The Singapore government has revealed an array of social and economic strategies aimed at helping SMEs in the upcoming financial year.

According to Deputy Prime Minister and Minister of Finance Tharman Shanmugaratnam, the Singapore economy grew by 4.9% in 2011. "Our economy will slow down this year, but we should look at this in perspective. We enjoyed an exceptional rebound in 2010. By the middle of that year, we had recovered the lost output from the 2008-2009 crisis. Growth in 2011 too was healthy, at about 5%."

He added schemes rolled out by the Singapore government for SMBs are aimed at developing deeper skills, create better jobs, and enable Singaporeans to earn better incomes.

To help SMEs restructure, attract local workers, and grow, several measures have been developed.

According to Shanmugaratnam, all employers will receive a Special Employment Credit (SEC) for their Singaporean workers who are above 50 years old and earning up to S$3,000 (US$2,390) per month. The SEC will be 8% of wages. A lower SEC will also be provided for workers with a monthly wage of between S$3,000 (US$2,390) and S$4,000 (US$3,187). The SEC will cover almost 350,000 workers, or four-fifths of older Singaporean workers.

Besides the SEC, the government will provide a one-off cash grant to help companies offset higher business costs, which may persist in the business slowdown. Companies will receive a cash grant pegged at 5% of their revenues in YA2012, capped at a payout of $5,000 (US$3,984). They will receive the grant as long as they have made CPF contributions to at least one employee. The scheme will cost Government around $320 million (US$254 million) in FY2012.

More help will be given for SMEs who upgrade their workers through all courses certified by WDA, and Academic CET programmes at the polytechnics and ITE. They will henceforth get a 90% course subsidy.

"Together with the enhanced cash payout under the PIC, our new subsidies will effectively cover almost the full cost of training for SME-sponsored employees. For example, for a training course that costs S$1,000 (US$796), the SME will only pay S$40 (US$31)."