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- Construction machinery manufacturer Zicom Group (ZGL) has closed business in Singapore due to new government restrictions
- The Singapore Government has enforced ‘circuit breaker’ measures to break the chain of infection from COVID-19
- All business must close, except for essential services, from April 7 to May 4
- As a result, Zicom is expecting to suffer drops in revenues as well as impact to cash flows
- Although there are uncertain times ahead, the company is confident of riding through this difficult situation
- On market close, Zicom remains steady and is selling shares for 4 cents per share
Construction machinery manufacturing company, Zicom Group (ZGL) has closed business in Singapore due to new government restrictions.
The Singapore Government has enforced ‘circuit breaker’ measures to break the chain of infection from COVID-19. All business must close, except for essential services, from April 7 to May 4.
As a result, Zicom is expecting to suffer drops in revenues as well as impact to cash flows. The Singapore Government has imposed a freeze on bank loan repayments over the next six months.
“In addition, the government also guarantees bridging loans granted by banks to
Singapore companies up to 90 per cent taken before March 2021, “the company said.
“Among other reliefs, the government has increased its subsidy of companies’ employees’ pay from 25 per cent to 75 per cent on the first S$4600 (around A$5225) per month for the month of April 2020,” it added.
The pandemic is now spreading across the world, with no known cure or vaccine available. Although there are uncertain times ahead, the company is confident of riding through this difficult situation.
“We are confident that the Singapore government’s measures will have sufficient effect to control the situation and normal conditions could return in a quarter or two barring no further deterioration of the pandemic,” the company told the market.
On market close, Zicom remains steady and is selling shares for 4 cents per share.
