Support for SMEs

Enterprise Support Package

Comprising three main components, a new $1.3 billion Enterprise Support Package aims to help Singapore businesses manage rising costs through:

1. A Corporate Income Tax (CIT) Rebate for YA 2024, with a CIT Rebate Cash Grant for eligible companies. Companies will receive a 50% corporate income tax rebate capped at $40,000. Recognising that not all companies may be profitable, those which employ at least one local employee in FY 2023 will receive a cash payout of at least $2,000, which will be automatically credited by the third quarter of 2024. The maximum total benefits of CIT Rebate and CIT Rebate Cash Grant that a company may receive is $40,000.
2. Enhancements to the Enterprise Financing Scheme (EFS), where:
   • the maximum loan under the EFS-SME Working Capital Loan will be permanently raised from $300,000 to $500,000, providing greater support to SMEs to manage their financing needs;
   • the enhanced maximum trade loan quantum under the EFS-Trade Loan of $10 million will be extended until 31 March 2025, to support businesses’ internationalisation efforts;
     
   • financing for domestic construction projects under the EFS-Project Loan Scheme will be extended until 31 March 2025, with a maximum loan quantum of $15 million; and;
     
3. An extension of the SkillsFuture Enterprise Credit (SFEC) to 30 June 2025, which gives employers an additional year to claim any unused credit on supported schemes.

The Enterprise Support Package will provide much welcomed and needed support to SMEs, be it to improve cashflows or see the company through a period of expansion. It will provide short term relief to SMEs that are struggling with rising interest costs, and reward companies that are committed to growth and sound business practices despite current headwinds. That said, the impact of the measures may be felt differently across different sectors.

Businesses that are working capital intensive like trading, logistics and construction are more likely to benefit in the short term; others whose profitability are adversely impacted by the current slow economic environment may not reap the full benefit of the one-off corporate tax rebate.

In all, the extension of the EFS and SFEC is testament to the Government’s responsiveness to voices from the ground, as these have been on the minds of industry and business associations. Businesses that are committed to restructuring and transforming amid the challenging macroeconomic environment should make full use of the Enterprise Support Package.