Empty Singapore Changi Airport... Terminal Expansion Delayed by 2 Years

Reviewing Design for Annual Capacity of 50 Million... New Safety Standards Needed Due to COVID-19
Airport Passenger Traffic Down 99.5%... Large Events Like F1 Grand Prix Also Canceled
MICE Industry Facing Widespread Bankruptcies

[Asia Economy Singapore Correspondent Seo Jumi] The Singapore government has decided to postpone the expansion project of Changi Airport, the Southeast Asian hub airport, for two years. The reputation as a hub airport has faded as uncertainty in the aviation and travel industries has increased following the COVID-19 pandemic.

According to local media such as The Straits Times on the 25th, the Singapore government decided to delay the plan to build Terminal 5, citing the need to strengthen airport safety standards. Originally, the plan was to construct a terminal by 2030 with a capacity to accommodate up to 50 million passengers annually, covering an area equivalent to 667 football fields. However, due to a significant drop in passengers after the COVID-19 outbreak and the need for different safety standards, the design phase will be reconsidered.

A representative from the Singapore Ministry of Transport stated, "Changi Airport ranks sixth in the world by number of users, but in April, the number of passengers was only 25,200, a 99.5% decrease compared to the same period last year." The government banned all short-term overseas visitors from entering the country starting March 23 to prevent the spread of the coronavirus, which caused the sharp decline in passenger numbers. According to the Ministry of Transport, the number of daily arrivals was about 100 and departures about 700 earlier this month.

Some of the existing terminals have already been closed. Changi Airport Group announced last month that Terminal 2 operations would be suspended for 18 months to reduce operating costs, and Terminal 4 was also closed. The airport stated that the reopening of Terminal 4 depends on passenger demand and the number of flights operated by airlines.

Since the gradual lifting of COVID-19 control measures began on the 2nd, transit travelers have been allowed for the time being. The Singapore government is considering applying a fast-track (shortened entry period) system that reduces quarantine periods for business visitors from certain countries, including China, as part of the first phase of easing movement restrictions. The Ministry of Foreign Affairs and the Ministry of Trade and Industry have formalized plans to gradually allow entry only for essential visitors.

However, due to the sharp decline in tourists and the cancellation of various international events caused by COVID-19, it is expected to take some time before passenger numbers return to previous levels. Recently, one of Singapore's largest international events, the F1 Grand Prix, was canceled. Experts have expressed concerns that the cancellation of this event will further exacerbate difficulties for Singapore's economy.

The MICE industry, including meetings, incentives, conferences, and exhibitions, generated an economic effect of $2.7 billion in 2018, but this year, related companies are facing a wave of bankruptcies. Singapore's economy is considered to be experiencing the worst recession since independence due to COVID-19. The Ministry of Trade and Industry has significantly lowered its economic growth forecast for this year from -1% to -4% down to -4% to -7%.

This content was produced with the assistance of AI translation services.