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SINGAPORE : Small- and medium-sized enterprises (SMEs) have said this year's Budget will help boost Singapore's effort to become a research and development hub.
However, they noted that more could be done to help with issues such as manpower. And they hope to see more R&D initiatives for emerging sectors such as green energies.
Among those which benefit from this year's initiatives to boost R&D and innovation is a laser research facility.
The government plans to increase the quantum of tax deduction for R&D expenditure in Singapore from 100 percent to 150 percent. Industry players said this will, in particular, help grow Singapore as a design centre.
Ryan Goh, Managing Director, Laser Research, said: "I think the most exciting thing about the 2008 Budget is actually the focus that they are given to the R&D industry.
"And looking at the R&D incentive, together with the OHQ, the first thing that will come into my mind is - we will be able to attract a lot of MNCs coming here to set up design centres.
"So I guess towards that direction, Singapore will be able to position (itself) to become the destination for the future out-sourcing services design to Asia for Americans and the Japanese SMEs."
Other initiatives announced included double tax deduction for recruitment and relocation costs of hiring top global talent. But industry players said more needs to be done to address manpower challenges.
Lawrence Leow, President, ASME, said: "I think government focus is more on innovation and R&D, and this is probably what the government felt is important for long-term growth in economy. So really, today the situation is we have to move ourselves up the ladder and... away from the pack.
"In terms of manpower, what the companies hope that the government could do for the immediate term is (to) ease off the cost or pressure of manpower probably by allowing more foreign workers, more foreign talent to come in."
And there are others who are hoping for measures to help emerging sectors such as bio-diesel.
Valarie Tan, Managing Director, Pinnacle International, said: "I feel this year's Budget is skewed towards (the) lower income group to help them tackle the rising cost. However, with a surplus of S$6.4 billion, I feel more could have been done for SMEs.
"I was hoping the government could come up with some innovative green incentives to help SMEs conduct assessment within the company to see how... we can integrate the green policies with our practices. And also to help us contain costs in the long run - I feel this is a more vibrant approach rather than just cutting corporate tax."
Under the Budget, an R&D grant for start-ups was also announced. This is seen as an innovative move, encouraging new businesses into R&D by helping to cover part of their costs. - CNA/ch
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