Throwing in the towel: Around 17,000 local firms folded in 2013, reveals MTI

Some might have failed due to manpower curbs.

There were around 17,000 local companies which ceased operations last year, the Ministry of Trade and Industry revealed in a written reply to a parliamentary question today.

Minister of Trade and Industry Lim Hng Kiang responded to the question by stating that there is no data on how many of these firms had done so because of curbs on foreign manpower, and that about 37,000 companies were formed in Singapore last year.

“While manpower policies affect companies, there are many other reasons, including market forces, mergers and acquisitions, and personal choice, that could also have contributed to a company’s decision to fold. However, about 37,000 companies were formed in 2013, which means that there was a net increase in the number of companies in Singapore,” the response stated.

The MTI also noted that over 17,000 companies have benefited from productivity initiatives under the National Productivity Council (NPC) to date, and that businesses have also enjoyed more than $1.5 billion of tax savings and cash payouts under the Productivity and Innovation Credit (PIC) as of February 2014.