SMEs unfazed by impending GST hike, says DBS

SINGAPORE (Mar 1): The impending GST hike from 7% to 9% in 2021 was a major news point from the recent flurry of Budget-related news. However, a survey of SMEs by DBS shows that three out of four of these local companies are unfazed with the potentially higher costs of doing business.

They see just “moderate” or even no impact on their businesses, thanks to the slew of grants and development funding available such as those under the Productivity Solutions Grant (PSG) and Enterprise Development Grant (EDG), says DBS, citing a poll of 240 of its SME customers.

“SMEs are resilient, and many are known to weather storms and the ups and downs of every economic cycle. The early proposal of the GST hike means that SME owners have enough lead time to plan ahead and ensure that they have the necessary provisions when the tax is finally implemented in 2021,” says Joyce Tee, head of SME Banking at DBS.

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