Government Risk-sharing Programmes for SMEs

Mr Teo Siong Seng asked the Deputy Prime Minister and Minister for Finance whether the Ministry will consider implementing extraordinary financing measures like the Special Risk-Sharing Initiative (SRI) introduced as part of the resilience package launched during the financial crisis in 2008/2009 when the Government took up 80% of the risk share for the bridging loan programme, to help SMEs in the event that our economy goes into a tailspin; and (b) whether any plan has been drawn up.

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Mr Speaker, Sir, Mr Teo Siong Seng had asked if the Government will consider implementing extraordinary financing measures, such as the Special Risk-Sharing Initiative, in the event that our economy goes into a tailspin.

While macroeconomic conditions remain sluggish, our economy continues to grow. Our credit market is stable, and unemployment rate remains low. Barring unforeseen shocks, the Ministry of Trade and Industry expects the Singapore economy to grow by 1.5% to 2.5% for the whole of 2012.

Nevertheless, I can assure Members that we are monitoring the downside risks to Singapore's economic and financial stability very closely. The Government stands ready to provide assistance to businesses and workers should there be a more significant economic downturn. The specific measures and the level of the Government's risk-sharing with businesses and with banks will be decided based on the nature and severity of any such downturn.

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