THE Singapore government introduced a S$1.3 billion Enterprise Support Package in Budget 2024 on Friday (Feb 16) to help businesses manage rising costs.

Finance Minister Lawrence Wong noted that many companies have experienced increases in the likes of wage bills, as well as rental and utilities costs.

Under this package, companies will receive a corporate income tax rebate of 50 per cent, capped at S$40,000, for 2024. For companies that are not profitable, Wong said minimum cash payouts of S$2,000 will be given to companies with at least one local employee in 2023.

The Enterprise Financing Scheme will also be enhanced to help Singapore companies with their financing needs. The maximum working capital loan quantum will be permanently raised to S$500,000. The enhanced maximum trade loan quantum and the government’s risk sharing of project loans to support domestic construction projects will also be extended till Mar 31, 2025.

The government will be extending the SkillsFuture Enterprise Credit by a year to Jun 30, 2025 – giving employees another year to claim any unused credit. This credit provides additional support for eligible employees to cover their out-of-pocket expenses when they embark on workforce and business transformation.

Wong said the measures in the Enterprise Support Package are “tilted towards firms that make the effort to restructure and transform”.

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Here are some quick takes from companies and observers on the enhancements to this package:

Deloitte Singapore business tax leader Rohan Solapurkar: 

• “The Enterprise Support Package is a significant boost to small and medium-sized enterprises (SMEs) by giving them extra cash in supporting their growth journey amid global headwinds – which is the highest amount in the last 10 years. What stands out is the re-introduction of the corporate income tax rebate after a hiatus of three years.”

• “The package underscores the government’s commitment to supporting enterprises, particularly SMEs, which form the backbone of our economy and demonstrate the government’s commitment to support businesses.”

• “The focus on capability upgrading and internationalisation also signals the government’s forward-looking stance and its efforts to position Singapore’s enterprises for future growth.”

NUS Business School associate professor for accounting Simon Poh

• “The measures that were announced under the Enterprise Support Package in Budget 2024 were meant to provide short-term relief for businesses which are still struggling with rising costs in wages, rental, utilities, etc.”

• “Out of the three components, the one-off 50 per cent corporate income tax (CIT) rebate, capped at S$40,000 is very substantial this round. In fact, it goes down on record as the highest in percentage and capped amount. Over the last decade, the CIT rebate ranged from 20 per cent to 50 per cent, while the capped amount ranged from S$10,000 to S$30,000.”

• “For companies that are either not paying taxes or paying less than S$4,000 in taxes, they will not be left out as they can instead benefit from a CIT rebate Cash Grant of S$2,000 if they employed at least one local employee in 2023.” (See *amendment note)

• “The other two components are the Enterprise Financing scheme which has been enhanced and the SkillsFuture Enterprise Credit which has been extended. Both these announcements should be welcome news, and they provide temporary relief to help businesses alleviate their financial burdens.”

HSBC Singapore head of commercial banking Priya Kini: 

• “As more companies adopt sustainable solutions, technologies or products, this will not only support the transformation of the industry as a whole – but will also create new opportunities for other players across the economy.”

• “It is great to see Singapore continuing to lead the way in both sustainability initiatives and supporting forward-looking businesses.”

• “We will continue to work closely with all our clients to encourage them to take the first step on their sustainability journey – which often means adopting a new source of renewable energy, using new raw materials in their product, or adopting cleaner transportation methods.”

• “We will continue to offer the necessary funding to help these companies transform, but more importantly, we will continue to scale up their understanding and knowledge through training, access to insights, and networking opportunities.”

Funding Societies chief executive Kelvin Teo:

• “Though there have been revisions to the schemes under the Enterprise Financing Scheme, the extensions granted by the government to continue supporting SMEs are reassuring.”

• “This continued support will earnestly complement traditional financial institutions (such as banks) and digital lenders, like ourselves, to serve in meeting the working capital and trade financing needs of Singapore SMEs.”

Baker Tilly Singapore managing partner Joshua Ong:

• “This year’s Budget announced not just immediate steps to allay concerns on rising costs, it took an impressive leap forward and introduced long-term solutions to help Singaporeans and Singapore companies become future-ready.”

• “For local companies, the imperative next step is to familiarise themselves with the new and enhanced range of tools, leverage the right resources for them, and establish a strong foothold in the years ahead.” 

Kearney managing partner for South-east Asia Nithin Chandra:

• “The government’s extension of enhanced support for green loans under the Enterprise Support Package signifies a forward-thinking approach. This highlights Singapore’s dedication to fostering sustainable business practices across businesses of all sizes.”

• “The introduced initiatives reflect a proactive stance by the government as it looks to lead the charge in the world’s efforts to tackle the challenges inherent in the green transition. These help lay the foundations for sustainable economic stewardship and solidify Singapore’s position as a responsible global frontrunner.”

For more of BT’s Budget 2024 coverage, go to bt.sg/budget24

Amendment note: The article earlier quoted a newsmaker who said companies that are either not paying taxes or paying less than S$2,000 in taxes will benefit from a CIT rebate Cash Grant. MOF has clarified that the grant applies to companies that are either not paying taxes or paying less than S$4,000 in taxes.