Not enough businesses are prepared for a downturn

DESPITE a long run of strong economic growth in Singapore and South-east Asia, the next global recession will have serious effects here.

It's a turbulent world, and Singapore relies substantially on exports to China, the US, Europe and elsewhere, as well as capital flows from abroad.

True, the Republic weathered the global financial crisis a decade ago much better than many other countries, but it was hit harder than some of its neighbours in South-east Asia; its gross domestic product (GDP) growth fell from 9 per cent in 2006 to negative -1 per cent in 2009.