The government has announced plans to loosen bankruptcy laws to encourage entrepreneurship in high-risk technology ventures.
Acting on private sector advice, it has agreed to relax its bankruptcy regime to encourage Singaporean 'technopreneurs' - entrepreneurs with hi-tech start-up firms - to become more risk-taking and creative.
Teo Ming Kian, chairman of a government-backed committee seeking ways to nurture the hi-tech sector, said: 'We will revise bankruptcy procedures and laws to promote responsible risk-taking by fostering a climate where business failure need not result in bankruptcy.' Entrepreneurs and firms in the technology, Internet or intellectual property industries who become bankrupt through taking normal business risks will be given differential treatment from those who become so through misdeed or mismanagement.
The government will make capital losses suffered by investors in hi-tech start-ups tax deductible, subject to qualifying criteria.
Singapore's renowned technology entrepreneur, sound-card maker Creative Technologies' founder Sim Wong Hoo, said: 'Singapore really has to catch up with the rest of the world, even though we are a step ahead of our neighbouring countries.
'The government can facilitate this be removing these obstacles and hurdles,' Mr Sim said. He chaired a private sector advisory committee.
It is hoped parliament will pass bankruptcy law amendments by September 1.
