By Francis Chan

MR FREDDIE Low, 44, chief executive of premium furniture distributor and retailer Baker Furniture, is still going ahead with the firm's overseas expansion plans despite the downturn.

'We handle a very niche market and we know there is still a segment of wealthy clients that need to be served,' he said.

WHAT HE WANTS

'I hope to see government initiatives that specifically aim to help companies expand further abroad. A lot of loans have been halted...plus, banks have not been forthcoming with credit.

More government backing will really help.

We are already working with the Economic Development Board (EDB) to explore other markets, so perhaps EDB and also International Enterprise Singapore can come together with a solid plan instead of one-off trips which people tend to forget over time.'

WHAT EXPERTS SAY

The Government has already said it will support an extra $2.3 billion of loans to firms. This has been helpful but insufficient, as banks remain cautious, said Citigroup economist Kit Wei Zheng.

He suggests raising loan quantums and temporarily increasing risk sharing by the Government on existing financing schemes, with the Government bearing up to 100 per cent of the risk.

Ernst & Young tax partner Choo Eng Chuan said encouraging firms to go overseas right now may not be a good idea in this crisis.

But one way to help could be by urging firms to find local partners abroad and join hands with them through mergers and acquisitions. 'The Government could encourage this, for instance by introducing friendlier tax rules on borrowing costs.'

This article was first published in The Straits Times on January 17, 2009.