[Singapore] The introduction of automation support package is viewed as a replacement to the PIC scheme following the announcement to allow PIC scheme to be lapsed after YA 2018. This reflects the Government’s continuous commitment to drive productivity and innovation.
The automation support package will consist of enhancing existing grants available and introduction of new scheme and measures governed under one single agency, SPRING Singapore.
To support firms to automate, drive productivity and scale up, SPRING will implement an Automation Support Package comprising four components:
- Support under SPRING’s Capability Development Grant:
The Capability Development Grant will be expanded to support the roll-out or scaling up of automation projects at up to 50% of the qualifying cost. The grant is capped at $1 million;
- Investment Allowance (IA)
Qualifying projects may be eligible for an IA of 100% on the amount of approved capital expenditure1, net of grants. This IA is in addition to the existing capital allowance for plant and machinery. The approved capital expenditure is capped at $10 million per project;
- Enhanced financing support
To improve access to loans for qualifying projects, the government will increase the risk-share with participating financial institutions under SPRING’s Local Enterprise Finance Scheme equipment loan, from 50% to 70% for qualifying projects undertaken by SMEs. Local Enterprise Finance Scheme to cover equipment loan for non-SMEs at 50% risk-share with participating financial institutions; and
- IE Singapore will work with SPRING where relevant to help businesses to access overseas markets
Further details will be announced by the Ministry of Trade and Industry (MTI) at the Committee of Supply.