Schemes for SMEs crucial to boost their potential, S’pore's economy

Amid the current unpredictability of world markets, the interests of small and medium enterprises must be safeguarded, as highlighted in the report “Over S$500m in loans made under SME scheme” (Nov 26).

Firstly, government schemes for businesses are beneficial to Singapore’s start-up ecosystem, and it is essential to establish a business climate revolving around this concept because it may attract a lot of investments from overseas.

Also, the provision of grants is a good move. It will help companies to remain competitive and achieve potential economies of scale in future.

The SME Working Capital Loan heralds that growth because it provides a financing framework that businesses need. With more protection, businesses will be more likely to spread their risks.

Furthermore, such schemes and grants as described in the report are a signal for aspiring entrepreneurs to pursue their potential business ventures.

The diversity of choices for them and for existing SMEs — ranging from tax exemption to grants in productivity, innovation and capacity building — is encouraging.

This makes it easier to select the most viable and effective form of assistance, keeping in mind the type of business endeavour.

Singapore’s growth forecast may not seem encouraging at this juncture, but SMEs’ investment capacity and the potential benefits they can reap from financial schemes would bolster the economy in the long run.

And in the event of a downturn in the foreseeable future, such schemes would provide SMEs with financial armour.