Expectations Of Growth Policies For SMEs From The Budget
A global hub of renewable and non-renewable resources offering innumerable opportunities to both locals and foreigners, Singapore continuously works toward achieving sustainable economic growth. Creating job opportunities and significantly contributing to the gross domestic product of the nation, SMEs are vital building blocks in Singapore’s economy. The government has initiated many measures to support and economically develop the SME sector. This is apparent in the Budget of 2013 to 2014 highlighting programmes and schemes to develop SMEs.
Every year, Singaporeans, foreign investors, and workers in the country look forward to the yearly budget allocation announcement. Safe to say, everyone has a specific expectation that they hope will be addressed. We have enumerated some of the expectations of Singaporeans from the budget.
Expectations of Singaporeans from the budget
Policies on foreign workforce. One of the most common problems faced by SMEs is the lack of talents. With a low number of locals interested in small businesses’ job posts and implementation of tight foreign labour laws, SMEs struggle to fill in gaps within the business. In the coming budget, SMEs look forward to a decrease in low-cost foreign labour restrictions.
Encourage Entrepreneurs. Enterprise building is important in sustaining economic growth of Singapore. Hence, to encourage more entrepreneurs to Incorporate A Singapore Company, the government is expected to continue providing programmes and training to improve both the SMEs and local talents. The government is also expected to make the said programmes and training more accessible to SMEs.
SME Cash Grant. The government is expected to provide more cash grants to help augment the high cost of goods sold. The goal of the proposed cash grant is to improve the condition of smaller companies. This could also be beneficial in encouraging more potential talents to incorporate a company in Singapore.
Productivity and Innovation Credit (PIC) Scheme. The PIC Scheme aims to encourage SMEs to improve innovation and productivity within the business. SMEs that invest in the qualifying productivity and innovation activities defined by the Inland Revenue Authority of Singapore (IRAS) can enjoy tax deductions or cash payouts. The scheme is expected to be part of the budget as it is deemed helpful to SMEs in the city-state.
Correct rising rental costs. Singapore’s rental cost has become a major issue especially for small businesses with limited funds. The past three (3) years have seen a continuous increase in rental costs which could be attributed to the 60% increase in industry land costs. The government is expected to take measures and alleviate rising rental costs.
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