Attributed to Mark Lee, Chairman of Singapore Business Federation (SBF)

We welcome these timely measures and are glad that the Government continues to stand by our businesses during this difficult and uncertain period.

The enhanced Enterprise Financing Scheme (EFS) will help companies bridge their working-capital needs and continue taking on projects and orders. The extension of the Project Loan to domestic construction projects is particularly relevant, given the sector’s upfront costs and long payment cycles. The one-off Small and Medium Enterprises (SME) Cash Grant, while modest, provides direct and automatic assistance to smaller businesses without adding to their debt burden.

Although energy prices have moderated from their peak, they remain elevated and continue to weigh on business costs, particularly for companies with significant transport, logistics and energy requirements. Businesses are also facing broader cost pressures from higher utilities, labour and other operating expenses, which continue to impact margins and competitiveness.

Export-facing companies face pressure from elevated freight costs and the stronger Singapore dollar, particularly in industries where costs cannot easily be passed on to customers.

Cash flow is the lifeblood of every business. Taken together, these measures will provide breathing space for SMEs, preserve business activity and help companies retain their workers. We hope that with stronger government risk-sharing support, smaller enterprises can have quicker and more substantive access to financing.