The government will roll out a new Automation Support Package to support companies to automate, drive productivity and scale up, said Finance Minister Heng Swee Keat in Parliament on Thursday.

THE government will roll out a new Automation Support Package to support companies to automate, drive productivity and scale up, said Finance Minister Heng Swee Keat in Parliament on Thursday.

It is estimated that the scheme, to be offered by Spring Singapore for an initial period three years, will provide support of over S$400 million over that period of time.

There are four components to the scheme: First, there will be a grant to support the roll-out or scaling up of automation projects. These will be funded at up to half of the project cost, capped at S$1 million.

Second, qualifying projects can enjoy a new 100 per cent Investment Allowance for automation equipment.

Third, small and medium-sized enterprises will enjoy improved access to loans for qualifying projects. Mr Heng said the government will enhance its risk-share with participating financial institutions to 70 per cent - up from 50 per cent - for such projects.

Lastly, International Enterprise Singapore will work with Spring in relevant cases to help businesses access overseas markets.