This blog post will share with you some of the measure that stood out that may benefit you.
SME Working Capital Loan
Introduced in 2016, wherein the government co-shares 50% of loan risks of up to S$30,000 per SME will be available for the next two years.
Cap for Corporate Income Tax (CIT) Rebate Raised, Rebate Extended
The rebate will be enhanced for the year with the cap raised from S$20,000 to S$25,000 for Year of Assessment (YA) 2017 at the same rebate rate of 50% of tax payable. The rebate will be extended an additional year to YA2018, but at a reduced rate of 20% of tax payable capped at S$10,000.
SME Go Digital Programme
With the government emphasizing the importance and potential of digital transformation, this program with funds of more than S$80 million will help SMEs that are still in the early stages of digitalization, adopt more digital technology to improve productivity.
A*STAR Operation and Technology Road-mapping & Tech Access Initiative
Businesses will get additional help to access advanced machine tools for prototyping and testing. Under a new Tech Access Initiative, A*STAR will provide access to such equipment, training and advice to support 400 companies over the next 4 years.
International Partnership Funds and Enhancements to IE Singapore’s International Finance Scheme
The government is putting in S$600 million into a new fund called the International Partnership Fund, which will help Singapore businesses with the overseas expansion efforts. The government will also be enhancing IE Singapore’s International Finance Scheme to enable businesses to tap on growing markets especially in Asia for infrastructure development, by leveraging on private financing for such overseas projects.
Global Innovation Alliance, Innovation Launchpads and Welcome Centers
The government will establish the Global Innovation Alliance for Singaporeans to gain overseas experience, build networks and seek opportunities to collaborate with other. The government will also be setting-up Innovation Launchpads in selected overseas markets, creating opportunities for local business owners to connect with mentors, investors and service providers. With Welcome Centres, innovative foreign companies can link up with Singapore partners to co-innovate, test new products and expand within the region.
We hope you found the above information extracted from Budget 2017 useful. For more information, you may refer to the Singapore Budget 2017 website (http://www.singaporebudget.gov.sg/budget_2017/home.aspx), where you will be able to view the full budget statement, the full speech video, and access by Budget statements.
Remember to utilise the PIC (Productivity and Innovation Credit) Scheme before it expires by YA2018.