The Singaporean government plans to increase the tax allowance for merger and acquisition (M&A) activities, according to the country’s 2015 budget announcement.

Accordingly, the tax allowance for acquisition costs will increase to 25 percent of the value of acquisition from the current 5 percent.

Besides, companies will be able to claim M&A benefits for acquisitions resulting in at least 20 percent shareholding in the target company, down from the current threshold of 50 percent.

According to analysts, this will help reduce costs and risks so that small-and medium-sized enterprises (SMEs) can grow organically.

Other experts said SMEs will need help executing their M&A plans, experts said.-VNA