Businesses holding back retrenchments, but require more support: SCCCI

SOME 80 per cent of businesses are experiencing declines in revenue, according to an annual survey by the Singapore Chinese Chamber of Commerce & Industry (SCCCI). This is more than double the proportion of businesses (38.7 per cent) reporting revenue declines in 2019.

Despite the upheaval, employers are retaining their workers. Nearly 78 per cent of respondents are maintaining or increasing their headcount from the year before. Only about 8 per cent of respondents reported having retrenched their workers.

The SCCCI surveyed 1,025 businesses between June 11 and Aug 6 this year, of which 94 per cent were small and medium-sized enterprises (SMEs). The chamber credits the Jobs Support Scheme (JSS) for enabling businesses to save jobs, with the JSS found to be the most popular scheme among businesses.

While support measures are set to taper, businesses expect their challenges to persist. Close to 60 per cent estimated that their business will recover to pre-Covid-19 levels only within one to two years. Noting this sentiment, SCCCI president Roland Ng observed at Friday's conference that the new normal for businesses is here to stay. Businesses must plan accordingly and act ahead of the curve, he said.

In the immediate term, businesses are most worried about financing and cash flow, with 57.5 per cent of respondents indicating as a key concern. In particular, delayed payments and low revenues are cited for leaving businesses in a bind.

In their hope for more government support, top on the wish-list for businesses (42 per cent) is for the government to extend rental waivers and reductions.

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The SCCCI also set out four recommendations in their report. First, they called for measures that allow economic activity to swiftly resume. This includes ramping up testing and tracing capacity; and speeding up progress on the opening of international business travel lanes.

Second, they requested greater government coordination and integration to tackle complex issues that cut across agencies. Trade associations must also be consulted, they emphasised to reporters on Friday, for more effective design and implementation of policies and schemes.

Third, they urged the government to provide funding support to trade associations, to help more SMEs to digitalise. The support given should be outcome-based, to ensure that SMEs reap increased revenue streams and new growth opportunities through digitalisation.

Finally, they called for more support for businesses that hire mid-career and mature workers, and for greater promotion and awareness of supporting government schemes. The chamber noted that workers in this demographic tend to have job expectations that employers may find difficult to meet, especially in this challenging business environment.