Page 6 - index

RESEARCH, ANALYSIS & TRENDS

Four major

advantages of

Singapore’s new

budget for SMEs

(and how to capitalize on them)

Singapore is one of the fastest growing countries in the The Infocomm Development Authority of Singapore
world. It’s economy has put up numbers so impressive (IDA) will now cover up 70% of costs up to $1 million
they are nothing short of surprising over the last few per firm to implement ICT technologies, paying vendors
years, including the occasional quarter of 20%+ GDP directly so as to help companies avoid the burden of
th
growth. Singapore is the world’s 40 largest economy, a applying for the subsidy. IDA will also subsidize compa-
title it earns from varying efforts related to growing its nies willing to pilot emerging ICT (80% up to $1 million
business potential: strict anti-corruption measures, low per firm).
inflation rates, ongoing strategies to remain a destina-
tion for tourists and business travelers, low debt, plenty How to capitalize on the ICT fund in the Singapore
of IT, major industrial and manufacturing growth, a budget: Apply. Singapore companies have an inside
strong port, AAA credit ratings from the major credit shot at these technologies and would benefit greatly
bodies and a growing, robust labor class with low unem- from being a part of the first adopters who take them
ployment. on. While the subsidy is not 100%, it is large enough
that companies looking to drastically sharpen their
However, perhaps the most prominent factor contrib- technological capabilities should be able to upgrade at
uting to Singapore’s growth is the country’s strong on- a reasonable rate. The pilot program offers the oppor-
going support for its own businesses. SMEs in Singa- tunity to stay ahead of the curve, and while those pro-
pore figure prominently into the budget. The country has grams have an inherently higher risk in some respects,
made a definitive statement to its own businesses that it the higher subsidy percentage and implied dedication
is there for them to succeed, providing SMEs the oppor- of the Singaporean government to make the program
tunity to collect grants, financing, credit and other sup- work are comforting to the average business owner.
port in the form of officially sanctioned government pro-
grams. And with the release of the new 2014 budget, This is a huge opportunity for SMEs to upgrade tech-
Singapore has made even more of an effort to support nology.
SMEs.

#2: Singapore’s new financing initiatives will create
Here are four clear-cut advantages laid out for SMEs in credit flexibility for companies launching ideas,
the 2014 budget and how Singapore companies can products, divisions and other expansionary
take advantage of them.
measures.

#1: Singapore is opening the door to new Info- Singapore’s new budget provides SMEs with the
Comm Technology investments that will transform chance to punch above their weight with respect to
businesses. spending power. The budget calls for both a co-
investment program and a micro-loan initiative. The co-
For all of its technological advancements, Singapore is investment dollars can be spent in conjunction with pri-
still a country known for brick and mortar popularity. For vate companies to create a better, stronger coordinated
that reason, not all SMEs are up to date on the latest investment opportunity for public and private compa-
technologies. On the other hand, technology is on a nies, and provide more patient growth in the form of
clear upward trajectory and is evolving toward a far both equity and mezzanine capital. As for the micro-
more advanced state, suggesting that future technolo- loan program, it increases the amount of risk the gov-
gies may be a requirement for Singaporean SMEs— or ernment can take on in a business from 50% to 70%.
at least an advantage.
How to leverage new budget financing: Companies
The new Singapore budget takes that issue into account seeking capital can now consider the government in a
clearly and seriously, outlining a new initiative specific to more positive light as a potential resource. As for

ICT technologies that should help bring the country’s whether the micro-loan or co-investment approach is
businesses into the next generation. stronger, the options will likely vary from company to
6 Asian eMarketing March 2014 - Social Media Marketing