Govt mulls extending productivity scheme

SINGAPORE — Responding to calls from firms for the continuation of the Productivity and Innovation Credit (PIC) scheme, Senior Minister of State for Finance Josephine Teo (picture) yesterday said the Government is considering the merits of extending the scheme.

Feedback from businesses shows they are finding the scheme helpful and are making an effort to improve productivity, said Mrs Teo, adding that it is timely for the Government to give an update on its economic restructuring during Budget 2014.

The PIC scheme provides tax deductions or cash payouts to businesses that improve operations by investing in productivity and innovation. It was introduced in Budget 2010 and enhanced in 2011 and 2012. Last year, the scheme was enhanced with a cash bonus in addition to existing tax deductions and cash payouts. These benefits are available until next year.

The Singapore Chinese Chamber of Commerce and Industry (SCCCI), Association of Small and Medium Enterprises and Singapore Business Federation have called for the scheme to be extended. A survey released last week by professional services firm KPMG and supported by the Singapore International Chamber of Commerce, found that 97 per cent of the 159 respondents want the PIC scheme to be extended.

Speaking at the sidelines of an Edusave Awards presentation ceremony, Mrs Teo also said Singaporeans can expect to see the Government build on what has been done so far in the areas of education and healthcare.

She noted that one of the priorities of Budget 2014 is to better support families and this would include healthcare and supporting the efforts families are making towards their children’s education — from preschool to tertiary levels.

Mrs Teo said: “In recent Budgets and even in the National Day Rally two years ago, the Prime Minister had spoken about how we were putting in much more effort to organise our pre-school sector in a way that meets today’s needs, so I think some progress has been made in these areas and we will build on them.”

She added: “While supporting families includes helping out where education is concerned, I think one other important aspect is how we can help with healthcare because that is always a concern (for) families with seniors.”

Earlier this month, Prime Minister Lee Hsien Loong said the Government would do more in this year’s Budget to support Singaporeans and their families, especially those who are needy and vulnerable, while Deputy Prime Minister Tharman Shanmugaratnam said healthcare is an immediate priority and Budget 2014 would continue with the quest to upgrade small and medium businesses, create better jobs and raise wages.

Correction: The original article stated a survey released last week by professional services firm KPMG was supported by the SCCCI. This is incorrect. The survey was supported by the Singapore International Chamber of Commerce (SICC). We apologise for the error. This article was edited at 3.30pm on Jan 27, 2013.