Plans in place to help SMEs reach productivity growth target

SINGAPORE: The government will announce several recommendations in the first half of next year to help small and medium enterprises (SMEs) achieve its long—term productivity growth target of two to three per cent over the next decade.

Minister of State for Trade and Industry Teo Ser Luck said the government will also work with the Singapore Business Federation (SBF) and SMEs to customise some of the proposals being rolled out.

He said: "I can understand that for some of the SMEs, it may be difficult to reach some of the productivity targets based on the nature of their business and the size of their businesses. That itself will pose some challenges for them. As such for the different sectors, we would have to work with them closely and see how best we can help them to achieve those targets. Also along the way, what can we do better with our schemes, so that they can tap on and effectively use them and achieve those targets."

He was responding to a call by SBF on Friday for a more realistic productivity growth target — one that is in line with Singapore’s ageing workforce and slower manpower growth.

— CNA/xq