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SINGAPORE : To help small and medium enterprises (SMEs) tide over Singapore's economic restructuring, the government has announced more measures to boost productivity and spur growth.
Automating machinery last year saw Koufu receive S$150,000 under the Capability Development Scheme (CDS).
This led to an increase in revenue by 10 per cent.
It also meant the food court operator could raise wages by 5 per cent.
Chua Sherlin, financial controller at Koufu, said: "This CDS scheme is still a good scheme...In terms of grants, we are able to get more. There is still a lot to do, for automation, especially in the factory, and also for our outlets. We intend to use the scheme to further enhance our productivity."
As a part of the Budget 2012, the scheme will now be boosted by another S$200 million in the next three years, with support going up from 50 per cent to 70 per cent of qualifying costs.
One worker used to be needed to man conventional ovens at Koufu. But since Koufu bought automated ovens, manual work has been reduced and consistency improved in their pastries. Koufu said such automation has also made it easier for local workers to adapt.
It will now also be simpler for SMEs to apply for the Productivity and Innovation Credit Scheme.
But not all companies may benefit from these initiatives.
Chan Chong Beng, president of the Association of Small and Medium Enterprises, said: "I feel these are measures for the medium-sized companies, not the small-sized companies...most SMEs are not very cash-healthy.
"By the time the report is done, they get it done by consultants, get it from SPRING for approval, it may take another three months. So many people refuse to take it up because they have no cash outlay. "
Still, targeting specific sectors is the strategy.
The government said it will commit S$42 million to develop a roadmap for the logistics and transportation industry "to generate positive spillover effects".
It is a sector that accounts for 8 per cent of Singapore's gross domestic product and employs 6 per cent of the workforce.
The medical technology industry will get a S$40 million fund to boost research and development efforts.
Together with other sector-specific initiatives, the government hopes to restructure SMEs for sustained growth.
- CNA/ms
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