Senior Lecturer of Finance Ang Ser Keng said that it is uncertain if the 2009 credit crunch will repeat itself. If the EU debt crisis shows signs of deterioration, this scenario could become very real. Given the experience of 2011, there is a widespread belief that the situation in Europe is not going to be resolved any time soon. Hence, SMEs should tread with caution, even if liquidity is available at the moment. They should focus on riding out the likely financial storm, as well as recognise and appreciate the concept of cash flow and how to manage it well.
Lianhe Zaobao
