How Budget 2021 Will Support Businesses in Singapore

how-budget-2021-will-support-businesses-in-singapore

In 2020, the Singapore government committed nearly SGD 100 billion and various support schemes to help businesses and citizens overcome the economic turmoil due to the COVID-19 pandemic. Singapore Budget 2021 provides continued support to businesses with new measures and extends existing programmes.

This article discusses how Budget 2021 helps businesses in Singapore to grow, transform and scale.

Industry Transformation Maps

Singapore will allocate a budget of SGD 24 billion for the next three years to assist workers and businesses emerge stronger beyond the COVID-19 pandemic’s ravages. The following are the three enablers of this initiative.

A. Growing a Dynamic Business Community

Restoring Singapore’s physical connectivity is necessary to ensure the business community has a strong spirit of enterprise and innovation that links well with the rest of the world. Therefore, the government will give support to transform the aviation industry for recovery. Singapore’s digital connectivity also has to expand, and its ability to collaborate and innovate should increase.

This effort will be carried out through the methods below:

  • Positioning the aviation industry for recovery: Restoration of Changi’s connectivity and investment in biosafety systems and on-arrival testing.
  • Developing platforms for creative ideas: Investment will be focused on platforms like Open Innovative Platform to stimulate innovative ventures.
  • Deepening Southeast Asia and worldwide partnerships: Efforts include working along with ASEAN members to seek common frameworks in emerging sectors, improve cybersecurity and digital connectivity, and improve the region’s infrastructure investments.

B. Catalysing a Broad Range of Capital

Singapore will catalyse a wide range of capital to co-fund and allow businesses to transform, innovate and scale. This effort is done through the methods below:

  • Venture debt for enterprises with high-growth: Assure they gain access to financial capital by enhancing and extending the Enterprise Financing Scheme-Venture Debt Programme.
  • Co-funding mature enterprises’ transformation: Co-fund new technologies and digital solutions’ adoption.
  • Equity investments in big local enterprises: Partnerships with equity agencies to offer growth capital for local businesses.
  • Value chains transformation-Growth and Transformation Scheme: Establish Alliances for Action, starting with the Built Environment industry

C. Making Opportunities and Redesigning Works

Developing Singaporean’s talent, skills, and creativity is the last primary enabler in assisting businesses in the country.

Extension of Jobs Support Scheme or JSS

To help companies retain local workers, the Singapore government will extend the Jobs Support Scheme to up to six months until September 2021. For agencies in the hard-hit Tier 1 industry, including aviation, tourism and aerospace, the government will extend the scheme by six months and provide thirty per cent support for wages paid from April to June 2021. They will also receive ten per cent support for salaries paid from July to September 2021. Furthermore, the government will allocate SGD 870 for the aviation sector.

On the other hand, JSS for agencies in Tier 2 industries, including food services, arts and culture, and build environment, will be extended by three months. They will obtain ten per cent support for salaries paid from April to June 2021. The government will also extend the Sports Resilience Package and Arts and Culture Resilience Package to support companies and self-employed individuals in these industries.

Enabling Business Innovation

The Finance and Deputy Prime Minister, Mr Heng Swee Keat, stressed the need for companies to innovate and collaborate globally. The government will invest in three main platforms to allow this change, including the Corporate Venture Launchpad, Open Innovation Platform or OIP and Global Innovation Alliance of GIA.

The country is also developing the Singapore Intellectual Property Strategy 2030, equipping companies with tools to value their IA and IP.

Improved Support Levels for Existing Enterprise Programmes

Singapore will extend the support levels by up to 80% for schemes like Productivity Solutions Grant, Scale-up SG programme, Enterprise Development Grant and Market Readiness Assistance Grant until the end of March in 2022. The government will also enhance the Productivity Solutions Grant-Job Redesign, increasing the government’s co-funding ratio from seventy to eighty per cent until the end of March in 2022.

Getting Help from Professional Company Secretary Services Singapore 

Competent company secretary services Singapore helps ensure the company stays compliant with all relevant company regulations in Singapore and offers business owners guidance on business ethics and corporate governance. They also help companies to leverage current business schemes and initiatives for the best growth opportunities.

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