May 14, 2020

Economic Impact Of COVID-19 | More Than 8,600 Businesses In Singapore Closed

The number of closed entities in Singapore for January and February this year were below 5,000. However, based on the information on the Business Times, a total of 8,663 business entities in Singapore were closed in April 2020. This number is more than doubled as compared with 4,008 in March 2020. It would also double if compared to the same period during SARS in 2003 and the financial crisis in 2009. During the SARS period, the number of closed business entities in April was less than 2,500, and less than 4,000 during the financial crisis.

Among the entities which closed in April, the restaurant industry accounted for 403. It is a significant increase as compared to about one or two hundred per month in the first quarter. On the other hands, the retail industry is also severely affected by COVID-19, with 918 closed in April. This number is extremely high as compared with 351 to 539 per month in the first quarter.

https://i0.wp.com/images.goodytech.io/images/catalog/48829/20200512_15892863810441_mobile.jpeg?w=640&ssl=1   Photo Source: Business Times

Song Shengwen, a private bank economist at CIMB Bank, told Shin Min Daily News that this is just the beginning of the bankruptcy. The kind of blocking measures, social distance plans and the global pandemic situation are the key factors to determine whether the number of bankruptcy will deteriorate. If there is no significant improvement in the global pandemic and there are no preventable vaccines, countries will not be able to open the border, and there will be very few business trips and travel abroad. By then, frontline companies related to tourism will be affected. DBS Bank economist Xie Guangwei pointed out that tourism and aviation have received substantial subsidies, but the contractors have not been able to receive the same assistance, but their income has also been affected. This is worthy of attention.

Cover photo: Business Times | FMT Media

Source from: https://www.goodymy.com/mind9386483?fbclid=IwAR2StNp3FMoJr1WPONfO2mnMLTZJkrqxEVO_kRNz-ikhakISFHYyAD3JBgI

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