As a conclusion, it is evident that many of productivity focused policy programmes have been present already before 2010 however a renewed emphasis on productivity resulted in a number of new programmes. The most notable are tax allowance (credit) for innovation and productivity (PIC) providing a total of 4 billion SGD in tax savings for companies between 2010 and 2018, National Productivity Fund spending of around 1 billion SGD during the same period and an enhancement of Capability Development Grant (CDG) in 2015 for 3 years to cost additional 600 million SGD. In the context of industry transformation programme in 2016 only national robotics programme was announced as a new instrument of 450 million SGD, without much further details. These instruments were complemented with financing, internationalisation and R&D instruments; however it is not possible to estimate their exact financing scope and evolution.
3.8. Industry transformation programme (ITP) Industry Transformation Programme (ITP), launched in 2016 as part of the annual budget announcement, with the overall announced budget of 4.5 billion SGD, will include both horizontal as well as sectoral initiatives to promote industrial transformation, support productivity growth and enhance coordination between different government programmes and initiatives, covering 23 industries grouped in 6 clusters. For each of the industry, in consultation with employers, labour unions and other actors, a dedicated Industry Transformation Maps (ITMs) will be developed, to guide public support and investment. Under a common structure of the ITP, all the planned actions (policy interventions) shall fall under one of the four thematic pillars that shall underpin each ITM and would drive industry transformation:
Actions to raise productivity, in particular targeting SME's; Actions to develop skills; Actions to drive innovation, particularly through R&D; Actions to promote trade and internationalisation.
In addition, three further factors are considered as critical to ensure success of the ITP/ITMs:
Ensuring broad coordination across agencies and stakeholders; Reaching a substantial industry coverage; Achieving ownership by social partners – both employers and employees.
The horizontal actions of the ITP are grouped around three “thrusts”: supporting the transformation of enterprises, supporting the transformation of industries and driving the transformation through innovation. The instruments targeted at enterprises include: -
Business grant portal; Automation support package; Financing and tax incentives to support scale-ups; Support for internationalisation.
The instruments targeted at industries include: -
National trade platform; Leveraging new technologies via national robotics programme; Increasing outreach through TACs
The instruments to support transformation through innovation include:
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