Debt restructuring measures to help struggling SMEs
What is the story
Two debt restructuring programs have been introduced to help struggling small and medium-sized enterprises (SMEs) in Singapore, providing support to those facing challenges amid the Covid-19 crisis.
The Sole Proprietorship and Partnership Regime and the Extended – Personalized Support Regime allow SMEs to restructure their credit facilities and debts to multiple creditors.
These programs are part of a set of the extended relief measures announced last month by the Monetary Authority of Singapore, the Banking Association of Singapore and the Finance Houses Association of Singapore.
In addition to debt relief, SMEs have also benefited from other support programs put in place over the past year, including enhanced grants to encourage business transformation and incentives to drive adoption of solutions. digital.
Salary support, such as the Employment Assistance Scheme, also reduced the burden on SMEs and helped them retain their workers.
why is it important
SMEs, which are generally defined as businesses with an annual turnover of less than $100 million or employing less than 200 workers, constitute a significant part of the Singapore economy.
They make up about 99.5% of businesses here, according to 2019 data from the Department of Statistics.
They also employ more than 70% of the country’s workforce and contribute about 44% of the gross domestic product.
The continued growth and development of Singapore’s SMEs is therefore crucial to ensuring the buoyancy of the Republic’s economy, especially in the gloomy backdrop of a recession amid the coronavirus pandemic.