Singapore – This year’s Budget announcement is done and dusted and clearly, the small and medium enterprises (SMEs) are one segment of the economy that the government had targeted to support through the budget proposals. Government fiscal incentives are only useful if the intended beneficiaries are fully aware – and make best use – of them.

1. Visit the Business Grants Portal

One of the common issues that SMEs face is not knowing the myriad of government assistance available, let alone meaningfully assessing whether the schemes are fit-for-purpose. The new Business Grants Portal, which seeks to house all government schemes in a single platform will make it easier for businesses to access the schemes. SMEs should be proactive in using this new portal to leverage schemes that can support the upgrading of their capabilities and expansion plans.

2. Get started with better funding access

Small startups that face difficulties in obtaining loans from financial institutions can now avail of the new SME Working Capital Loan scheme to obtain loans of up to S$300,000 to support their growth plans, knowing that the government will co-share 50 per cent of the default risk of such loans with participating financial institutions (PFIs).

3. Automate and innovate

SMEs with plans to improve productivity, scale up and internationalise should take advantage of the new Automation Support Package (ASP) to grow through innovation. The ASP combines several enhanced versions of existing standalone incentives into one package: grant funding of up to 50 per cent of qualifying automation project costs; a new investment allowance of 100 per ent of approved capital expenditure (net of grants); and improved access to equipment loans where the government will bear 70 per cent of the risk associated with such loans offered by PFIs.

4. Review expenditure plans

With the lowering of the Productivity and Innovation Credit cash payout rate from 60 per cent to 40 per cent, SMEs and low- or non-tax-paying companies that need fiscal assistance for productivity efforts will “lose” part of the benefit. As the lower conversion rate is only applicable to qualifying expenditure incurred from Aug 1, 2016, SMEs may consider bringing forward their spending on qualifying PIC expenditure and should fully understand the policy rules when determining the dates that the qualifying expenditure is incurred.

5. Leverage double tax deductions

Under the existing Double Tax Deduction (DTD) for Internationalisation scheme, businesses may claim a 200 per cent tax deduction on qualifying expenses, including airfare and hotel accommodation, as well as salaries of Singaporeans posted to new overseas entities. This scheme has been extended to March 31, 2020 and is an opportunity for SMEs to consider mapping, executing or accelerating their overseas growth plans to reap the benefits.

Further, the existing automatic DTD on qualifying expenses up to S$100,000 will be extended to qualifying expenditure incurred from April 1, 2016 to March 31, 2020. SMEs should keep track of their qualifying internationalisation expenses to avoid missing out on this automatic DTD claims.

6. Consider inorganic expansion

M&As make for a viable growth strategy for SMEs that wish to acquire market share, customer base and capabilities fast. The existing cap for qualifying deals under the M&A scheme, which was first introduced in 2010 and subsequently extended to March 31, 2020, will now be doubled to S$40 million.

SMEs can now enjoy an M&A allowance of up to S$10 million instead of S$5 million per year of assessment (YA) and a stamp duty relief of up to S$80,000 instead of the current S$40,000. Larger SMEs can potentially partake in more ambitious deals with this boost.

7. Utilise corporate income tax (CIT) rebate

To better utilise the higher CIT rebate of 50 per cent introduced for YAs 2016 and 2017, subject to a cap of S$20,000 per YA, a tax-paying SME may wish to look at ways to optimise the amount of CIT rebate claimable in these two years. This may be achieved through the deferral of capital allowances claim, or proper planning of transferring of losses of group companies.

8. Enjoy additional tax deduction through volunteerism

From July 1, 2016 to Dec 31, 2018, the pilot Business and Institution of Public Character (IPC) Partnership Scheme will allow businesses to enjoy an additional 150 per cent tax deduction on qualifying expenses with a yearly cap of S$250,000 per business and S$50,000 per IPC, when they send employees to volunteer and provide services to IPCs, including secondments.

Perhaps, tax-paying SMEs with cyclical businesses may consider seconding employees to IPCs during off-peak periods and benefit from this scheme, while at the same time, incorporate this in their talent strategy.

Time to take charge

Budget 2016 pushes on the economic restructuring journey while offering interim reliefs to ease business costs. It presents several key fiscal assistance and SMEs that have the ambition and are prepared to take charge of their future should look to fully capitalise on these opportunities sooner than later.

The writers, Chai Wai Fook and Louise Phua, are Tax Partner and Tax Senior Manager at Ernst & Young Solutions LLP. The views reflected in this article are the views of the authors and do not necessarily reflect the views of the global EY organisation or its member firms.

This article was first published on April 4, 2016.
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Amid a heightened alert against the threat of a terror attack here, the Government is reviewing security guidelines for building owners, the Ministry of Home Affairs (MHA) has revealed.

An MHA spokesman said it has been working with key agencies – including the police, Singapore Civil Defence Force, Building and Construction Authority and Urban Redevelopment Authority – to update current guidelines. These will be brought in line with existing regulatory standards.

The ministry is also looking to offer greater clarity in the technical specifications of security measures, such as vehicle barriers, closed-circuit television (CCTV) systems and glass facade standards. “We expect to complete the review by the end of this year,” the spokesman told The Straits Times.

The ministry said last month that the threat of a terrorist attack in Singapore was at its highest level in decades and that it could pass laws that may require building owners to adopt stringent security measures. But the ministry did not give a definite timeframe.

The current guidelines, which are not compulsory, were published in 2005 and updated in 2010.

Called Guidelines for Enhancing Building Security in Singapore, the 138-page document sets out security measures such as using an anti-ramming perimeter line or blast-resistant structural materials.

Mr Derek Chew, general manager of security firm Soverus Consultancy and Services, said it was time the guidelines were reviewed, given that the threat landscape has changed a lot since then. In older CCTV systems, recorded images are often so poor that they cannot be used for facial recognition, he noted.

The Government could require or encourage building owners to do regular security audits, he said, adding: “Building owners should at least get a security consultancy to look at their premises. It’s no longer if, but when, an attack would occur.”

Currently, security consultants estimate that fewer than 10 per cent of buildings here adopt MHA’s existing recommendations.

They said constructing a building with blast-proof materials could drive construction costs up by as much as 15 to 20 per cent – and is the main reason for poor adoption rates among developers. These materials could include bullet- or shatter-proof glass, reinforced-concrete walls and structures that would not collapse even if one of the key supports was destroyed by a blast.

Using equipment such as X-ray machines and scanners would further drive costs up.

Mr Jasbir Singh, deputy head of Certis Cisco Consulting Services, said: “The question should not be whether we can afford to implement the measures. Rather, it should be, can we afford not to implement the security measures?”

Mr Toby Koh, group managing director of Ademco Security Group, said the economic costs and fallout from an attack would far exceed any added investment for security.

“All countries are porous; if terrorists are determined enough, they will be able to attack,” he said.

He said security did not have to cost top dollar, and a properly designed building could end up saving developers money in the long run.

Placing concrete planters around a building’s perimeter, for example, was a cost-effective method of preventing vehicle bombs, he said.

Buildings could also be designed from the ground up with better CCTV coverage, reducing the need for manpower on the ground.

“The mean cost of a security guard is about $3,000 to $4,000 a month. If you have 10 guards it’ll cost you $40,000 a month and $480,000 a year. Let’s say you could reduce this by half – that’s not spare change for anyone,” said Mr Koh.

Having said that, security consultants say it is difficult to mandate standard measures as each building faces its own set of risks.

“Exactly what preventive measures these should be will also be based on the threats identified during a thorough security risk assessment and the type of building concerned,” said Aetos Holdings security consultant Andrew Peck.

MHA also acknowledged in its 2010 guidelines that comprehensive protection against every possible threat is too expensive, and security has to be balanced with “economic viability and sustainability”.

There are signs that developers are taking greater notice of the terror threat. Security consultants said they have had more requests for their services from developers.

“Enhanced security also enables them to attract anchor tenants and clients who place a premium on the safety and security of their key assets and people,” said Mr Singh.

Certis Cisco has done consultancy work on commercial buildings in the civic district and data centres for commercial institutions.

Mr Singh said clients often ask for infrastructure that allows measures such as vehicle barriers and vehicle and personnel screening.

Major developers here said they are working with the police to ensure their premises are secure.

The public is also becoming more tuned in to the issue. Many here have posted their concerns on social media in response to recent news reports of terrorist attacks.

Mr Low Chee Kin, 43, a supervisor at a semiconductor company, said: “I think the best way to prevent a terror attack is to ensure total awareness.”

He suggested doing more to raise public awareness through education and multimedia, as well as ramping up existing measures like security checks and patrols.

He also suggested monitoring the Internet more closely for suspicious activities, and building better networks with other countries to coordinate anti-terror measures.

This article was first published on April 4, 2016.
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A 48-year-old Singaporean will be charged in court this morning over an alleged attack on three madrasah students last Friday.

He is expected to be charged under the Penal Code for committing a rash act and for voluntarily causing hurt. He will face enhanced penalties if the offence is found to be racially or religiously aggravated.

He has been identified as Koh Weng Onn.

The three female students, aged 14 to 16, were making their separate ways to Madrasah Al-Ma’arif Al-Islamiah in Geylang at around 7.20am when the man allegedly accosted them near Paya Lebar MRT station.

The school’s discipline mistress Nisha Mohd Hussein had posted on Facebook that the first girl was allegedly kicked on the left thigh, the second was allegedly hit with a plastic bag containing “a heavy item”, and the third was believed to have been hit in one of her eyes with the bag.

Police said the man was arrested last Saturday. Yesterday, Home Affairs and Law Minister K. Shanmugam said in a Facebook post it was reassuring that police had tracked down the suspect quickly.

But he urged the public to avoid speculation on the attacker’s motives in the meantime.

Mr Shanmugam said he had been asked if the incident was an Islamophobic attack.

He had warned about Islamophobia, or prejudice against Islam, two days before the attack. He said yesterday: “It can be a cancer that destroys the soul of our country. We cannot tolerate that and MHA (Ministry of Home Affairs) will act.”

But he added: “In this case, we do not know the detailed facts, the motives, and should wait for the investigations to be completed.”

Yesterday, Minister in the Prime Minister’s Office Chan Chun Sing also denounced the attack, and said Singapore will not condone any kind of attack of this nature.

“Any attack on any student in Singapore is wrong, full stop,” he said.

“You don’t attack people in Singapore in that manner; you don’t attack people because of race, language or religion,” he added.

Mr Chan was speaking to reporters after a closed-door dialogue with religious and community leaders at Khadijah Mosque in Geylang. He said he was encouraged that none of the leaders at the session jumped to any conclusions about the motives behind the attacks.

“As leaders, we would encourage our people to respond and react in a calm and constructive way,” he said. “It shows a certain level of maturity that we can be very proud of as fellow Singaporeans, that we don’t always react to things and try to cast a race, language or religion angle to it unnecessarily.”

Geylang Serai Inter-Racial and Religious Confidence Circle co-chair Eric Wong said years of having religious leaders of all stripes working together on various projects has forged “a basic understanding and harmony”. “We should let the police do their part,” he added.

The Catholic Archdiocese said in a Facebook post that it was saddened to hear of the attack.

“Aggression against anyone for their religious persuasion or ethnicity should never be allowed to take root in a multiracial and multi-religious society like Singapore,” it said. “As Catholics, our hearts and prayers are with the three girls and their families, as we stand in solidarity with our Muslim brothers and sisters.”

Koh’s older brother, Mr Muhammad Johan Koh, a relief security guard who is a Muslim convert, contacted Today newspaper yesterday to apologise for the incident, Today reported on its website.

This article was first published on April 4, 2016.
Get a copy of The Straits Times or go to straitstimes.com for more stories.