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MTI unveils support measures for marine & offshore engineering firms
THE Ministry of Trade and Industry (MTI) on Friday announced enhancements to International Enterprise Singapore's Internationalisation Finance Scheme (IFS) and the reintroduction of Spring Singapore's Bridging Loan (BL) for companies in the marine and offshore engineering (M&OE) industry.
MTI said these measures will help facilitate M&OE companies' access to working capital and financing, and address the intensifying financing challenges faced by the M&OE industry in the recent months, as it experiences a "unique and prolonged slowdown".
The IFS, which provides project/asset financing support for companies, will have its maximum loan raised to S$70 million per borrower group from the current S$30 million per borrower group for M&OE companies.
The BL will help Singapore-based M&OE companies finance their operations and bridge short-term cash-flow gaps. Eligible companies will be able to borrow up to S$5 million each, with a loan tenure of up to six years. The maximum loan quantum for each borrower group is S$15 million.
The government will take on 70 per cent of the risk share for both BL and IFS, which will be available from December. MTI said the schemes could catalyse about S$1.6 billion of loans over a period of one year.