Original article posted on Today Online
The Government is set to implement recommendations targeted at small and medium enterprises (SMEs) in the upcoming Budget in order to help develop a competitive and vibrant SME sector and a source of jobs for Singaporeans, Minister of State (Trade and Industry) Teo Ser Luck said yesterday.
To achieve these aims, the new measures will focus on helping SMEs in three areas: “To drive productivity, innovation and capability upgrading; to tap opportunities for growth; and to create a conducive business environment for SMEs,” said Mr Teo, who was speaking at the Singapore 1000 awards ceremony, which recognises excellence across large and small industries.
The recommendations follow a review that began in April last year, when the Government partnered with the SME Committee and the trade associations and chambers to assess and improve existing strategies for the sector. Details are being finalised for announcement in the Budget.
SMEs are currently facing challenging conditions, with uncertainty about the global and domestic economies.
Acknowledging that the last 12 months have not been easy, Mr Teo said other issues are also creating headwinds: “Many of you have also shared with me about the domestic challenges — the rising business cost and the domestic manpower and infrastructural constraints.”
Against this backdrop, Mr Teo reiterated the need for greater productivity and innovation as the key to continued success. At the same time, to help SMEs better tap growth opportunities in the region, Mr Teo said: “IE and SPRING will be stepping up their efforts to help SMEs accelerate their pace of internationalisation.”
This includes facilitating cross-border transfer of knowledge on markets, suppliers and technology, while encouraging partnerships between larger corporations and SMEs. Assistance schemes will also be simplified and made more accessible for SMEs, as part of the effort to create a more conducive environment for entrepreneurship and enterprise development.
“The Government will also enhance our various outreach channels like Enterprise Development Centres and industry associations to reach out to more micro and smaller SMEs for better and easier access to the various government assistance schemes,” said Mr Teo.
Meanwhile, while there are challenging conditions, Mr Teo said many businesses have “still found the opportunities for growth in Asia and other parts of the world”. He added: “You have managed to sharpen your competitive edge, overcome the challenges and exploit opportunities successfully. That is definitely worth celebrating.”
Following Mr Teo’s speech, a total of 48 awards were presented yesterday to business recipients in nine categories, including three categories that recognised SME excellence in sales, net profit and potential.