Singapore supports SMEs in new S$1.2-billion package

A new S$1.2-billion (US$890.2-million) support package is designed to help small-and-medium enterprises (SMEs) cope with the pandemic.
By: | July 6, 2021

Singapore’s Finance Minister Lawrence Wong said the additional support measures are meant for the period of “heightened alert” since mid-May, when restrictions were tightened due to a rise in COVID-19 community cases.   

Besides providing support in the new support package, the government is also extending its loan assistance schemes for SMEs. Both the Temporary Bridging Loan Programme and the Enhanced Enterprise Financing Scheme – Trade Loan will be extended for another six months from October 1, 2021 to March 31, 2022.  

The parameters for both schemes remain the same, with the government continuing to take on 70% of the risk-share. The Monetary Authority of Singapore (MAS) will also extend the MAS Singapore Dollar Facility for Enterprise Singapore Loans, he said. 

“During times of crises, we recognise that lower-income households and SMEs face bigger challenges. That is why we have designed our interventions to benefit them the most. I encourage businesses to make use of this extension and other available schemes to ready themselves for the new normal. Many of our SMEs have already seized the opportunity to build new capabilities and future-proof their business.” the minister said. 

READ: Singapore’s overall unemployment rate edges down to 2.8% in May

The new package will be funded by a reallocation of monies previously budgeted for. Half of the S$1.2 billion will be from the capitalisation of development expenditure under the recently-passed Significant Infrastructure Government Loan Act (SINGA), while the rest will come from underutilisation of development expenditure. This means that the new package will not draw on the country’s past reserves.