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Koh Management

Singapore economy heading towards recession


Singapore is one of the leading financial capital in the world. Being the anchor financial hub for Southeast Asia which is a growing spot in the world engine of economy. Singapore is not only a financial hub but also an aviation hub where people will fly into Singapore and transit over to other places within the region and beyond.


Singapore has a very open economy where trading and oil related services and manufacturing is actually a big part of the economy. With the Covid-19 Coronavirus hitting the shores of the whole world and hitting all the important economies that Singapore trades with and also with the recent oil shock, Singapore is expected to get hit.


The worst hit will definitely be tourism where the number have dropped very drastically and also for those that are in the retail and food and beverage sections.

Singapore is expected to follow the major economy in facing a recession with the world stock markets already facing unprecedented free falls that have not stopped for two weeks.


When a recession comes, one of the most important things that you should consider is to ensure that you have enough cash flow to fight through the downturn. Downturns do not last forever and this is true for most economies. But for the mean time, there is a need to survive and be able to pull through the tough times.


Singapore government has recently made the working capital loan easier to access as compared to the past with higher quantum and also with more risk sharing on the government part.


Singapore should be preparing for the 2nd round of support from government as well and we are looking towards a long term and protracted recession that will last till the end of the year before this pandemic slows down and starts to clear up.


If you require help from a Singapore Bank Loan broker, speak to Avant Consulting our choice Singapore Loan Brokers.

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