Chen Yiren Yun Daan Chen Ruilian: How can small and medium -sized enterprises go

Financial perspective

2023 is the Year of the Lunar Calendar.For the business community, in 2023, we should not be timid and weak, but should be moved as a rabbit, which will subvert and adverse the country as an opportunity for growth.

Local SMEs (SMEs), which intends to use the 2023 budget to support business growth and transformation demand, can get from the main announcement of the budget statement of Deputy Prime Minister and Minister of Finance Huang Xuncai?

First of all, the government will double their efforts to attract more high -quality investment in the selected key areas.

Singapore's usual strategy is to focus limited resources in the areas of growth with high competitive advantages, such as finance, transportation and logistics, as well as manufacturing, such as electronics, chemistry and biomedical science.As a small country, we used to benefit from globalization and have flourished.However, with the rise of global protectionism, or as the so -called "developed countries adopt more tough industrial policies", Singapore has adopted such a strategy, which is essential.

Secondly, local enterprises that provide services to multinational companies and are possible to integrate with international networks, the government can help create SPIN-Offs, so that these local companies can become leaders in their own industry.The government will also assist in the excavation and development of companies with good international performance records and potential to be promoted to another stage.

The business support measures listed in the fiscal budget in 2023 are widely scope. The government will make a large amount of subsidies on some of the support measures, such as the National Productivity Fund (obtained an additional 4 billion yuan), the newly established corporate innovation planAnd the internationalization plan of Singapore Enterprise (additional 1 billion yuan).These support measures are to allow local enterprises to cultivate stronger international competitiveness in some links, such as establishing new capabilities and improving employee skills.The government will also support enterprise innovation and expand the scale of equity financing, and obtain a special and tailor -made skill improvement plan to accelerate the pace of internationalization.

What can local companies expect?

As more high -quality investment flows to Singapore and multinational enterprises that set up bases locally, this will have a positive spillover effect on local enterprises.However, we believe that local small and medium -sized enterprises need to enjoy these overflow effects for a while.

SMEs, which are closer to the field of seeking to be closer to growth and in order to serve local multinational companies, and intend to seek funding support, it may feel like a series of measures and application procedures provided by the government.Daddy.

In fact, when applying for government subsidies, small and medium -sized enterprises face the biggest challenge, including lack of understanding, complex application procedures, and not fast application procedures for solutions that are most suitable for business needs, and it is difficult to meet business needs.This is the conclusion that the Singapore Chinese Chamber of Commerce conducted a survey of more than 1,000 companies in 2022. Among them, SMEs accounted for more than 90 % of the interviewees.

At the micro level, our SME Center and Chamber of Commerce and Chamber of Commerce (TAC) have been working hard to help many small and medium -sized enterprises transform.SMEs who intend to provide services to multinational enterprises are even more urgent to receive assistance to support measures.In fact, some people also called for strengthening funding support for the Chamber of Commerce and Chamber of Commerce to better assist SMEs.

In a wider level, it is obviously very important to obtain more business support budgets and funds for small and medium -sized enterprises; in addition, we have to make two suggestions.

Where should we start?

First of all, we recommend providing more support for small and medium -sized enterprises that are in line with local networks before considering whether these companies will eventually enter the international network.The respondents surveyed by the China Chamber of Commerce in 2022 emphasized that the company and larger enterprises can also provide more opportunities for small and medium -sized enterprises.

For example, as the largest bidder of the project project, the government can divide the bidding projects into small pieces and allow small and medium -sized enterprises to compete with each other to undertake such projects.Small and medium -sized enterprises in success can establish reliable business channels and performance with government agencies, so as to achieve growth, expand scale, and develop to a larger government project that can compete with foreign companies and compete.

Secondly, we advocate that a local enterprise formed an ecosystem -SMEs and local companies (LLC) jointly -"joint attack and collective dispatch" when serving multinational companies or expanding overseas markets.Information (customer, company, industry, economy) and services (legal aid, language translation) can be shared between small and medium -sized enterprises to obtain cost management effects.We believe that the balanced ecosystem jointly established by SME and large local companies can enhance the collective toughness of Singapore.

Why is it so urgent?

Take a step back, why do small and medium -sized enterprises urgently need to actively promote business transformation, integrate with local networks and overseas networks, or need to form a group and collectively dispatch?

Don't forget that the total number of employees hired by small and medium -sized enterprises accounts for 70%of the total number of labor population in Singapore. Therefore, it is in line with the local and even international networks, which means that employees have the opportunity to obtain re -training and improve skills. SMEs enterprises, small and medium -sized enterprisesCan play a key role in improving the level of productivity in Singapore.

The International Monetary Fund's report in July 2022 pointed out that Singapore's economic growth has slowed down, partly due to weak productivity growth.The Ministry of Trade and Industry of Singapore estimates that from 2016 to 2019, labor productive for labor productivity measured by actual value -added per hour, an annual increase of 2.7%, slightly higher than the 2.2%increase in the previous three years.

As Huang Xuncai said in the 2023 budget speech: "The external environment full of uncertainty and difficulties constitutes a huge challenge to all of us. This budget is related to us in the new era."

We believe that small and medium -sized enterprises have the opportunity to play potential and contribute to the increase in productivity and salary growth in Singapore.Adopting the overall way- "integrate with the local network, and then connect to overseas networks" and "collective displacement", it will effectively help companies of different sizes to deal with arduous challenges in front of them.

The author Chen Yiren is the vice president of Singapore SME Chamber of Commerce

(Corporate Communication) and the director of Wanxing Industrial Special Project

Yun Da'an is the Deputy Chairman of the Singapore SME Chamber of Commerce

Chen Ruilian is a professor at the School of Economics, Singapore Management University

The above is purely the author's personal point of view.

The translation is provided by Singapore Management University

First of all, we recommend providing more support for small and medium -sized enterprises that are in line with local networks before considering whether these companies will eventually enter the international network.Secondly, we propose to form an ecosystem by local enterprises to "joint attack and collective dispatch" when serving multinational companies or expanding overseas markets.