GOVERNMENT has extended, magnanimously and spontaneously, a strong, steady and trustworthy helping hand with the Resilience Budget.
It is now up to all to reach out to help themselves in a responsible and reasonable manner, recognising that the 3Ps of the Public, Private and People sectors, all have a collective part to play to keep Singapore going, and safe for all Singaporeans.
This a far-sighted government. Staying steadfast in building our reserves for a rainy day has proven to be a prudent and correct decision.
The Resilience Budget is not only a brilliant and well-thought-out, all-encompassing budget, but a generous one.
Together with the $6.4 bn announced in the previous Unity Budget, the total stimulus package of $54.8 bn to save jobs, keep businesses going and helping families, is a gargantuan one; a new record for the government.
Amounting to 11% of GDP, it is abundantly evident that government is determined to make sure that this medicine will help cure the many business ills created by the coronavirus, hopefully without having to take subsequent surgical actions.
I do not think any beneficiary, especially businesses, should ask for more.
Companies and individuals should be responsible and do what is necessary to take advantage of the Resilience Budget.
How successful this will be, will be largely determined by execution, execution and execution…and time is of the essence.
We should not be unnecessarily encumbered by too much bureaucracy.
In this regard, banks do have a vital role to play to be less risk adverse in extending credit and bridging loans, given that government has raised the maximum loan quantum for the Enterprise Financing Scheme from $5m to $10m, and the government’s risk-share upped to 80% from 70%.
While government has also indicated that it is prepared to draw more on past reserves, if necessary, businesses must also play their part to help themselves, e.g. in conserving cash, reducing expenses, looking at new ways of conducting businesses, such as through telework and video-conferencing, improving productivity, doing more with less, clearing inventory, monetising assets, if need be, collecting receivables, etc.
It is time again when cash is king.
Lim Soon Hock is the author of several books and the Managing Director of consultancy firm Plan-B ICAG.
Here are the links to all the Friday Focus articles on The Resilience Budget:
- Impressive…But Wait For The Details
- Unexpected Support
- Time To Prioritise
- Keep The Money Flowing
- A Generous Helping Hand
- Some Questions Unanswered
- What About The Hardworking Foreigners?
- Cash Is King
- Living Day To Day
- Mind The Gaps!