Home News Featured News Jamus Lim: Small business owners concerned that large Government-linked firms crowd them...

Jamus Lim: Small business owners concerned that large Government-linked firms crowd them out

GLCs seem to be competing too directly with SMEs. he says

Author

Date

Category

- Advertisement -

Singapore—After an estate walk at Anchorvale last weekend, Workers’ Party MP Jamus Lim (Sengkang GRC) took to Facebook to shine a light on the current problems of small business owners.

In a post on Sunday (Mar 28), Dr Lim, an associate professor of economics, wrote about an Anchorvale resident who is a small-business owner, who talked about the challenges she faces amid the Covid-19 pandemic.

“In particular, she felt that large government-linked firms were crowding out the limited opportunities she had exposure to, with strategies like bulk discounts or government procurement.”

The Sengkang MP wrote that he has “mixed feelings” about what the woman had told him, noting the fact that bigger companies are able to hire more workers “and sustaining employment through the pandemic is important for readying the economy for the eventual recovery.”

However, on the flip side, these large companies also have the advantage of greater resources “and possess the productivity buffers” to sustain them through the hardship of the pandemic.

And when large national firms endeavour to keep their businesses doing well “by expanding their domestic margins,” this appears to Dr Lim as “competing too directly with our local small and medium enterprises (SMEs), at a time when overall market demand is already down”.

- Advertisement -

He added that the Workers’ Party has continued to advocate for small businesses in Parliament. 

Additionally, in last month’s Budget debate some Workers’ Party MPs suggested that Government-connected firms could link up with SMEs in expansion efforts in the region, “and in doing so, uplift them via knowledge and experience transfer”.

This would mean collaborating in the endeavour to conquer foreign markets instead of “cannibalising each other in competition over our small home market.”

Dr Lim went on to warn that endeavours to increase the productivity of SMEs would be unsuccessful if these companies “are not allowed room to shore up their bottom line during these challenging times”.

The resident he spoke to believed this as well, the MP wrote. “She said that the available grants were mostly about digitalisation, but these were largely irrelevant when she was having difficulty securing business and making rent.”

However, Dr Lim expressed the hope that more support would be given to SMEs beyond digitalisation financing projects.

“This would entail scaling up and making our business development programmes more proactive, and ensure that we target productivity improvements in non-tech/non-pharma sectors, too,” he added.

/TISG

Read also: Jamus Lim speaks up about CECA: It must balanced by inclusivity and social harmony

Jamus Lim speaks up about CECA: It must balanced by inclusivity and social harmony

Follow us on Social Media

Send in your scoops to news@theindependent.sg 

- Advertisement -

WP’s Raeesah Khan, Louis Chua distribute porridge in Sengkang for Ramadan 

Singapore—Workers’ Party (WP) Members of Parliament Louis Chua and Raeesah Khan distributed food among their constituents in Sengkang GRC at the weekend to mark Ramadan. They were at Block 182 Rivervale Crescent with grassroots workers at 5 pm on Saturday (Apr 17),...

Case of suspected drowning at Clarke Quay, 2 bodies found

Singapore – Two bodies were found in the Singapore River near Clarke Quay on Sunday morning (Apr 18) in what appeared to be a case of suspected drowning. Member of the public Rudy Ferragamo took to Facebook on Sunday to note "another...

Covid-19 vaccine side effect fever, fatigue, arm pain can be a good sign

CNN – Doctors revealed that individuals who experience side effects including fever, fatigue and arm pain after receiving the Covid-19 vaccine should not panic as this could mean that the immune system is reacting as intended. Side effects from Covid-19 vaccines won't...
Follow us on Social Media

Send in your scoops to news@theindependent.sg 

Theindependent