Singapore economy heading towards recession
Singapore economy heading towards recession – Singapore is heading toward a major slowdown and recession in the coming months. Singapore is a major financial hub of the world with it being the main financial hub for businesses in the Southeast Asia region.
Southeast Asia is quite badly hit by the Covid-19 outbreak and being in the region also means that with the slowdown in China and also the USA, trade will lessen. Trade is one of the main lifeblood for Singapore and companies in Singapore. Singapore is a major port in the region and this is also one of the things that will be greatly affected in the case of a recession.
Singapore is heading clearly towards a recession and heading there fast.
The Singapore government is coming up with a series of schemes to keep the economy going and also will be releasing more details on how to keep the economy going on with the slowdown in tourism, retail and eventually all parts of the economy.
One of the earlier schemes announced during the budget is the increase in working capital loan quantum from $300,000 to $600,000 and the government increasing its risk share from 50% to 80%. This is one of the few items that will definitely help to ease up the load on the SMEs in Singapore.
But with prolonged slowdown expected to reach all the corners of the economy, we are hoping that there will be more that the government will be able to do to help the economy to reboot and also cushion the fall.
Singaporeans will likely have to keep their pockets tighten and this will eventually lead to a general slowdown of the entire economy.
With the Covid 19 situation likely to drag on till mid or end 2021, most businesses will have to change the way they function and also to have some ready cash to keep things flowing before the economy reboots.
This is something that has never happened before and this is also something will be the challenge for a decade or even century for businesses around the world and also in Singapore.
Singapore is ready to weather such changes but things will still be tough for the business owners that wish to work things out in the long term.
Business Loans definitely are one of the key ways to keep things flowing and going.
We are keen to help you or consult you if you have any questions.
If you require help with Singapore business loans, you can contact them.