Incentive schemes to promote SME exports

Incentive schemes to promote SME exports

Mr Chen Show Mao: To ask the Minister for Trade and Industry (a) whether any of the current incentive schemes applicable to SMEs reward them for increasing their firm-level export intensity (i.e. their share of exports out of total revenue) among other metrics; (b) if so, which schemes are these and whether these schemes stipulate an export-intensity target or threshold; and (c) if not, whether the Ministry will consider studying the scope for including this ratio as a key performance indicator in the award of incentives so as to promote SME exports as a third pillar of Singapore exports and help develop the most export-ready SMEs into Singapore MNCs.

Written Reply by Mr Lim Hng Kiang, Minister for Trade and Industry: 

                        MTI believes that it is important that we assist our SMEs to internationalise and capture opportunities beyond Singapore. IE Singapore works closely with companies to understand their business needs, growth potential and projects at hand in order to provide customised assistance.  We provide both broad-based and focused programmes which aim to facilitate business activities of internationally-oriented companies.  

                        However, our schemes are not aimed at increasing firm-level export intensity. Singapore is signatory to the WTO Agreement on Subsidies and Countervailing Measures (SCM), and therefore subject to the principles that govern subsidies and incentives given to companies. Incentives that are “conditional on export performance” are prohibited.