In his Budget 2024 speech today (Feb 16), DPM Lawrence Wong announced a new S$1.3 billion support package to help Singapore businesses manage costs.
Called the Enterprise Support Package, it will provide companies a 50 per cent corporate income tax rebate capped at S$40,000, in the year of assessment 2024.
Businesses that are not profitable will receive a minimum benefit of S$2,000 in cash payouts, as long as they have employed at least one local employee in 2023. These businesses will automatically receive the grant by the third quarter of 2024 once they meet this local employee condition.
Meanwhile, the Enterprise Financing Scheme (EFS) will receive three enhancements, including a permanent raise of the maximum working capital loan quantum from S$300,000 to S$500,000 to help small and medium-sized enterprises (SMEs) meet their increased working capital and operational cashflow needs.
On top of this, the enhanced maximum trade loan quantum of S$10 million will be extended until Mar 31, 2025, to support businesses’ internationalisation efforts amid global support chain disruptions, and the support for domestic construction projects under the EFS’ project loans will be extended until Mar 31, 2025, with a maximum loan quantum of S$15 million.
Additionally, the SkillsFuture Enterprise Credit will be extended by a year to Jun 30, 2025. Employers who have already received the credit will be able to use it on supportable schemes beyond Jun 30, 2024, with claims to be submitted by Jun 30, 2025.
Accelerating sustainability efforts for SMEs
The Singapore government has also extended support for green loans sunder the EFS to support local SMEs to adopt green solutions, as well as enhancing the Energy Efficiency Grant.
DPM Wong explained that the grant was introduced in 2022 for the Food Services, Food Manufacturing and Retail Sectors. Support through the grant will also be extended to more industries including Manufacturing, Construction, Maritime and Data Centres.
Companies registered and operating in Singapore with at least 30 per cent local shareholding, at least one local employee and a group annual sales turnover of not more than $500 million will be eligible for support under the scheme.
Financial support will be provided at two levels – a base tier to provide support for pre-approved energy-efficient equipment up to a cap of S$30,000, as well as an advanced tier to support companies that wish to make larger investments to drive greater energy efficiency.
The Partnerships for Capability Transformation (PACT) scheme – an initiative introduced in 2010 that supports co-innovation and internationalisation projects, will also be enhanced in more areas, focusing on capability training, internationalisation and corporate venturing.
In his speech, DPM Wong calls for more collaboration between SMEs and Multinational Enterprises (MNE) to spur greater growth, provided if they are able to meet the high standards set by the bigger companies.
We cannot force MNEs to choose only local suppliers. But we can and we will help Singapore enterprises to meet the high standards, and to form win-win partnerships with the MNEs.
Lawrence Wong, Deputy Prime Minister of Singapore and Minster of Finance
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