Debated in Parliament on 8 May 2024.
Mr Pritam Singh asked the Minister for Trade and Industry (a) whether JTC Corporation is empowered to lease of JTC industrial properties to local SMEs at a discount to the market rate; (b) if so, how many of such schemes are there and which industries are these schemes tailored for respectively; and (c) whether the Ministry has any plans to expand the number of such schemes that reduce business costs for local SMEs by way of lower rentals.
The JTC Corporation (JTC) does not typically provide rental rebates to local small and medium enterprises (SMEs), as its rentals are currently at an average of 12% below prevailing market rates. JTC had last offered an exceptional once-off rental rebate during COVID-19.
As rental costs comprise just one component of total business costs, the Government’s approach has been to support SMEs more holistically through a comprehensive suite of assistance programmes. For instance, to help businesses cope with rising costs, the Government allocated $1.3 billion under this year’s Budget for the Enterprise Support Package. This package includes the Enterprise Financing Scheme to help Singapore companies access loan financing more readily, the SkillsFuture Enterprise Credit to support transformation and skills training efforts, and a corporate income tax rebate of 50% for 2024.
There are also grants that provide support for specific sectors. For instance, the Enterprise Development Grant has helped companies in the manufacturing sector adopt automation and robotics to increase production capacity and improve warehousing density. Enterprise Singapore also has multiple Centres of Innovation to help SMEs innovate new solutions in specific industries, such as food manufacturing and robotics.
The Ministry of Trade and Industry and the Singapore Business Federation have also formed an Alliance for Action (AfA) on Business Competitiveness to deep-dive into how businesses can remain competitive amid global uncertainties and structurally higher business costs. AfA is co-chaired by Minister of State Low Yen Ling and Nominated Member of Parliament Mark Lee, Deputy Honorary Treasurer of SBF Council. AfA has commenced industry consultations to seek views from businesses and aims to put out its recommendations by the fourth quarter of 2024.
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