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Government support for SMEs is like ‘push-starting a car’: Heng Swee Keat

The government’s support for small and medium enterprises (SMEs) is like “push-starting a car stuck in a difficult patch”, finance minister Heng Swee Keat said in Parliament on Wednesday (6 April).

But the government “cannot push the car for miles and miles” and SMEs should also take steps to improve their competitiveness, Heng added.

Responding to concerns expressed by some Members of Parliament about the pressures that SMEs face, Heng told the House that while the government has to make sure that firms survive the economic slowdown, it cannot subsidise their cost all the time.

MPs like Zainal Sapari have called for more support for SMEs in their speeches in response to Budget 2016, which was announced by Heng on 24 March.

One of the key thrusts of The Budget is to help SMEs cope with the slowdown. Among the new measures for firms are the Industrial Transformation Programme and the setting up of the Jurong Innovation District.

Getting the “right jobs, right skills, right match”

To propel Singapore into the future, Heng said that the economy should focus on getting the “right jobs, right skills, right match” for workers.

Heng displayed a graph in the House that showed the co-relation between wages and productivity levels of firms.

“It (the graph) shows that productive firms generally pay higher wages… This is why the Industry Transformation Programme is so important,” he said, adding that firms need to redesign jobs and develop the skills of their employees.

At the individual worker’s level, Heng encouraged Singaporeans to continue developing their skills through initiatives such as the learning portal, the Professional Conversion Programme and the TechSkills Accelerator.

While The Budget has a strong SME focus, Heng said there are also measures to help the lower- and middle-income groups such as the Baby Bonus and the Medisave grant benefits for children from these groups.

Regarding the SilverSupport Scheme, MPs such as Jessica Tan expressed concern that the “stringent” eligibility criteria may leave out seniors who are in need of support but do not qualify for the scheme.

Heng said, “We acknowledge there may be some seniors who may need help but do not qualify automatically. Seniors in these exceptional cases can request from CPF to consider their eligibility.”