Building on the themes laid out in the previous years’ Budgets, Finance Minister, Mr Heng Swee Keat, delivered the Singapore Government’s Budget for 2019 on 18 February 2019. Technology continues to be a key theme in strengthening Singapore’s economic competitiveness, increasing Singapore businesses’ productivity and enhancing Singaporeans’ lives.

With this backdrop, technology companies that are adopting technology to improve productivity or provide innovative solutions to other non-technology counterparts stand in good stead in growing their businesses to greater heights.

Some of the initiatives introduced in the 2019 Budget that may be relevant to technology companies at various business growth stages are summarised below:

Table showing the relevant initiative introduced in 2019 Budget and its implication for technology companies

 

1 Companies can seek advice or mentorship from Innovation Agents (individuals with deep expertise in technology, strong track record in growing businesses and access to global industry networks) on innovation opportunities and facilitate connection to valuable technology and business partners.

 

2 The Government launched the Co-Investment Programme in 2010 to catalyse patient growth capital for Singapore-based enterprises through co-investment with the private sector.

 

3 Qualifying investee companies must have their key management functions and headquarters activities based in Singapore, and have revenues of up to $500 million.

 

4 Environmental services, food services, logistics, media, retail, wholesale trade and security – additions in 2019 Budget: accountancy, sea transport and construction

 

5 DSL brings relevant parties together (i.e. Research Institutes, Institutes of Higher Learning, technology providers and industry and end-user companies) to address industry-level digitalisation challenges focusing on project with industry-wide impact and barriers to digitalisation.

 

6 Since 2007, PCPs have assisted mid-career professionals to undergo skills conversion and move into new occupations or sectors that have good prospects and opportunities for progression

 

7 Businesses are advised to consult tax advisers prior to acquisitions to secure the full benefits of this incentive.

 

8 ASP support come in the form of:

I.       Grant (up to 50% funding support on qualifying costs through Enterprise Development Grant);

II.      Tax incentive (Investment Allowance of 100% on top of existing capital allowance for plant and machinery); and

III.    Loan through enhanced Local Enterprise Finance Scheme.

 

Concluding Remark

With the Singapore Government’s aspiration for the country to be the Global-Asia Node of Technology, Innovation and Enterprise, the slew of technology-centric initiatives introduced in 2019 Budget should provide the much needed boost to Singapore businesses amidst industry transformation efforts and global economic uncertainty. These initiatives represent a bounty of business opportunities for innovative technology firms, particularly those dealing with digital technologies, to capitalise on.

As you focus your efforts and attention on seizing the right opportunities to chart your business growth, let us be your trusted business advisers to take care of all your other important support functions on this exciting journey.

For further assistance, please contact:

Adrian Tan  
Partner & Industry Lead, Technology, Media & Telecommunications  
T +65 6594 7876  
[email protected]