By Non-Constituency MP, Yee Jenn Jong
[Delivered in Committee of Supply on 6 March 2015]
Mr Chairman, we need to grow our promising local firms into globally competitive companies, but with their roots in Singapore.
The new programmes such as IGS (International Growth Scheme) and the Double Tax Deduction for Internationalisation are a welcome step in the right direction. These schemes can benefit companies venturing abroad, especially by organic growth. However, in some situations, acquisition may be more efficient.
We can improve our ecosystem to enable our future world champs. We should encourage more companies to use IFS (Internationalisation Finance Scheme) now that it can be used for M&A. The number of companies getting IE-administered grants for cross-border M&A has been increasing but is still small at 32 last year.
To encourage strong development of our brands overseas, can we have a lower tax rate for IP-related income from abroad instead of the usual 17% for corporate tax?
I also like to ask about the new schemes. Can DTD cover manpower expenses incurred to put Singaporeans overseas, such as kids’ schooling allowances and relocation costs?
For IGS, is there a target for the number of companies to be on this? We have targets for the other schemes, but what about IGS? And how many years will be granted and what are the key conditions for renewal at expiry?
For Venture debt risk-sharing, do the schemes apply for overseas M&A?
Thank you.