Budget 2024: Insights into the Enterprise Support Package

In DPM Lawrence Wong’s Budget 2024 speech, he introduced a new S$1.3 billion support package to help companies cope with rising costs. Called the Enterprise Support Package (ESP), it encompasses three key elements: a corporate income tax rebate, improvements to the Enterprise Financing Scheme (EFS), and an extension of the SkillsFuture Enterprise Credit.

1. Corporate Income Tax Rebate

As part of the Enterprise Support Package, companies will benefit from a 50% corporate income tax rebate, capped at S$40,000, in the year of assessment 2024. This rebate serves as a crucial financial relief measure for businesses, helping to alleviate their tax burdens and bolster their cash reserves.

2. Enhancements to Enterprise Financing Scheme (EFS)

The EFS will undergo three significant enhancements to better address the financial needs of SMEs:

• Increased Working Capital Loan Quantum: The maximum working capital loan quantum will be permanently raised to S$500,000, up from S$300,000. This expansion aims to provide SMEs with greater flexibility and support in managing their operational cash flow requirements.
• Extension of Enhanced Trade Loan Quantum: To facilitate internationalisation efforts amidst global supply chain disruptions, the enhanced maximum trade loan quantum of S$10 million will be extended until Mar 31, 2025. This extension offers businesses continued access to essential financing for their overseas ventures.
• Extension of Support for Domestic Construction Projects: The support for domestic construction projects under the EFS’ project loans will be extended until Mar 31, 2025, with a maximum loan quantum of S$15 million. This extension enables construction firms to pursue and execute key projects with confidence, contributing to the growth of the construction sector.

3. Extension of SkillsFuture Enterprise Credit

Recognising the importance of workforce capability development and transformation, the SkillsFuture Enterprise Credit will be extended by a year until Jun 30, 2025.

This extension allows eligible employers to continue leveraging the credit for supportable schemes beyond Jun 30, 2024, empowering them to invest in enhancing their workforce skills and capabilities.

DPM Wong emphasised that these measures within the Enterprise Support Package are designed to incentivise firms that proactively undertake restructuring and transformation efforts. By encouraging businesses to embrace these initiatives, the government aims to foster resilience and success in navigating the increasingly challenging business landscape.

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