Economy Policy and Global Environment

Small and medium Enterprises or more commonly known as SMEs are companies whose headcount or turnover falls within a certain limit set by the governing authority of the country. SMEs are often responsible for driving innovation and competition in many economic sectors.
Even though the operating environment for SMEs is a tough one in land scarce Singapore, the government firmly believes that SMEs must not be neglected as the country progresses and has pledged to assist SMEs in the upgrading of skills, developing new products and brands as well as finding new markets abroad to ensure that they not just survive but thrive.   SMEs therefore play a vital role in an economy, being the entry point for entrepreneurs to build new businesses, some of which will grow into large businesses that create wealth and employment for the economy. In most economies, SMEs provide the bulk of jobs while also being the main source of income for a sizeable number of people. SMEs are also quite often important handmaidens to large businesses–– acting as suppliers and sub-contractors to the larger businesses.  

Main Report
Contribution of SMEs in Singapore
The Singapore Government had in formulating its strategy for economic growth into the next millennium, underscored the fact that the next phase of continued growth has to be supplemented by its own 75,000 SMEs. Another reason for concentrating on the SMEs is the result of a strategic response by the national policy makers, used to counter the possible side-effects due to the emergence of trade blocs, in various parts of the world, on a highly export-oriented country like Singapore. As such, local entrepreneurship development has been receiving much attention in the government’s recent focus on SMEs. A national SME plan help to foster a conducive environment to nurture entrepreneurship and to encourage the growth of local enterprises. The Government will enhance support for SMEs in the areas of productivity, innovation...