Committee of Supply Debate 2026, Ministry of Trade and Industry
Micro and small enterprises are the backbone of our community. They provide economic stability for the nation and livelihoods for many workers.
However, their economic contribution remains disproportionately low. They employ 45% of our workers but contribute only 11% of nominal value added. This productivity gap translates into lower salaries these businesses can afford to pay their workers.
The Association of Small and Medium Enterprises (ASME) has observed that the current classification of SMEs is too broad. A micro enterprise with 10 employees and $1 million in revenue faces fundamentally different hurdles compared to a medium sized company with 200 staff and $100 million in turnover. By grouping them together, we risk applying one size fits all solutions that may not reach the smallest players.
Will the government adopt the ASME’s suggestion to delineate micro, small and medium enterprises in national policy making and data collection? Tailoring grants and other assistance to the specific operational realities of each tier will make government support more effective for them.
ASME estimates that a 10% uplift in the value added of this segment could translate into an additional $6.5 billion in annual GDP, equivalent to more than 1% of growth. Focusing more on these micro and small enterprises is a significant opportunity to lift the wages of many Singaporeans.