Advanced technology and fast developing markets such as China and India have resulted in SMEs continuously looking for growth opportunities. Singapore with its good geographical location and strong economic and social fundamentals, should make full use of these favourable factors to develop Singapore into a regional SME hub, providing a pro-business environment and stable platform for economic growth enabling Singapore to play a more active role on the world stage. this shows singapore government being forward looking and implement practical policies
Suggested Solutions
SME Related
1. Set up an SME Board/Bureau that will consolidate the various government resources for SMEs in order to help them solve problems more efficiently. It will also draft and promote long term development plans to increase SME competitiveness.
2. Set up a SME bank/financial institution to provide a more efficient financing channel for SMEs and to award tax incentives to SMEs
3. Redraft the current Industry Development Plan to set up SME Industrial Park for the various SMEs and provide tax incentives
4 Simplify government policies and procedures, eg. the registration procedure for licenses etc. for enterprises.
5 Legislate all SMEs to join a trade association relevant to them
6 Establish a SME Research Centre
7 Promote entrepreneurship in schools, commercial districts and neighbourhood centers. Relevant government departments and Statutory Boards could act as partners of businesses in this exercise. Short term teacher attachment with SMEs should be considered as part of the ongoing exercise to promote entrepreneurship.
8 With the government thrust towards improving service culture, clear roles should be drawn up for private sector to implement. Thrust areas for revitalizing the service industry should include retail stores, restaurants and hospitality industry. Plan for the proposed integrated resorts should include opportunities for SME related businesses.
9 Self employed businesses should be promoted as private life and business are closely related. They balance family life and work, meet the demands of declining population and enable women and the elderly to be employable quite often close to home.
There is therefore a need to improve the image of SMEs and the government can assist in efforts to raise public awareness of SMEs as attractive places of employment.
Other Recommendations
10 Promoting Singapore as an education hub.
With the current thrust towards developing Singapore into an education hub, there is competition among the local tertiary institutions to attract more foreign students. There is a need to coordinate activities between the institutions and senior administrative staff in this exercise.
11 Control business cost
12 Tax adjustment