Impact on Enterprises announced in Budget 2020
- Part 2 - Transformation and Growth
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 globalization 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
5. Enterprise Transformation Package
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 crystalize 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.
Reach out to Sprout for a complementary consultation. We provide insights on how you should manage your business on this time of uncertainty!
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