The Latest Addition To SME Policy By Singapore Government
The Singapore government has continuously worked toward supporting the growth of small and medium enterprises. From introducing effective policies to coming up with programmes that enhance productivity, employee skills, financial support, innovation, and more.
The major highlights of government support that SMEs can apply for are the following:
1. In order to strengthen the SME units and become at par with bigger players in the Singapore market, the government launched the SME Talent Programme. This encourages students to consider working for SMEs in the city-state through scholarships and training from industry experts that would allow them to become productive professionals and contribute considerably to the SME sector.
2. With the aim to achieve sustainable growth, the government offered more jobs to Singaporean citizens. To make way for more opportunities to the locals, foreign worker policies have been tightened. As a consequence, SMEs will find it tougher to recruit foreign workers to their team.
3. An important scheme that has been introduced by the government is the Wage Credit Scheme which aims to help employees get better salaries and improve their quality of life. When these issues are addressed, chances are employees will become more productive and efficient in their work. Take note that this scheme is only available to Singapore citizens.
4. Another programme granted by the government that seeks to improve the condition of local small industries came in the form of the Productivity and Innovation Credit. This was mainly for those businesses that invest a minimum of S$5,000 to get maximum returns in the form of raised productivity. Qualified companies who have invested in activities that bring forth improvement in productivity and innovation can receive fund support. The scheme can also be taken advantaged by SME owners who are applying for Intellectual Property Rights.
5. In addition, SME owners can get a rebate in the amount spent for commercial vehicles as well as transportation rentals. While it may seem trivial, alleviating these expenses can greatly impact the way SMEs conduct business. Through the programme, small businesses can utilize their funding to more gainful business activities, reduce operational expenditure and more so, generate better income.
6. Lastly, the workgroup for the SME started by the Ministry of Trade and Industry (MTI) to help, aid and support the small and medium enterprises in Singapore works to build, strengthen and take the dynamic economy of Singapore to glorious heights and bring competition to small scale industries for best results.
SMEs are major contributors to the gross domestic product (GDP) and are considered the backbone of Singapore’s economy. However, SMEs also experience many limitations such as lack of funding, manpower issues, technology needs, and such. To address this and allow SMEs not only to operate but also grow, the government works hard in order to provide support and assistance in various areas of running a business.
The launching of the workgroup to aid small and medium enterprise include business representatives, government agencies, and industrial advisors along with the MTI working together to bring reforms and build stronger, more stable Singapore economy.
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