Latest news with #AngYuit
CNA
27-05-2025
- Business
- CNA
CNA938 Rewind - Singapore SMEs could go on life support as Trump tariffs hit
CNA938 Rewind Play Some Singapore companies are shelving expansion plans amid crippling United States tariffs and a global economic slowdown, while others could go on 'life support mode'. What kind of 'rescue' solutions can be drawn up? And could PM Wong's new cabinet and deals signed at the ASEAN Summit provide solutions? Andrea Heng and Susan Ng find out from Ang Yuit, President, Association of Small and Medium Enterprises
Independent Singapore
23-05-2025
- Business
- Independent Singapore
SME Association warns some Singapore firms could enter ‘life support mode' as US tariff pause nears end
SINGAPORE: Some Singapore firms could go into 'life support mode' once the 90-day pause on sweeping U.S. tariffs announced by U.S. President Donald Trump in April ends, Channel News Asia (CNA) reported, citing the Association of Small and Medium Enterprises (ASME). The association also said that some firms are already shelving their expansion plans amid the crippling tariffs from the United States and the global economic slowdown. ASME president Ang Yuit told CNA that if businesses are impacted, 'They will go on life saving and life support mode and minimise expenses.' He also mentioned that although overall interest rates have dropped slightly, they are 'still not low' enough to make borrowing easy for SMEs. Because of this, 'Many are still a bit reluctant to apply for loan or working capital, unless they really have no choice,' he said. CNA reported that Funding Societies, a non-bank lender that offers short-term financing of one to 12 months, reported a 15% decrease in loan requests from March to April. Several months before the dip, loan requests had been steadily going up. While the non-bank lender does not expect a wave of bankruptcies, it noted that it's closely watching red flags. Funding Societies CEO and co-founder Kelvin Teo said, 'Other bank and non-bank lenders have also started tightening within this segment preemptively and similarly for us, we also have additional scrutiny of borrowers that have supply chains that could potentially be impacted by selling to the U.S.,' adding that many SMEs are recalibrating their business strategy. He said that in the short term, things are fine, but in the medium term, if cash flow starts to drop or liabilities begin to rise, they will have to take action. ASME said companies need to start considering what might happen when the U.S. tariff pause ends and the likelihood of a shift in the global trading system. The association also called for more government support to help SMEs enter new markets and build a bigger supply chain network. Last week, Deputy Prime Minister Gan Kim Yong said the government is in talks with banks to improve financing options for local companies after they raised concerns about delayed or cancelled orders and not receiving payment from their customers amid trade tensions. He added that if needed, new support schemes could be rolled out to help companies address their specific areas of concern. /TISG Read also: Malaysia to strengthen anti-dumping law to protect local SMEs from China's flood of cheap goods
CNA
22-05-2025
- Business
- CNA
Some Singapore firms could go on ‘life support mode' amid crippling US tariffs, says SME association
SINGAPORE: Some Singapore companies are shelving expansion plans amid crippling United States tariffs and a global economic slowdown, while others could go on 'life support mode', said the Association of Small and Medium Enterprises (ASME). Businesses are bracing for uncertainty once a 90-day pause on sweeping tariffs announced by US President Donald Trump in April ends. 'If they are impacted, they will go on life saving and life support mode and minimise expenses,' ASME president Ang Yuit told CNA. 'They will have to try out a pivot, and it ranges from case to case.' CASH FLOW INSTABILITY Mr Ang said that while overall interest rates have come down slightly, leading to less intense loan repayments, they are 'still not low'. 'So I think for SMEs, many are still a bit reluctant to apply for loan or working capital at this point, unless they really have no choice,' he noted. Non-bank lender Funding Societies told CNA that it has seen a 15 per cent dip in loan requests and submissions from March to April. Before the drop, loan applications were steadily rising for several months. The financial institution said firms are hesitant to take on loans as they reconsider their cash flows to stay afloat. It specialises in short-term financing ranging from one to 12 months. While it does not expect a wave of bankruptcies, it is watching closely for any red flags. 'Other bank and non-bank lenders have also started tightening within this segment preemptively and similarly for us, we also have additional scrutiny of borrowers that have supply chains that could potentially be impacted by selling to the US,' said Kelvin Teo, group CEO and co-founder of Funding Societies. He added that many SMEs are recalibrating their business strategy. 'I think in the short term, we are fine. In the medium term, once we start seeing the cash flow level to drop or liabilities to increase, then we will have to start taking measures to manage our exposure.' MORE GOVERNMENT SUPPORT NEEDED With less than half of the 90-day pause in US tariffs to go, the ASME said firms need to consider what happens after, including the likely reconfiguration of the global trading system. The association also called for more government support to help SMEs enter new markets and integrate into a bigger supply chain network. Skincare product company Theo10, for instance, has postponed its business growth plans and moved funds into purchasing more supplies. The firm - which makes skincare products such as eczema creams and body washes - sources its materials from around the world, including Australia, the US and China. When the US announced sweeping tariffs in April, the prices of such material shot up by as much as 30 per cent overnight, said the company's director Theodore Khng. He said the firm increased its bulk purchases when suppliers warned of a possible price hike after US President Trump secured a return to the White House. 'We had lesser cash flow for us to expand regionally, even though it was in the works,' Mr Khng added. 'We felt that securing our supply chain and the logistics issue was more pressing, rather than expansion, especially considering how unpredictable the issue may be.' As tariff fears mounted and consumers tightened their spending, the company's sales also fell by 15 per cent. This is despite efforts to entice customers with discounts. Mr Khng said the situation has pushed its cash flow levels down to a 'super thin line'. 'We do have reserves, but even our reserves are quite badly affected by the tariff news and all the uncertain economic moves,' he added. 'If we stretch a little bit more, it's a very dangerous game for us to play.'
CNA
21-05-2025
- Business
- CNA
Wealth Wise - 101s of starting a small business in Singapore
Wealth Wise In Singapore, there are over 300,000 small and medium-sized companies. That represents about 99 percent of all enterprises in the country. On Wealth Wise, Lance Alexander talks about the 101s of starting a small business here with Ang Yuit, President, ASME.
Straits Times
20-05-2025
- Business
- Straits Times
Singapore SMEs need to partner Chinese firms for access to their supply chains, says Asme
Asme president Ang Yuit noted that Singapore firms have yet to meet competition at the level of intensity posed by the Chinese. ST PHOTO: GAVIN FOO Singapore SMEs need to partner Chinese firms for access to their supply chains, says Asme SINGAPORE – The recent influx of Chinese investments into Singapore – some coming with home-town suppliers in tow – is putting the squeeze on small and medium-sized businesses here. To avoid being flattened out, the Association of Small and Medium Enterprises (Asme) is urging local players to get into the Chinese supply chains, and to find growth overseas. In a media briefing on May 20 to address business concerns sparked by the trade war, Asme's president Ang Yuit noted that Singapore firms, despite having witnessed foreign investors come in from around the world, have yet to meet competition at the level of intensity posed by the Chinese. He said: 'When they come in, they bring a long, whole supply chain. That's very distinctive to the Chinese... They have a whole manufacturing base all the way to China.' 'It isn't that they don't try to integrate, but there's language, there's the speed at which they do things. They move very fast, and Singapore companies are much slower,' he added. The heat is turned up by some of these investors who are willing to trade losses for market share, or brook losses for the chance to diversify capital outside China, said Mr Ang. He added: 'They are not looking at making money in the first two, three years. They are investors, so they're willing to spend a lot more to outlive you.' Chinese firms have been raising stakes here in recent years, led by geopolitics and enhancements to the China-Singapore Free Trade Agreement completed in 2023. China's Ministry of Commerce noted that in 2018, cumulative investment from China in Singapore was US$50 billion. By 2022 , it had risen almost 1½ times to US$73.5 billion. To help local players, Asme will study opportunities for local firms to enter into partnerships with Chinese businesses in China that have yet to reach global scale. This will give local firms a chance to partner and learn from them, and potentially give them a foot in the Chinese supply chain. The association, which has over 7,000 members, is also stepping up its outreach to peers in the region to promote links. It has gone on a trade mission to Taiwan with SME Malaysia, and is hoping to engage its Indonesia equivalent next. As the Government reviews measures to help local businesses against the impact of the US tariffs, Mr Ang hopes perennial business challenges such as high rental costs would also be evaluated. With policymakers believing that the world has entered a new anti-trade era, the organisation is also urging the Government to tilt towards protecting local SMEs. Mr Ang said: 'Very often, because we signed free trade agreements, we cannot be seen to subsidise the operating expenditure of our companies, or cannot have preferential treatment of the companies. But in this new global order, does it make more sense to show a bit of preference for local companies?' He cited the example of a SME being eligible for government funding to help it expand overseas as long as it meets 30 per cent local shareholding. That criterion can be met by a Chinese citizen holding permanent resident status. The applicant may be a large company in China, operating a small outfit in Singapore, tapping the government grant, he said. Mr Ang also hopes the Government looks beyond traditional economic metrics to preserve SMEs, which account for 99 per cent of Singapore's 300,000 enterprises and 70 per cent of employment. While the influx of Chinese investments may look good on paper, they may erode the foundation of Singapore's economy, he said. He added: 'In the short run, you may see that overall, FDI (foreign direct investment) is doing well, but in the medium term, our ecosystems get replaced by Chinese ecosystems.' He noted that local SMEs may bear the main brunt of criticisms for inefficiency, but they maintain the base on which Singapore unicorns and bigger enterprises are built. He said: 'SMEs are the bedrock that sustains the economy. It's important that we keep this segment well taken care of.' Join ST's Telegram channel and get the latest breaking news delivered to you.
