Budget 2022: Additional S$600m to help local companies improve productivity

AN ADDITIONAL S$600 million will be set aside over the next 4 years under the Productivity Solutions Grant (PSG) for small and medium-sized enterprises (SMEs), as part of a suite of measures rolled out to support Singapore's enterprise ecosystem.

Other measures include a new initiative helping large enterprises expand overseas and a programme helping firms with talent development.

The S$600 million will be used to support more than 100,000 productivity projects over the period, Finance Minister Lawrence Wong said during his Budget 2022 speech in Parliament on Friday (Feb 18).

This is more than double the number of projects supported since the scheme began in 2018. The funds will help the government expand the solutions under the PSG to push more SMEs to take up productivity solutions.

A new Singapore Global Enterprises initiative will be rolled out for larger local enterprises, providing customised assistance to scale up and invest in overseas markets.

A new Singapore Global Executive Programme will also be launched to help companies with talent development through industry and overseas attachements, mentorships and peer support networks.

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"Besides grants and bespoke assistance, some companies also need help with their financing needs," said Wong. To support these businesses, initiatives under the Enterprise Financing Scheme will be enhanced.

The M&A loan programme will be expanded to include domestic M&A activities from Apr 1 this year to Mar 31, 2026.

In addition to extending the enhanced Trade Loan, the government will also maintain the enhanced 70 per cent risk-share under the loan for enterprises venturing into more nascent markets like Bangladesh and Brazil.

"We hope this will encourage our enterprises to seek untapped opportunities in these markets," said Wong.

More details will be announced during the Ministry for Trade and Industry's Committee of Supply.