Key measures to help businesses tackle rising costs and drive transformation
The Singapore government has announced a S$1.3 billion Enterprise Support Package as part of Budget 2024, aimed at helping businesses manage increasing expenses in wages, rental, and utilities. Finance Minister Lawrence Wong emphasized that the package is designed to support companies in their restructuring and transformation efforts.
Key Components of the Package:
Corporate Income Tax Rebate
Companies will receive a 50% corporate income tax rebate, capped at S$40,000 for 2024.
Non-profitable companies with at least one local employee in 2023 will receive a minimum cash payout of S$2,000.
Enterprise Financing Scheme (EFS) Enhancements
The maximum working capital loan quantum has been permanently increased to S$500,000.
The maximum trade loan quantum and government risk-sharing for project loans in domestic construction projects have been extended until March 31, 2025.
SkillsFuture Enterprise Credit Extension
The SkillsFuture Enterprise Credit has been extended until June 30, 2025, allowing businesses more time to claim unused credits for workforce and business transformation initiatives.
Industry Experts’ Perspectives:
Deloitte Singapore’s Rohan Solapurkar praised the tax rebate, noting it is the highest in the past decade and a crucial boost for SMEs.
NUS Business School’s Simon Poh highlighted that the rebate cap of S$40,000 is the largest in recent years, providing significant relief for businesses struggling with rising costs.
HSBC Singapore’s Priya Kini emphasized the sustainability benefits of the package, which encourages businesses to adopt green practices and cleaner technologies.
Funding Societies CEO Kelvin Teo welcomed the extended financing support, calling it a reassuring move for SMEs.
Kearney’s Nithin Chandra pointed out that the green loan extensions reflect Singapore’s commitment to sustainability and economic resilience.
With these measures, Budget 2024 aims to ease financial burdens for businesses while encouraging long-term transformation and sustainability.
