ENERGISING ENTERPRISES - SEIZING OPPORTUNITIES, SINGAPORE ECONOMY 2030: GOBUSINESS
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2 3 ‘‘ 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 INSIDE 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 manufacturing. trillion in the same period. Page 16
4 5 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 sector. 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.
12 6 7 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 enterprises 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 development 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
8 9 Singapore Economy 2030: Seizing Opportunities, Energising Enterprises STRENGTHEN LOCAL IMMEDIATE ENTERPRISES FOR BUSINESSES 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 UPPORT 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 SCHEME 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 DIGITALISATION 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.
10 11 UPLIFT Singapore Economy 2030: Seizing Opportunities, Energising Enterprises LOWER-WAGE WORKERS 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 IN OUR PEOPLE 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 50% 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’ NVEST 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 Meng: TRANSITION OUR GREEN 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 DVANCE 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. SINGAPORE GREEN PLAN l Green growth opportunities and jobs, e.g. green finance, carbon services 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 CORPORATE & MORE RESILIENT INCOME TAX l Explore a top-up tax called the Minimum Effective Tax Rate (METR) regime, in line with the TAX SYSTEM 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 FAIRER PERSONAL 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: Chargeable 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.
16 Singapore Economy 2030: Seizing Opportunities, Energising Enterprises Scan the QR code for more information, or contact MTI at email@example.com GoBusiness Visit the GoBusiness portal for more information on available support for enterprises. Apply for grants or use the e-Adviser to discover your eligibility for Government schemes by answering a few simple questions. Chief Technology Officer-as-a-Service Answer a few questions to conduct a self-assessment of your company’s digital readiness, identify digitalisation gaps, and find digital solutions tailored to your business needs. Eligible companies can also seek digital advisory services and SME Centres project management support from a shared pool of digital consultants. Our experienced Business Advisors are here to support you in growing your business, through areas such as overseas expansion, financing, productivity, and HR. Book a complimentary 1-on-1 consultation at an SME Centre of your choice. Centres of Innovation The Centres of Innovation were set up in partnership with Institutes of Higher Learning and research 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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