Extent that Fixed Asset Investment and Total Business Expenditure Commitments Translate into Procurement and Business Opportunities for Local SMEs

110 Mr Mark Lee asked the Minister for Trade and Industry (Energy and Industry) (a) whether the Government tracks the extent to which the $14.2 billion in Fixed Asset Investment and $8.9 billion in Total Business Expenditure commitments secured by EDB in 2025 translate into procurement and business opportunities for local SMEs; and (b) what measures are in place to increase SME participation in these investments.

Dr Tan See Leng: Investments secured by the Singapore Economic Development Board (EDB) generate spillovers for our local small and medium enterprises (SMEs) through supplier contracts, co-innovation partnerships and improvements to the overall quality of our workforce. A 2025 Ministry of Trade and Industry (MTI) study titled "Estimating the Spillover Effects from EDB-Supported Firms" published on MTI's website found that firms that are linked to EDB-supported firms saw better outcomes in terms of improved value added (VA), VA per worker, local employment and local wages.

The Government does not track procurement value flowing to local SMEs, as sourcing decisions are determined by individual companies and are commercially sensitive. However, EDB and Enterprise Singapore administer the Partnership for Capability Transformation scheme to support collaborations between SMEs with multinational companies (MNCs) and large local enterprises (LLEs) in areas, such as supplier development, co-innovation, capability training, internationalisation and corporate venturing. In addition, the MNC-LE Alliance, launched by the Singapore Manufacturing Federation and supported by EDB and Enterprise Singapore, actively facilitates project collaborations between MNCs and local suppliers and partners.

MTI, together with sector agencies, regularly reviews our schemes to ensure they remain relevant and responsive to the needs of businesses.