Budget 2022: Two new schemes to help promising large companies expand

Many large companies need more support in talent development, noted Mr Lawrence Wong. ST PHOTO: LIM YAOHUI

SINGAPORE - Two new schemes will be launched to help large Singapore companies scale up, invest abroad and nurture the next generation of leaders.

The Singapore Global Enterprises initiative will provide customised assistance to promising large local enterprises in areas such as innovation, internationalisation and fostering of partnership with other firms, said Finance Minister Lawrence Wong.

He noted that many of these large companies need more support in talent development.

"We will launch a new Singapore Global Executive Programme, to help them to attract and nurture their next generation of leaders through industry and overseas attachments, mentorship and peer support networks," he said.

The minister also announced enhancements to two components in the Enterprise Financing Scheme (EFS).

He said the scheme's merger and acquisition (M&A) loan programme will be expanded to include domestic M&A activities from April 1 this year to March 31, 2026.

"This will support companies to grow and expand through mergers and acquisitions," Mr Wong added.

The Government will continue to share 70 per cent of the risk under the enhanced trade loan component of the EFS for enterprises venturing into more nascent markets like Bangladesh or Brazil, he said.

The trade loan scheme is also extended to September this year.

"We hope this will encourage our enterprises to seek untapped opportunities in these markets," he added.

Mr Amit Saberwal, chief executive and founder of hotel management and booking platform RedDoorz, welcomes the new initiatives like Singapore Global Enterprises to provide bespoke assistance in areas from innovation to internationalisation.

"This will be of immense benefit as we come out of this pandemic and hit the road once again in our long-term strategy to expand into newer markets," he said.

 Mr Lennon Lee, partner tax at PwC Singapore, said the extension of the schemes such as the temporary bridging loan programme and enhanced trade loan will be welcomed.

But he noted that these initiatives are extended for only six months while the effects of the pandemic are likely to last much longer.

Read next - Budget 2022 highlights: GST hike, higher income tax for top earners and CDC vouchers for all

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