Kevin Tan
18-11-15, 15:46
http://www.theedgeproperty.com.sg/content/how-can-property-loans-help-smes-recession
How can property loans help SMEs in a recession?
By Paul Ho / iCompareLoan.com, The Edge Property | November 16, 2015 12:00 PM MYT
Tags: loansmerecessionGDPPMIbondgovernment securitiesbusiness term-loan
Singapore has narrowly averted a technical recession. While that has been averted, the PMI is below 50%, indicating a contraction in the manufacturing sector.
Another measure of recession that some economists suggest is not to simply look at GDP figures (demand), but to look at falling income levels, as well as rising unemployment rate. Many enterprises can sustain a short-term drop in demand and may not immediately retrench people, therefore, leaving the purchasing power largely intact.
Singapore’s small and medium-sized enterprises (SMEs) make up 99% of all enterprises, employ 66% of the workforce and account for 48% of the GDP. SMEs are defined as enterprises that have revenues of fewer than $100 million and less than 200 employees. A drop in demand means that companies are hardly growing their top lines and may go into the red. This is especially true for SMEs with less than $10 million in revenue.
Singapore quarterly GDP growth rate
Source: TradingEconomics, SingStats
http://www.theedgeproperty.com.sg/content/how-can-property-loans-help-smes-recession
How can property loans help SMEs in a recession?
By Paul Ho / iCompareLoan.com, The Edge Property | November 16, 2015 12:00 PM MYT
Tags: loansmerecessionGDPPMIbondgovernment securitiesbusiness term-loan
Singapore has narrowly averted a technical recession. While that has been averted, the PMI is below 50%, indicating a contraction in the manufacturing sector.
Another measure of recession that some economists suggest is not to simply look at GDP figures (demand), but to look at falling income levels, as well as rising unemployment rate. Many enterprises can sustain a short-term drop in demand and may not immediately retrench people, therefore, leaving the purchasing power largely intact.
Singapore’s small and medium-sized enterprises (SMEs) make up 99% of all enterprises, employ 66% of the workforce and account for 48% of the GDP. SMEs are defined as enterprises that have revenues of fewer than $100 million and less than 200 employees. A drop in demand means that companies are hardly growing their top lines and may go into the red. This is especially true for SMEs with less than $10 million in revenue.
Singapore quarterly GDP growth rate
Source: TradingEconomics, SingStats
http://www.theedgeproperty.com.sg/content/how-can-property-loans-help-smes-recession