Singapore, like the rest of the world, is moving to open up its borders. The country has stayed attractive to investors despite the pandemic.

It drew $17.2 billion in fixed asset investments and $6.8 billion in total business expenditure last year, according to official figures. Still, SMBs have had a bumpy ride. Many of them are still rebuilding during this period of recovery.

These recent updates may help them along. They were announced by the Ministry of Trade and Industry committee of supply in March.

Rebuilding to Emerge Stronger and More Competitive

The goal consists of three strategies. Firstly, strengthening Singapore’s position as a global business hub.

The second is to secure Singapore’s position in global value chains. The government is eyeing emerging sectors like agri-food tech, urban mobility and sustainable urban solutions.

SMBs wanting to venture into the agri-food tech sector, in particular, can tap on initiatives such as the Enterprise Financing Scheme (EFS) and the Agri-Food Cluster Transformation Fund, which was launched in February.

The government will ensure that other industries stay competitive, Minister for Trade and Industry Chan Chun Sing said.

It also plans to raise Singapore’s corporate capabilities and the skills of its workers. Small and micro-enterprises will be offered shared digital platforms to make them more efficient.

Medium-sized enterprises will be encouraged to scale-up and internationalise. Large enterprises will be aided in their push to become regional or global champions.

“I always tell our SMBs – stop calling yourselves small medium enterprises, aspire to be Singapore MNCs-Emerging,” Minister Chan said.

Anchor Locally while Capturing Value from Innovation to Compete Globally

At the heart of this goal is grooming strong local enterprises, before elevating them to a global stage.

The government is refreshing 23 Industry Transformation Maps, so they remain relevant COVID-19. It will grow Singapore’s industrial ecosystem and push for transformation in the industry.

The presence of large local enterprises can spur SMBs. They work together under the PACT programme that has linked up 1,500 firms since 2010. In addition, SMBs can benefit from the EFS Venture Debt Programme which was enhanced at the latest budget.

They can apply for a maximum loan of $8 million, up from the previous $5 million, if they apply on or after 1 April.

While the pandemic has disrupted some business travel, SMBs should keep seeking global opportunities. Over the next five years, Singapore will expand its Global Innovation Alliance network from 15 to 25 cities.

SMBs looking to venture abroad can tap on this. They can also seek talent and expertise through the Technology for Enterprise Capability Upgrading and Innovation Advisors programmes.

Transform through Technology

Harnessing technology is not optional but a must, for businesses to stay competitive. The SMEs Go Digital programme, which was launched in 2017, has been improved over the years.

It offers foundational digital solutions via the Start Digital Pack to meet a range of needs. The pack has been refreshed to include collaboration tools that support remote working, which has gained prominence with the pandemic.

Meanwhile, the Grow Digital initiative helps SMBs use e-commerce platforms to sell overseas.

The government is also keen on elevating high-growth industries like agri-food tech and manufacturing, and transforming the tourism sector.

Partner Industry for Local Enterprises to Emerge Stronger from COVID-19

It is important that SMBs are supported through difficult times. After all, they make up 99% of companies in Singapore and account for 72% of employment.

But it is ideal if they strengthen their capabilities and emerge stronger from this period of uncertainty.

The government is facilitating digitalisation among SMBs, including those in the heartlands. It is bolstering support schemes like the Productivity Solutions Grant. More SME Centres and easier grant application and claims processes are also in the pipeline.

Furthermore, trade associations and chambers will encourage partnerships and a pro-business environment in the country.

SMBs will also benefit from a new digital signature service, Sign with SingPass. This makes it easier to submit proposals for government procurement projects.

Singapore’s economic recovery depends on growth within the SMB sector. Government support combined with innovation from small business can ensure this growth.