A third of SGC members expect over 10% revenue loss in H1 2020

Two-thirds saw a moderately disruptive impact on their business due to the outbreak.

About one-third of members of the Singaporean-German Chamber of Industry and Commerce (SGC) expect to suffer a revenue loss of more than 10% in the first half of 2020, according to SGC president Jens Ruebbert.

Based on a survey, more that three in 10 or 32% needed to wait and see how the outbreak and related measures hit their revenues.

About two-thirds or 67% of respondents saw a moderately disruptive impact on their business due to the COVID-19 outbreak.

Nearly three in five or 59% of respondents experienced decreased demand for their products and services, whilst 46% felt uncertainty or inability to make business and investment decisions. Over three in 10 or 32% dealt with an inability to meet contractual delivery deadlines due to disruption to logistics.

Further, one in three companies expect current supply chain disruptions to worsen in the months to come, whilst 35% of respondents are uncertain about whether supply chains will normalise in the near future.

“There are many factors that influence this, including how the COVID-19 outbreak will be handled in Europe and the US, whether related travel bans will be lifted or not and how fast suppliers can resume manufacturing” Ruebbert explained.

In the face of these factors, 65% have developed risk mitigation strategies related to the COVID-19 outbreak.