Singapore’s outlook now is far bleaker than during the GFC

SINGAPORE (Jan 26): Looking back on the Asian financial crisis of 1998, the SARS outbreak of 2003, and the global financial crisis of 2008, it was clear to Kurt Wee, president of the Association of Small and Medium Enterprises (ASME), that Singapore’s outlook now is far bleaker than in any of those past crises.

Wee explained that in previous crises, the path to resolution was clear and recovery was  quick. “This time around, substantial demand has simply disappeared; there are no signs of recovery,” says Wee. Companies supporting the oil and gas and offshore industries, for example, have seen their revenue collapse, with no signs of good times coming back anytime soon, he adds.

And, higher borrowing costs as the US hikes interest rates are likely to further weigh on consumption and investment this year. “Some SMEs [small and medium-sized enterprises] are starting to rationalise their business already,” says Wee.

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