The second part of the government supporting measures introduced in the Singapore 2024 Financial Year budget aims to maintain competitiveness in traditional sectors of the Singapore economy.
These measures are as follows:
SGD 3 billion to be invested in Research, Innovation and Enterprise 2025
Research, Innovation and Enterprise 2025, or RIE2025, is the Singapore Government's strategy to build on the progress achieved in the past RIE plans and create greater value from RIE investments.
RIE focus areas are:
- Expand RIE mission to tackle a broader spectrum of national needs;
- Enrich Singapore's scientific base; and
- Scale up platforms to drive technology translation and strengthen the innovation capabilities of Singapore enterprises.
Introduce the Refundable Investment Credit Scheme (RIC).
The RIC encourages companies to make sizeable investments that bring substantive economic activities to Singapore.
The RIC is awarded on qualifying expenditures incurred by the company during the qualifying period up to ten years in respect to a qualifying project.
The credits are to be offset against Corporate Income Tax payable.
Companies can receive up to 50% of support on each qualifying expenditure category.
Top up SGD 2 billion to the National Productivity Fund (NPF)
The fund was established in 2010 to support a wide range of measures for businesses to improve productivity and continue to educate and train workers.
Later, NPF's scope was expanded to include investment promotion.
To support RIC and other investment promotion efforts, the government will top up the NPF in the financial year 2024.
Top up SGD 2 billion to the Financial Sector Development Fund.
According to the 2023 Global Financial Centres Index (GFCI), Singapore is among the top five global financial centres, along with New York, London, Hong Kong, and San Francisco.
The sector is also a substantial contributor to the country's GDP.
Along with legislative measures, such as the enactment of the Payment Services Act and Variable Capital Companies Act, the Financial Sector Development Fund will support the sustainable growth of the financial sector in the coming year.
Enhance the Partnership for Capability Transformation Scheme
The Partnerships for Capability Transformation (PACT) scheme was introduced in 2010 to defray part of the costs incurred by original equipment manufacturers (OEMs) and their suppliers, to validate that suppliers' procedures comply with the OEM's requirements.
PACT also provides wage support for managers hired by the OEMs to undertake supplier identification, procurement and setting up of manufacturing/quality systems.
