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Singapore’s new budget

Anant Choubey, Regional Head – APAC, Capillary Technologies | April 11, 2014
Five impacts of the newly set 2014 Singapore budget to take note of (and how retailers can capitalize)

At least one area of expansion deals with crossing the country's border into international trade opportunities. The new budget has taken a measure to double the maximum loan quantum to $30m per firm. That investment spells significant outreach on behalf of Singaporean vendors, but it also invites partners to enter the country and get involved in the action of the country's robust economy. In addition the Global Company Partnership Programme brings Singapore companies up to speed on international business strategy and implements new policies and procedures that help them compete, offering MNCs potential new business partners in trade within the country and beyond. There is now also a waiver of withholding tax requirements on payments made to Singapore government branches, a victory for international companies seeking business tax breaks.

How to capitalize on budget expansion: If you are an MNC, open doors in Singapore. Get involved in government and private business by making partners and building alliances to coordinate major business campaigns and create social infrastructure that positions you to compete. If you are a Singaporean company, seek partners, investment and other mutually beneficial relationships.

Singapore has not stopped advancing toward its place as an international trade hub in 2014.

#3: Companies will receive $2 billion as part of the National Productivity Fund. 

Singapore is showing major support for SMEs in the context of both general development and human resources support. The government's Productivity and Innovation Credit (PIC) has disbursed more than $1 billion over the last three years. This year, it will continue that trend, including a Wage Credit Scheme (WCS) that will support the wages of economic workers throughout all of Singapore trade.

How to capitalize on the PIC and National Productivity Fund: Determine whether or not you are eligible for growth funds and take advantage of them if you are. Particularly, look toward labor, tools, and grants to work with companies that may be able to offer insights or strategy. The Singaporean government has taken the time to develop resources for companies that fall into the SME category. There may also be dollars available for divisions of larger companies if they are in coordination with other, smaller companies. Keep in mind your core needs, but also keep in mind your core opportunities. Training associates and offering them incentives to perform may be something you can do more easily within the boundaries of the new budget. Also consider upgrading your toolkit for development by investing in better tools.

The budget has made room for advancement. Why shouldn't retailers take advantage?

#4: Info-Comm Technology (ICT) is getting huge support.

10,000 SMEs are set to receive proven ICT solutions for their company, greatly transforming and revolutionizing these individual companies as well as the Singapore economy as a whole. The budget also calls for an 80% subsidiary for qualifying costs of emerging technologies in a pilot program. There is also a huge movement to subsidize companies' fibre broadband, getting companies connected at a speeds of 100 mbps or better.


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