Singapore  - Singapore Thursday announced a 4.2-billion-Singapore-dollar (2.78-billion-US-dollar) financing scheme that is projected to generate 14.4 billion Singapore dollars' worth of trade and 1.6 billion Singapore dollars worth of overseas investments this year.

Some 2,500 companies would benefit from the scheme in the form of loans, said the International Enterprise (IE) Singapore, the city state's trade promotion agency.

"With trade being 3.5 times that of the gross domestic product and exports 1.5 times, it is crucial for companies to realize the importance of continued engagement in trade and internationalization to help sustain their business in the long term," said IE Singapore chief executive officer Chong Lit Cheong.

IE Singapore launched the export coverage scheme and the exporter development programme to help local companies face challenges in the international markets during the current global economic downturn.

IE Singapore said it would lead small and medium enterprises to venture overseas, especially in traditional markets of China, India, Vietnam, the United States and Europe. It would also lead the companies to non-traditional markets in Africa, Latin America, the Middle East and Russia.

The agency has also urged Singapore companies to bid for international projects funded by the Asian Development Bank and the World Bank.

IE Singapore has also set aside 123 million Singapore dollars for capability development and market access programmes, which would benefit some 10,000 companies.

The schemes are part of the Singapore government's 20.5-billion- Singapore-dollar budget, dubbed a resilience package and announced last month, to help local companies to ride through the current global economic meltdown. (dpa)