SINGAPORE (Feb 18): The Singapore government will allocate $8.3 billion to spur enterprises and develop Singapore’s economy over the next three years, says Deputy Prime Minister and Minister for Finance Heng Swee Keat in his Budget speech on Tuesday.
Heng explains that the fund – which includes the amounts allocated in previous years – will be deployed under three main thrusts: enabling stronger partnerships, deepening enterprise capabilities and developing people.
“As a small, open economy, we must continue to strengthen partnerships with the world,” says Heng.
Beyond economic activity, the government is also enhancing digital connectivity through initiatives such as the Nationwide E-invoicing Network, which allows suppliers abroad to send e-invoices to the government.
However, Heng stresses the need for companies to strengthen partnerships to deepen industry-wide capabilities. “Even as our enterprises compete to differentiate themselves, they must come together to solve common challenges,” he says.
In a bid to encourage businesses to raise their capabilities, Enterprise Singapore (ESG) will launch a pilot Executive-in-Residence (EIR) programme. The programme will fund more than 10 trade associations and chambers across all sectors of the economy to support hiring of experienced executives and procurement of expert advice.
ESG will also start a Heartland Enterprise Upgrading Programme to support merchants’ associations to drive the transformation of heartland businesses.
Under the programme, ESG will support selected associations in developing and implementing four-year precinct rejuvenation plans such as infrastructure improvements and training for businesses and workers.
Heng also unveiled a $300 million top-up to the existing Startup SG Equity, a co-investing scheme targeted to catalyse investments into innovation-driven Singapore-based technology startups.
Some 3,800 technology start-ups and around 150 venture capital funds are expected to benefit from the top-up.
Deep tech start-ups, including those in emerging areas such as medtech, advanced manufacturing and agri-food, are among the beneficiaries.
“These startups need larger investments, longer gestation periods, and face higher risks. Investors are hence less prepared to invest in deep-tech startups,” says Heng. “They have high potential to be competitive and stimulate innovation in their sectors,” he adds.
Heng shares that the government is expecting to draw in more than million of private funding over the next ten years, which will in turn give deep-tech startups better access to capital, expertise and industry networks.
As part of a slew of measures to help enterprises innovate and change as they mature, Heng unveiled the Enterprise Transform Package targeted at strengthening leadership in companies.
The package includes the Enterprise Leadership for Transformation Programme, which aims to support business leaders of 900 small and medium enterprises (SMEs) over the next three years.
“For enterprises to transform, they also need to strengthen their leadership and management capabilities,” says Heng.
The government is also expanding the reach of the Enterprise Development Grant, which integrates support for businesses in their growth and transformation. In FY2020, 3,000 projects are slated to receive support from the grant, which translates to an increase of more than 10% from the current figure.
