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Singapore Economy 2030:

Seizing Opportunities,
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                                                                       ECONOMY 2030
             The Singapore Economy 2030 vision                                           Charting the path towards
             signals our ambition to develop new
             engines of growth across various
             economic sectors in the next decade.
                                                                                         A vibrant
             The strategies will guide us in charting
             the path towards a vibrant economy
                                                                  ‘‘                     future economy
             with exciting opportunities and good                                        The Singapore Economy 2030 vision will guide us in charting
             jobs for our enterprises and people.                                        our next lap of economic growth. The four key pillars to fuel our
                                                                                         growth are Services, Manufacturing, Trade and Enterprises.
             — Minister for Trade and Industry, Mr Gan Kim Yong

                          Charting the path towards
                          A VIBRANT FUTURE ECONOMY
                          Page 3

                          ECONOMY 2030
                          Services & Manufacturing
                          Pages 4 & 5

                                                                                         SERVICES             MANUFACTURING                    TRADE             ENTERPRISES
                          ECONOMY 2030                                                MTI will empower          Manufacturing            MTI will embark         Enterprise 2030
                          Trade & Enterprises                                         our enterprises           2030 (M2030)             on a Trade 2030         embodies our
                          Pages 6 & 7                                                 to seize the              aims to increase         strategy to grow        strategy to build
                                                                                      opportunities             manufacturing            our trading volume,     and sustain a
                                                                                      in the Services           value-add by 50%         widen the types of      vibrant ecosystem
                                                                                      sector, especially        by 2030, and             trading activities      of Singapore
                          SUPPORT FOR BUSINESSES                                      in the areas of           for Singapore to         in Singapore, and       enterprises that
                                                                                      sustainability and        become a global          expand trade with       are future-ready
                          Pages 8 & 9
                                                                                      digitalisation,           business, innovation,    more economies          and possess deep
                                                                                      where the growth          and talent hub           around the world.       capabilities to
                                                                                      potential is              for Advanced                By anchoring         compete globally.
                                                                                      immense.                  Manufacturing.           leading Global             We will harness
                          INVEST IN OUR PEOPLE                                                                    To grow the            Traders in              resources to nurture
                          Page 10 & 11                                                                          sector, MTI will         Singapore, we           a new generation
                                                                                                                enhance efforts to       can build a strong      of Singapore
                                                                                                                grow a vibrant core      ecosystem of            Global Enterprises,
                                                                                                                of Singapore Global      trading companies       which are locally
                          ADVANCE OUR GREEN TRANSITION                                                          Manufacturers by         to accelerate the       grown and globally
                          Pages 12 & 13                                                                         deepening their          growth of a strong      competitive.
                                                                                                                capabilities and         core of locally-           We will also step
                                                                                                                expanding their          grown Singapore         up efforts to help
                                                                                                                global reach.            Global Traders.         local SMEs capture
                                                                                                                  To help companies         We aim to grow       new opportunities,
                          A FAIRER AND MORE RESILIENT TAX                                                       attract talent, MTI      our export value        in four key
                          SYSTEM                                                                                will launch the          from S$805 billion in   areas: capability
                          Pages 14 & 15                                                                         M2030 Careers            2020 to at least S$1    development,
                                                                                                                Initiative to            trillion by 2030, and   internationalisation,
                                                                                                                further drive the        double our offshore     digitalisation, and
                                                                                                                development of           trade value from        innovation.
                          CENTRES OF ASSISTANCE &                                                               exciting career          US$1 trillion to US$2
             SME          INNOVATION                                                                            options in
                                                                                                                                         trillion in the same
                          Page 16
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         Singapore Economy 2030:
         Seizing Opportunities, Energising Enterprises                                                MANUFACTURING
CONOMY 2030    SERVICES                                                                               MANUFACTURING
               Why is it important? Services sector                                                   2030 STRATEGY
               represents more than 70% of our
               economy, and comprises sectors such                                                    What is it? Our vision for Singapore to
               as finance & insurance, information and                                                become a global business innovation and
               communications, professional services,
               and logistics.
                                                                                                      talent hub for advanced manufacturing.            M2030 CAREERS
                                                             DIGITAL                                  We launched our Manufacturing 2030                INITIATIVE
               Looking ahead, there are two major                                                     (M2030) vision in 2021, with the aim of
               waves of opportunities – digitalisation and
               sustainability – which can help to propel
                                                             ECONOMY                                  increasing manufacturing value-add by             Who is it for? Manufacturing companies
                                                                                                                                                        who are interested to attract, hire and
                                                                                                      50% in 10 years. Last year, the sector grew
               our next lap of growth. The Government        Digitalisation has shaped the way        very significantly by 13.2%, and received         retain locals.
               will support our enterprises to seize these   we live, work and play, as well as the   $8.5 billion in total Fixed Asset Investment,
               opportunities.                                behaviours of consumers. We will         creating over 6,000 jobs when these projects      How does it help? The series of new
                                                             support our enterprises to digitalise    are completed.                                    measures under the M2030 Careers
                                                             and strengthen capabilities to capture                                                     Initiative supports companies to develop
                                                             new opportunities in the digital         As part of efforts to grow the sector, MTI will   attractive career options in manufacturing
                                                             economy through schemes such as:         launch the M2030 Careers Initiative to further    and make them more accessible for locals.
                                                                                                      support companies to develop attractive           This will strengthen the local manpower
                                                             4Digital Leaders Programme               career options, especially for locals.            pipeline and enhance resiliency in the
               GREEN ECONOMY                                 4SMEs Go Digital
                                                             4Chief Technology Officer-as-a-Service

               As the world transits to a low-carbon          (CTO-as-a-Service)                                                                        The new measures are:
               future, there are many exciting new           4Grow Digital                                                                              l Manufacturing Employers’ Handbook:
               opportunities in the green economy. For       4Productivity Solutions                                                                    The handbook covers a range of best
               instance, the increasing demand for green      Grant (PSG)                                                                               HR practices and resources to support
               financing and carbon services will create                                                                                                companies in developing structured career
               good jobs and new opportunities for                                                                                                      progression pathways for their employees;
               our enterprises. Enterprises which meet
               consumers’ demand for more sustainable                                                                                                   l Additional Quality Internships: Work
               products and services will also capture                                                                                                  with relevant Trade Associations and
               market share early. We will support local                                                                                                Chambers to secure quality internship
               enterprises through initiatives such as:                                                                                                  opportunities for students from the
                                                                                                                                                           Institute of Technical Education; and
               4Enterprise Sustainability Programme
                    (ESP) - To build capabilities and                                                                                                        l Accelerated Pathways for
                        capture new opportunities                                                                                                             Technicians & Assistant Engineers
                         in sustainability                                                                                                                     (Manufacturing) Grant: The
                                                                                                                                                                 initiative supports selected
                                                                                                                                                                   manufacturing companies
                                                                                                                                                                    with progressive HR practices
                                                                                                                                                                    to hire, train and offer
                                                                                                                                                                   progression to ITE graduates
                                                                                                                                                                  for technician and assistant
                                                                                                                                                                engineer roles.
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          Singapore Economy 2030:
          Seizing Opportunities, Energising Enterprises

 CONOMY 2030                                                                                                                                      We will achieve it by:
                                                                                                                                                  Accelerating the
                                                                                                                                                  growth of Singapore

                TRADE                                                                              ENTERPRISES                                    Global Enterprises
                                                                                                                                                  We will invest more resources to
                                                                                                                                                  identify enterprises with strong growth
                TRADE 2030                                                                                                                        potential and global ambitions, and
                STRATEGY                                                                                                                          nurture a new generation of Singapore
                                                                                                                                                  Global Enterprises, which are locally

                What is it? Our strategy is to grow                                                ENTERPRISE                                     grown and globally competitive.

                Singapore’s trading volume, widen
                the types of trading activities
                                                                                                   2030 STRATEGY                                  We will do so through:
                                                                                                                                                  l Bespoke and enterprise-centric
                that take place in Singapore, and                                                                                                   assistance, tailored to enterprises’
                expand trade with other parts of                                                   Enterprise 2030 embodies our
                                                                                                   strategy to build and sustain a                  specific needs and individual growth
                the world.                                                                                                                          ambitions
                                                                                                   vibrant ecosystem of Singapore
                                                                                                   enterprises that are future-ready              l Harnessing resources across Whole-
                We aim to grow our export value                                                                                                     of-Government and our partners
                from S$805 billion in 2020 to                                                      and possess deep capabilities to
                                                                                                   compete globally.                              l Support in areas such as: developing
                at least S$1 trillion by 2030, and                                                                                                  global-ready talent, creating new
                double our offshore trade value                                                                                                     corporate ventures, facilitating
                from US$1 trillion to US$2 trillion in                                                                                              mergers & acquisitions, and
                the same period.                                                                                                                    enhancing access to financing

                The strategy will enable Singapore
                to capture more re-exports and            We will achieve it by:                                                       Strengthening core
                transhipment flows, to plug
                Singapore more deeply into global        l Growing a Strong Core of Singapore                                          capabilities of local
                supply chains and enhance our
                status as a global trade hub.
                                                           Global Traders: Accelerate efforts to
                                                           grow locally-grown Singapore Global
                                                           Traders that command global scale and
                                                                                                                                       We will also step up efforts to
                                                           are highly innovative
                                                                                                                                       help local SMEs capture new
                                                                                                                                       opportunities in four key areas:
                                                         l Attracting Leading Global Traders:
                                                                                                                                       l Strengthening capability
                                                           Anchor more upstream, downstream
                                                           and innovation activities of Global
                                                                                                                                       l Internationalisation
                                                           Traders to increase value capture for
                                                                                                                                       l Digitalisation
                                                           Singapore. These Global Traders will
                                                                                                                                       l Innovation
                                                           also serve as platforms to help other
                                                           Singapore companies to break into
                                                           overseas markets

                                                         l Building a Skillful and Knowledgeable
                                                           Workforce: Upgrade the workforce to
                                                           meet the needs of the Trade sector,
                                                           through initiatives such as the Jobs
                                                           Transformation Map and a Career
                                                           Conversion Programme for Wholesale
                                                           Trade Professionals
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                     Singapore Economy 2030:
                     Seizing Opportunities, Energising Enterprises                                                                                          STRENGTHEN
                                  IMMEDIATE                                                                                                                 ENTERPRISES

                                  SUPPORT FOR                                                                                                               l $600 million to scale up Productivity
                                  BUSINESSES                                                                                                                Solutions Grant (PSG) to support more than
                                                                                                                                                            100,000 PSG projects over next 4 years
                                  l $500 million Jobs and Business Support Package
                                    w New Small Business Recovery Grant                                                                                     l New Singapore Global Enterprises initiative
                                                                                                                                                            to provide bespoke assistance for local
                                    4$1,000 payout per local employee (up to $10,000                                                                        enterprises with strong growth potential and
                                     per firm) for small businesses in sectors most                                                                         global ambitions
                                     affected by COVID-19 restrictions
                                                                                                                                                            l New Singapore Global Executive
                                    4$1,000 payout to local sole proprietors and                                                                            Programme to attract more local young talent
                                     partnerships in eligible sectors, and SFA-licensed                                                                     to join Singapore global enterprises
                                     hawkers, market, and coffeeshop stallholders, who              l Aviation
                                     do not hire local employees                                    Support Package
                                                                                                    to preserve core                                                                 ENTERPRISE

                                    w Extend Jobs Growth Incentive to Sep 2022 to
                                      encourage hiring of workers who face greater
                                                                                                    capabilities and
                                                                                                    enhance status as                                                                FINANCING
                                      difficulties in finding jobs                                  an international
                                                                                                    aviation hub
                                  l Extend Temporary Bridging Loan Programme and                                                                                                     l Enhance EFS – Merger & Acquisitions
                                  Enterprise Financing Scheme (EFS) – Trade Loan to                                                                                                  (M&A) to include domestic M&A activities
                                  30 Sep 2022, with revised parameters                                                                                                               from 1 Apr 2022 to 31 Mar 2026
                                  l Extend enhanced EFS – Project Loan to                                                                                                            l Maintain 70% risk-share under enhanced
                                  31 Mar 2023 to support domestic construction projects                                                                                              EFS – Trade Loan beyond 30 Sep 2022 for
                                                                                                                                                                                     enterprises trading in nascent markets

                                                          AND INNOVATION
                                                          l Additional $200 million for building digital capabilities

                                                            w Advanced Digital Solutions scheme expanded to
                                                              include solutions that leverage artificial intelligence
                                                              and cloud technologies starting 1 April 2022, to              l Increase capacity
                                                              help enterprises improve operational efficiency and           of centres that
                                                              business decisions                                            engage in technology,
                                                                                                                            innovation, and
                                                            w Grow Digital scheme expanded to include more pre-             enterprise activities
                                                              approved digital platforms starting 1 April 2022, so          in Polytechnics
                                                              that more SMEs can build capabilities to reach new            and ITEs over
                                                              markets more effectively, e.g. through AI-powered             next 5 years
                                                              business matching, cross-border e-payment facilities

                                  ‘‘                                                                                    ‘‘‘‘                                               ‘‘
                                          KPMG in Singapore partner and head of infrastructure, government and            President of The Federation of Merchants’                 SAP Singapore managing director Eileen Chua:
                                          healthcare Satya Ramamurthy:                                                    Associations Yeo Hiang Meng:                              Government support and Budget policies
                                          Singapore is at the tail-end period of extended support measures and            Budget 2022 is pragmatic and forward-looking,             geared towards capability building,
                                          the new support package is fundamentally about dealing with the last            providing enhanced support for capability                 digitalisation, workforce upskilling and
                                          period of soft demand.                                                          building, investment in human capital and                 experience management are crucial to enable
                                             If you look at what the Budget is signaling overall, it is that growth       building a Singapore talent core.                         businesses to build a competitive advantage
                                          is returning, the economy is recovering, and we’re beginning to live              But there will be significant impact on                 and pursue sustainable long-term growth.
                                          with the pandemic – it’s no longer something holding us back.                   heartland businesses that are smaller.
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                     Singapore Economy 2030:
                     Seizing Opportunities, Energising Enterprises
                                                                                                                                                                                    l Extend Progressive Wage Model
                                                                                                                                                                                    to retail, food services, and waste
                                                                                                                                                                                    management sectors; and to other
                                                DEVELOP                                                                                                                             occupations, e.g. in-house cleaners,
                                                NEW SKILLS                                                                                                                          administrators, and drivers

                                                l SkillsFuture Enterprise Credit                                                                                                    l Companies employing foreign
                                                (SFEC) covers up to 90% of                                                                                                          workers required to pay local
                                                qualifying expenses, e.g. job                                                                                                       employees at least the Local Qualifying
                                                                                                                                                                                    Salary, currently $1,400 per month

                                                redesign, training courses

                                                l Expand SFEC to additional                                                                                                         l Co-fund wage increases of lower-
                                                40,000 SMEs by waiving the Skills                                                                                                   wage workers between 2022 to 2026
                                                Development Levy contribution                                                                                                       under the Progressive Wage Credit
                                                requirement for the qualifying                                                                                                      Scheme
                                                period from 1 Jan to 31 Dec 2021
                                                                                        BETTER                                                                                      Year
                                                                                                                                                                                    2022 - 2023
                                                                                                                                                                                                Wage Increase
                                                                                        SKILLS                                                                                      2024 - 2025    30%
                                                                                        MATCHING                                                                                    2026            15%
                                                                                        l $100 million to support
                                                                                        NTUC to scale up Company
                                                                                        Training Committees
                                                                                        and introduce new grant
                                                                                        to support companies’

                                                                                        transformation plans                                                              ADJUSTMENTS
                                                                                                                                   SUPPORT FOR                            TO FOREIGN
                                                                                                                                   MID-CAREER                             WORKER POLICIES
                                                                                                                                   WORKERS                                l Changes to Employment Pass
                                                                                                                                                                            w Raise minimum qualifying salaries to $5,000;
                                                                                                                                   l SGUnited Mid-Career                      $5,500 for financial services for new
                                                                                                                                   Pathways Programme –                       applications from Sep 2022, and renewal
                                                                                                                                   Company Attachment made                    applications from Sep 2023
                                                                                                                                   permanent with full-time                 w Introduce Complementarity Assessment
                                                                                                                                   attachments and training                   (COMPASS) framework for new applications
                                                                                                                                   allowances                                 from Sep 2023, and renewal applications from
                                                                                                                                                                              Sep 2024
                                                                                                                                   l New SkillsFuture Career
                                                                                                                                   Transition Programme                   l Changes to S Pass
                                                                                                                                   to provide high-quality,                 w Raise minimum qualifying salaries to $3,000;
                                                                                                                                   industry-oriented training                 $3,500 for financial services
                                                                                                                                   courses for jobseekers                   w For new applications from Sep 2022,
                                                                                                                                                                              and renewal applications from Sep 2023
                                                                                                                                                                            w Tier 1 levy progressively raised to $650 by 2025

                                ‘‘                                                                              ‘‘
                                                                                                                                                                          l Introduce Manpower for Strategic Economic
                                         National University of Singapore business professor Lawrence Loh:           NTUC secretary-general Ng Chee Meng:                 Priorities (M-SEP) scheme
                                         Increasing the salary thresholds is good for ensuring the quality           All of us in NTUC Singapore are encouraged by
                                         of foreign talent but the added cost may also incentivise                   the support and commit to step up our efforts to     l Changes to Work Permit policies for
                                         companies to first look at locals to fill the gaps in its workforce.        transform the workforce and chart the way forward    construction and process sectors
                                         This ensures that locals, such as fresh graduates, will also have a         with companies. Helping our workers stay relevant      w Lower Dependency Ratio Ceiling from
                                         fair bite of the employment cherry.                                         will go a long way in protecting their livelihoods       1:7 to 1:5 from 1 Jan 2024
                                                                                                                     and allow them to better cope with cost of living.     w New levy framework from 1 Jan 2024
12                                                                                                                                                                                                                              13
                                                                                                                                                                                                        Chairman of
                  Singapore Economy 2030:
                  Seizing Opportunities, Energising Enterprises                                                                                                                                         SGTech, the trade
                                                                                                                                                                                                        association for
                                                                                                                                                                                                        Singapore’s tech
                                                                                                                                                                                                        industry, Wong Wai

                                                                                                                                                                                                        While we are
                                                                                                                                                                                                        happy that the
                                                                                                                                                                                                        Government has
                                                                                                                                                                                                        considered the
                                                                                                                                                                                                        immediate impact
                                                       NET ZERO                                                                                                                                         of the carbon tax
                                                                                                                                                                                                        on businesses
                                                       AMBITION                                                                                                                                         and households,
                                                                                                                                                                                                        for a complex
                                                       l Raise Singapore’s                                                                                                                              problem such as
                                                       ambition to achieve net                                                                                                                          this, we hope that
                                                       zero emissions by or                                                                                                                             the Government
                                                       around mid-century                                                                                                                               will engage
                                                                                                                                                                                                        the industry in
                                                                                                                                                                                                        regular dialogue
                                                                                                                                                                                                        and reviews
                                                                                                                                                                                                        so that we can
                                                                                                                                                                                                        collectively tackle
                                                                                                                                                                                                        any unintended
                                                                                                                                                                                                        consequences that
                                                                                                                                                                                                        might surface,
                                                                                                                                                                                                        such as an indirect
                                                                                                                                                                                                        impact on the rate
                                                                                                                                                                                                        of digitalisation.
                                                              GREEN PLAN
                                                              l Green growth opportunities
                                                              and jobs, e.g. green finance, carbon

                                                              l Increase public sector green bonds
                                                                                                                      CARBON TAX                                            l Allow carbon tax-liable
                                                              issuance to $35 billion by 2030; publish                l Carbon tax rate adjustments:                        businesses to use carbon
                                                              Singapore Green                                                                                               credits to offset up to 5% of
                                                              Bond Framework by 2022                                                                                        taxable emissions from 2024
                                                                                                                      Year             Rate (per tonne)
                                                              l Accelerate adoption of Electric                       Current          $5                                   l Transition framework to
                                                              Vehicles by having more charging points                                                                       help emissions-intensive,
                                                              near homes                                              2024 - 2025      $25                                  trade-exposed sectors
                                                                                                                                                                            manage near-term impact on
                                                                                                                      2026 - 2027      $45                                  business competitiveness
                                                                                                                      By 2030          $50 to $80

                            ‘‘                                                                               ‘‘                                                               ‘‘
                                     Singapore Business Federation chief executive Lam Yi Young:                  Oliver Wyman head of consumer and industrials,                       OCBC Bank economist Howie Lee:
                                     The carbon tax in a way helps to price in the cost of carbon emission        South-east Asia, and energy, Asia-Pacific Abhi Bhuchar:              This is a strong message of intent and
                                     so that companies can make the decision with it properly priced in.          The progressive increase in carbon tax will increase                 commitment towards our net-zero
                                        Depending on what form the transition package comes in, the next          Singapore’s attractiveness as an investment hub.                     goals. We now have a clearer net-zero
                                     few years really are an opportunity for companies to review their              The government has given certainty in an uncertain                 path and one of the highest carbon
                                     operations to become more sustainable, and this will put them in a           path to decarbonization, which will certainly attract                taxes in Asia. Companies will do well
                                     stronger stead for the future.                                               capital. In addition, this will spur carbon market                   to heed to this change.
                                                                                                                  development and all the investments that go with it.
14                                                                                                                                                                                     15

                        Singapore Economy 2030:
                        Seizing Opportunities, Energising Enterprises


                                     INCOME TAX
                                     l Explore a top-up tax called
                                     the Minimum Effective Tax Rate
                                     (METR) regime, in line with the

                                     global minimum effective tax rate
                                     under the Base Erosion and Profit
                                     Shifting (BEPS) 2.0 Pillar 2

                                     l IRAS will consult the industry on
                                     the design of the METR

                                                                           INCOME TAX
                                                                                                                                  GOODS AND
                                                                           l Increase in top marginal tax rate
                                                                           from Year of Assessment 2024:
                                                                                                                                  SERVICES TAX (GST)
                                                                                                                                  l GST increase will be delayed to 2023
                                                                           Portion of             Tax Rate                        and staggered over two steps:
                                                                           Income                                                 Time Period          GST Rate
                                                                           In excess of             23%                           From 1 Jan 2023         8%
                                                                           $500,000 up to      (up from 22%)                      From 1 Jan 2024         9%
                                                                           $1 million
                                                                           In excess of             24%                           l To cushion the impact of the GST
                                                                           $1 million          (up from 22%)                      increase:
                                                                                                                                  Productivity Solutions Grant for
                                                                                                                                  businesses to apply for subsidised
                                                                                                                                  accounting and point of sale solutions

                                                   ‘‘                                                                     ‘‘
                                                            Chairman of the Singapore Indian Chamber of Commerce               Vice-president of the Association of Small and Medium
                                                            and Industry (SICCI) Dr T. Chandroo:                               Enterprises Ang Yuit:
                                                            Now, with the announcement of the GST increase pushed              Generally, the SMEs were very relieved that the (GST)
                                                            to 2023, something SICCI has been asking for and                   increase would not be this year because it gives us
                                                            proposed in our wish list to the Finance Minister, SMEs can        some time to deal with the current cost increases. It
                                                            concentrate on their road to recovery and play their part          would have been an additional burden, an additional
                                                            in the nation’s economic development.                              worry, and it would be frustrating for businesses.

     Singapore Economy 2030:
     Seizing Opportunities, Energising Enterprises

                          Scan the QR code for more
                          information, or contact MTI at

                        Visit the GoBusiness portal
                        for more information
                        on available support for
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                        for Government schemes
                        by answering a few simple
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                                                           Answer a few questions to conduct a
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                                                           readiness, identify digitalisation gaps,
                                                           and find digital solutions tailored to your
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                      SME Centres                          project management support from a
                                                           shared pool of digital consultants.

                      Our experienced Business
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                                                           Centres of
                                                           The Centres of Innovation were set
                                                           up in partnership with Institutes
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                                                           institutes to enhance SMEs’
                                                           technology innovation. The centres
                                                           provide facilities, consultancy,
                                                           training, and technical services for
                                                           SMEs to develop and test technology
                                                           projects in specific sectors.
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