Success of local, global firms key to economy: Minister Siow

MOF ready to add resources as firms tap nearly $2b in yearly SME support.

Both multinational corporations (MNCs) and local enterprises must succeed for Singapore’s economy to thrive, Second Minister for Finance Jeffrey Siow said.

His remarks came in response to Workers’ Party proposals, including MP Jamus Lim’s call for the government to place greater emphasis on supporting small and medium-sized enterprises (SMEs) rather than MNCs.

Siow rejected the view that multinational and local firms compete for a fixed pool of government support and economic opportunities.

“We are not in a zero-sum situation. In fact, the growth of our local companies and our MNCs mutually reinforce each other,” he said in parliament.

The government provides nearly $2b annually in direct grants and loans to local SMEs for capability development, new projects, and overseas expansion.

Siow said some schemes were not fully utilised and that the government would work to increase take-up.

“Let me state for the record that the Ministry of Finance stands ready in support with more resources,” he added.

In addition, Singapore will continue attracting multinational companies, which Siow said bring capital, technology and capabilities not yet available locally, including artificial intelligence expertise.

“Many of our local companies grow and succeed because of their relationships with MNCs, not in spite of them,” he noted.

More than two-thirds of senior management positions at MNCs in Singapore are held by Singaporeans, according to the speech.

He pointed out that reducing investment in the business ecosystem could risk MNCs leaving Singapore and prompt local companies to operate in other jurisdictions.

Siow also rejected greater reliance on domestic demand amidst global uncertainty, saying the Republic’s local market was too small to serve as its primary growth engine.

“The answer is not to turn inward. It is the reverse: to strengthen our companies to compete more effectively in more overseas markets, with greater resilience,” Siow added.

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