Singapore offers a range of government grants designed to support local businesses in their growth, innovation, and international expansion efforts. Among these, the Enterprise Development Grant (EDG), Market Readiness Assistance (MRA) Grant, and Productivity Solutions Grant (PSG) stand out as key initiatives tailored to meet the diverse needs of enterprises. Understanding the nuances of each grant can empower businesses to leverage these resources effectively. Singapore Government Grants that help businesses to grow.
Enterprise Development Grant (EDG)
The EDG is a comprehensive program aimed at assisting Singaporean companies in their transformation journey. It focuses on three primary pillars:
- Core Capabilities: Enhancing foundational aspects of businesses to prepare them for growth. This includes areas like business strategy development, financial management, human capital development, service excellence, and strategic brand and marketing development.
- Innovation and Productivity: Encouraging companies to explore new areas of growth, improve efficiency, and leverage technology. Projects under this pillar might involve product development, process redesign, or adopting automation and digital solutions.
- Market Access: Supporting businesses in their efforts to expand overseas. This includes assistance for international market entry, mergers and acquisitions, and pilot projects in foreign markets.
Funding Support: Small and Medium Enterprises (SMEs) can receive up to 50% support for qualifying project costs. Notably, sustainability-related projects may be supported at up to 70% from 1 April 2023 to 31 March 2026 under the Enterprise Sustainability Programme.
Eligibility Criteria:
- Registered and operating in Singapore.
- At least 30% local equity held directly or indirectly by Singaporeans and/or Singapore Permanent Residents.
- Financially capable of starting and completing the project.
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Market Readiness Assistance (MRA) Grant
For businesses aiming to venture into international markets, the MRA Grant provides financial support to defray costs associated with overseas expansion. The grant covers activities under three main categories:
- Overseas Market Promotion: Activities like marketing and public relations campaigns to establish brand presence in new markets.
- Overseas Business Development: Efforts to identify and secure business partners, including potential distributors, agents, or joint venture partners.
- Overseas Market Set-up: Costs related to establishing a physical presence overseas, such as office rental and registration fees.
Funding Support: The grant offers up to 50% of eligible costs, capped at S$100,000 per company per new market. This includes specific caps for each activity category: S$20,000 for overseas market promotion, S$50,000 for overseas business development, and S$30,000 for overseas market set-up.
Eligibility Criteria:
- Business entity registered and operating in Singapore.
- At least 30% local equity held directly or indirectly by Singaporeans and/or Singapore Permanent Residents.
- New to the target overseas market, defined as having not exceeded S$100,000 in overseas sales in that market in any of the preceding three years.
- Group Annual Sales Turnover not exceeding S$100 million OR a Group employment size not exceeding 200 employees.
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Productivity Solutions Grant (PSG)
The PSG supports businesses in adopting pre-scoped IT solutions and equipment to enhance productivity. It covers sector-specific solutions in areas like retail, food, logistics, precision engineering, construction, and landscaping, as well as solutions that cut across industries, such as customer management, data analytics, financial management, and inventory tracking.
Funding Support: Businesses can receive up to 50% funding support for eligible costs when adopting pre-approved solutions.
Eligibility Criteria:
- Registered and operating in Singapore.
- Purchase/subscription of the IT solutions or equipment must be used in Singapore.
- Have a minimum of 30% local shareholding; with the Company’s Group annual sales turnover less than S$100 million, OR less than 200 employees.
Application Process for EDG, MRA, and PSG
- Assess Eligibility: Ensure your business meets the specific criteria for the desired grant.
- Prepare Documentation: Gather necessary documents, including project proposals, quotations, and financial statements.
- Submit Application: Applications for these grants are submitted through the Business Grants Portal (BGP). A CorpPass account is required to access the portal.
- Await Approval: The respective agencies will evaluate the application based on project scope, outcomes, and competency of the service provider.
- Project Implementation and Claims: Upon approval, proceed with project implementation. Claims for reimbursement are submitted through the BGP upon project completion, with necessary supporting documents.
Find MRA Consultant here.
Strategic Considerations for Businesses
When considering these grants, businesses should:
- Align Projects with Business Goals: Ensure that the initiatives funded by these grants are in line with the company’s long-term strategic objectives.
- Demonstrate Financial Readiness: Be prepared to co-fund the project costs and demonstrate financial capability to sustain the project.
- Engage Qualified Consultants: For projects involving consultancy, engage consultants with a proven track record and relevant expertise.
- Monitor Project Outcomes: Establish clear metrics to assess the effectiveness of the project and ensure accountability.
Conclusion
Singapore’s suite of grants, including the EDG, MRA, and PSG, provides robust support for businesses aiming to enhance capabilities, innovate, and expand internationally. By understanding the specifics of each grant and strategically aligning them with business objectives, companies can effectively leverage these resources to drive growth and competitiveness in both local and global markets.
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