Budget 2024: Enterprise Support Package to help SMEs contain costs, though impact will vary

• Companies to receive a corporate income tax rebate of 50 per cent – capped at S$40,000 – for 2024; S$2,000 cash payouts given to those with at least one local employee in 2023
• Three enhancements to Enterprise Financing Scheme, including raising maximum working capital loan quantum to S$500,000
• SkillsFuture Enterprise credit extended to Jun 30, 2025

WHILE the Enterprise Support Package will help small and medium-sized enterprises (SMEs) contain costs, profitable businesses stand to benefit more from a corporate income tax rebate that overlooks their loss-making counterparts, said industry professionals.

The S$1.3 billion package, which was announced by Finance Minister Lawrence Wong in his Budget speech on Friday (Feb 16), comprises a corporate income tax rebate of 50 per cent, capped at S$40,000; enhancements to the Enterprise Financing Scheme (EFS); and an extension of the SkillsFuture Enterprise Credit to Jun 30, 2025.

Professor Lawrence Loh, director at the Centre for Governance and Sustainability at NUS Business School, said: “The broad intent of this package is cost containment. It will be the bedrock that complements more focused, sector-oriented measures in areas such as sustainability, finance and manufacturing.”