Many economists are forecasting a downturn, if not a full-blown recession, over the next 12-24 months. The economic downturn looks pretty real at this stage. We have seen budget cuts in HR spending by existing and potential clients. Some approved projects have been deferred due to budget cuts.
2020 is currently looking grim for SMEs like Rewardz for new business development. In order to thrive in these tough times, we are working on increasing operating margins through automation and rolling out technology products with the least operating expenses and high potential returns for the business.
The Singapore government needs to closely watch the impact of macroeconomic factors on the economy. Startups and SMEs are the backbone and one of the success stories of the local economy and they are most exposed and vulnerable during tough economic conditions. Any financial support with reduced borrowing costs, grants and tax breaks will be very welcome by the community at this stage.
Leaders may understandably be reluctant to take major actions until they see clear evidence that they are affected by economic headwinds. The next downturn will challenge many companies, but a few will emerge stronger, competitively and financially.