More support for SMEs on the way: PM Lee

SINGAPORE — More support will be given to small and medium enterprises (SMEs) in Singapore to help them meet the challenges of economic restructuring, said Prime Minister Lee Hsien Loong at the National Day Rally this evening (Aug 18).

Delivering the Mandarin portion of his speech, Mr Lee did not give details, but said that Minister of State for Trade and Industry Teo Ser Luck would be meeting different business representatives to find out how to better support them.

He acknowledged the difficulties faced by SMEs, especially when it came to manpower. While SMEs have tried hard to raise productivity, improve service standards and reduce labour costs, they have limited resources and cannot meet all these challenges on their own, he said.

Mr Lee noted SMEs’ reliance on foreign manpower, but reiterated the need to control foreign worker numbers - which are still rising. There will be “serious consequences” if these numbers are left unchecked, he warned.

The foreign worker issue is “complex”, and the Government cannot meet all the demands but it will help SMEs “find a way to make it”, he pledged.

Earlier this year, the Government rolled out a three-year S$5.3 billion Transition Support Package to help SMEs reduce business costs and raise productivity. Mr Lee said that while there are many schemes to help SMEs, businesses may not know what schemes are available.

Mr Lee also assured that the Government would do more to help the low-income group and strengthen social safety nets, and urged individuals and the community to step up and complement the Government’s efforts.

There is a need to help those with less to “strengthen social cohesion”, so that the nation does not become divided between the rich and the poor, he said, adding that the wages of the low-income group must be raised.