Firms are also hit by the rising interest rates for debt.
Small construction firms face greater risks in terms of repaying debt amidst the property curbs paired with the slowdown of growth in Singapore’s economy, Bloomberg reported.
A decline in property demand is likely to take its toll in the construction sector which employed 12.3% of the Lion City’s manpower in 2017.
Many firms are likely hit by the rising interest rates for debt whilst delays in collection from customers could result in tight liquidity and looming difficulties in loan repayments, EY partner Angela Ee explained.
Before the cooling measures were rolled out in July, engineering firm Ryobi Kiso Holdings which specialises in piling had already declared that its subsidiary was unable to maintain its repayment obligations. Meanwhile, bonds issued by Oxley Holdings due 2021 slipped $1.30 to $1.25.
Here’s more from Bloomberg.
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