More access to innovation experts for startups, SMEs: Tan See Leng

BOTH startups and small and medium-sized enterprises (SMEs) are getting more access to expert talent who can aid them in innovation, Second Minister for Trade and Industry Tan See Leng said at the ministry's Committee of Supply on Tuesday.

For startups, the new Innovation and Enterprise Fellowship programme provides a bridge to the research world, by connecting researchers with accelerators, startups, or investors for product development and technology commercialisation.

For SMEs, the Innovation Advisors Programme - under which appointed experts are matched to SMEs, providing mentorship, advice and business networks - will be expanded to more sectors.

The programme was launched in late 2019 with a focus on food manufacturing and medtech, and later expanded to include aerospace and infocomm technology. It will now be expanded to manufacturing and logistics, with more industry veterans coming on board as advisers.

Innovation is one of three key areas in enabling Singapore firms to compete globally, said Dr Tan. The other two are a "Team Singapore approach", in which firms collaborate to do well abroad; and access to financing, which is being improved through moves such as the new Local Enterprises Funding Platform (LEFP) for large local enterprises (LLEs).

"Drawing on the network and expertise of Temasek, the LEFP will actively seek out promising LLEs to invest in, focusing on sectors that are aligned with the engines of growth in our economy," said Dr Tan.

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All this is part of government efforts to help firms emerge stronger from the Covid-19 crisis, by supporting them in transforming and going global.

The 23 Industry Transformation Maps, for instance, will be refreshed "to make sure that they are still relevant in light of Covid-19, and that we are able to unlock new opportunities that have arisen globally over the last 12 months or so," said Dr Tan.

In the area of internationalisation, the Global Innovation Alliance network will be expanded to 25 cities over the next five years, up from 15 now. The initiative will also include cross-border co-innovation programmes, meaning that participating Singapore companies can receive support of up to 70 per cent of qualifying costs for co-innovation projects with overseas partners.

More support will be given to offset internationalisation costs. As announced in the Budget speech, the enhanced support level of the Market Readiness Assistance (MRA) grant, of up to 80 per cent, will be extended another six months till end-March 2022.

In addition to this, from April 1, 2021, the MRA will include support for trade credit insurance. This aims to encourage SMEs to take up such insurance to protect themselves against buyer defaults in new overseas markets.

And in recognition of "new modes of internationalisation" arising amid Covid-19, the scope of qualifying expenses in the Double Tax Deduction for Internationalisation scheme has been expanded to include virtual trade fairs.