Indian enterprises in Singapore set to ride on biz adaptation grant to counter US tariff impact
"This grant is available to all local businesses, especially Small and Medium Enterprises (SMEs)," the business chamber said.
The Singapore government will launch a Business Adaptation Grant in October to help companies in the city-state adapt to the new US tariff environment, the Singapore Economic Resilience Taskforce (SERT) announced on Thursday.
The grant will be capped at SGD 1,00,000 (USD 78,000) per company, said Minister for Manpower Tan See Leng.
While Singapore has not received a letter, neighbouring countries such as Malaysia and Indonesia will face tariffs of 25 per cent and 32 per cent, respectively.
"This initiative reflects a proactive and strategic approach to supporting enterprises, particularly SMEs, as they face increasing complexities in international trade," the Singapore Indian Chamber of Commerce and Industry (SICCI) said.
With global tariff structures becoming increasingly dynamic, businesses must be equipped with the necessary tools, knowledge, and financial support to realign their operations and maintain competitiveness, said the Chambers.
This grant will offer critical support to companies in reviewing supply chains, recalibrating pricing strategies, exploring alternative markets, and investing in trade advisory capabilities, SICCI said, stressing that it is "fully prepared to provide unwavering support to our members and the wider business community in accessing and leveraging this grant".
"We will work closely with government agencies, particularly Enterprise Singapore, to ensure that businesses, especially those from the Indian business community, can effectively benefit from this initiative and develop sustainable trade strategies in response to the shifting global trade Environment," Neil Parekh, Chairman of the Singapore Indian Chamber of Commerce and Industry, said.
Tan pointed out that small and medium enterprises will likely be able to receive a higher percentage of co-funding from the government than multinational firms.
Small and medium enterprises employ around two-thirds of Singapore's workers, he added.
Singapore plays an international hub role in international businesses' global dealings, the US being one of the main lucrative markets, according to international business analysis.
The grant will cover two categories of businesses, and eligible companies will get support for a "time-bound period" of two years, according to reports.
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