Singapore remains committed to supporting SMEs: Chee Hong Tat

SINGAPORE – Singapore will keep supporting small and medium-sized enterprises (SMEs) and help them expand here and overseas, said Transport Minister Chee Hong Tat on July 5.

He told the annual Entrepreneur of the Year Awards ceremony: “While we attract and anchor multinational companies to invest in Singapore to provide business opportunities for our SMEs and create good jobs for our people, we will continue to groom local start-ups and companies.

“(We will also) help our companies to scale up their operations and expand their presence in Singapore and overseas.”

Mr Chee, who is also Second Minister for Finance, said multinationals can benefit from a strong base of SME suppliers and partners, while SMEs can also grow by leveraging the knowledge and business opportunities from the larger firms.

“Staying open and connected with the world is a better approach, compared to closing our doors... blocking the flow of international trade, investments and talent,” noted Mr Chee, who was the guest of honour at the event organised by the Association of Small and Medium Enterprises (Asme) and the Rotary Club of Singapore, and held at The Ritz-Carlton, Millenia Singapore.

An inter-ministerial committee was set up in May to review regulations, with the aim of cutting red tape and creating a more business-friendly environment.

Mr Chee noted then that the Ministry of Transport (MOT) would collaborate with stakeholders in the land, sea and air transport industries to gather feedback and review these rules.

He gave an update at the July 5 event, outlining how the ministry has been reviewing its rules to help businesses in the transport industry streamline their processes.

One reform that kicked in near the end of 2023 has seen the Land Transport Authority (LTA) remove the collection of security deposits for road and rail project contractors that have other ongoing LTA projects, as the risks of default are minimal.

LTA requires contractors requesting road infrastructure modifications to submit a security deposit before work commences.

Mr Chee noted: “With this change, the project contractors no longer need to submit security deposits; they (avoided) incurring time and money to provide more than $8 million worth of security deposits in the past nine months, and we expect the amount to grow over time.

“This has helped our contractors with their cash flow.”

In December 2023, the Government moved to ensure the safety of electric vehicle (EV) charging infrastructure.

All EV chargers must be

approved by and registered with LTA before they can be used,

and applicants have to pay a fee upon registration.

Mr Chee said MOT has received feedback that the registration fee may be too high for industry players that are using EV chargers only for short periods, such as for trade shows or exhibitions.

He said LTA will waive the registration fee for chargers used for short-term purposes of up to two months, which will result in savings of up to $600 per charger.

“For a company that is doing exhibitions and trade shows, the cost savings could add up to a few thousand dollars per event,” Mr Chee said. The exemption will start by September.

Another example is the streamlining of the approval process for cargo trackers, portable electronic devices that air cargo shippers use to track shipments.

Local airlines are required to seek the Civil Aviation Authority of Singapore’s (CAAS) approval for the use of each new model of cargo tracker, a process that took up to two weeks.

Mr Chee said: “As a result, some of the time-sensitive shipments that are using newer models of cargo trackers had to be turned away.”

The CAAS has been working with airlines to streamline the process, allowing most of the assessment to be done by the airlines in accordance with established procedures, which has shortened the approval time from two weeks to three days.

Mr Chee said the CAAS will remove the need for approvals for new cargo trackers by August, but will conduct spot checks to ensure that local airlines are using compliant devices.

“These examples I have shared would not be possible without the strong partnership between the Government, our businesses and trade associations and chambers like Asme,” he added.

The Entrepreneur of the Year Award is one of Singapore’s top accolades for local entrepreneurs.

Mr Thong Yong Hin, 55, managing director of Inter Island Manpower, was named overall winner of the Established Entrepreneur category, while Mr Lawrence Luan, 39, chief executive of Octopus8, was overall winner of the New Entrepreneur category.

Asme president Ang Yuit said: “We are excited to see how these businesses will continue to foster a culture of innovation and resilience that will shape the future of our business community.”