Providing Further Support to Local SMEs Struggling with Increasing Rent and Operating Costs

Mr Lee Hong Chuang asked the Deputy Prime Minister and Minister for Trade and Industry in respect of reports of local-owned businesses struggling with increasing rents and operating costs, whether the Ministry would deem it necessary to provide further support to local-owned small and medium enterprises.

The Government recognises that businesses continue to face cost pressures and operating challenges. To support our businesses, the Government introduced a Corporate Income Tax (CIT) rebate for Year of Assessment (YA) 2024 and YA2025. At Budget 2026, the Government has also announced a 40% CIT rebate for YA2026, capped at $30,000, with a minimum benefit of $1,500 for active companies with at least one local employee.

We also support our heartland merchants through Community Development Council (CDC) Vouchers and SG60 Vouchers programmes, which have helped to boost sales and footfall for participating businesses. Over the last four years, more than $2 billion in Vouchers has been spent at participating heartland merchants and hawkers.

Beyond receiving support to overcome short-term pressures, businesses must continue to invest in their long-term viability and competitiveness. Businesses can tap on business grants, such as the Enterprise Development Grant or the Productivity Solutions Grant to embark on transformation or enhance their productivity. Businesses can also tap on the Market Readiness Assistance grant to help small and medium enterprises (SMEs) venture into overseas markets and seize new opportunities.

At the Ministry of Trade and Industry's (MTI's) Committee of Supply 2026, the Government further introduced a series of enhancements to support our enterprises in their growth journey. This includes enhancing the support levels of our internationalisation schemes from 50% to 70% for SMEs, and from 30% to 50% for non-SMEs, to support our enterprises in capturing new opportunities in overseas markets. Businesses can also access higher loan limits under the Enterprise Financing Scheme (EFS)-Trade Loan and EFS-Fixed Assets Loan. This gives them greater flexibility in structuring loan facilities to better meet their needs.

For some businesses, the viable path may involve restructuring their operations or, where necessary, scaling down or exiting specific products, services or parts of their operations. While such adjustments are a normal and necessary part of economic renewal, we recognise that the process can be difficult and painful. The Government will work closely with Trade Associations and Chambers, enterprises and the labour movement to support our businesses through these transitions. This includes helping them assess their options early, restructure responsibly and pursue new growth opportunities while supporting workers throughout the process.