COVID-19 drags down Singapore’s economy, SMEs to be affected

The Singapore government has downgraded its forecast of economic growth for this year amid concerns about the COVID-19 outbreak.

The country’s ministry of trade expects economic growth to come in at around 0.5%, in a range of between -0.5% and 1.5%.

The number one concern of smaller companies is to generate enough cashflow to meet operational costs so their businesses can stay afloat, according to a DBS Bank poll.

Banks in Singapore are announcing initiatives to help small companies.

DBS said it will offer a six-month debt moratorium on principal repayments for property loans to SMEs as well as on mortgages for home owners. But it said it will make available the relief measures to customers with “good repayment histories”.

OCBC Bank said on Thursday that it is working closely with customers to mitigate the fall-out from the outbreak. UOB also said it has set aside S$3 billion for its affected Singapore corporate clients, particular small and medium-sized enterprises (SMEs), to have more flexibility in their cash-flow management. The bank will work with businesses to rework their loan payments and extend working capital financing, it said.

ARA Asset Management, The Straits Trading Co and businessman John Lim's JL Family Office announced the launch of a S$5 million SME Help Fund, which will provide loans of up to S$50,000 to SMEs on the online crowdfunding platform Minterest.

The RIABU View

We believe in this period of difficulty is an opportunity to get closer to your customers. In fact, if you are liquid and have enough cash to tide you over these times, you can also choose to help your customers.

You might not have the means of a family office, but you can select the important customers which are important to you, or going to be important, and do what you can to help them. This can be in the form of enhanced service, financial support or just a call to find out how you can help.

By showing that you care, you would have already scored points.