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The Straits Times (Singapore)

New SME committee to submit Budget wish list

A NEWLY formed advocacy group for small and medium-sized enterprises (SMEs) will be working hard over the Chinese New Year holiday to devise proposals in time for the Budget.

The SME Committee, led by the Singapore Business Federation, identified four immediate issues at its inaugural meeting on Tuesday.

These are the cost of doing business, productivity and manpower, financing and venturing overseas and market access.

Newly appointed chairman Lawrence Leow said the committee plans to create a list of proposals to help SMEs in these areas.

The proposals will be sent to the Finance and Trade and Industry ministries for inclusion in the Feb 17 Budget.

Mr Leow, the former president of the Association of Small and Medium Enterprises, said the committee will be brainstorming 'radical recommendations' to help SMEs through the downturn.

'We are hearing about a lot of SMEs with issues pertaining to the cost of business space,' he said.

'Rentals seem to be going up, capital values of properties are up. This is one area that the committee will look into, to see how we can bring this down.'

The committee might suggest that government agency and industrial landlord JTC Corp buy more industrial properties to rent or lease to SMEs at steady and low rental rates, Mr Leow said.

'JTC has divested many industrial properties over the years. Should it return to its old role? It could help to keep business costs in check,' he added.

The committee has 19 members, including Mr Leow, representatives from the major business chambers and trade associations, and business leaders.

Committee member Roderick Chia, the chairman of the digital media chapter at the Singapore Infocomm Technology Federation trade association, said one major concern for smaller IT firms here is market access.

'Our infocomm manpower is getting more costly and the best way to beef up this industry in future is to venture out of Singapore,' he said.

'We are looking to see if we can work with the Government to expand existing schemes that can help firms to attend trade shows overseas and venture out.'

SME leaders on the committee include Apex-Pal International chief executive Douglas Foo, Greenpac chief executive Susan Chong and Cyclect Group managing director Melvin Tan.

Yasmine Yahya