Help for SMEs Adversely Affected by Increased Fuel and Energy Costs Due to Conflict in Ukraine

8 Mr Darryl David asked the Minister for Trade and Industry whether the Ministry has plans to help small and medium enterprises which may be adversely affected by significantly increased fuel and energy costs due to the conflict in Ukraine.

The Second Minister for Trade and Industry (Dr Tan See Leng) (for the Minister for Trade and Industry): Mdm Deputy Speaker, the conflict in Ukraine poses limited direct risks to our energy supplies as Singapore's energy sources are diversified. Nevertheless, as Singapore is heavily reliant on the global market for our energy supplies, we will be affected by the high and volatile global gas prices resulting from the conflict. Electricity prices are likely to remain elevated, or increase even further, in tandem with the escalating global energy costs.

Businesses are, understandably, concerned about higher costs. EMA has taken measures to safeguard our energy security and moderate the impact of the conflict.

I have shared them before These include: one, ensuring that electricity generation companies (gencos) have sufficient fuel reserves; two, establishing a Standby Fuel Facility (SFF) which gencos can tap on to produce electricity; and three, introducing the Temporary Retail Electricity Contracting Support (TRECS) scheme.

We have extended TRECS from March to May 2022 and will extend it further if necessary. We are also working with gencos and electricity retailers to offer longer-term, fixed price contracts to consumers who wish to have more price stability.

The Government has a suite of measures to support businesses, especially SMEs, to cope with higher costs. The Small Business Recovery Grant (SBRG) will help eligible firms in sectors most badly affected by COVID-19. Businesses which need financing support can also tap on ESG's programmes, such as the Temporary Bridging Loan, the Enterprise Financing Scheme, the SME Working Capital Loan, to ease their cashflows. To enable businesses to continue to upgrade themselves, we have enhanced the SkillsFuture Enterprise Credit and expanded the range of solutions under the Productivity Solutions Grant.

I would like to assure this House that the Government is monitoring the situation very closely. We are prepared to put in place further measures to safeguard our energy security and assist affected businesses, as well as employees and staff alike, should there be a need to.

11.01 am

Mdm Deputy Speaker: Order. End of Question Time. The Clerk will now proceed to read the Orders of the Day.

[Pursuant to Standing Order No 22(3), written answers to questions not reached by the end of Question Time are reproduced in the Appendix, unless Members had asked for questions standing in their names to be postponed to a later Sitting day or withdrawn.]