Should the state step in to save distressed companies such as airlines? What are the risks and downsides?
Maren Schweizer
CEO
Schweizer World Pte Ltd
We have to focus assistance on businesses large and small that were financially sound when the crisis hit, and are likely to survive and contribute to boosting our economy in the coming years.
By doing so, we must ensure that these companies adjust their business model and value proposition to achieve a viable long-term business case post-assistance. In the instance of a long and deep recession, with demand for these companies’ goods and services not picking up, resizing, including retrenchments, might be required. Therefore state-funded reskilling and upskilling initiatives have to be in place too, and are already in Singapore.
When tailoring support measures, governments should sustain market competition and ensure a level playing field between the companies that receive support and competitors that do not. In parallel, increasing assistance for digital transformation, adoption and business models are essential.
