ASSISTANCE TO LOCAL ENTREPRENEURS IN 1988 (Progress report)

Dr Wong Kwei Cheong asked the Minister for Trade and Industry if he will give a progress report of assistance rendered to local entrepreneurs during 1988 in terms of (i) the amount of grants and cheap loans extended, (ii) the number of local companies that have benefited from such financial assistance, and (iii) the kind of assistance and results extended by the Trade Development Board, Economic Development Board and Singapore Institute of Standards and Industrial Research.

The Senior Parliamentary Secretary to the Minister for Trade and Industry (Mr Eugene Yap Giau Cheng) (for the Minister for Trade and Industry): Mr Speaker, Sir, I am answering on behalf of my Minister.

Sir, the Government's assistance schemes to small and medium-sized enterprises (SMEs) are comprehensive. They are designed to help local SMEs gain access to financing, fixed capital investments, technology and know-how.

The major financial assistance schemes which Members are familiar with include:

(i) Small Industries Finance Scheme (SIFS);

(ii) Liberalised Investment Allowance Scheme (LIAS);

(iii) Small Industry Technical Assistance Scheme (SITAS);

(iv) Business Development Scheme (BDS);

(v) Market Development Assistance Scheme (MDAS);

(vi) Product Development Assistance Scheme (PDAS);

(vii) Design Venture Programme.

As at the end of 1988, there were 8,719 cases of direct financial assistance given to local SMEs under the above schemes. This amounted to some $1.38 billion. Details are given in the Table (Cols. 717 - 718) that I have circulated to Members. Table - SUMMARY TABLE OF FINANCIAL ASSISTANCE GIVEN TO SMALL AND MEDIUM-SIZED ENTERPRISES (Cols. 717 - 718)

Aside from the financial assistance schemes, the Government also provides developmental assistance to local SMEs. These schemes include:

Local Industry Upgrading Programme (LIUP) which helps SMEs in our supporting industries upgrade, by helping to forge ties between them and multi-national corporations (MNCs) in Singapore. So far, 21 MNCs have teamed up with the EDB to upgrade their local suppliers. Eight of these MNCs have implemented the scheme fully, providing assistance to 58 local SMEs.

Another developmental assistance scheme is what we call the Technology Adoption and Automation Programmes which include schemes implemented by SISIR such as technology promotion and information services, competence centres for contract R&D, consultancy, testing and technical services, incubator units for technology innovation and quality upgrading services to meet export requirements.

The results of all these financial and developmental assistance schemes are becoming visible. The participation rate in these schemes is high. By helping to reduce the financial and technological risks, these schemes have raised the confidence of local entrepreneurs. This is reflected in the significant increase in the value of local investment commitments from $295.1 million in 1987 to $347.8 million last year. The number of local enterprises also increased substantially from 64,200 to more than 71,000 over the same period.

Dr Wong Kwei Cheong (Cairnhill): Sir, based on the table of financial assistance given to SMEs which was circulated to Members, may I ask the Senior Parliamentary Secretary that for the design venture programme, why is it only 18 were approved in 1988? Is it because there was a lack of applications or is it because of the stringent requirements? Can the Senior Parliamentary Secretary inform the House how many were rejected? And also for 1989, is the Senior Parliamentary Secretary able to inform this House how many possibly will be approved for this year?

Mr Eugene Yap Giau Cheng: Sir, the scheme has just started. 18 for 1988 is considered quite good. As to how many will qualify for 1989, I do not have the figures. I do not know who have applied. Maybe at the appropriate time, the Member for Cairnhill may want to ask the same question and I will be too pleased to give him the answer.