By the myBusiness techblog team
If you agree with what Association of Small and Medium Enterprises (ASME)’s President Chan Chong Beng had to say about the new Budget, then Small and Medium Enterprises (SMEs) will soon need to “relook their processes, consolidate, merge, relocate, or at worst, wind down”.
However, this may be what’s needed to wake up small to medium-sized businesses to stepup their game. The Singapore International Chamber of Commerce (SICC), for one, believes a new breed of savvy and more competitive SMEs will re-energise the industry as MNCs are seeking to partner with productive SME partners in the supply chain. SICC represents over 700 of the biggest international businesses in Singapore.
So what are some of the key Budget packages that can provide a helpline for SMEs?
Raising productivity, easing manpower needs
One measure to help SMEs develop the necessary skill sets and capabilities to be competitive is through the enhanced Workfare Training Support (WTS) scheme, which provides course fee funding and cash awards to upgrade worker skills. This will not only be enhanced for lower-wage Singaporeans, programmes will now be in place for PMEs (professionals, managers and executives) to develop expertise.
With less reliance on foreign labour expected, the Wage Credit Scheme can lend SMEs a hand to retaining and motivating staff through higher wages. The government will co-fund 40 percent of wage increases for Singapore employees earning up to a gross monthly income of S$4,000 over the next three years.
SPRING Singapore will launch an SME Talent Programme to help SMEs attract and recruit Institute of Technical Education (ITE) and polytechnic students through study awards.
Access to funds for ICT equipment
With infocomms technology (ICT) a key pillar for productivity and innovation, the Productivity & Innovation Credit (PIC) Bonus is seen by some to be a helpline that businesses can utilise to invest in productivity-enhancing tools or to subsidise rising costs. The bonus offers a dollar-for-dollar matching cash bonus for investments made to improve productivity, ranging from S$5,000 to S$15,000. This is capped at three years and is over and above other enhanced PIC scheme benefits.
To further promote ICT adoption, opportunities will be created for SMEs via the Collaborative Industry Projects. This aims to get SMEs working together by pooling resources in order to leverage economies of scale. Added to that, the Technology Adoption Programme will help link companies’ technology needs to solution providers to help companies across sectors increase productivity through adopting technology innovations and solutions.
One-stop shop
To simplify matters for SMBs, the Enterprise Development Centres (EDCs) will be transformed into integrated one-stop SME Centres. Here, businesses such as yourself can more easily access information and seek advice on schemes and assistance programmes from both government and private organisations.
So what do you think of the new Budget packages for SMBs? Will these help to re-energise your business?