ESG approved S$18b in loans to 21,000 enterprises last year amid pandemic

LAST year, on top of supporting 15,300 Singapore firms to transform, Enterprise Singapore (ESG) worked with financial institutions to approve some 32,000 loans worth S$18 billion for 21,000 enterprises, amid the Covid-19 pandemic.

Of these recipients under the Temporary Bridging Loan Programme and enhanced SME Working Capital Loans, 87 per cent were micro and small enterprises, mostly from the wholesale trade, construction, manufacturing, professional services, and retail sectors, ESG said in its year-in-review on Friday.

In other pandemic-related efforts, the agency helped 23,500 enterprises upgrade, digitalise and achieve business continuity, with the majority of these tapping the six Covid-related digital tools and solutions introduced under the Productivity Solutions Grant.

It also supported 3,600 retailers and 19,000 food and beverage establishments to build digital capabilities and sell online, via its e-commerce and food delivery booster packages.

Much has been done to help firms through the pandemic crisis, but government efforts must now be targeted, and shift towards helping firms seize new opportunities, said Minister for Trade and Industry Chan Chun Sing.

"It is not sufficient to play defensive by trying to preserve existing enterprises only and to preserve current jobs only," he said.

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ESG's Covid-19 support efforts were in addition to its continuing support for transformation, innovation and internationalisation. Last year, 15,300 enterprises received such support, up 54 per cent from 2019.

The projects embarked upon are expected to catalyse S$18.4 billion in value-add and more than 22,200 skilled jobs in the next three years.

"Many enterprises recognised that the global environment has changed and they would need to operate differently, with better products and solutions, in order to compete in this new environment," said ESG chief executive officer Png Cheong Boon.

Productivity improvements and capability upgrading projects were the most widespread, with 14,800 enterprises undertaking these, up 78 per cent from 2019.

In innovation, 600 enterprises embarked on projects, comparable to 550 in 2019. "They developed new products and solutions to tap the opportunities created during the pandemic period," said Mr Png, citing the example of Covid-19 Fortitude text kits developed by local firm Mirxes in collaboration with A*Star and Tan Tock Seng Hospital.

But unsurprisingly, given the pandemic, internationalisation slowed down, with 1,600 enterprises - down 38 per cent from 2019 - pursuing such activities with ESG support. China and South-east Asia remained the top markets of interest.

Mr Png expects that businesses will be stepping up internationalisation efforts this year, as the situation stabilises and virtual meetings gain more acceptance.

Outside these main areas, ESG also supported leadership development, with 60 leaders from 38 enterprises undergoing the first run of the Enterprise Leadership for Transformation programme.

Seven enterprises from the agritech, healthcare, urban solutions, and supply chain sectors joined the third run of the Scale-up SG programme, which helps local firms scale regionally and globally.

And 2,100 startups benefited from mentorship, incubation, collaboration opportunities, and funding via ESG's Startup SG programmes and assistance from partners.

This year, ESG will continue to support enterprises to build new capabilities, including going abroad with a "hybrid approach" that taps digital platforms, and to innovate to meet new needs and compete beyond pricing, said chairman Peter Ong.

Last year, ESG launched more than 120 challenge statements, which drew over 900 proposals. This year, it is similarly working on a "healthy pipeline" of open innovation calls, said Mr Ong.

As for where to find new opportunities, he highlighted the emerging growth areas of advanced manufacturing, agritech, and edtech; the sustainability trend; and China and South-east Asia.

ESG will also keep working closely with partners such as trade associations and chambers, and aims to deepen collaboration with leading local corporates and multinational corporations.