On 18 February 2019, the FY2019 Budget Statement was delivered by Singapore’s Minister of Finance, Mr Heng Swee Keat.
This year, several initiatives for businesses in Singapore will be rolled put by the Government.
Presented below is an overview of the basic initiatives and what it means for your business and you.
For the ensured competitiveness and relevancy of Singapore’s firms to the world, here are the outlined two key areas for industry transformation:
- Openly encouraging strong partnerships, within Singapore and across the world; and
- Building deep enterprise capabilities
To encourage strong partnerships
One key area that the Government is focusing on is on developing global partnerships so that new areas of collaboration can be forged with other innovation centres.
The Government realizes the role that trade associations and chambers (TACs) play in aiding local enterprises to develop their external wings.
Programs and Initiatives to support businesses to develop strong partnerships:
1. Local Enterprise and Association Development program
This program will aid in strengthening support for TACs through the local enterprises along with Association Development programme.
2. TACs’ 5-year roadmaps
Enterprise Singapore plans on developing these roadmaps with TACs that have actively demonstrated strong leadership and shown ambition to do more for the business community.
What these roadmaps will do is they will aid TACs to take on a long-term and more strategic approach in driving industry transformation, and initially gain access to funding.
3. Global Innovation Alliance (GIA)
Nodes in global start-up hotspots, such as Bangkok, Jakarta, Berlin, Beijing and San Francisco will supply students and entrepreneurs new opportunities to educate and build global networks.
4. Singapore FinTech Festival and the Singapore Week of Innovation and Technology
This mid-November event will aid in maximising efforts in bringing the global innovation community to Singapore together, and foster opportunities to collaborate and explore.
5. Centres of Innovation
The focus of these centres will be on aquaculture and energy, as part of the Government’s push to aid SMEs with technology innovation.
The Aquaculture Centre will support the internationalization and growth of maximum local enterprises, while also improving Singapore’s food resilience.
The Energy Centers aims is to drive industry-led innovation in energy efficiency, electric mobility and renewable energy.
Building Deep Enterprise Capabilities
For the Government, another key area is to continue aiding SMEs to adopt digital technologies by actively providing support in three areas:
- Providing customized assistance
- Better financing options
- Supporting technology adoption
Programs and initiatives to help businesses build upon enterprise capabilities:
1. Scale-up SG program and Innovation Agents
A 2-year pilot to aid firms tap industry professionals for opportunities to commercialize and innovate technology.
This could aid local firms to deepen their capabilities and internationalize.
Thus, generating good jobs, wage growth and better career opportunities for local workers.
2. SMEs Go Digital program
Sectors such as sea transport, accountancy, and construction are added with more sectors that are due to be included later.
This program aims to guide SMEs on skills training programs and relevant digital technologies.
3. SME Co-Investment Fund III
This aims to catalyze private-sector funding in SMEs (Singapore-based) to aid them to scale up.
Such investments directly correlate to investments and employment in Singapore.
4. Cross-border Innovation Platform
MAS and IMDA will jointly pilot a cross-border innovation platform for SME’s.
Powered by artificial intelligence, this marketplace aims to aid SMEs to locate global suppliers and buyers.
5. Automation Support Package and SME Working Capital Loan
This is extended to address the needs (financial) of smaller companies, alongside the Government sharing risks with the majority participating financial institutions and jointly providing around 70% of the cost of such technology projects.
6. Enterprise Development Grant and Productivity Solutions Grant
Extended and enhanced to promote innovation.
7. Enterprise Financing Scheme
Streamlined existing financing initiatives for medium-sized enterprises.
8. R&D and new Centers of Innovation
The investments in technology, innovation and enterprise are to progress towards keeping Singapore as regionally and internationally the top country.
9. One-stop portal
For businesses to transact with the Government with ease, the Ministry of Industry and Trade, and relevant agencies are developing a one-stop portal, with a pilot for the food services sector by the third quarter of 2019.
Businesses will deal with one point of contact, not 14 different ones like today.