SME Red Tapes

Forum - Straits Times: Set up body to look after SMEs' needs

ST reader Tay Boon Suat made several good points in his letter:-

*  There are 160,000 SMEs in Singapore. 

*  Many SME bosses have to visit various government agencies to resolve issues.

*  Although there are Aid agencies like Spring Singapore, Singapore Workforce

    Development Agency, etc., many SMEs are unable to tap it owing to lack of

    appropriate help.

*  SMEs contribute about half of Singapore's gross domestic products, so they deserve

    a dedicated body to take care of their needs.

*  He suggests that the Government consider setting up an SME board, similar to

    those in Britain and Germany, to look after the sector's future development and

    well-being.

The purpose of such a board should ideally be to:-

*  Take charge of the development of SMEs

*  Coordination with other industry sectors

*  Become the single government agency to direct the SMEs to the appropriate help.

*  Help SMEs tap the relevant aid schemes

*  Coordinate information and schedules of all courses relevant to SMEs

He is correct.  To set up an SME, a business has to deal with quite an assortment of agencies:-

*  ACRA (Accounting and Corporate Regulatory Authority)

    Although the guys at ACRA are immersely helpful, and willing to stick it out until you get

    it, we surrender and just resort to a Secretarial Firm to help us register the licence.

    For specific businesses like money changers, travel agencies etc., you deal with the

    other related agencies as well.

*  Secretarial Companies

    We shop around 5-6 places before landing with an ideal one that has friendlier staff.

    It sure makes life simpler when a supportive team handles complex stuff which

    requires explanation. We avoid those with itemized charges, and chose a package

    that also covers basic accounting requirements.

*  Banks with Corporate Banking Facilities

    There is one bank that has very very poor service!

    It's mentioned in forums.

    We went for it as it seems to suit out needs, then find the bank's errors ends up

    clogging time and cluttering paperwork.

    Don't touch it!

*  IRAS (Inland Revenue Authority of Singapore)

    During initial registration, the e-Services Authorisation System (EASY) Access Code

    actually turns out to be not so easy. It involves a trip to IRAS's Revenue House at 55

    Newton Road, before we figure out where this EASY Access Code comes into the

    picture.

    They are very helpful folks, even when you call by phone. 

    They have enabled simpler form of SME reporting for some SMEs, one of which is

    by abolishing the need to file ECI (Estimated Chargeable Income).

    Nevertheless, we also surrender and just hire an Accounting Firm to do the

    tax-related works.

*  AGD (Accountant-General's Department, Singapore).

    We knew the Attorney-General of Singapore's office exists.

    But we never knew the existence of the Accountant-General's Department until we

    become SME. We had some tricky acts dealing with bank codes and other stuff, but

    the lady there resolves it well. 

      

*  CPF Board

    Payroll matters if you need to pay CPF and Medisave to staff.

    There are penalties for late payment.

    You can pay an Accounting Firm for this accountancy service as well.

*  GeBIZ (Government Electronic Business)  

    In order to bid for Government projects, you need to first register with GeBIZ

    (Government Electronic Business) as a Government Supplier (GeBIZ Trading

    Partner).

*  EPPU (Expenditure and Policies Procurement Unit)

    For some tenders, you may also need to be registered as an Expenditure and Policies

    Procurement Unit (EPPU) Supplier or Building and Construction Authority (BCA)

    Supplier. Select the appropriate EPPU categories of Supply Heads.

   

    Next, pay and submit to the ACRA-appointed agency.

    Await confirmation of the minimum Financial Grades required for tender qualification.

*  Aid Agencies for sponsorship, courses, appropriate help.

    Helter Skelter encounter for many.

    With so many processes and strings attached, tenacity is required before help is found.

So despite having good secretariat and accounting support, SME bosses still have quite a bit of homework to do on their own.  

An SME hub where all the related agencies are represented would help immensely.