Subsidies to F&B sector crucial despite possibility of creating zombie firms
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Singapore
SUBSTANTIAL subsidies administered to the food and beverage (F&B) sector to help it weather the pandemic have raised concerns about inadvertently keeping alive firms that are fundamentally unviable, referred to as "zombie firms".
Jochen Krauss, Singapore managing partner at Simon-Kucher & Partners, said there is undeniably a "massive oversupply" in the sector, which would be whittled down by supply and demand mechanisms under normal conditions.
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