Local food produce suppliers in Singapore will continue to benefit from shortened payment terms and promotion of their products. The scheme, which was introduced by Singaporean supermarket chain, FairPrice, doubled its support to S$2 million and widened its eligibility criteria in order to help SMEs stay afloat.
In addition to this, FairPrice has also revealed that they will be extending the scheme, otherwise known as the SME Suppliers Support and Development Programme, for another year until 31 October 2021.
Some 470 SMEs have benefitted greatly from the scheme since its introduction in 2009 to help the cooperative’s SME partners overcome restructuring challenges and tide through the global financial crisis. In 2012, the program was brought back and has since been extended annually.
The scheme usually costs FairPrice more than S$1 million annually.
The eighth extension of the scheme was announced at the launch of the supermarket chain’s ninth “Made in Singapore fair”, an initiative which provides a platform for local producers to showcase locally produced food items.
Under FairPrice’s programme, assistance provided include accelerated payment terms of 30 days instead of 60 days and above, discounts on processing and listing fees for suppliers’ new products, and special consideration for inclusion in the FairPrice house brand programme.
FairPrice has announced a number of beneficial changes to enhance the programme for the coming year. One such change is an enhancement of the eligibility criteria to include more SMEs. Another benefit is an increased discount on listing fees for new products, along with additional marketing and promotional support.
It will expand the criteria on annual turnover – from S$5 million to S$8 million – to allow more suppliers to be eligible for the programme.
It will also offer discounts of 50 percent on both processing and listing fees for their new products, up from the 30 percent discount on listing fees previously, in a bid to reduce SMEs’ business costs and widen opportunities for growth.
The programme’s other new features include seminars for enterprises to gain industry insights, a 50 per cent discount on sales reports and the ability to promote or sell their products on FairPrice’s online marketplace platform.