Energy efficient grants and contractors' registration system (CRS) enhancement

As part of this initiative, the budget introduces a new energy efficiency grant, and an enhanced Contractors Registration System (CRS) aimed at improving productivity. The grant offers funding up to 70 percent for pre-approved energy-efficient equipment, with aid reaching up to S$530,000 for larger investments. The CRS expansion is expected to benefit approximately 11,000 firms, with around 7,000 more likely to be listed due to new registration requirements for firms hiring foreign construction workers.

Expansion of productivity innovation project (PIP) for technological innovation

The Productivity Improvement Project (PIP) scheme has been extended under the 2024 budget to encourage greater technology and innovation investments within the sector. The PIP will co-fund up to 70 percent of technology investments, with a cap of S$10 million, facilitating the adoption of advanced technologies such as integrated digital delivery systems, robotics, and advanced manufacturing and assembly technologies.

Launch of NEC4 contract for collaborative contracting

In a significant move, the Building and Construction Authority (BCA) will launch the NEC4 contract in April 2024 to promote collaborative contracting within Singapore’s construction sector. Public sector developers, including the Housing and Development Board (HDB), JTC Corporation (JTC), and the Land Transport Authority (LTA), are set to pilot this contract. The NEC4 contract includes additional clauses (Y clauses) tailored to align with Singapore’s construction laws, thereby enhancing collaboration and efficiency across the sector.

Expanded Energy Efficiency Grant for broader industry support

The Energy Efficiency Grant has been enhanced to extend financial support to sectors beyond construction, including food services, retail, and manufacturing businesses, with support available until 2026. The grant will cover up to 70 percent of investments in energy-efficient equipment, helping businesses tackle rising costs and build a competitive edge in a future-proof, sustainable industry.

The Enterprise Financing Scheme will extend support for domestic construction projects until 31 March 2025, with a reduced maximum loan quantum of S$15m. Additionally, EnterpriseSG is enabling the sustainability journey for Singaporean companies, by extending the Enterprise Financing Scheme-Green (EFS-Green) for two more years. Beginning in April 2024, companies began receiving support to adopt green solutions, reduce their carbon footprint and begin their sustainability practice. EnterpriseSG will also undertake sharing 70 percent of loan risk to encourage lending from financial institutions.

Future Energy Fund and artificial intelligence (AI) investment

Additionally, the government has introduced a new S$5bn Future Energy Fund to finance essential infrastructure investments in low-carbon energy sources such as undersea cables for low-carbon electricity imports and hydrogen pipelines. Singapore is also committed to investing S$1bn over the next five years to accelerate AI development and adoption. Up to half of this amount will be spent on enhancing digital infrastructure to support AI technology adoption.