Parliament Sitting on 16 Jan 06: Question For Written Answer -- Mr Steve Chia Kiah Hong: Business Scene in Singapore

Question No. 65 for Written Answer

Name and Constituency of Member of Parliament
Mr Steve Chia Kiah Hong, Non-Constituency Member.

Question:
To ask the Minister for Trade and Industry, since 2000, (a) how many small business entrepreneurs and proprietors have been forced to close down their businesses due to poor business; (b) of these, how many still have outstanding corporate or government financed loans for their businesses; (c) how many of these past entrepreneurs and business owners are now in financial difficulty and have problems servicing their business liabilities; and (d) how many have been made bankrupts or face legal bankruptcy.

Answer:
The Government does not specifically track the number of businesses that have closed down due to poor business, these businesses’ outstanding corporate or government financed loans, or their servicing of financial liabilities thereafter. Our approach is to let businesses and companies operate in an open commercial environment, with minimal government monitoring and intervention wherever possible.

From the administrative angle, the Government ensures that the process of registering or closing a business or company remains easy. While certain requirements of disclosure need to be adhered to, the procedures are kept streamlined and convenient to facilitate entrepreneurship in Singapore.

Furthermore, the processes of business or company closure and formation are natural elements in any healthy economic environment. Businesses and companies may be closed down or formed for various reasons.

To illustrate the economic churn, we could look at the general rates of closure and formation. From January 2000 to June 2005, 150,259 companies and businesses were ceased while 209,755 were formed. This means a total net formation of 59,496 companies and businesses over this period, or an average of 10,817 each year.

I assure Members that there is a vibrant business scene in Singapore, and the spirit of enterprise is very much alive.