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Summary on Review of Literature - Essay Example

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Several important studies have been conducted on the issue of Government intervention in relation to Singapore’s SMEs survivability during the recession. According to the release from the Singapore’s Prime Minister’s Office, most of the categories of Singapore’s SMEs…
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Download file to see previous pages Even with their limited resources, they do not only produce more jobs but are also more innovative than large firms. Chia (2009) undoubtedly reckoned that Singapore’s SMEs play an important role in the country as they are a critical pillar to Singapores economy, employing 60 per cent of the workforce. There are about 160,000 SMEs, hiring 1.7 million workers and contributing 40% non-oil foreign exchange to Singapore’s GDP (MTI 2009; Shin and Soh 2009).
The major problems Singapore SMEs face as a result of the recession include loss of revenues that happens because their sales volumes have drastically been reduced as they could not export many of their products to overseas; insufficient capital to fund some of their operations due to the restrain on lending from banks and other lending institutions as the financial crisis bit harder; a drop in production as industries attempt to cut cost by firing some of their workers (OECD & APEC 2008, pp.103-104).
Barton (2009) found out that Asian sub-continent might have found itself in this recession mess because of its over-dependence on Western economy, coming from the crisis spearheaded by the sudden demise of Lehman Brothers and other giants Western financial powerhouses. This condition, according to Holland et al (2009) has caused contraction or shrinking of Asian economies. Even as a leader in private banking, Schuman and Chowdhury (2009) found out that all past efforts have meant little in the face of the current downturn. It is as a result of this that Singapore Government realized that prompt actions must be taken in order to salvage its SMEs while maintaining overall economy growth in the country (Chia 2009; Asia Monitor, 2009). While the recent global recession is receding (Economic Survey of Singapore Second Quarter 2009, 2009), declining GDP, competitiveness, new world order, soaring unemployment rate and long-term job losses are always the most politicized and demoralizing factor which ...Download file to see next pagesRead More
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