A road of rejuvenation and recovery
While the pandemic might have upended economies, it has also ratcheted up the pressure on governments and companies to refine their fiscal approaches.
Innovation and entrepreneurship-driven initiatives have the potential to breathe life into an economy that is still finding its feet in a post-pandemic environment. Crucial to this growth is the ability to boost mergers and acquisitions which remain catalysts for transformation.
With its pool of quality talent and connectivity to the rapidly growing Asian economy through an extensive network of free trade agreements and tax treaties, Singapore has the potential to become a leading destination for global enterprises to drive mergers and acquisitions (M&A) growth.
Growing uncertainty around the world and geopolitical shifts in the region have also punctuated Singapore’s sound financial regulation and strong rule of law, making it the ideal hub for collaboration and enterprise.
In addition, the mainstream adoption of 5G technology will transform the way we live, work and connect forever. Increased connectivity speeds and ultra-low latency will reinvent industries and pave the way for a smarter, greener and more sustainable future.
Read more to find out how Singapore can reinvent its economy to break new ground in a post-pandemic future.
The expansion of the technology and telecommunication sector will accelerate Singapore’s ambition to be the region’s digital hub. Investments in digital capabilities and infrastructure will enable start-ups, ecosystems and fuel the innovative spirit of Singapore to remain a world-leading smart and connected city.
Getting more out of M&A
As businesses undergo restructuring and revaluate their organisational models to adapt to a post-pandemic future, M&A can offer an extensive range of opportunities to deliver much-needed stability and growth. By providing support for M&A across targeted sectors, government agencies can play a key role in facilitating discussions and ensuring that deals take place.
To this end, the Government will be tapping into the Enterprise Financing Scheme (EFS) to boost the Merger & Acquisition Loan to include domestic M&A activities from 1 Apr 2022 to 31 Mar 2026.
In addition, it will also continue to share 70% of the risk under the enhanced trade loan component of the EFS for enterprises which will be extended to September this year.
Aimed at empowering businesses to venture beyond their current markets, it supports businesses entering developing markets, like Bangladesh or Brazil, amongst others. This will help drive confidence into businesses hoping to tap into new economies of growth.
The Government will share share 70% of the risk under the enhanced trade loan
On cloud nine
Massive machine-type communication (mMTC), mobile robotics and cloud robotics. As 5G technology rolls out across the world, businesses can expect to revolutionise the way they live, work and communicate.
By embracing a full-scale deployment of low-latency, cloud-based frameworks and increased IoT operations, organisations can benefit from exponential growth in sectors like autonomous driving, virtual reality and augmented reality to name a few. To help encourage this, the Government is expected to improve its broadband infrastructure to accommodate 5G and 6G innovations.
Beyond investing in future technologies, the Government is also hoping to increase broadband access speeds by almost 10 times over the next few years. This will help Singapore maintain its competitive edge and improve its resilience in a technologically fast-forward environment.
The budget that focuses on building Singapore’s digital infrastructure is commendable, especially for its commitment to raising broadband speeds by 10 times in the next few years. The investments in the National Broadband Network in the first decade of the 2000s enabled Singapore to bounce forward from the pandemic and supported local enterprises to adopt digital business models efficiently. This next wave of investments will help us build competitive advantage in regional and global markets to build a virtually unlimited Singapore.