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Science and Technology
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Science and Technology
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SMEs to get more support at dedicated centres, financing advisory hub

Enhanced Support for SMEs: Dedicated Centres and New Financing Advisory Hub Set to Boost Singapore's Business Landscape

In a significant move to bolster the resilience and growth of small and medium-sized enterprises (SMEs) in Singapore, the government has announced the establishment of dedicated support centres and a centralised financing advisory hub. This initiative, unveiled amid ongoing economic challenges such as rising costs, supply chain disruptions, and the lingering effects of the global pandemic, aims to provide tailored assistance to SMEs, which form the backbone of Singapore's economy. Comprising over 99 per cent of all enterprises and employing about 70 per cent of the workforce, SMEs are crucial to the nation's economic vitality, and these new measures are designed to address their most pressing needs, from operational efficiency to access to capital.

The announcement, made during a recent business forum organised by Enterprise Singapore and the Monetary Authority of Singapore (MAS), highlights a collaborative effort between government agencies, financial institutions, and industry associations. At the heart of this support ecosystem are the dedicated SME centres, which will serve as one-stop hubs for businesses seeking guidance on a wide array of issues. These centres, strategically located across key business districts and industrial areas in Singapore, will offer personalised consultations, workshops, and resources to help SMEs navigate digital transformation, international expansion, and sustainability practices. For instance, entrepreneurs can receive advice on adopting advanced technologies like artificial intelligence and automation to streamline operations, thereby reducing costs and enhancing competitiveness in a global market.

One of the standout features of these centres is their focus on customised support. Unlike generic business advisory services, these hubs will employ industry experts who understand the unique challenges faced by different sectors, such as manufacturing, retail, and services. A manufacturing SME grappling with supply chain vulnerabilities, for example, could access specialised seminars on diversifying suppliers or implementing just-in-time inventory systems. Similarly, retail businesses hit hard by e-commerce shifts might benefit from digital marketing training or e-platform integration guidance. This sector-specific approach ensures that the support is not only relevant but also actionable, empowering SMEs to implement changes that drive real results.

Complementing the dedicated centres is the newly introduced financing advisory hub, a centralised platform designed to demystify the often complex world of business financing. SMEs frequently cite access to funding as a major hurdle, with traditional bank loans requiring extensive collateral and lengthy approval processes. The hub addresses this by aggregating information from various financial providers, including banks, fintech companies, and government-backed schemes. It will offer impartial advice on loan options, grants, and alternative financing like crowdfunding or venture debt, helping businesses identify the best fit for their needs.

The financing hub will operate both online and offline, with a user-friendly digital portal allowing SMEs to input their financial profiles and receive tailored recommendations. For those preferring face-to-face interactions, advisors at the hub will conduct in-depth assessments, reviewing cash flow statements, business plans, and growth projections to suggest optimal funding strategies. This is particularly beneficial for startups and younger SMEs that may lack the financial literacy or networks to secure capital effectively. Moreover, the hub will facilitate connections to a network of lenders, potentially speeding up approval times and reducing rejection rates.

Government officials have emphasised that these initiatives are part of a broader strategy to future-proof Singapore's economy. Deputy Prime Minister and Finance Minister Lawrence Wong, speaking at the forum, noted that "SMEs are the lifeblood of our innovation and job creation. By providing them with robust support structures, we are investing in a more inclusive and dynamic economy." This sentiment echoes the government's ongoing commitment through programs like the Enterprise Development Grant and the Productivity Solutions Grant, which have already disbursed millions in funding to thousands of businesses.

Industry leaders have welcomed the announcement, viewing it as a timely intervention. Mr. Tan Kiat How, CEO of a local tech SME, shared his enthusiasm: "Access to expert advice and financing has always been a bottleneck for us. These centres and the hub will level the playing field, allowing smaller players to compete with larger corporations." Similarly, associations like the Singapore Business Federation (SBF) have pledged their support, offering to collaborate on training programs and mentorship schemes within the centres.

To ensure the effectiveness of these initiatives, a phased rollout is planned. The first dedicated SME centres are expected to open in the coming months, starting with locations in Jurong and Central Singapore, with expansions to other regions by mid-2024. The financing advisory hub will launch concurrently, with an initial focus on digital accessibility to reach a wider audience, including SMEs in remote areas. Metrics for success will include the number of businesses assisted, funding secured, and improvements in productivity metrics, with regular reviews to refine the services based on user feedback.

Beyond immediate support, these measures align with Singapore's long-term economic goals, such as those outlined in the Singapore Green Plan 2030 and the Digital Economy Framework. SMEs will receive guidance on sustainable practices, like reducing carbon footprints through energy-efficient technologies, which could qualify them for green financing options available through the hub. This integration of environmental considerations underscores the government's holistic approach to business development, ensuring that growth is not only profitable but also responsible.

The initiative also addresses workforce challenges, a critical area for SMEs. Centres will offer resources on talent acquisition, upskilling, and retention strategies, including partnerships with educational institutions for internship programs and skills training. In an era of labour shortages, particularly in tech and engineering fields, such support could help SMEs build resilient teams capable of driving innovation.

Economists predict that these enhancements could contribute to a more vibrant SME sector, potentially increasing their contribution to GDP, which currently stands at around 50 per cent. By fostering an environment where businesses can thrive, Singapore positions itself as a regional hub for entrepreneurship, attracting foreign investment and talent. However, challenges remain, such as ensuring equitable access for micro-enterprises and monitoring the impact on underserved communities.

In conclusion, the dedicated SME centres and financing advisory hub represent a proactive step towards empowering Singapore's businesses. As the global economy continues to evolve, these resources will equip SMEs with the tools they need to adapt, innovate, and succeed. Entrepreneurs are encouraged to engage with these services early to maximise benefits, signalling a new chapter in Singapore's support for its vital SME community. With continued collaboration between public and private sectors, the future looks promising for these enterprises that drive the nation's progress.

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Read the Full The Straits Times Article at:
[ https://www.straitstimes.com/business/smes-to-get-more-support-at-dedicated-centres-financing-advisory-hub ]