Singapore to start S$200 million long-term investment fund for enterprises with longer, complex growth trajectories

Singapore will set up a new S$200 million fund for investing in enterprises with longer or more complex growth trajectories “that require more time to fully realise their potential”, said Minister for Trade and Industry Gan Kim Yong on Thursday (6 Mar).

During his ministry’s Committee of Supply debate, he also gave further details of the S$1 billion Private Credit Growth Fund announced in Budget 2025.

There is room for the government to enhance its equity and debt financing toolkit to better support enterprises’ diverse growth strategies, said Gan, who is also deputy prime minister.

In his Budget speech, Finance Minister Lawrence Wong, who is also prime minister, said that while government-backed equity fund investments generally have a three to seven-year horizon, the government will now deploy funds with longer investment horizons.

This takes the form of the new S$200 million Long Term Investment Fund. It is for enterprises that need “highly patient” capital to pursue long-term organic and inorganic growth opportunities, said DPM Gan.

This could mean firms with longer product development cycles, or that are in niche and nascent sectors with longer gestation periods.

More details will be given by the second half of 2025.
 

Private Credit Growth Fund to provide customised financing

DPM Gan also gave details of the S$1 billion Private Credit Growth Fund, which PM Wong had said would provide “more financing options for high-growth local enterprises”.

The fund will provide non-dilutive, customised financing. This can be used for growth activities such as international mergers and acquisitions (M&As) and large capital overseas expenditures.

Such tailored solutions may not be readily available in Asia through traditional financing today, DPM Gan noted.

A commercial specialist private credit solutions fund manager will be appointed. It will also provide specialist advisory services to enterprises, in areas such as M&A, financial management, and supply chain improvement.

More details – including on the fund manager and eligibility criteria – will be announced by the third quarter of 2025.

The hope is to catalyse more commercial funding as fund managers and investors “gain familiarity and confidence in this space”, said DPM Gan.
 

Reducing regulatory burden, supporting the heartlands

Meanwhile, the government continues to reduce the compliance burden on companies, he said, announcing three commitments by a pro-enterprise inter-ministerial committee.

These were developed in consultation with regulatory agencies, after engagement with the business community.

First, agencies should publish service standards for the processing of business regulatory applications. Applications should be processed within 30 working days, where feasible.

Second, business licences should be made valid for at least three years, and preferably up to five years. Agencies should provide reasons if a three-year validity period is not feasible.

Agencies can continue issuing provisional licences to new businesses, before awarding a longer validity period upon renewal.

Third, the government will continue to streamline processes to minimise sequential regulatory approvals and duplicative information requests from multiple agencies.

Separately, the earlier-announced Small and Medium-Sized Enterprises Pro-Enterprise Office (SME PEO) will be fully operational from 26 March.

It will be the government’s main coordination unit for improving regulations. SMEs can give feedback via an online form, hotline or by visiting SME Centres.

Two other initiatives aim to make the heartlands more vibrant.

From 1 April, a one-year Vibrant Heartland Programme will encourage heartland merchants’ associations to hold placemaking activities. There are two tiers. A standard package offers bite-sized and pre-scoped activities – such as children’s craft workshops and games – from pre-qualified vendors. Merchants’ associations can get funding support for qualifying costs of S$3,000 per application.

For more “unique, creative and impactful” ideas, there is an upsized package for larger-scale, customisable placemaking events, with support for qualifying costs of up to S$200,000 per application.

Second, the Visual Merchandising Programme will be enhanced to help heartland shops develop stronger content and visual merchandising strategies.

To support heartland shops that wish to pursue larger-scale projects, it has increased the cap on supportable qualifying projects costs to up to S$60,000, from S$12,000 previously.

It will also support customised projects, with a wider range of eligible makeover items, and include more training on digital and visual merchandising.
 

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