Effectiveness of Measures to Address Startup Costs, Rental Pressures and Structural Disadvantages Facing Smaller SMEs and F&B Businesses

58 Ms He Ting Ru asked the Deputy Prime Minister and Minister for Trade and Industry (a) whether current, including newly-announced initiatives adequately account for high startup costs, rental pressures, and structural disadvantages facing smaller SMEs in F&B business compared to established F&B chains; and (b) if not, how does the Government plan to further support smaller and newer F&B businesses in improving productivity, given that many lack the capital and manpower for large-scale transformation.

Mr Gan Kim Yong: The Government has put in place many initiatives to support small and medium enterprises (SMEs).

The Enterprise Financing Scheme (EFS) – Working Capital Loan helps smaller businesses access financing and manage cashflow needs. Businesses can also benefit from the 50% Corporate Income Tax rebate for Assessment Years 2025 and 2024, with a minimum benefit of $2,000 for active companies with at least one local employee. Enterprise Singapore has also rolled out schemes to help SMEs improve productivity and develop new offerings. The Productivity Solutions Grant (PSG) can help food services SMEs install equipment, such as smart cooking machines and rotary cookers; and adopt digital systems, such as the Connected Business Suite (CBS), which integrates solutions for food and beverage (F&B) businesses' front-of-house and back-of-house operations. These solutions help reduce firms' reliance on manpower and improve efficiency. The Government also continues to support our businesses in the heartlands, which includes F&B SMEs, through the Community Development Council (CDC) Vouchers. These vouchers have helped boost businesses' sales and footfall. From the launch of the digital CDC Vouchers scheme in December 2021 to July 2025, $1.26 billion in CDC Vouchers have been spent at participating hawkers and heartland merchants.

More recently, Enterprise Singapore launched two new initiatives for smaller F&B businesses. The FoodX programme enables smaller F&B businesses to better manage business costs by using shared resources, such as through centralising food preparation, to take advantage of economies of scale. The F&B Process Optimisation Programme (POP) helps F&B businesses engage consultants to review and optimise their processes to improve manpower utilisation, revenue generation, and customer satisfaction. From the second half of 2026, employers can look forward to receiving a fresh $10,000 in a new redesigned SkillsFuture Enterprise Credit that was announced in Budget 2025. Employers can receive these credits via an online wallet that they can use to immediately offset out-of-pocket costs for eligible workforce transformation initiatives, rather than do so on a reimbursement basis. This will help ease cash flow concerns for employers.

To expand our outreach, the Government partners industry stakeholders and key trade associations, such as the Restaurant Association of Singapore, to support the development and transformation of Singapore's food services sector, by addressing common industry challenges, such as manpower constraints and changing consumer preferences.

The Government will continue to review our measures to support SMEs, including smaller SMEs in the F&B business, to ensure they remain relevant.