Government support measures for O&M sector provides short-term help, say analysts

On Nov 25, the Ministry of Trade and Industry (MTI) announced enhanced support measures for marine and offshore engineering (M&OE) companies based in Singapore. They include the reintroduction of SPRING’s bridging loan for companies in the offshore and marine (O&M) sector. The bridging loan programme was briefly introduced in 2008/09 during the global financial crisis.

Eligible companies will be able to borrow up to $5 million each, with a loan tenure of up to six years. The maximum loan quantum for each borrower group is $15 million.

Enhancements will also be made to IE Singapore’s existing internalisation finance scheme (IFS), which provides project and asset financing support for companies. The maximum loan quantum will be raised to $70 million per borrower group from the current $30 million per borrower group for O&M companies. The government will take on 70% of the riskshare for both schemes.

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