22 November 2011

In response to a recent Parliamentary sitting on 21 November 2011, the Ministry of Finance provided an update on the Productivity and Innovation Credit (PIC) scheme, introduced in Budget 2010 and enhanced in Budget 2011, and the National Productivity Fund (NPF).

To date, based on the tax returns that have been filed with IRAS so far this year, about 9,800 businesses or 20% had claimed PIC benefits. Over 100 seminars for some 19,000 participants have been conducted by IRAS, with brochures sent to companies as part of its outreach programme.

It is still early days yet to assess the take up rate but businesses are expected to make their first PIC claims when they file their annual income tax returns by November this year.

As for the National Productivity Fund (NPF), about $600 million has been committed for productivity initiatives. The National Productivity and Continuing Education Council (NPCEC) has identified 12 priority sectors to focus its efforts, acounting for almost 40% of Singapore’s GDP and 50% of the workforce.

Source: Ministry of Finance