| < Prev | Next > |
|---|
The Government acknowledges that greater utilization of ICT is essential for businesses to remain competitive but also recognizes that the use of ICT requires companies, especially SMEs, to incur large expenses to replace and upgrade ICT assets. Therefore, to assist the private sector in this regard, the Government has announced in Budget 2009 that Accelerated Capital Allowance on expenses incurred on ICT equipment, which is currently claimed over two years, will be accelerated to one year.
According to the SME Annual Report 2007, utilization of ICT is no longer an option but a necessity for SMEs trying to compete in a global arena. The Government is giving high priority to strengthening the technological capability and capacity of SMEs to meet the challenges of globalization and increased competition. Several strategies are directed at acquiring technologies that will propel SMEs up the value chain in the manufacturing, agriculture and services sectors.
The Government recognizes that although upgrades in technology can ultimately lead to lower costs of production, SMEs often require a huge upfront investment. Hence, there are several Government Ministries and Agencies which offer grants and loans to help SMEs acquire relevant ICT to enhance their operations.
