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SINGAPORE: Business leaders in Singapore said they are hoping for some clarity on the economic outlook when Prime Minister Lee Hsien Loong delivers his annual National Day Rally speech on Sunday.
The speech traditionally sets out guidelines on the government's agenda for the coming year and they are hoping that it will provide some clues as to what the government plans to do if the slowdown persists.
Philip Overmyer, chief executive, Singapore International Chamber of Commerce, said: "I think companies are hoping and are probably pretty confident that the prime minister will talk about his viewpoints on where the economy is going. Right now, I think it's a very uncertain time.
"Is it really the bottom? Or will it go down before it goes back up? The strong message we hope to hear is that the government knows (the answer to) that. We may need continued help if this is not really the point at which the economy in Singapore and the world is picking up."
The Singapore government took a big step in January this year with a S$20.5 billion budget aimed at helping the economy pull through the global crisis. Business leaders said the budget appears to have hit the nail on the head.
Recent data suggests that the economy is picking up, with second quarter GDP expanding by almost 21 per cent on-quarter, snapping four straight quarters of contraction.
But business leaders said if the downturn persists, an extension on measures, such as the Jobs Credit Scheme, would help.
Lawrence Leow, president of the Association of Small & Medium Enterprises, said: "There is no doubt that the schemes that have been announced in the 2009 budget has benefited a lot of companies. I think in terms of access to financing or lowering business costs to save jobs, we have achieved a great success so far.
"With regards to the economy, most felt that we have seen the worst of the recession, but the outlook is still uncertain and hazy. The demand in the key markets in US and Europe is still weak. Given this backdrop, I think the businesses would not expect any more new schemes, but what we really hope the government could do is to extend the schemes beyond 2009, should the need warrant it.
"If the government needs to withdraw some of the schemes, it should be done in stages... The other thing that the companies are hoping for is that the government will make an early announcement of whether to extend the schemes or not."
Many companies are still grappling with rental costs. Moving ahead, some said lowering rental rates or reducing property tax by one or two percentage points would help the firms.
- CNA/so
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