As according to the PwC report, robust core manufacturing arena with the able aid and guidance from Singapore Government must focus primarily within its forthcoming budget proposal, as it would surely aid in the objective of progression of the services industry that will in turn lure the entire ecosystems.
PwC also stated that, this is a proposal for the Budget 2021, and pointed out that manufacturing remains a foundation stone for the Singapore’s economy.
PwC has already provided suggestion on providing utmost priority concentration for the enterprises that are running scarce on the workforce front as well as overhead estimations, however, where concluding stage dealing out can economically and viably be performed out in Singapore. They quoted final-stage food processing and advanced bioengineering as illustrations.
PwC also stated that: “At the same time, this processing should increase the ability of companies to benefit from Singapore’s wide and strong Free Trade Agreement (FTA) network which would offset the probably higher cost base (including land cost) perspective in overseas markets.”
The boosted utilization of FTAs could go very well around with the direct exports or aided firms that are processing in Singapore and necessitating small and medium-sized enterprises’ (SMEs) inputs.
PwC stated that involving SMEs via an industry-wide FTA approach founded on technology would go a huge way in accomplishing this goal. Technology would be a core enabler for SMEs to meet necessities of an FTA, which involves defining whether a product made meets the FTA qualifying criteria. Technology can be a core enabler to document or certify that accordingly.
“For an illustration: – A tool that would permit establishments to transfer bills of material so that they can be investigated for meeting the value-added qualifying criteria of specific FTAs would be useful to many SMEs,” PwC added.
Aside from aiding SMEs to power FTAs, digitalization would be exclusively tougher for new industries that have to incur expenses that spans from hardware substructure budgets to labour budgets of digitizing data, data migration, and workforce training.
PwC proposes targeted reliefs and funding to benefit industries lessen the investment budget of opting out to be digitalized, and reassure them to digitize their data and revolutionize their developments.
“To safeguard revenue and reward investments in productivity, the scheme can be tied to the Government’s current areas of focus; for example, companies which have invested in staff training and are able to demonstrate incremental job creation (local hires) alongside the staff training programmes for the year could opt for a co-funding scheme or be given enhanced allowances / deductions,” PwC added.