Budget 2024: How are businesses affected? Some noteworthy benefits

Singapore Budget 2024 was announced on Friday, 16 February 2024. The $1.3billion Enterprise Support Package is aimed at helping Singapore businesses manage the rising costs.

Here are some notable changes for particularly for SMEs:

1. Companies will receive a 50% corporate income tax rebate, capped at $40,000 for YA2024 (FY2023)

2. For companies that are not profitable for YA2024 (FY2023), those that have employed at least one local employee in 2023 will receive $2,000 in cash (automatically credited by the third quarter of 2024)

3. ⁠Extension of the SkillsFuture Enterprise Credit (SFEC) of $10,000 for all eligible companies to 30 June 2025, so companies can claim up to 90% of any out of pocket expenses for business transformation and productivity expenses (this includes that on top of the 50% PSG grant, you can claim the next 45% under SFEC)

Working Capital and Loans

4. Enhancements to the Enterprise Financing Scheme (EFS) where the maximum Working Capital Loan will be permanently raised from $300,000 to $500,000 from 1 April 2024;

5. Financing for domestic construction projects under the EFS-Project Loan Scheme is extended until 31 March 2025, with a maximum loan quantum of $15 million

Internationalisation Efforts

6. The enhanced maximum trade loan quantum under the EFS-Trade Loan of $10 million is extended until 31 March 2025 to support businesses’ internationalisation efforts

Sustainability

7. Energy Efficiency Grant will be expanded to more sectors including manufacturing, maritime, construction and data centres, to help companies defray the costs of pre-approved energy-efficient equipment.

8. Enterprise Financing Scheme – Green (EFS-Green) support will be expanded to include businesses which adopt green solutions, to help them embark on their sustainability journey and reduce their carbon footprint from 1 April 2024. Enterprise Singapore provides 70% risk-share to catalyse lending from participating financial institutions.

Read more about the budget 2024 for enterprises