How can businesses benefit from the $1B private credit growth fund?

It is seen as a key opportunity for companies to scale and expand.

Industry leaders have expressed support for the government’s newly launched $1b Private Credit Growth Fund, calling it a major boost for Singapore’s private credit and high-growth businesses.

“Companies should use this to drive innovation, scale operations, and invest in long-term growth,” Aidan Khoo, director, management consulting at Forvis Mazars, said.

He noted that with patient capital and extended investment horizons, businesses can secure resources to develop new solutions, digitalise processes, and expand into new markets. “Firms can optimise costs by utilising these funds for research, automation, and strategic partnerships, positioning themselves ahead of industry shifts,” Khoo added.

Khoo also highlighted the redesigned SkillsFuture Enterprise Credit, which helps businesses cut workforce transformation and training costs. “The $10,000 credit for businesses with at least three resident employees provides a valuable opportunity to invest in skills development, enhancing workforce capabilities and supporting business growth,” he said.

With the credit extended until June 2026, he encouraged businesses to plan ahead to strengthen workforce capabilities and stay competitive.

Additionally, Desmond Teo, ASEAN EY Private Tax Leader, believes the initiative will “broaden funding channels for start-ups and small businesses”, strengthening Singapore’s private credit ecosystem.

“This will likely have a catalytic and rippling effect as well, attracting other forms of capital, such as family offices and high networth individuals,” he added.

Moreover, Paul Ong, partner at Innoven Capital SEA, sees the fund as a significant boost for alternative financing. “This initiative aligns with our vision to provide innovative financing solutions to high-growth, sponsor-backed companies in Singapore and across Asia,” he said.

He also highlighted how it underscored the critical role of private credit in the digital economy and looks forward to collaborating with stakeholders to maximise its impact.