Stimulus should hit the right targets

THE unveiling of the economic stimulus package was welcomed by the business community that needs to relieve some of the current economic pain. As reported, the Covid-19 outbreak and the US-China trade war have impacted the economy from both angles, demand and supply.

Short-term measures such as the Special Relief Fund meant for affected SMEs (small and medium enterprises) are definitely appreciated. However, the definition of affected SMEs needs to be extended to manufacturers and service providers as well. For instance, suppliers to hotels and retailers in the tourism sector could be hit as well. Commercial banks that disburse these soft loans should be allowed more leeway to decide the type of SMEs affected.