Back
Accounting , CFO cum Business Advisory

Financial Support from the Singapore Budget for SMEs in Singapore

Share:
  • whatsap

In the dynamic business landscape of Singapore, small and medium-sized enterprises (SMEs) are the backbone of the economy, driving innovation, creating jobs, and contributing significantly to the nation’s GDP. Recognizing their critical role, the Singapore government consistently introduces various financial support measures in its annual budget to bolster SMEs and help them thrive. Here’s an overview of the key financial support available for SMEs in Singapore as outlined in the latest government budget.


1. Enhanced Productivity Solutions Grant (PSG)


The Productivity Solutions Grant (PSG) is designed to encourage SMEs to adopt IT solutions and equipment that improve productivity. The government has enhanced the PSG to cover a wider range of pre-approved digital solutions and equipment, with an increased funding cap. This allows SMEs to:


• Invest in Technology: Upgrade or adopt new technologies that streamline operations and enhance productivity.


• Improve Efficiency: Implement solutions that reduce manual processes and increase operational efficiency.


2. Enterprise Development Grant (EDG)


The Enterprise Development Grant (EDG) supports projects that help SMEs grow and transform. It covers three main areas: core capabilities, innovation and productivity, and market access. With the latest budget, the EDG has seen:


• Increased Funding Support: Enhanced co-funding rates to help SMEs undertake larger and more impactful projects.


• Broadened Scope: Inclusion of more project categories that align with digital transformation and sustainability efforts.


3. SkillsFuture Enterprise Credit (SFEC)


The SkillsFuture Enterprise Credit (SFEC) encourages employers to invest in enterprise and workforce transformation. SMEs can benefit from:


• Training Subsidies: Subsidies to cover up to 90% of out-of-pocket costs for courses that enhance employees’ skills.


• Capability Development: Support for initiatives that develop new capabilities and competencies within the organization.


4. Temporary Bridging Loan Program (TBLP)


In response to the ongoing economic challenges, the Temporary Bridging Loan Program (TBLP) has been extended. This program provides:


• Low-Interest Loans: Access to low-interest loans to manage cash flow and operational needs.


• Higher Loan Quantum: Increased loan caps to provide SMEs with more substantial financial support during tough times.


5. Market Readiness Assistance (MRA) Grant


The Market Readiness Assistance (MRA) Grant supports SMEs in expanding their business overseas. The grant has been enhanced to offer:


• Increased Funding: Higher funding caps for activities related to overseas market set-up, market promotion, and market development.


• Broader Support: More comprehensive support for internationalization efforts, including digital marketing and participation in virtual trade fairs.


Conclusion


The Singapore government’s budget reflects a strong commitment to supporting SMEs through various financial measures. These initiatives are designed to enhance productivity, drive innovation, and foster growth in both local and international markets. By leveraging these support schemes, SMEs in Singapore can strengthen their competitive edge, achieve sustainable growth, and contribute to the broader economy.


At Corporate BackOffice Pte Ltd, we are dedicated to helping SMEs navigate these financial support options and optimize their business strategies. Contact us today to learn how we can assist you in making the most of these government initiatives and drive your business forward.

________________________________________

Corporate BackOffice Pte Ltd Your trusted partner in accounting and financial management.

📞 Contact us today!

website : http://corporatebackoffice.com.sg/

Contact :

Email : [email protected]

or Whatsapp : +65 90880669

Written by Kelvin Loh