Despite a challenging external backdrop, our economy has continued to strengthen and grow. Our economy grew by 3.6% in 2022 and the unemployment rate is below pre-pandemic levels, at 2.8% in December last year.

Budget 2023 introduces new and enhanced initiatives that will help your business grow as well as adapt to the changing economic climate.

In his Budget 2023 speech on Tuesday (Feb 14, 2023),ย Deputy Prime Minister and Minister for Finance, Mr. Lawrence Wong, mentioned that the economic competition will get stiffer in this new era where countries compete for power and influence, thus Singapore will have to adapt quickly to these changes, to survive and prosper in a troubled world.

Here is a round-up of what SMEs can expect.

Developing Local Enterprises

  • Set aside $1 billion to provide customised support for promising local companies under Singapore Global Enterprises initiative
  • Additional $150 million via SME Co-Investment Fund to invest in promising SMEs

Building Capabilities and Anchoring Quality Investments

  • Top up $4 billion to National Productivity Fund and expand scope to support investment promotion

Nurturing and Sustaining Innovation

  • Introduce Enterprise Innovation Scheme to support businesses’ innovation activities via enhanced tax deductions/allowances, with a cash conversion option

Dealing with Cost Pressures

  • Extend Enterprise Financing Scheme enhancements till 31 Mar 2024 to facilitate access to credit:
    – 70% Government risk-share for trade loans
    – Enhanced maximum quantum for trade and working capital loans
    – Support for domestic construction projects via project loans
  • Extend Energy Efficiency Grant till 31 Mar 2024 for SMEs in Food Services, Food Manufacturing, and Retail sectors to adopt energy-efficient equipment, given higher electricity prices

Integrate Training and Job Placement

  • Pilot Jobs-Skills Integrators in Precision Engineering, Retail, and Wholesale Trade sectors to bring together key players to develop industry-relevant training and facilitate job matching

Enhance Employment Support

  • Top up $2.4 billion to Progressive Wage Credit Scheme fund for lower-wage workers, and maintain higher Government co-funding share of eligible wage increases in 2023:
    – Wages up to $2,500: increase from 50% to 75%
    – Wages above $2,500 and up to $3,000:
    increase from 30% to 45%
  • Extend Senior Employment Credit and Part-time Re-employment Grant for senior workers till 2025 to continue providing wage offsets, and encourage employers to offer flexible work arrangements and structured career planning
  • Enhance Enabling Employment Credit to encourage employment of persons with disabilities
  • Introduce Uplifting Employment Credit to encourage employment of ex-offenders

Useful Resources:

Budget 2023 website:ย https://www.mof.gov.sg/singaporebudget
Budget 2023 overview by Enterprise Singapore:ย https://www.enterprisesg.gov.sg/campaigns/budget-2023/budget-2023-overview

Note:ย More details on some of these schemes will be shared by the at the COS

Updated as at 15 Feb 2023