Phase 2 reopening from June 19 includes allowing people to dine-in public and have social gatherings of up to five people. Isn't it too soon to start phase 2 when there are still new community cases?

I absolutely agree with you. However, COVID infected numbers aren't gonna magically disappear, but I reckon the government decided to reopen the economy for the following reasons

1) Dormitory testing / cases have fallen.

With mass testing of foreign workers in dormitories more or less completed, and many being discharged from quarantine facilities / hospitals, and from what I last heard, there was only 1 case left in ICU, healthcare facilities are more freed up to (touch-wood) handle more cases. Furthermore, majority of the cases are asymptomatic, therefore as long as masks are still required, it would serve as an (I feel) good enough protection.

Also, asymptomatic cases have proved to not be contagious (such as the few cases that have been discharged despite still containing the disease)

2) Governmental Support

Given how the government has given out subsidies for a couple of months, there is a limit to how much support the government can provide and seeing the number of businesses going bust increasing, I think it is apt to reopen the economy for businesses to resume generating some income.

Should we see a 2nd wave of infections (which I certainly hope not), and we are back to circuit breaker phase 1, even if it is a month later, at least businesses would have a month's worth of revenue to stretch them a little longer.

Just my 2 cents opinion.

Because there is a big event coming. starts with the letter E.