On 18 February 2020, DPM and Minister for Finance, Mr Heng Swee Keat presented the Singapore Budget 2020. A number of measures to deal with short-term challenges of COVID-19 coronavirus outbreak and long-term economic development were introduced.
What does the budget have to support your business? One of the underlying theme of the budget is to help Singapore companies embrace digital transformation, innovations and capitalise on emerging growth opportunities internationally.
Budget 2020 introduces new measures and initiatives to help businesses develop new capabilities, deal with short-term challenges and set the stage for long-term growth.
Askvisor would like to highlight a few initiatives relevant for Singapore small-medium-enterprises (SMEs):
1) Enhanced Market Readiness Assistance (MRA) Grant
Companies can look forward to support for in-depth Free Trade Agreement consultancy and overseas business development. To support more local companies to go overseas, the MRA grant will be enhanced:
- Removal of the cap on two applications per company per year.
- Grant cap will be increased from S$20,000 per year, to S$100,000 per new market over three years.
- up to 70% support level
- Effective from 1 April 2020
2) Enhanced Productivity Solutions Grant (PSG)
- PSG supports companies in the adoption of pre-scoped IT solutions and equipment that enhances productivity
- In Budget 2020, there will be greater support for more sector-specific solutions and a wider range of pre-scoped solutions for businesses beyond IT solutions and equipment.
- Expanded scope to include job redesign consultancy services
3) SkillsFuture Enterprise Credit
- A one-off S$10,000 credit will help eligible employers cover up to 90% of out-of-pocket expenses for eligible enterprise or workforce transformation schemes.
- Employers who have contributed at least S$750 Skills Development Levy (SDL) in total in the preceding 12 months and have at least three Singapore Citizens or Permanent Residents (SC/PR) employed in each of the preceding 12 months will automatically qualify for the credit and be informed.
4) Enhanced Startup SG Equity
- Programme will catalyse private sector investments into local-based deep-tech startups with strong IP and global potential.
- Investment cap for deep-tech startups will be increased from S$4 million to S$8 million. On top of partnering qualified third-party investors for co-investments, the Government will also invest in selected venture capital firms that will in turn invest in deep-tech startups.
5) Enterprise Development Grant (EDG)
- Tap the expertise of management consultants and specialist service providers to support you on Business Strategy Development, Strategic Brand and Marketing Development, Product Development, Overseas Marketing Presence, Pilot Project and Test Bedding.
- Covers up to 70% of eligible costs
Before the COVID-19 virus crisis hit, many Singapore businesses were already facing much challenges coping with the disruptions of Digital Economy. The urgency to innovate and transform is even higher now for traditional family businesses and SMEs.
Askvisor team of Enterprise SG TUV SUD certified management consultant, partner consultants and service providers will be able to help you in the areas of new product/service and business model innovation, product development, digital branding and marketing, digital transformation and internationalisation. We understand the pain-points faced by SMEs and challenges amidst today’s volatile and uncertain market environment, made worse with the COVID-19 virus situation. We will be able to support your business to transform, explore new revenue streams and stays ahead of competition with the support of relevant government grants.
If you would like to find out more details, contact one of the SME Centres or please feel to reach out to us at hello@askvisor.com
Khengwah Koh is the Founder and Principal Consultant of Askvisor, a boutique management consulting firm that supports clients in digital transformation, design thinking, innovation, digital branding and marketing.