Singapore

SOME Singapore firms with business in India are bracing themselves for further lockdowns, as the number of new Covid-19 cases there hit a global record on Thursday amid a second wave of the pandemic.

For now, India's transport, communications and ports are still largely operating as usual, even as some states have re-imposed restrictions, such as night curfews, to curb the spread of the coronavirus. Few states have imposed lockdowns, as the country's prime minister has urged them to consider lockdowns only as a last resort.

But the rising number of virus cases amid stretched medical resources in India are leading some Singaporean firms there to take precautions, in anticipation of further lockdowns.

Commodity trader Khaitan International, for instance, is taking fewer orders from customers to reduce its exposure, while it monitors the situation in the coming weeks.

Manish Khaitan, the second-generation owner of the business, said: "Even though we have no problems from customers now - shipments are fine and payments are still coming in - we are taking a cautious approach.

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"If this (rise in Covid-19 cases) continues, India's health infrastructure will collapse and the country will be in chaos."

Fortrec Chemicals & Petroleum, which supplies petrochemicals and petroleum products, is also bracing itself for the prospect of a lockdown, in which case business activity will likely slow, or worse, grind to a halt, said Garich Lim, head of partners.

But even with India accounting for about a fifth of its revenue, Fortrec is unlikely to be affected overall as incoming shipments can be diverted to other markets in the event of a nation-wide lockdown.

"We have a global network, and a strong Asian footprint," Mr Lim said.

Khaitan and Fortrec's employees are also largely unaffected by the movement curbs, as they have been working remotely since the pandemic began last year.

Other businesses may face bigger challenges. The Modern Montessori International (MMI) Group, which operates preschools in India, could experience prolonged financial pressure.

Its schools have stayed closed since March last year as a result of the pandemic, forcing franchisees to permanently shutter three of the 50 schools.

"There are limited rental subsidies or relief measures for our schools in India, and this has put tremendous financial strain on operators," said chairman and chief executive T. Chandroo.

As an alternative, MMI has been conducting lessons for its young students online. However, this has had "limited appeal" for parents, as pre-schoolers are usually less attentive during online lessons.

Dr Chandroo said he expects the challenging situation in India to continue as the coronavirus surge is "unlikely to cease in the coming months".

"The tough landscape may last till the end of the year," he added.

Singapore-listed Ascendas India Trust, which owns seven IT parks and one logistics park in India, on Wednesday flagged that park population has declined to 7 per cent from the 9 per cent prior to the second wave of Covid-19, and is expected to decline further.

The property trust also noted in its business update that construction of some projects may face delays, even though it is "working to catch up on progress".

Meanwhile, Breadtalk Group, which has three outlets in India run by a franchise partner, said it will monitor the situation with the partner, in hope that it will improve soon.

The Singapore Business Federation said it is in touch with Singapore companies operating in India, including small and medium-sized enterprises.

Business operations have been disrupted, but companies are prioritising the health and safety of their staff, chief executive Lam Yi Young noted.

This is especially as the Covid-19 variant that appears to be behind the spike in cases is "more infectious", said the Singapore Indian Chamber of Commerce and Industry.

Some offices have already closed out of precaution and this may eventually affect offshore services performed for Singapore companies, the chamber added.

- Additional reporting by Raphael Lim