The Singapore Budget 2024 has been unveiled for almost a year, and it brought a host of measures designed to support businesses in navigating a challenging global economic landscape. With a focus on sustainability, innovation, and resilience, the budget introduces several initiatives that could significantly impact businesses across various sectors. Whether you’re a small business owner or a corporate leader, understanding these changes is crucial for staying competitive. In this article, we break down the key highlights of the Singapore Budget 2024 and explore how they will affect businesses.

 

Overview of Singapore Budget 2024

The Singapore Budget 2024, delivered by Deputy Prime Minister and Finance Minister Lawrence Wong, emphasizes building a sustainable and inclusive economy. It addresses key challenges such as rising costs, global economic uncertainty, and the need for digital transformation. The budget also aligns with Singapore’s long-term goals, including the Green Plan 2030 and the transition to a low-carbon economy.

For businesses, the budget introduces a mix of tax adjustments, grants, and incentives aimed at fostering growth, innovation, and resilience. Let’s dive into the details.

 

Key Measures Impacting Businesses

 

1. Enhanced Support for SMEs

Small and medium-sized enterprises (SMEs) are the backbone of Singapore’s economy, and the Budget 2024 introduces several measures to support their growth:

Extended SME Co-Investment Fund: The government will top up the fund by $150 million to provide additional financing support for SMEs.
Productivity Solutions Grant (PSG): The PSG will be extended to cover more digital solutions, helping SMEs adopt technology to improve efficiency and reduce costs.

 

2. Tax Adjustments

The budget includes several tax changes that businesses need to be aware of:

Corporate Income Tax Rebate: A 10% rebate on corporate income tax, capped at $20,000, will be provided to help businesses manage rising costs.
Carbon Tax Increase: The carbon tax will be raised to $25 per tonne in 2024, with plans to increase it further by 2030. This will impact businesses in carbon-intensive industries, encouraging them to adopt greener practices.

 

3. Sustainability and Green Initiatives

Sustainability is a key focus of the Budget 2024, with several initiatives to help businesses transition to a low-carbon economy:

Enterprise Sustainability Programme (ESP): A $100 million fund will be set up to help businesses develop sustainability capabilities and adopt green technologies.
Energy Efficiency Grant: This grant will be extended to more sectors, including manufacturing and construction, to support energy-efficient upgrades.

 

4. Digital Transformation and Innovation

To help businesses stay competitive in the digital age, the budget introduces measures to accelerate innovation:

National AI Strategy 2.0: The government will invest in AI research and development, providing opportunities for businesses to leverage AI technologies.
SkillsFuture Enterprise Credit: A one-time $10,000 credit will be provided to businesses to support employee training and upskilling.

 

5. Support for Export-Oriented Businesses

With global trade facing uncertainties, the budget includes measures to help businesses expand internationally:

Double Tax Deduction for Internationalization (DTDi): The DTDi scheme will be enhanced to cover more expenses related to overseas market expansion.
Trade Loan Scheme: The maximum loan quantum under the scheme will be increased to $10 million to provide greater liquidity support for exporters.
How Businesses Can Prepare for the Changes

 

 

The Singapore Budget 2024 presents both opportunities and challenges for businesses. Here’s how you can prepare:

Leverage Grants and Incentives: Take advantage of the various grants and incentives available, such as the Productivity Solutions Grant and Enterprise Sustainability Programme.

Adopt Sustainable Practices: With the increase in carbon tax, businesses should explore ways to reduce their carbon footprint and adopt greener technologies.

Invest in Digital Transformation: Embrace digital tools and AI technologies to improve efficiency and stay competitive.

Upskill Your Workforce: Use the SkillsFuture Enterprise Credit to train employees and build a future-ready workforce.
Conclusion

The Singapore Budget 2024 is a forward-looking plan that aims to strengthen the resilience and competitiveness of businesses in a rapidly changing world. From enhanced support for SMEs to sustainability initiatives and digital transformation measures, the budget offers a range of opportunities for businesses to thrive.

By staying informed and proactive, businesses can leverage these measures to navigate challenges and seize new opportunities. Whether you’re looking to adopt green technologies, expand internationally, or invest in innovation, the Budget 2024 provides the tools and support you need to succeed.

 

Yours sincerely,

The editorial team at Raffles Corporate Services