SUPPORT FOR LOCAL
Mr Wong also noted feedback on the Singapore Stock Exchange not being attractive, even for companies focused mainly on Singapore or Southeast Asia.
An Equities Market Review Group was set up to work on this, and has developed its first set of measures which Mr Wong has accepted.
The recommendations include tax incentives for Singapore-based companies and fund managers that choose to list in Singapore and grow their economic activities here.
A tax incentive for fund managers which invest substantially in Singapore-listed equities will also be introduced. This is to encourage more investment in Singapore’s capital markets.
More support will also be provided for enterprises to scale up and compete on the global stage.
To help companies adopt artificial intelligence solutions, up to S$150 million will be set aside for a new Enterprise Compute Initiative. Under this scheme, eligible firms will be partnered with major cloud service providers to access AI tools and computing power, as well as expert consultancy services.
As part of efforts to support mergers and acquisitions, a scheme – allowing Singapore companies to make a qualifying acquisition of the ordinary shares of another company to claim tax benefits – will be extended to Dec 31, 2030. It was originally scheduled to lapse after Dec 31 this year.
Singapore’s Economic Development Board also plans to launch a Global Founder Programme later this year, to encourage multinational entrepreneurs to anchor and grow more ventures in the country.
Mr Wong also noted the global emergence of a private credit market offering innovative financing solutions to enterprises. But few of these private credit funds focus on Asia or Singapore-based enterprises.
As such, a new S$1 billion Private Credit Growth Fund will be introduced to provide more financing options for high-growth local enterprises.
