Highly Supportive Packages For The Enhancement Of SME Sector
The Government of Singapore has drafted the Budget of 2013 with an extensive focus on increasing the productivity of small and medium enterprises (SME). With long-term plans to develop SMEs as a growing and sustainable sector, Mr. Tharman Shanmugaratnam expressed the government’s intention to implement more initiatives to boost the industry performance.
Restrict foreign labour. The government desires to lower Singapore’s dependence on foreign workers and instead, uplift local talents’ employability. The government has taken several measures to identify potential entrepreneurs and encourage them to engage in Company Formation In Singapore.
Restructuring of the economic condition of SME sector. The government seeks to revive the SME sector, improve the infrastructural development of Singapore and maximize support to the local businesses.
Offer more incentives to businesses. The government is looking to offer more incentives and bonuses to SMEs including tax rebates, reimbursements, subsidies and financial grants to further boost the performance of the SME sector.
Programmes and Schemes. One of the objectives for this year’s budget is to launch schemes and programmes that support the development of the enterprises in the island.
Information on Support Packages for SME Sector
Wage Credit Scheme (WCS). The WCS Scheme is an innovative scheme that allows businesses to share their gains with the employees and offer them higher wages. The scheme specifies that if the employees are earning above $4000, the WCS would increase the wage of Singaporeans by co-funding 40% of the wage over the three (3) years.
Rebate on Corporate Income Tax. Businesses can enjoy the corporate income tax rebates through this initiative. This allows business owners to not only reduce expenses but also use savings in other gainful business activities.
Regular training for employees. Skilled employees are essential in boosting the performance of the business and positively contributing to the industry’s productivity level. More than hiring qualified employees, business owners must recognize that continuous training is necessary. SPRING Singapore launched the SME Talent Programme that influences and motivates Polytechnic students to join SMEs.
Tax rebates on commercial vehicles. Enterprises that require the use commercial vehicles in conducting business can be eligible for tax rebates. The business owners can get 30% rebate on commercial vehicles and save funds for productive utilization.
Productivity and Innovation Credit Bonus (PIC). One of the qualifying activities for the PIC Scheme is the acquisition or licensing of an Intellectual Property (IP) right. The scheme encourages businesses to make innovative products and services for the market.
All in all, the government is working to uplift Singapore’s economic development. From improving Information and Technology infrastructure to uplifting the skills of employees, promoting the growth of SMEs through various schemes and programmes.
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