Schemes And Programmes To Promote The Development Of SME Sector
TheBudget of 2013 was drafted with emphasis on the development of Small And Medium Enterprises (SME) sector. The Singapore government encourages the collaboration of major industry players to improve the SME sector’s level of productivity, discover several flexible solutions and improve the technology and infrastructure to create innovative products and services. In line with this goal, the government introduced an innovative incentive named as Productivity and Innovation Credit (PIC) Bonus. PIC Bonus is a dollar-for-dollar matching scheme that seeks to relieve that cost of companies that invested a minimum amount of $5,000 in activities for productivity and innovation. Qualified companies can receive a cash bonus every year equal to the amount spent.
The assessment of company activities will be conducted from 2013 to 2015.
Benefits of PIC
Innovation. The PIC Scheme also covers Intellectual Property licensing to encourage SMEs to innovate and manufacture new products and services.
Tax benefits. The qualified companies can avail the benefit of a 400% tax rebate or 60% of payment in cash for Intellectual Property licensing projects.
Low Cost. Due to initial tax benefits, PIC lowers the cost of production and increases the profitability margin.
Capital Allowance. The PIC Scheme increased the capital allowance companies can use in automated equipment to improve performance.
Mr. Teo Ser Luck, the Minister of Trade and Industry, has implemented measures to promote the development of small and medium enterprises. He encourages industry collaboration, innovation, technology and infrastructure.
Encouraging New Talent
Productivity is a key factor in improving Singapore’s economic output. Encouraging local talents to skill up prior to employment leads to better industry performance and business growth. Hence, the New Talent Programme aims to motivate talented students from ITE and Polytechnic to grab job opportunities through internships, fresh hire training, and sponsorships.
Partnerships for Capability transformation Scheme (PACT)
The Partnerships for Capability Transformation (PACT) Programme is formed to encourage and forge partnerships initiated by Large Organizations (LOs) and small and medium enterprises (SMEs). Selected qualified SMEs and startups will have access to projects aimed at upgrading areas of capability development, overall productivity, and opportunities in forming innovative solutions or products. The projects that have been approved by SPRING Singapore will be given fund support of up to seventy percent (70%) of qualified development expenses.
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