SINGAPORE: The city-state’s newly launched $1 billion Private Credit Growth Fund is generating widespread support from industry leaders, who view it as a significant step forward in strengthening the country’s private credit ecosystem and fostering long-term business growth. Experts agree that this initiative will empower businesses, particularly in high-growth sectors, to drive innovation, scale operations, and navigate the competitive global market.
Fuelling innovation and expansion through strategic investment
In a recent Singapore Business Review article, Aidan Khoo, director of management consulting at Forvis Mazars, emphasised that businesses should seize the opportunity provided by the fund to fuel innovation and scale their operations. With patient capital and extended investment horizons, companies can secure the necessary resources to develop new solutions, digitalise processes, and expand into new markets. “Firms can optimise costs by utilizing these funds for research, automation, and strategic partnerships, positioning themselves ahead of industry shifts,” said Khoo.
He also highlighted the redesigned SkillsFuture Enterprise Credit, which is helping businesses cut workforce transformation and training costs. This $10,000 credit is available for businesses with at least three resident employees, enabling them to invest in upskilling and enhancing workforce capabilities. Khoo encouraged businesses to plan, with the credit extended until June 2026, to ensure they remain competitive in the ever-evolving business landscape.
Strengthening Singapore’s private credit ecosystem and expanding funding opportunities
The new fund is seen as a game changer for start-ups and small businesses. Desmond Teo, ASEAN EY private tax leader, believes the initiative will broaden funding channels for emerging companies, boosting Singapore’s private credit ecosystem. He anticipates a ripple effect, attracting additional capital sources, including family offices and high-net-worth individuals, further supporting business growth.
Paul Ong, partner at Innoven Capital SEA, described the fund as a powerful catalyst for alternative financing, aligning with his firm’s vision of providing innovative financing solutions to high-growth companies in Singapore and across Asia. Ong also underscored the growing importance of private credit in the digital economy and expressed eagerness to collaborate with stakeholders to maximize the fund’s impact on the business community.
As Singapore continues to embrace digital transformation, the $1 billion Private Credit Growth Fund is poised to be a key driver in shaping the future of innovation and growth across industries.