Speech by Senior Minister of State Low Yen Ling for Trade and Industry at MTI Committee of Supply Debate 2026

“A Dynamic and Vibrant Enterprise Ecosystem”  

Mr Chairman,  

A.       Introduction 

1.                  DPM Gan Kim Yong spoke about how Singapore is now entering a new phase in our economic journey. 

2.                  We are committed to empowering our businesses to succeed and thrive in this new landscape: 

a.            We will continue to nurture a dynamic and vibrant enterprise ecosystem, where enterprises confidently navigate change and succeed. 

b.            Businesses today face increasing pressure to adapt in an uncertain world. We have gained keen insights from our engagements with the SMEs as well as the Trade Associations and Chambers (TACs), including the Singapore Business Federation (SBF), about the challenges on the ground. 

3.                  Several members have raised similar concerns, particularly in relation to our SMEs. Mr Saktiandi Supaat, Mr Mark Lee, Mr Lee Hong Chuang, Mr Shawn Loh, Ms Tin Pei Ling, Mr Ng Shi Xuan, and Ms Denise Phua – I want to assure them that the Government is leaving no stone unturned to support and to journey alongside our enterprises as they adapt, transform, and innovate to overcome the challenges faced. 

4.                  I am pleased to share that the Government has tailored a “Business Refresh Package” that comprises a suite of enhancements to existing schemes, to enable, equip, and empower our SMEs at every step of their journey to stay resilient, grow, and thrive by: 

a.            One, enhancing their productivity and cost efficiency; 

b.            Two, growing their revenue by helping them capture fresh opportunities at home and abroad; and 

c.            Three, fostering a pro-enterprise and trusted business environment. 

5.                  We will also enable our businesses to proactively navigate transitions, while continuing to strengthen our consumer protection regime. 

6.                  Let me now elaborate on each thrust of the “Business Refresh Package”. 

B.       Business Refresh Package 

Enhancing Productivity and Cost Efficiency 

7.                  First, enhancing productivity and cost efficiency. Over the years, the Government has rolled out a range of schemes to support companies in capability development, productivity, and efficiency improvements. 

8.                  Businesses that can do more with less and respond quickly to changes are really best positioned to stay competitive. Structural changes brought by AI and decarbonisation will mean that businesses have to adapt to stay relevant. But these changes also present opportunities for businesses to transform and grow. 

9.                  I want to assure Mr Saktiandi Supaat, Mr Ng Shi Xuan, and Ms Denise Phua that we will continue to enable and empower our enterprises across all sectors to optimise production processes and reduce business costs, especially through technology and automation. 

a.            For example, enterprises with warehousing operations are increasingly adopting automated logistics solutions to enhance operational efficiency. They can tap on schemes such as the Enterprise Development Grant (EDG) for funds, and advisory support from industry partners such as Republic Polytechnic’s Centre of Innovation for Supply Chain Management (COI-SCM). 

b.            One quick example is the company called Frosts Food & Beverage, which operates facilities totalling 75,000 square feet in Bedok and Tuas for the storage and distribution of food products. 

c.            In partnership with COI-SCM, Frosts conceptualised and rolled out a 4-way shuttle automated storage and retrieval system (ASRS) at its Bedok facility. This has led to manpower efficiency improvements of over 30%, and approximately $100,000 in annual cost savings for the company. 

10.             Beyond productivity improvements, we are continuing to help our enterprises move towards a low-carbon future. 

a.             In 2024, we extended the Enterprise Financing Scheme (EFS)-Green for two years and expanded the scope to cover companies adopting green solutions, in addition to green technology developers. 

b.             We will extend EFS-Green for another five years. This will facilitate continued access to financing for companies seeking to build green capabilities and capturing new opportunities in the green economy. 

c.             In addition, to help companies manage rising energy costs and reduce their environmental footprint, we will extend the Energy Efficiency Grant (EEG) for one year. This will provide continued support for investments in energy-efficient equipment. 

Growing Revenue by Capturing Opportunities at Home and Abroad

11.             The second thrust of our package helps businesses grow revenue by capturing opportunities at home and abroad. 

12.             We will help our businesses seize opportunities from the shifting international business environment. 

Equipping Businesses to Scale 

13.             I want to assure Mr Shawn Loh that we will continue to strengthen access to financing through schemes like the Enterprise Financing Scheme (EFS). Launched in 2019, the EFS has supported thousands of SMEs in securing financing for a wide range of business activities. 

14.             We will enhance the EFS in two ways. 

a.            To allow borrowers greater flexibility in structuring loan facilities, we will remove the facility-level sub-caps of $20 million and $30 million per borrower group for the EFS-Trade Loan and EFS-Fixed Assets Loan respectively, while retaining the overall cap of $50 million. This means that our enterprises can obtain loan facilities that best meet their needs, whether is it [in] fulfilling orders, executing projects, or undertaking capital investments. 

b.            In addition, we will permanently expand the scope of the EFS-Mergers and Acquisitions (M&A) to support our companies in securing financing for both domestic and overseas acquisitions. 

Opening Pathways to Global Growth 

15.             As global supply chains reconfigure and our domestic market matures, our enterprises are increasingly looking to seize opportunities beyond our shores. 

a.            Our approach has always been to lower the barriers to entry, strengthen access to markets, and provide calibrated support. 

b.            However, like what Members have said, we recognise that expanding businesses overseas now comes with increased risks and uncertainty, like what Mr Mark Lee has mentioned. 

16.             Mr Mark Lee and Mr Azhar Othman will be glad to hear that we are indeed stepping up our efforts to help businesses as they embark on their internationalisation journeys.

a.            First, we will increase the support levels for grant schemes that help businesses venture abroad, from 50% to 70% for SMEs, and 30% to 50% for non-SMEs. This includes schemes like the Market Readiness Assistance (MRA) grant, the Business Adaptation Grant, and the Global Innovation Alliance (GIA). 

b.            Second, we will further enhance the MRA grant. Members will remember [that] at MTI’s COS debate last year, I announced an extension of the $100,000 grant cap to 31 March 2026.

c.            This year, in addition to extending the $100,000 grant cap, we will remove [the] new markets criteria, and we will extend grant support to all local businesses, including both SMEs and non-SMEs. This will not only support businesses in accessing new markets, but also enable them to deepen their presence in existing markets. 

d.            Next, we will enhance the Double Tax Deduction for Internationalisation (DTDi) scheme. To help companies seize overseas opportunities with greater speed and certainty, we will increase the expenditure cap for automatic DTDi-qualifying activities from $150,000 to $400,000, and make existing qualifying activities eligible for automatic deductions.

e.            Lastly, the GIA will have a refreshed strategy which supports startups’ market expansion across two tracks, “Launch” and “Grow”. Startups that are new to the market will be supported through the “Launch” programmes focused on market insights, shorter market sprints, and early customer and partner discovery. 

f.              Startups and SMEs requiring more tailored support can tap on “Grow” pathways to access specialised partnerships to support expansion, deeper market penetration, and accelerate technology maturation. 

Uplifting Heartland Enterprises 

17.             Mr Chairman, no discussion of our enterprises will be complete without mentioning our heartland shops. Heartland shops intersect closely with the lives of everyday Singaporeans, contributing to the character and vibrancy of our communities. 

18.             Helping our heartland enterprises also entails enabling their adaptation and renewal for the future. 

19.             Over the years, the Government has supported heartland enterprises in refreshing their product offerings, adopting novel concepts, and creating experiences that draw footfall – increasingly, online orders as well – and also strengthen community ties. 

a.             To encourage the rejuvenation of our heartland shops, we will enhance the support levels of our heartland schemes, the Enhanced Visual Merchandising Programme and the Heartland Enterprise Placemaking Grant (HEPG), from 50% to 70%. We encourage our heartland shops to take this opportunity to refresh their stores and conceive exciting placemaking activities. 

20.             Many of our heartland shops are small and micro enterprises, which, as Mr Gerald Giam has mentioned earlier, play a fundamental role in the local economy. The Government certainly recognises the unique challenges faced by firms of different sizes, including micro-SMEs. We have developed targeted assistance to address specific needs and support their long-term growth. 

a.            For example, enterprises in sectors with high concentrations of micro-SMEs, such as Food and Beverage (F&B) and Personal Services, are benefitting from sector-specific support to tackle operational challenges, raise productivity, and thereby improving their top-line and bottom-line. 

b.            We understand many of the F&B establishments face structural cost issues and capability gaps, as mentioned by some of the Members including Ms Denise Phua earlier. This was also indicated in the recently launched Food Services Productivity Report commissioned by EnterpriseSG and the Singapore Productivity Centre. This in turn, leads to compressed margins and limited ability to scale sustainably. However, the same report also revealed that top F&B performers were able to generate close to three times more sales per man-hour, compared to those at the bottom.

c.            When we look closely at it, the top performing F&B establishments observed five key practices: 

                                              i.            Generally, they embraced and adopted digitalisation and automation;

                                            ii.            Implemented strategic menu design;

                                          iii.            Streamlined workflows and space layouts;

                                          iv.            Outsourced labour-intensive preparation work; and

                                            v.            Adopted effective workforce management. 

d.             Mr Chairman, MTI and Enterprise Singapore will continue to do our utmost to enable and to equip our F&B establishments to gain these critical capabilities. To help our businesses adopt such best practices, during the Food Services Forum held three months ago, we launched three new initiatives to support the food sector to (1) optimise their operations through the F&B Process Optimisation programme (POP), (2) strengthen their supply chains through the FoodX Programme, which then support the F&B companies in centralising their food preparations, and (3) accelerate digital transformation. 

e.             Besides all these sector-specific schemes, micro-SMEs looking to build their core capabilities and scale up can also tap on schemes such as the EDG [and] PSG for customised support. We encourage them to approach any of our 10 SME Centres for tailored advice and guidance. 

Fostering a Pro-enterprise and Trusted Business Environment 

21.             Mr Chairman, underpinning our efforts to help businesses enhance productivity and efficiency and grow is a pro-enterprise and trusted business environment. This is the focus of the third thrust of the Business Refresh Package. 

22.             Beyond enhancing enterprise support, the Government will streamline grant processes to make it easier for our businesses to access the full suite of available measures. 

23.             I am pleased to announce a new grant called EDGE, which will provide a single shopfront for government grants, merging MRA, PSG, and EDG.

a.            We will simplify the grant application process by combining EnterpriseSG’s three flagship grants. Businesses will find it easier to navigate and apply for funding as they only need to submit a single application under the combined grant framework. 

b.            The new EDGE grant will support up to $100,000 per year for eligible activities. Businesses that require more support for customised projects can continue to apply to EnterpriseSG. Businesses will always have the flexibility to embark on projects aligned to their specific needs. 

c.            EnterpriseSG will launch EDGE in the second half of 2026. Once launched, the enhancements to MRA that I have just mentioned earlier will come under EDGE grant. 

24.             Mr Chairman, last year, the Government set up the Small and Medium-Sized Enterprises Pro-Enterprise Office (SME PEO). The SME PEO supports businesses by addressing regulatory feedback that spans multiple public agencies, as well as issues arising in new or emerging sectors where regulations may be unclear. 

25.             Building on the work of the Alliance for Action on Business Competitiveness in 2024, we also announced three Statements of Commitments under the Inter-Ministerial Committee on Pro-Enterprise Rules Review, to enhance regulatory agility and to reduce compliance burden for businesses. 

26.             The SME PEO has been working with agencies to implement these commitments. 

a.             First, to publish clear service standards for regulatory applications, with a target of 30 working days where possible. I am pleased to share that agencies have published service standards for 93% of their business regulatory applications, with 80% of applications processed within 30 working days. This helps make our processes more transparent and predictable for businesses. 

b.             Second, to extend the validity of business licences to at least three years, and up to five years where we can. Today, 45% of all business licences have a validity period of at least three years. By 2029, this will increase to 80%, with agencies actively reviewing their policies. 

c.             Lastly, to streamline processes to reduce sequential approvals and repeated requests for information. We have simplified multi-agency processes to shorten administrative timelines and to reduce back-and-forth with approving authorities. 

                                                              i.        For example, companies required to undergo Quantitative Risk Assessments (QRA) are expected to save over 40 days per application following the streamlining of processes by the relevant agencies. 

27.             We will also continue to work with agencies to simplify internal processes across domains. One such area is industrial lease assignments, or the transfer of industrial land sites in the secondary market. 

a.            Currently, all assignment applications are subject to JTC’s comprehensive assessment of the buyer’s business plan and economic contributions, regardless of the land area or remaining tenure of the site.

b.            Moving forward, the assignment assessment process will be streamlined for small sites of up to 1.5 hectares, with short remaining lease tenure of no more than 15 years. The proposed uses must support manufacturing activities and there must also be sufficient infrastructure capacity at the sites. 

c.            JTC will exempt these cases from the full assessment process, and will only carry out requisite checks to ensure that the assignees comply with prevailing policy and land use guidelines. The revised workflow will reduce the processing time for eligible assignment applications to within one month from the date of the full application. JTC will release more details on this initiative in the first half of this year. 

C.       Supporting Businesses to Proactively Navigate Transitions as the Economy Restructures 

28.             Even as we support firms in pursuing their growth ambition and simplify our processes, we must be prepared to proactively navigate transitions. 

29.             Companies shared with the Economic Strategy Review (ESR) that understanding their business health and future options were really vital in navigating the transitions. 

30.             As DPM Gan Kim Yong highlighted, businesses will need to adapt to shifting global trade flows, technological disruptions and tighter resource constraints amid changes in the global landscape. This may entail reinventing operating models, as Mr Edward Chia has mentioned earlier for family and heritage businesses managing generational transitions to safeguard their legacies. 

31.             Businesses can reposition and transform by moving into higher value-added activities, optimising operations, offshoring where appropriate, or pivoting towards more viable opportunities to redeploy resources more productively. 

32.              The creation, growth, and consolidation of businesses are all part of a very healthy, vibrant, and dynamic enterprise ecosystem. We will journey with our companies every step of the way as they navigate transitions, and be their support to help them adapt and emerge stronger. The ESR Committee will share more details in time to come. 

D.      Building a Strong, Effective Consumer Protection Framework 

33.             [Mr] Chairman, our trusted business environment is underpinned by consumers’ confidence in our businesses and markets.  

34.             I agree with Mr Melvin Yong and Mr Andre Low on the need for robust deterrence and enforcement against unfair trade practices. 

35.             The Competition and Consumer Commission of Singapore (CCS) has stepped up its enforcement efforts and secured undertakings from businesses to cease unfair practices. Where necessary, CCS has sought court injunctions against egregious businesses. However, such actions require careful investigation and due legal process. 

36.             I thank Mr Melvin Yong for his suggestions to enhance the efficiency of CCS’s enforcement actions. MTI and CCS will certainly consider this as part of the Government’s regular reviews of remedies under the Consumer Protection (Fair Trading) Act (CPFTA). 

37.             On Mr Andre Low’s suggestion to strengthen deterrence against egregious companies, we would like to assure you that the Government is monitoring this very closely and stands prepared to take on a Whole-of-Government view to enhance our consumer protection regime to safeguard the emerging risks as well as the need to give our enforcement agencies more teeth . 

38.             To ensure that our consumer protection regime is up to date, the Government convened an independent Consumer Protection Review Panel last year in March. The Panel will put forward recommendations to address key consumer concerns, including pressure sales tactics, and emerging digital harms such as undisclosed advertisements. The Panel will submit its findings to the Government later this year for a thorough review.  

E.        Conclusion 

39.             Mr Chairman, the years ahead will be defined by the steps we take today. Through our efforts to raise productivity, support growth and internationalisation, as well as to foster a pro-enterprise environment, we are laying the groundwork for a more resilient, dynamic, and competitive enterprise ecosystem. 

40.             By working closely with our businesses and trade associations, we will build new capabilities that allow our businesses to respond decisively to uncertainty and to seize opportunities. With these foundations in place, we are confident that our enterprises will not only weather the uncertainty ahead, but will continue to grow with strength, resilience and purpose to adapt, transform and succeed. 

41.             Thank you.