Budget 2023: Scheme extensions will help SMEs manage costs, ride through challenges

• Enhancements to the Enterprise Financing Scheme and Energy Efficiency Grant will be extended till Mar 31, 2024
• Under the Enterprise Financing Scheme – Trade Loan scheme, enhanced government risk share of 70 per cent will be maintained

EXTENDING the current enhancements in the Enterprise Financing Scheme (EFS) and Energy Efficiency Grant (EEG) for another year could ease the pressure on small and medium-sized enterprises (SMEs) in Singapore and help them deal with rising costs, market watchers said.

Tan Bin Eng, business incentives advisory leader for Asean at Ernst and Young Solutions, noted that inflationary pressures and macroeconomic uncertainties are coming together at the point when Singapore is just recovering from the pandemic. This puts “tremendous pressure on SMEs”. 

“Cash flow is the lifeblood of SMEs, and it is critical that financing remains available to them. The EFS will encourage participating financial institutions to continue to support SMEs, and ensure that SMEs get sufficient assistance to ride through challenges,” she said.