The focus on repositioning the economy to meet the generative Artificial Intelligence (AI) wave and the green transition were also key highlights of the Budget, said Maybank economists Chua Hak Bin and Brian Lee Shun Rong.

“There was more support rolled out to tap on national competitive advantages,” they said in a report, published after the Budget.

Here’s a quick breakdown of what companies can expect from Budget 2024.

Support for companies

It’s not just consumers who are facing higher inflation; businesses are also struggling with rising costs, from labour to rent and raw materials.

To help companies manage this transition, DPM Wong announced a S$1.3 billion Enterprise Support Package, where companies will receive a 50 per cent corporate income tax rebate capped at S$40,000, and a cash payout of minimum S$2,000 for companies that hired at least one local employee in 2023.

The SkillsFuture Enterprise Credit scheme also gets an extension till June 2025, allowing employers to claim and use their credits to upgrade and adapt to the modern business climate which DPM Wong described as a “more challenging operating environment”.

To provide businesses with greater access to loans, Budget 2024 will also see the SME Working Capital Loan’s maximum loan quantum raised permanently to S$500,000. This unsecured loan does not require collateral, providing support for businesses to cope with rising operational costs.

Bringing local businesses to the global stage

DPM Wong also paid close attention to macro issues, highlighting the tremendous change that companies will face over the next decade, whether in adapting to the net-zero world or grappling with the AI revolution.

“As companies grow, their needs will become more complex, especially as they go overseas. We are providing more customised support to help these companies scale up, and we will continue with these efforts,” he said.

One way such companies can expand is through the Partnerships for Capability Transformation (PACT) scheme, which allows SMEs to partner with multinational enterprises and tap into overseas markets. PACT will see an enhancement to support a wider range of collaborations, including in areas of capability training, internationalisation and corporate venturing.

DMP Wong also announced a S$1 billion investment over the next five years into AI development in Singapore, financing businesses here to build their capabilities.

Budget 2024 will also help local businesses keep up with the energy transition.

Local businesses will benefit from an enhanced Energy Efficiency Grant, which will now help more sectors, including manufacturing, construction, maritime and data centres, transition to renewable energy solutions.

Under the Enterprise Financing Scheme, the scope for loans for sustainability development will also be expanded to enable more SMEs to adopt green solutions and processes.

Financing solutions for SMEs

In line with Budget 2024, Maybank seeks to support SMEs through various solutions and services including the Maybank Overseas Transfer service, which allows business owners to make cross-border funds transfers to Malaysia instantly. Such convenient financial solutions can empower businesses to spread their wings outside of Singapore and remain competitive overseas.

Companies can also tap both conventional and Shariah-compliant financing through Maybank’s SME e-Financing service - it allows businesses operating for at least a year to get funding of up to S$150,000 with just a few clicks and in just a few minutes, or have financing up to S$10,000,000 customised to your business needs - online 24/7.

Backed by such measures and a business-friendly Budget 2024, Singapore companies have the perfect platform to thrive this year.