Page 4 - RSM Budget 2022 Highlights

Without a doubt, the coronavirus is here to stay as we enter the third year of the pandemic. We have to face the
reality and embrace, adapt and accept this as a new normal as we slowly transition into an endemic state. The focus
of this year’s Budget, as announced by the Finance Minister Mr Lawrence Wong on 18 February 2022, is about using
collective resources to chart our new way forward together, strengthen our economy and social compact, position
ourselves for the upturn, achieve first-mover advantage and seize new opportunities for growth.

Budget 2022 spells out thoughtful measures that will be put in place. The key changes in focus are in the following
areas:
 Invest in new capabilities
 Advance the green initiatives

 Renew and strengthen the social compact
 Develop a fairer and more resilient revenue structure

Invest in New Capabilities
The Government sees priority in strengthening our digital capabilities in order to establish leading positions in the
digital economy over the next few years. The existing broadband infrastructure will be upgraded and investments
made in future technologies such as 6G to ride the next communications and connectivity wave.

In addition, schemes such as the Advanced Digital Solutions scheme, Grow Digital scheme and TechSkills
Accelerator initiative will be enhanced to help businesses adopt cutting-edge digital solutions in robotics, leverage
digital platforms to reach overseas markets and to upskill the current digital workforce.

There are also targeted efforts in pushing for pervasive innovation. In an effort to encourage SMEs to undertake
innovation projects across five pilot sectors, viz. Agri-Tech, Construction, Food Manufacturing, Precision
Engineering and Retail, the Government will increase the capacity of centres that provides research and innovation
support so as to cater to a larger number of SMEs.

The Minister expressed equal importance in strengthening our local enterprise ecosystem. SMEs are encouraged
to implement digital and automation solutions to raise productivity. For this, SMEs may take advantage of the
Productivity Solutions Grant (“PSG”). The Government has set aside $600 million to expand the range of available
solutions under the PSG and is pushing for greater take up of productivity solutions by SMEs over the next four
years.

A new initiative, Singapore Global Enterprises, will be launched to support larger local enterprises that need more
customised assistance to scale up and invest in overseas markets. This initiative provides bespoke assistance
tailored to the needs of promising local enterprises, in areas such as innovation, internationalisation and fostering
of partnerships with other firms.

To support companies in their growth and expansion through mergers and acquisitions (“M&A”), the M&A loan
programme will be expanded to include domestic M&A activities taking place during the period 1 April 2022 to 31
March 2026. In addition, the enhanced 70% risk-share by the Government under the Trade Loan will also apply for
enterprises venturing into untapped markets such as Bangladesh and Brazil.

The Government has reaffirmed its commitment in investing in our people as well. This will be achieved through
significant investment in education and transforming our Institutes of Higher Learning into institutes for continual
learning to foster lifelong learning. Adjustments will also be made to foreign worker policies with the aim to admit
better skilled professionals from around the world and combine them with our own local professionals to form the
best teams in Singapore to create value together. This gives us that extra advantage to excel amidst intense global
competition.

2 | RSM