They expressed their views at two seminars: 'Implications of the Budget 2009 for Companies' held at the Ministry of National Development auditorium, and a post-Budget seminar held by the Singapore Chinese Chamber of Commerce and Industry (SCCCI).

At the first, Mr Mohamed Ismail, chief executive of real estate firm PropNex, said the two major problems for SMEs here are rentals and labour costs.

While SMEs must cash in on the corporate tax cut and rental rebates announced in the Budget, he sees these measures helping only in the long term.

'The corporate tax cut will be applicable only for assessment in 2010, and effectively we will have a benefit of only 4 per cent on rentals,' he said.

He also voiced concern over whether, even with the latest incentives, banks will lend to SMEs - and cautioned that 'no stimulus package can really help if entrepreneurs wait for government handouts'.

The first seminar was jointly organised by EDC@ASME, the Ministry of Manpower and the Singapore Workforce Development Agency. Educational Development Centres (EDCs) offer advice to SMEs and are run by the Association of Small and Medium Enterprises.

Opening the seminar, chairman of EDC@ASME, Mr Wong Ming Kwong said that companies should 'view the crisis as an opportunity to build and strengthen their business capabilities'.

He also highlighted Budget measures such as the Jobs Credit scheme, that would encourage firms to retain workers.

Mr Lau Weng Hong, Manpower Ministry's deputy director of labour relations said the first priority for firms must be to retain jobs.

Read the full report in Thursday's edition of The Straits Times.