In his budget speech on Tuesday (February 18th), Finance Minister Lawrence Wong announced that Singapore will introduce a new S$1 billion private credit growth fund to provide more financing options for high-growth local enterprises.

Wong, who also serves as Singapore's Deputy Prime Minister, highlighted that private credit markets have gained popularity globally as they offer innovative financing solutions for businesses.

However, few of these funds focus on Asia, let alone Singapore-based enterprises.

The Finance Minister stated, "We now have a more vibrant financing ecosystem, supported by a growing network of angel investors, venture capitalists, and private equity firms."

He noted that companies need capital to grow.

The government has launched investment funds to co-invest with business partners in promising companies. Over the past five years, the government has also allocated approximately S$1.8 billion to support enterprise development through investment funds.

Minister for Trade and Industry Gan Kim Yong will provide more details during the Committee of Supply debates.