RENTAL reductions or freezes for government properties and a higher corporate income tax rebate threshold are some ways that Budget 2024 can help companies cope with rising costs, said the Singapore Chinese Chamber of Commerce and Industry (SCCCI).

In its recommendations released on Wednesday (Jan 10), other cost-related suggestions were time-bound rebates for electricity as well as not increasing government compliance costs, charges and fees.

Apart from costs, the SCCCI proposed that Budget 2024 can help businesses – particularly small and medium-sized enterprises (SMEs) – in areas such as financing, sustainability and growth.

The recommendations were based on the findings of the business chamber’s Annual Business Survey 2023, conducted from Jun 5 to Aug 20 last year. SMEs accounted for 94 per cent of the 636 respondents.

“We received feedback that businesses foresee rising business costs, shortages of suitable manpower, inflationary pressures, geopolitical uncertainties, and a slowdown of global and regional economies,” said SCCCI president Kho Choon Keng.

The top concerns were rising business costs (72.2 per cent); availability of suitable manpower (53 per cent); and uncertain economic and political conditions overseas (32.2 per cent).

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To help growth-oriented SMEs access lower-cost financing, the government can extend schemes that are due to lapse in March 2024, such as the SME Working Capital Loan and Trade Loan. For high-growth enterprises, the maximum loan quantum could also be raised under the Enterprise Financing Scheme.

In pursuing sustainability, the top obstacles cited in the survey were high costs (59.5 per cent) and a lack of capabilities or resources (48.5 per cent). Budget 2024 could expand existing schemes and grants to help SMEs pursue sustainability, said SCCCI.

These include making it easier for SMEs to apply for the Enterprise Sustainability Programme, and extending both the Enterprise Financing Scheme – Green and Energy Efficiency Grant beyond their March 2024 expiry dates.

Meanwhile, top manpower challenges were an inability to recruit local staff with the skills to meet business needs (70.6 per cent) and rising labour costs, including that of foreign workers (69.4 per cent).

SCCCI thus suggested that in Budget 2024, SkillsFuture Singapore could provide more financial support to programmes that impart specialised skills.

Announcing plans for a new Trade Association Services Centre @ SCCCI this year, the business chamber hoped that the Budget could provide funding support of at least 70 per cent for the initiative. The centre aims to help underserved local trade associations that encounter challenges and have limitations in their capabilities.

Finally, SCCCI said that tax deductions or wage support could be used to encourage consolidation among SMEs. Allowing tax deduction of acquisition costs, for example, would incentivise more established SMEs to acquire others.