IT WAS reported that Micron Technology, the largest producer of memory chips in the United States, received a $300-million loan from the Government for the upgrading of its Singapore plant.

Separately, Micron announced that it has offered funds and unconditional technology transfers to Taiwan's struggling DRAM sector, which makes nearly a quarter of the world's DRAM memory chips.

In Singapore, Micron is the main assembly and test-operation site for all memory devices produced by the company's plants in the US, Europe and Asia.

Memory modules are also built in the Singapore plant, according to the company's website.

The Singapore loan is being disbursed through the Economic Development Board, with conditions attached.

Is this loan part of the financial- assistance plan for businesses under the Resilience Package, which was announced by the Government recently?

If so, why is the loan not being disbursed through financial institutions, whereby the Government guarantees a significant portion of the loan in the event of default?

Banks would be better appraisers of risk than any government agency.

If not, it means the Government can offer loans and financial assistance to private companies through channels other than banks.

Going by the latest statistics from the Monetary Authority of Singapore, domestic bank lending in January this year decreased 0.33 per cent, compared to December last year.

In the same month, lending to businesses dropped 0.65 per cent compared to an increase of about 0.13 per cent in consumer loans.

The Government should coordinate the work of agencies which have a stake in the economy, so that financial-assistance packages are administered in a holistic and consistent manner.

Mr Ee Teck Siew

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