A $500 million semiconductor fabrication R&D facility, is set to begin operations in 2027 at JTC nanoSpace @ Tampines. This facility will drive advanced semiconductor research and innovation, particularly benefitting Small and Medium Enterprises (SMEs) and startups.
To remain a semiconductor powerhouse, Singapore must invest in research and development to drive innovation in the industry, said Deputy Prime Minister and Minister of Trade and Industry Gan Kim Yong during the debate over Ministry of Trade and Industry’s (MTI) budget in Parliament on Mar 6.
The R&D fabrication facility will initially focus on advanced packaging technologies, where different semiconductor components are combined into a single unit to make chips faster, more powerful and more efficient.
Mr Gan said companies, especially the smaller ones, may face challenges accessing semiconductor infrastructure and expertise in their R&D and pilot production.
The facility will offer state-of-the-art clean room infrastructure and industry grade tools as well as translational research and fabrication expertise, which will support the scaling and translation of R&D, he added.
“Major global semiconductor players as well as SMEs and startups can tap on its capabilities and even foster new partnerships,” Mr Gan said.
New $1 billion private credit growth fund to help local enterprises
Mr Gan announced a new $1 billion Private Credit Growth Fund (PCGF) to support local enterprises with strong growth potential in becoming industry leaders. This initiative aims to address the financing needs of businesses as they expand globally, as raised by Edward Chia (Holland-Bukit Timah GRC).
Unlike equity financing, private credit allows companies to retain ownership and control while providing flexibility to meet their specific needs to scale up quickly, he explained.
“Beyond the $1 billion seeded by the government, we hope to catalyse more commercial funding as more fund managers and investors gain familiarity and confidence in this space.”
$62.5 million to develop a low-carbon technology translational testbed
The Government will invest $62.5 million in a test facility to help companies scale up low-carbon solutions, bringing them closer to commercial development. This facility, called the Low-Carbon Technology Translational Testbed, will focus on accelerating emission-cutting technologies that are challenging to scale up.
This facility will be housed on Jurong Island and hosted at the A*Star Institute of Sustainability for Chemicals, Energy and Environment.
Second Minister for Trade and Industry Tan See Leng said: “We will calibrate our speed of adoption for energy technologies and solutions. For less mature solutions, we will strengthen research efforts and accelerate commercialisation.”
Government will provide support on energy costs through measures like U-save rebates
Acknowledging MPs’ concerns about the potential impact of decarbonisation on energy costs, Dr Tan said that the government will continue to provide support to households through measures such as U-save rebates. For businesses, the government will co-fund investments in energy efficiency through initiatives like the Energy Efficiency Grant.
Dr Tan said: “Our aim is to strike the right balance between decarbonising towards net-zero, ensuring at the same time, our energy security, and maintaining cost-competitiveness.”
Helping local heartland shops boost their marketing efforts
The government will launch a new one-year Vibrant Heartland programme from April 1 to encourage heartland merchants’ associations to organise placemaking activities.
Announcing the initiative in Parliament, Senior Minister of State for Trade and Industry Low Yen Ling said this initiative offers two tiers.
The standard package provides funding support of $3,000 per application for bite-sized, pre-scoped activities like children’s craft workshops and games from pre-qualified vendors. For more unique, creative, and impactful ideas, an upsized package offers support of up to $200,000 per application for larger-scale, customizable placemaking events.
The government will also enhance the Visual Merchandising Programme to help heartland shops develop stronger content and visual merchandising strategies. The cap on the support for qualifying cost of projects has been raised to up to $60,000, from $12,000 previously, enabling heartland shops to pursue larger-scale projects.
Additionally, the programme will support customised projects with a wider range of eligible makeover items and provide more training on digital and visual merchandising.
Ms Low said: “We will spare no efforts to support [SMEs] every step of the way as we forge ahead together.”
SG60 Deals for Singaporeans, while tourist receipts soar
As part of SG60 celebrations, discounts and deals will be offered at various attractions for Singaporeans and Permanent residents.
Minister of State for Trade and Industry Alvin Tan announced these promotions during the Committee of Supply debate.
The SG60 promotions include family-friendly bundles and discounts spanning attractions like Kiztopia, Bird Paradise, Trickeye Singapore, and Science Centre Singapore.
For instance, Gardens by the Bay will launch an exclusive SG60 Wonder Blooms Pass for Singapore residents, offering over 60 per cent discounts on unlimited visits to six upcoming floral displays in the Flower Dome.
These SG60 deals were launched on the SG60 website on March 6.
Separately, Mr Tan shared that international visitor arrivals to Singapore are expected to reach between 17 million and 18.5 million in 2025, bringing in approximately $29 billion to $30.5 billion in tourism receipts.
In 2024, the Republic welcomed 16.5 million international visitor arrivals, while tourism receipts for the first three quarters of 2024 hit a historic high of $22.4 billion.
