7 in 10 SMEs in Singapore Confident of Repaying Loans in 2021: DBS
(12 November 2020 – Singapore) Seven in 10 small and medium-sized enterprises (SMEs) in Singapore’s most pandemic affected sectors are confident of meeting repayment obligations for government-backed loans next year without impacting their business operations, a DBS survey has found.
Only a minority 3 percent flagged that they may need to wind up. The survey recorded the findings of close to 250 SMEs in three industry sectors most acutely affected by Covid-19 – retail, food and beverage, and building and construction. It was conducted in early October, after the Monetary Authority of Singapore (MAS) announced extended credit relief support measures for SMEs to partially defer the principal repayment of secured loans and Enterprise Singapore loans.
To meet debt obligations, nearly 30 percent of SMEs surveyed were willing to sacrifice expansion plans and scale down their business operations to make their repayments.
Some three-quarters of SMEs said that they remain “optimistic” and “determined”. However, in a sign of creeping fatigue, close to one in five indicated that they were exhausted from dealing with the economic fallout of Covid-19.
“I never cease to be inspired by how resourceful and resilient our SMEs are, and how they are able to turn even the most difficult circumstances into new opportunities. Our survey shows that while SMEs are wounded, they are certainly not out for the count. In fact, many SMEs are quietly preparing for a rebound and even those in the hardest-hit sectors have been busy reinventing themselves and transforming their business models,” said DBS Group Head of SME Banking Joyce Tee.
“However, the road ahead remains bumpy, and DBS will continue to be a trusted partner to our SMEs and extend the support needed to emerge from this crisis stronger together,” she added.
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