Singapore To Set Up Dedicated Agency For SMEs

Singapore’s strong reputation as a business and financial hub is built on an efficient, effective, and fair regulatory regime designed to facilitate the growth of good businesses. However, this also means that enterprises shoulder a heavy burden when it comes to navigating regulatory requirements. For small and medium-sized enterprises (SMEs) that are already lean in resources, this can be a disproportionately heavy responsibility.

The regulatory burden was acknowledged by Prime Minister (PM) Lawrence Wong at National Day Rally 2024. Although Singapore has done well in ensuring a business-friendly environment, “over time, the rules have grown, and sometimes overgrown,” PM Lee said at the Rally. “Every few years or so, we have to do a thorough and proactive review of our rules and processes, and prune them back where possible.” This will ensure that the regulatory burden is kept to a minimum, to help businesses foster innovation and manage costs amid growing global competition.

Earlier this year, the Alliance for Action (AfA) on Business Competitiveness had provided feedback that the government can do more to support enterprises in navigating regulatory requirements. In April 2024, the Inter-Ministerial Committee (IMC) for Pro-Enterprise Rules Review, chaired by Deputy Prime Minister (DPM) and Minister for Trade and Industry Gan Kim Yong, was formed to look into cross-cutting issues and reducing compliance costs. Ministers K Shanmugam, Chee Hong Tat, Tan See Leng and Desmond Lee, and Senior Minister of State (SMOS) Low Yen Ling were part of the IMC.

In line with this spirit of helping SMEs stay competitive and tap on new business opportunities, SMOS Low had announced the establishment of the Small and Medium-Sized Enterprises Pro-Enterprise Office (SME PEO), on the sidelines of a visit to ADDP Architects LLP with DPM Gan.

SME PEO, established under Enterprise Singapore (EnterpriseSG), will serve as a one-stop, business-facing entity to assist SMEs with their regulatory feedback. It will support SMEs in navigating the whole-of-government rules and regulations, especially for nascent or cross-cutting issues. The new office will:

1. Triage and direct regulatory feedback received from businesses to relevant government agencies for review and reply;

2. Establish and track whole-of-government service standards on regulatory issues; and

3. Monitor case resolution outcomes and analyse feedback to identify systemic regulatory issues for early review and resolution.

The work of SME PEO will enable the government to look into areas for improved regulatory effectiveness, such as better inter-agency coordination, and shortened process times for regulatory applications and approvals. Examples of common regulatory processes that can be improved include:

1. Sequential inter-agency clearances for licensing-related matters that may take a long time, leading to delays and additional operating costs; and

2. Complex regulatory requirements that may lead to erroneous or incomplete application submissions.

SME PEO will complement the work of other government regulatory agencies, which will continue to handle regulatory cases that are straightforward and specific to their agencies, through their own hotlines or feedback channels.

The new office is targeted for launch in the first quarter of 2025.