A NEW S$1.3 billion support package will help Singapore businesses manage costs, said Finance Minister Lawrence Wong in his Budget speech on Friday (Feb 16).

Called the Enterprise Support Package, it comprises a corporate income tax rebate; enhancements to the Enterprise Financing Scheme (EFS); and an extension of the SkillsFuture Enterprise Credit.

Companies will receive a 50 per cent corporate income tax rebate capped at S$40,000, in the year of assessment 2024.

Businesses that employ at least one local employee in 2023 will receive a minimum benefit of S$2,000 in cash payouts, and will automatically receive the grant by the third quarter of 2024.

The EFS will receive three enhancements.

First, the maximum working capital loan quantum will be permanently raised to S$500,000, from S$300,000, to help small and medium-sized enterprises (SMEs) meet their increased working capital and operational cashflow needs.

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Second, the enhanced maximum trade loan quantum of S$10 million will be extended until Mar 31, 2025, to support businesses’ internationalisation efforts amid global supply chain disruptions.

Finally, the support for domestic construction projects under the EFS’ project loans will be extended to Mar 31, 2025, with a maximum loan quantum of S$15 million.

Meanwhile, the SkillsFuture Enterprise Credit will be extended by a year to Jun 30, 2025. This means that employers who have already received the credit will be able to use it on supportable schemes beyond Jun 30, 2024, with claims to be submitted by Jun 30, 2025.

Currently, eligible companies have received a one-off credit of up to S$10,000 to cover up to 90 per cent of out-of-pocket expenses for supportable enterprise capability development and workforce transformation programmes.

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

“I encourage all firms to make full use of these schemes so that they can thrive and succeed, amid a more challenging operating environment.”

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