Modern services get boost to create 100,000 jobs, as Singapore strengthens its business hub status

SINGAPORE’S “modern services” will get a boost under the new Services 2030 strategy that aims to create over 100,000 jobs, following similar visions outlined last year for manufacturing and trade.

The aim is for the modern services cluster’s value-add to grow at least 50 per cent by the end of the decade, said Trade and Industry Minister Gan Kim Yong at his ministry’s Committee of Supply debate on Tuesday (Feb 28). The cluster includes professional services, financial services, and infocomm technology and media.

Part of the strategy is the newly-launched Professional Services Industry Transformation Map 2025, which Gan said will “play an important role in strengthening Singapore’s position as a leading hub”. This “diverse group” includes company headquarters and firms that provide consulting, legal and accounting services.

Services 2030 is part of the Singapore Economy 2030 vision, alongside the Manufacturing 2030 and Trade 2030 strategies unveiled last year.

“Companies and workers alike must be ready for transformation,” Gan told the House. “In the face of rising costs, biting resource constraints and a more challenging international environment, this is the only viable path to long-term growth and success.”

Beyond near-term challenges, Gan outlined longer-term structural shifts that will create both challenges and opportunities. The multilateral open trading system is under pressure as geopolitical tensions rise, while technology and the transition to net-zero emissions are disrupting industries and business models.

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At the same time, Singapore’s competitiveness may be affected when it implements Pillar 2 of the Base Erosion Profit Shifting (BEPS) 2.0 initiative, by introducing a domestic top-up tax to meet the global minimum effective tax rate for multinational enterprises.

To stay competitive, Singapore has “continuously sharpened our toolkit” of non-tax incentives, said Gan. This includes a top up to the National Productivity Fund, and an expansion of its scope to include investment promotion.

Tax incentives also remain relevant for companies that are not affected by BEPS 2.0, with Singapore extending several such programmes for another five years.

But to build a strong Singapore Economy 2030, the country cannot just rely on foreign investments, the minister said.

He detailed enhancements to programmes that help local companies go abroad, such as an extension of the enhanced Market Readiness Assistance (MRA) scheme and more participating institutions in the Enterprise Financing Scheme.

Meanwhile, the Singapore Global Enterprises initiative will offer “bespoke support” to promising local firms. This includes a new Scale-Up X programme to build their capabilities in leadership, readiness for investments and public listings, and overseas expansion.

As for neighbourhood businesses, the new Heartland Innovation and Transformation programme will offer innovation and entrepreneurship courses, as well as temporary spaces for them to test business ideas, said Minister of State for Trade and Industry Low Yen Ling.

While Singapore continues to digitalise, its green economy strategy will support businesses in their green transition, said fellow Minister of State Alvin Tan.

Sustainability projects will continue to qualify for the enhanced level of Enterprise Development Grant (EDG) support – up to 70 per cent – for another three years, till Mar 31, 2026.

For other projects under the EDG, the support level will revert to 50 per cent this April. This is also the case for the Productivity Solutions Grant (PSG) and MRA.

Small and medium enterprises which are keen to measure their carbon emissions should explore the PSG, which will fund pre-scoped digital carbon accounting solutions, said Tan. And to help businesses strengthen their knowledge of sustainability, Enterprise Singapore will develop new Enterprise Sustainability Programme thematic courses as well as playbooks.

The green push extends to tourism, with Tan announcing plans to make Lazarus Island a “light-touch destination” over the next three years. Five eco-tourism accommodation units will be launched on the island in April, while a convenience store, non-motorised water activities and “glamping” are in the works.

With energy policy being another aspect of sustainability, Second Minister for Trade and Industry Tan See Leng laid out moves to improve Singapore’s energy resilience.

To ensure sufficient power generation capacity, the government will call competitive tenders for new capacity – and is prepared to build the required capacity itself, if there is insufficient interest from private generation companies.

The standby fuel facility that was established in 2021, for power generation companies to draw upon in case of an energy crunch, will be institutionalised as a permanent feature. The government is exploring ways to centrally aggregate gas procurement for more secure and longer-term contracts.

Regulatory requirements on electricity retailers will also be enhanced later this year, Dr Tan noted, to strengthen consumer protection and the retailers’ ability to withstand market volatility.

Apart from these moves to strengthen Singapore’s energy market structure, the Republic is developing new energy supply sources and building international collaborations, he added.