Singapore Budget 2020 Part 2 – Transformation And GrowthDownload Now: FREE GST 2023 GuidebookDownload Now: FREE Employment Pass ChecklistDownload Now: Free Incorporation Checklist
In this Part 2, we will cover Singapore’s Budget 2020 Transformation and Growth initiative, where the Government is committing to build up companies’ and workers’ capabilities in order to face future economic challenges and opportunities. For more information on Budget 2020’s Stabilisation and Support measures, click here for Part 1.
Singapore is well-positioned to take advantage of several projected structural changes globally:
- Rapid advancement in technology and innovation
- Decline in support for globalisation although most of Asia remains committed to free trade and economic integration and;
- Asian economies continuing to grow strongly and contribute to a larger share of the global economy.
The Transformation and Growth strategy introduce in Budget 2020 will continue to support enterprises to make the best out of these structural changes. The Government will be allocating a total of S$8.3 billion over the next three years to drive these initiatives.
1. Enabling Stronger Partnerships
Resources will be allocated to help trade associations and chambers develop Executive-in-Residence programmes to drive industry and enterprise transformation, The Government will also be establishing Heartland Enterprise Upgrading Programme to help rejuvenate heartland enterprises through the upgrading of heartlands commercial precincts, infrastructure etc.
2. Enhancing Digital Connectivity
Initiatives to enhance digital connectivity and trade processes will continue with the Nationwide E-invoicing network, Networked Trade Platform and G2G Digital Economy Agreements with other governments to foster greater international cooperation.
3. Financing for Early Stage Deep-Tech Startups
Additional S$300 million will be allocated to Startup SG Equity dedicated to investing into Singapore-based deep-tech startups in key emerging sectors such as pharm-bio, medtech, advanced manufacturing and agri-foodtech. Deep-tech startups generally require larger investments and longer gestation period, making them less attractive to venture capital even though they may have strong intellectual property content which may be developed into sustained competitive advantages.
4. Enterprise Growth Package
- GoBusiness platform: Streamlines and digitalise transactions between Government and enterprises, allowing licensing applications to be streamlined and e-adviser services to be provided to businesses in order to facilitate the process of accessing government assistance.
- Expansion of SMEs Go Digital: Develop more Industry Digital Plan to pre-approve more industry specific digital solutions. Grow Digital: New initiative to enable SMEs to access overseas demand via global digital marketplaces. SMEs will be co-funded at 70% for Multichannel B2C E-commerce Platform Solutions. Programmes for B2B marketplaces to be announced in 2Q 2020, starting with industrial hardware and food supplies.
- Enhance Market Readiness Assistance (MRA): MRA is a grant supporting enterprises taking their first steps overseas. MRA will be enhanced with the scope of supportable activities being expanded, grant cap increased from S$20,000 to S$100,000 per new market per company, extension of 70% support level for another 3 years.
- GlobalConnect@Singapore Business Federation (SBF): In partnership with Enterprise Singapore, GlobalConnect@SBF will be set up to assist enterprises looking to internationalise for the first time in key Southeast Asian markets and emerging markets. GlobalConnect@SBF will set up a team of market advisors to provide advisory services, networking opportunities, business matching, market insight, referrals, education.
- Enhancement of SME Centres: SME Centres will implement a pilot initiative for promising enterprises which have demonstrated growth ambition, a good track record of growth or having a scalable or unique business model. Enterprises will benefit from one-on-on business diagnosis, development of business plans, business coaching and implementation of growth roadmaps.
- Enhancement to Productivity Solutions Grant (PSG): PSG will be enhanced to a more comprehensive suite of pre-approved solutions.
5. Enterprise Transformation Package
- Enterprise Leadership for Transformation: Three-year pilot that supports business leaders of promising SMEs in achieving growth plans, this includes structured modular training, coaching by advisors and industry practitioners, peer learning and collaboration, implementation of business growth plans.
- Expansion of Enterprise Transformation Support: Expansion of Enterprise Development Grant (EDG) with the aim of supporting 3,000 enterprises in FY20. Partnership with Intellectual Property Office to identify enterprises’ intangible assets and develop strategies to harness them.
- Open Innovation Platform (OIP): OIP is a virtual crowd-sourcing platform bridging business needs with digital solutions. The Government, via IMDA, will provide 70% co-funding of prize monies for challenges that has the potential to benefit entire sectors. IMDA will also lower the barrier to entry to innovation by paying out the first tranche (30%) of the prize monies at the point of award, before prototype delivery.
In spite of the economic challenges posed by the COVID-19 epidemic and slowing economy growth, the long-term prospects for businesses in Singapore remains positive due to Singapore’s proximity to high-growth economies and ability to adopt technology and innovation. The Government continues to support SMEs to crystallise growth opportunities and build new enterprise capabilities.
In spite of the economic headwinds, your business can take advantage of these initiatives to build new capabilities for the future. Let us know what you think of these Transformation and Growth measures and how we can help you benefit from these initiatives.