of visitor arrivals, food and beverage (F&B) spending and private consumption appetite in general in the coming months.

“The key to a more robust and broad-based recovery for Singapore this year would depend on the services momentum picking up speed as they account for two-thirds of the economy,” she added.

“Hence, the moves to relax the number of people dining-in and allowing alcohol sales etc may be an important lifeline for the domestic F&B, retail and entertainment industries.

“Unsurprisingly, the domestic risk assets, including the tourism-related stocks in the STI, have reacted positively,” Ms Ling wrote.

AVIATION AND MICE PLAYERS WELCOME NEWS

In a media statement, SIA said the latest move “opens up” its entire network to all eligible customers. Currently, SIA and Scoot, its budget arm, fly to 97 destinations in 34 countries from Singapore.

The flag carrier said it will no longer designate specific VTL flights from Apr 1. Those who are already booked on a VTL flight on or after Apr 1 may travel as planned and need not make any changes to their bookings.

Travellers, regardless of vaccination status, will be allowed to transit through Singapore on almost all of its flights from Apr 1, as long as they meet the entry requirements of their final destination.

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Comments

  • ryanquek95
    2022-04-07
    ryanquek95
    how high can the stock actually go hmmm
    • lcwy
      我也是在想同样的问题[你懂的]
  • Tlc
    2022-04-08
    Tlc
    HOpe SIA stock up up to the moon!
  • TradeInWind
    2022-04-07
    TradeInWind
    This for sharing!
  • Jimmy90
    2022-04-11
    Jimmy90
    👍
  • Donmination
    2022-04-11
    Donmination
    Gogogo
  • SallyEu
    2022-04-09
    SallyEu
    Ok
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