Question

Mr Edward Chia Bing Hui: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) how many applications have been received under the Enterprise Financing Scheme - Mergers & Acquisitions Loan (EFS–M&A) since its inception; and (b) what measures are being considered to enhance support for SMEs engaging in merger and acquisition activities to help them build economies of scale, particularly in light of utilising the EFS–M&A scheme.

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1. Since the launch of the Enterprise Financing Scheme – Mergers and Acquisitions Loan, or EFS-M&A, in October 2019, over 20 local enterprises have taken up close to $190 million in such loans.

2. Besides the EFS-M&A, the Enterprise Development Grant also supports eligible local companies in growing and transforming their businesses, including mergers and acquisitions (M&A) activities. Companies that meet qualifying conditions may also enjoy an M&A tax allowance based on the acquisition value and a double tax deduction on qualifying transaction costs.