Budget 2015: SMEs still struggling, more support needed, MPs say

SINGAPORE — Despite the Government’s many efforts to help small and medium enterprises (SMEs) get through restructuring over the past few years, Members of Parliament today (March 4) said many firms are still struggling, as they called for more intensive steps, such as appointing a minister to look at this area.

Calling for a “comprehensive, deep review” of the state of the SME sector, MP Denise Phua (Moulmein-Kallang) proposed that a minister and a supporting team — with the relevant track record in business -— be charged with supporting the sector.

“I support the principle of self-reliance and proactivity especially when one runs businesses; but I believe there are perennial ground issues in this sector that call for more dedicated resources to study and look into,” she said.

Other MPs backed the call for more measures to support this group.

Mr Inderjit Singh (Ang Mo Kio) said the definition of productivity should be broadened, to focus on improving bottomlines.

“If we want our businesses to flourish then they also need to grow their revenues. Our economic restructuring process should therefore focus not only reducing cost but also on creating demand. This would help to bring about higher productivity, growth and incomes,” he said.

He also suggested giving levy rebates to businesses that are less dependent on foreign labour than their competitors in the sector, to incentivise them to find new ways of doing business.

Dr Lee Bee Wah (Nee Soon) urged for more opportunities to be given for SMEs to participate in government-to-government projects, and not just to big government-linked corporations such as Surbana. She said doing so would help the SMEs gain international exposure.