Government may extend Temporary Electricity Contracting Support Scheme beyond May if needed

THE government may extend the Temporary Electricity Contracting Support Scheme (TRECS) beyond May, amid concerns about the impact of the Russia-Ukraine war on the energy market, said Second Minister for Trade and Industry Tan See Leng on Friday (Mar 4).

Introduced last December, TRECS provides large electricity consumers with a viable option to reduce their exposure to the volatile wholesale electricity prices through fixed price contracts with electricity retailers.

The scheme was extended once from March to May and if necessary, it may be extended further, Dr Tan said during the Ministry of Trade and Industry's Committee of Supply (COS) debate in Parliament.

This comes alongside Dr Tan's assurance to the House that the government will "spare no effort" to ensure that Singapore's energy supply remains secure and reliable.

Other measures include ensuring that generation companies have sufficient fuel reserves and establishing a standby fuel facility which generation companies can tap on to produce electricity, he added.

He told Parliament that the government will continue to monitor market developments and introduce further measures to support vulnerable consumers if necessary.

Eligible households will continue to receive U-Save rebates, while businesses that need financing support can tap on loans offered by Enterprise Singapore, he added.

Dr Tan also spoke on the government's Enterprise 2030 plans to identify, nurture and grow promising local enterprises, one of 4 pillars in the Singapore Economy 2030 vision.

The government is launching an initiative to cultivate a new generation of "Singapore Global Enterprises" which are "locally grown and globally competitive".

These high-potential companies will be supported in 4 ways: developing global-ready executives; creating new corporate ventures; facilitating mergers and acquisitions; and creating enhanced access to financing.

Responding to MP cuts on how to ensure firms have access to the talent they need, Dr Tan said: "The answer lies in growing our own 'timber', providing the space and opportunity to nurture and support Singaporeans to be part of the growth stories of many more promising homegrown enterprises."

This is why the government will launch the Singapore Global Executive Programme to boost human capital capabilities of these high-potential local firms, he said.

The programme will support these firms in talent attraction and retention as well as leadership succession programmes to develop a pipeline of future leaders.

Meanwhile, the government will also expand the Corporate Venture Launchpad, which had been getting positive feedback following a pilot launched last year to support companies to incubate and launch new businesses within a 6-month sprint.

As part of the programme, Keppel Land is venturing into digital wellbeing, companion care and connectivity solutions for eldercare, in line with its ambition to become a leading player in the senior living sector, Dr Tan said.

Besides high-potential firms, Enterprise 2030 also aims to strengthen the capabilities of the broad base of local firms.

Dr Tan said his ministry will also work with SkillsFuture Singapore to onboard multinationals and large local enterprises that are "Queen Bees" to curate industry-relevant training courses in emerging growth areas such as robotics and Industry 4.0.

The SkillsFuture Queen Bee programme is one way small and medium enterprises (SME) can partner larger firms and in turn upgrade their capabilities, he added.

One initiative that drives collaborations between large companies and smaller SMEs is the Partnerships for Capability Transformation (PACT) scheme, and the government will extend the enhanced support levels for the scheme to Mar 31, 2023, said Dr Tan.

Companies can qualify up to 70 per cent for manpower and consultancy costs and up to 50 per cent for hardware and equipment costs.

Noting that manpower constraints remain a challenge in Singapore, Dr Tan said the government has made various adjustments to its foreign worker policies to be more targeted and selective in bringing in "high quality and diverse foreign workforce to complement the local workforce".

Dr Tan, who is also Manpower Minister, added that he will share more on refinements to address skill shortages at the Ministry of Manpower's COS debate.

Get the latest updates on Budget 2022 here: bt.sg/budget22