Budget 2020 presented in the backdrop of COVID-19 outbreak is cognizant of the immediate challenges as well the need to bolster the economy to tackle the challenges emerging from the long-term structural changes happening around the world. Coming at the back of the weakest-ever GDP growth registered since the global economic crisis and amid looming uncertainties, the priority is undoubtedly on recouping the resilience. Budget 2020, dubbed as unity budget, aims at advancing as one nation to seize future opportunities by growing and transforming the economy and enterprises, but most importantly, by addressing the immediate imperatives of enterprises and workers by stabilising and supporting them.
Following is an overview of the key features of the budget that impact the business community.
The S$4 billion Stabilisation and Support package aims to empower businesses and workers in overcoming the uncertainties hovering over the economy following the COVID-19 breakout. Budget 2020 has set aside S$8.3 billion towards growing and transforming the economy and reinforces its focus on the three thrust areas underscored in the previous budget: Deepening Enterprise Capabilities, Developing Worker Capabilities and Enabling Stronger Partnerships.
Enterprise Grow Package
1. Launch of GoBusiness and e-Adviser
The GoBusiness platform is a central platform that streamlines and digitalises transactions between the government and businesses. Following a pilot programme in October 2019 for food services sector licensing, the portal is now being made permanent and will be expanded to cover more sectors and government agencies. Access to government assistance programmes will be streamlined, and e-Adviser will recommend the ideal assistance based on the individual needs of the businesses.
2. Expansion of SMEs Go Digital Programme
The Go Digital Programme launched in 2017 to help SMEs embrace digital technology and transform their business process will be expanded. More sectors will get their own Industry Digital Plans (IDP), which will guide the SMEs in the sectors on relevant technologies and skills training programmes. Collectively, these will cover the different needs of 23 sectors, up from the current ten sectors. Some of the new sectors that will benefit are Healthcare, Food Manufacturing, Adult and Early Childhood Education. IDPs are currently available for sectors such as Environmental Services, Retail, Food Services, Wholesale Trade, Logistics, Security and Media sectors. Also, the number and range of pre-approved digital solutions, which the government co-funds up to 70%, will be expanded to drive digitalisation among SMEs.
A new initiative to enable SMEs to gain access to global markets via B2B and B2C digital channels, known as Grow Digital, has been rolled out. The IMDA and Enterprise Singapore will support SMEs to participate in e-commerce platforms. Eligible SMEs will be co-funded at 70% for Multichannel E-commerce Platform solution packages.
3. Enhancement to Market Readiness Access (MRA)
A broad-based enterprise grant scheme, MRA provides support to companies to take their first step in expanding overseas. To accelerate the internationalisation efforts of SMEs, MRA will be enhanced to:
- - Expand the scope of supportable activities to include: (a) Free Trade Agreement (FTA) consultancy services to support companies in better leveraging FTAs; and (b) in-market business development;
- - Increase the grant cap from $20,000 per year to $100,000 per new market per company over the enhancement period of FY20-22; and
- - Extend 70% support level for another three years, until 31 March 2023.
4. Other Growth Programmes
Set up to assist Singapore enterprises looking to internationalise for the first-time, GlobalConnect@ Singapore Business Federation(SBF), will have a team of market advisors to assist SMEs through face-to-face market advisory services. Also, SMEs will benefit from networking opportunities, business matching services, referrals to in-market consultants, partners and government contacts, FTA education and advisory, Market insights, and Belt and Road Initiative business matching.
There are currently 11 SME centres attached to Trade Associations and Chambers (TAC) offering general business diagnosis and advisory services, capability workshops and group-based upgrading projects. The SME centres over the next two years will identify enterprises demonstrating growth ambition, having a good track record of growth or having a scalable or unique business model. Qualifying enterprises, thus identified will receive enhanced support in the form of one-on-one in-depth business diagnosis, business plan development for digital transformation talent development and internationalisation, business coaching and help in the implementation of growth roadmaps.
The Productivity Solution Grant (PSG), which provides funding support for the adoption of IT solutions and equipment that are pre-identified by the government, will be enhanced to offer a more comprehensive suite of pre-approved solutions. PSG’s support will be expanded to include consultancy services, starting with job redesign. The number of sector-specific solutions on the PSG will also be increased.
