Government Pushes for Green Solutions and Capabilities Enhancement for SMEs
In his Budget 2024 speech, Finance Minister Lawrence Wong outlined enhancements to existing schemes for small and medium-sized enterprises (SMEs) aimed at fostering partnerships with multinational enterprises (MNEs) and promoting sustainability. The Partnerships for Capability Transformation (PACT) scheme will be expanded to support collaborations in areas such as capability training, internationalisation, and corporate venturing.
The enhanced scheme seeks to help local businesses plug into global supply chains, improve their competitiveness, and adopt green solutions. SMEs will benefit from extended support for green loans under the Enterprise Financing Scheme, alongside an expanded Energy Efficiency Grant (EEG) to support sectors like manufacturing, construction, and maritime.
The government is focused on ensuring that local companies are “sustainability-ready,” as many MNEs are increasingly requiring their suppliers to reduce carbon emissions. The updated EEG will offer two tiers of support, with the base tier covering energy-efficient equipment, and the advanced tier helping companies make larger investments in energy-saving measures. The goal is to help SMEs embrace sustainability while enhancing their business capabilities.
