Written reply to PQ on low-interest financing schemes for SMEs undertaking digital transformation

Question

Mr Lee Hong Chuang: To ask the Deputy Prime Minister and Minister for Trade and Industry whether the Ministry will consider working with financial institutions to provide low-interest financing schemes for SMEs that are undertaking digital transformation, with the aim of alleviating financial pressures and ensuring that businesses already progressing in their digitalisation efforts are not placed in untenable or unsustainable positions.

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong 

1. Enterprise Singapore administers the Enterprise Financing Scheme (EFS), which helps Singapore enterprises to more readily access financing for their business needs across all stages of growth. These include loans supporting businesses’ digital transformation plans. Through EFS, the Government shares the risk for any default of loans extended by Participating Financial Institutions, to help catalyse more lending to our companies.

2. Beyond loans, the Government has implemented a suite of initiatives to support businesses in their digital transformation journeys. These include the Small and Medium Enterprises Go Digital Programme and the Chief Technology Officer-as-a-Service.