Local firms unlikely to invest in R&D on back of bleak business outlook

Mergers and acquisitions are also off the list.

Only 4% of local firms are likely to invest in research and development (R&D) initiatives this year, on back of a bleak overall business outlook and slow global economic recovery.

According to a report by the Singapore Commercial Credit Bureau (SCCB), majority of firms (42%) are focused on investing in machinery and capital equipment, while 35% are looking to upgrade their employees’ skills.

Another 12% of firms indicated that IT infrastructure is their most important area of investment, while only 4% of firms claimed that they are looking to invest in R&D.

Mergers and acquisitions and intellectual property initiatives are the least important area of investment for local businesses.

Low R&D investment is a persistent problem for Singaporean firms. A report by PwC in October revealed that only 6.3% of respondents had intentions to tap on the R&D tax benefits offered under the government’s productivity and innovation credit (PIC) scheme.

The Singapore Business Federation’s SME Committee blamed the low take-up on rigid qualification requirements that result in the rejection of otherwise valid claims.

“To qualify for R&D tax benefits under PIC, a project has to include “a systematic,investigative and experimental study in a field of science or technology that aims to either acquire new knowledge, create new products or processes, or improve existing products and processes”. However SMEs’ activities in R&D are often more “development” than “research” which may not qualify even if there are some elements of innovative technology application,” the SME Committee stated.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia