In this blog, we would tell you some resources Singapore SMEs can tap on.
Local small and medium-sized enterprises (SMEs) are increasingly stepping up their digitalisation efforts this year. Making use of government grants and initiatives to do so, said Communications and Information Minister S. Iswaran on Friday (June 19).
The number of SMEs in the food and beverage and retail sectors which have received support from the PSG has doubled to more than 3,500 from last year. PSG provides subsidies of up to 80 per cent for SMEs that adopt digital solutions pre-approved by IMDA.
Stay Healthy, Go Digital
In the wake of the COVID-19 pandemic, going digital isn’t a just a luxury anymore—it’s a necessity. Hence, IMDA is calling all businesses to “Stay Healthy, Go Digital”. There is government support for this too. IMDA, along with Enterprise Singapore (ESG), is putting in more resources to help more SMEs access digital solutions.
This includes an enhancement of the SMEs Go Digital programme, where SMEs receive funding support from PSG. With this, SMEs can adopt pre-approved digital solutions. The range of solutions supported has been expanded to include online collaboration and virtual meeting tools. The funding has also been increased from 70% to 80% of qualifying costs, from 1 Apr 2020 to 31 Dec 2020.
Web Delegate is always happy to help you go digital. Book a free consultation with us to find out which grant suits you.
Digital Solutions Resources for SMEs
E-commerce and digital business solutions have been around for a while now. But they’ve gained a newfound importance in the wake of COVID-19. SMEs everywhere now find online technologies essential. This is not just for reaching out to customers but also for running their businesses in general.
The tech industry has ready offerings that can address these challenges Together with IMDA, SGTech rallied the industry to quickly assemble the Digital Solutions Directory for businesses to tap on.
Going digital is key; it not only allows our local SMEs to tide through the current climate, but also positions them to emerge stronger and more competitive when the economy recovers.
Work Closely With The Media
Even outside times of crisis, the media are important allies to SMEs. After all, a good relationship with the media helps boost the profile of businesses while reaching more potential customers.
Recognising this, IMDA has put together several initiatives to support not just SMEs, but the media as well. These initiatives include a consolidated effort to fund media partners who can develop content promoting the use of e-services in daily activities or profile SMEs rising up to face the COVID-19 situation using technology.
Ultimately, IMDA recognises that SMEs form the backbone of Singapore’s economy. “In spite of the COVID-19 situation, we want to enable enterprises to carry on with their business operations as much as possible,” shared Ms Lim. Armed with these technology tools and more, local businesses can be assured that the government and industry players are all committed to helping SMEs weather this crisis.
These information are from imda.gov.sg, if you want to know further please visit this site.
Managing Cashflow
Defer Payment of Principal on Secured SME Loans
SMEs may apply to their lender to defer principal repayment of their loan until 31 December 2020. SMEs will also be able to extend the tenure of their loans by up to the corresponding principal deferment period if they wish.
This relief will be available to SMEs that continue to pay interest and are in good standing with their banks and finance companies (not more than 90 days past due as of 6 April 2020).
Lower Interest on SME Loans
SME borrowers will benefit from lower interest rates on their loans obtained under the following Enterprise Singapore (ESG)’s Enhanced Enterprise Financing Scheme:
MAS will also provide lower-cost funding to participating financial institutions to support their lending at lower interest rates to SMEs under the ESG Loan Schemes through the MAS SGD Facility for ESG Loans.
Temporary Protection
MAS has supported the scoping of the COVID-19 (Temporary Measures) Act 2020 to provide temporary protection to SMEs for a six-month period. This will not impair the interests of banks and Singapore’s role as an international financial centre.
Secured Loans Agreements to SMEs
The Act covers loans to an enterprise that is secured against:
- Any commercial or industrial immovable property located in Singapore (e.g. factory premises, retail space)
- Any plant, machinery or fixed asset located in Singapore that is used for manufacturing, production or other business purposes
During the six-month period, your creditor cannot:
- Enforce the security (e.g. over commercial or industrial property, plant or machinery used for business) located in Singapore
- Start or continue court or insolvency proceedings against you
Hire Purchase Agreements
The Act covers hire-purchase agreements and conditional sales agreements of:
- A plant, machinery or fixed asset that is used for manufacturing, production, or other business purposes
- A commercial vehicle
During the six-month period, your financing company cannot:
- Repossess the plant, machinery or fixed asset that is used for business, or repossess your commercial vehicle
- Start or continue court or insolvency proceedings against you
For more information, please visit mas.gov.sg
All information above are from the government sources and compiled by us.
