RAM Ratings said on Monday this level of 33.7 was substantially below the neutral point of 50, and reflected the disruptions plaguing small businesses amid the Covid-19 pandemic.
The reasons being the economy remains fragile, with uncertain prospects through the next three months. Of these, almost 90% need an extension beyond the expiry date of Sept 30,2020, as cashflows remain tight. RAM Ratings said a targeted approach by the government, based on firm size and sector, is the best way to assist firms.
Based on the findings of the survey, RAM Ratings said in terms of the type of assistance needed, a respective 79% and 75% of medium and small firms indicated the need for wage subsidies to continue, as opposed to 51% of microenterprises.“Amid the gloom, a silver lining emerges in that our survey reveals the resilience of SMEs and microenterprises.