Senior Minister of State for Trade and Industry S. Iswaran on Tuesday said the strong interest was a good sign, adding that a lot more interest was expected.

He said Spring Singapore and International Enterprise Singapore had received 700 to 800 inquiries about the schemes since these were announced on Nov 21.

The measures are intended to boost Singapore's slowing economy by offering loans as a lifeline for businesses in need of financing during the credit crunch and economic slowdown.

Mr Iswaran told reporters after opening an international oil and gas exhibition and conference: 'We expect a lot more interest. Now, I think the process has to take its course in terms of the banks doing their evaluations and then proceeding to approve the loans according to their established criteria. I think we have to wait for that.

'But the fact that there's been such a surge of interest is already a good sign. It means the announcements have been effective in targeting certain needs within the business community. Now, the interest is there, and the applications are coming in. We have to let the banks process it and see how the take-up rates are.'

'The Ministry of Trade and Industry and our agencies are tracking this very closely to make sure that the schemes are well-utilised and meet the needs of our businesses. If there's a need to tweak it, we will consider that in due course.'

He added it was too early to tell whether the Government would need to supplement the $2.3 billion already earmarked.

'Let's have a look at the take up rate first. By all accounts it looks promising in that businesses are responding and applying, so that's a good start,' he added.