No broad-based subsidies for SMEs in Budget 2023, but some scheme renewals possible: analysts

SINGAPORE’S small and medium-sized enterprises (SMEs) should not expect general subsidies in Budget 2023 – as the country emerges from the pandemic – but existing schemes for sustainability, internationalisation and innovation are likely to be extended, said economists and industry players.

The days of Covid-era support are over. Direct subsidies in recent Budgets – such as for manpower and rental, in sectors including food and beverage (F&B) services – were for tackling challenges that have “largely disappeared”, said Goh Puay Guan, associate professor (practice track) at the National University of Singapore (NUS) Business School’s department of analytics and operations.

“Unlike the Covid-19 impact where certain industries such as F&B, hospitality and tourism were more disproportionately affected, we are likely to see a more conventional macroeconomic impact across industries (in this Budget),” Prof Goh added.