Speaking in the capacity as a Practicing Management Consultant with SBACC (Singapore Business Advisors & Consultants Council –http://www.sbacc.org.sg/component/sobipro/?sid=54&task=list.alpha.l&site=2&Itemid=156) , CEO Delane Lim raised up a few pointers during a phone interview on productivity initiatives and government schemes:
+ Too many grant ‘consultants’ working together with ‘SME’ to earn money from these schemes without the intention to increase productivity.
+ Some companies even create award schemes to brand their companies by buying awards using PIC scheme which backfire the reputation of real consultants and intent of these schemes.
+ Some SME with help of ‘consultant’ are more focus on earning these grants than the intent of being productive. So the government to investigate and clamping it is a good move.
+ SME are small and medium enterprises which means to say a lot of the grants and subsidy are based on reimbursement model where companies need to fork out a sum of money to invest in the project and/increase wages of employees. Many SME struggled to start any productive because of cash flow issue.
+ While the government provides a check and balance on how grants are being used and disbursed, the process of claims is a tedious process and it can take months. So much grants only can target SMEs which have very good cash flow.
+ Grants and financial schemes/incentive are short term and temporary. Companies must plan ahead to develop a sustainable business model, forecasting growth methods for next 3-5-10 years.