Singapore Budget 2013 was announced in February and includes initiatives targeting SMEs.

The details for Budget 2013 Singapore had been announced in February 2013. The Budget 2013 was termed as one aimed at “quality growth” by Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam.

There are some key initiatives that will benefit SME businesses amongst the list of initiatives pledged to be implemented in the coming year. These measures seek to enhance support for SMEs to restructure and transform their business, seek new business growth opportunities and improve skills and capability in order to strengthen business competitiveness.

1. Encouraging Productivity & Innovation

• $3.6 billion will be set aside over 3 years to improve the existing Productivity and Innovation Credit (PIC) Bonus benefits. Under the new policy, businesses that incur a minimum of $5,000 in PIC qualifying expenditure per year will enjoy a dollar-for-dollar matching cash bonus of up to $15,000 over three Years of Assessment (YA2013 to YA2015).
• Enhancement will be made to update and expand the prescribed equipment list under the PIC Bonus regularly to take into account feedback from businesses. Intellectual Property in-licensing will now be a qualifying activity under the PIC scheme, and will be eligible for enhanced tax allowance/deductions under the PIC scheme of up to a combined cap of $400,000 per YA.

2. Encouraging industry collaboration for Productivity Improvements

• Over a span of 3 years, $60 million will be allocated to Partnerships for Capability Transformation (PACT) for it to be expanded to include additional manufacturing sectors as well as non-manufacturing sectors. Beyond supplier qualification, PACT will support initiatives that improve SMEs’ productivity and capabilities, and support deeper collaboration between SMEs and Large Enterprises.
• EDB will set aside $500 million over 5 years to support a Future of Manufacturing plan. EDB will be working with industry partners, our universities, polytechnics and research institutes to build new capabilities and test-bed technologies that can be tapped on by our firms, including manufacturing SMEs.

3. Nurturing Talent for the SME Sector

• SPRING will launch an SME Talent Programme to attract polytechnic and ITE students over the next five years to join SMEs upon graduation.
• Enhancements will also be made to the Workfare Training Scheme (WTS) to provide businesses higher training course fee funding, cash awards for continuous training and a structured programme to upgrade the skills of their Singaporean workers.

4. Nurturing the next Singapore MNC

• SMEs seeking overseas growth are able to obtain faster and easier help with the new Market Readiness Assistance Grant (MRA Grant). By tapping on the grant, pre-approved consultants would be able to provide advice on market assessment, market entry and business restructuring via internationalization.
• The Government will also work with trade associations and chambers to provide in-market support to assist SMEs to identify business opportunities.
• SMEs that require assistance are now able to approach any of the Enterprise Development Centres for advice.

For more details about Budget 2013 Singapore, please click here.