SMEs Grant Singapore
A lot of companies have suffered due to the covid situation. In Singapore, almost 8500 corporations have been shut down. In order to help the business enterprises from incurring more losses and losing their face in the market, Singapore Government came up with many schemes and grants. One such way of helping business enterprises to come back into the market is the SMEs Grant Singapore.
The SMEs Grant Singapore is an initiative taken up by the government of Singapore to aid Small and Medium Enterprises (SMEs) expand and develop in the growing market. It provides funds to business enterprises and proactively encourages the expansion of SMEs.
In this article, you will learn about a few SMEs Grant Singapore introduced to assist businesses in overcoming obstacles and succeeding in the market.
Objectives of the SMEs Grant Singapore
- The SMEs Grant Singapore aims to assist businesses to grow and expand.
- Its main objective is to empower Small and Medium Enterprises to keep up with the growing competition.
- It helps businesses and corporations subsidize their project costs.
- The SMEs Grant Singapore’s objective is to boost SME profitability through cost-cutting measures.
- The SMEs Grant Singapore improves productivity by improving business performance.
- The SMEs Grant Singapore increases the value of the Singaporean firm by utilizing digital services.
6 SMEs Grant introduced by the Singaporean Government
Following are a few of the SMEs Grant introduced b the Singaporean government:
A) Enterprise Development Grant (EDG)
The enterprise development grant funds Singapore companies that want to enhance their core competencies, develop, and expand internationally. These SMEs Grant Singapore supports projects that allow enterprises to improve their venture, drive innovation and grow into global markets under the following three aspects:
- Core competence– It assists the company in preparing for transformation and expansion by fortifying its company fundamentals.
- Innovation– It assists businesses seeking to expand into new markets or improve efficiency.
- Global markets – Market Access projects assist Singapore companies eager to expand internationally.
The grant covers 80% of the qualifying cost estimates, which include third-party advisory firm service charges, technology and machinery expenses, and internal costs.
Eligibility Criteria for Enterprise Development Grant (EDG)
- The company must be registered and should be functioning in Singapore.
- The company must have 30% of ownership.
- Be financially secure in order to start and finish the project.
B) Market Readiness Assistance (MRA)
The Market Readiness Assistance (MRA) grant offers financial assistance to SMEs to help them expand globally. This SMEs Grant Singapore assists a Singaporean SME business in spreading and achieving access to the international market, from the business set – up, marketing to identifying foreign collaborators.
Qualified SMEs will be provided with the following assistance:
- From 1 April 2020 to 31 March 2023, this grant will cover up to 70% of eligible expenses, with a limit of S$100000 for each company per marketplace*.
- Global market promotion ( with a ceiling of S$ 20,000)
- International business growth (with a ceiling of S$ 50,000)
- International market set-up ( with a ceiling of S$ 30,000)
Eligibility Criteria for Market Readiness Assistance (MRA)
- The company is enrolled and incorporated in Singapore.
- A new entry into the market, i.e. target international location where the applicant’s previous three years’ international sales did not exceed S$100,000
- The company must have 30% of ownership.
- Yearly Group Sales Revenue should not exceed S$100 million
- The group workforce size of the firm must not exceed 200 workers.
C) Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) provides IT supplies as well as solutions to Singaporean businesses to assist them in increasing efficiency and automating current procedures. The PSG can cover up to 50% of their qualified costs and local SMEs who qualify are entitled to a maximum of $30,000 from the PSG which assists in increasing business productivity.
Eligibility Criteria for Productivity Solutions Grant (PSG)
- The firm must be registered and integrated in Singapore.
- The IT solutions or technology have to be purchased, leased, or subscribed to in Singapore.
- Possess a minimum of 30% local ownership; possess yearly group sales revenue of under S$100 million; or possess fewer than 200 workers.
D) SkillsFuture Enterprise Credit(SFEC)
Employers under this SMEs Grant Singapore are enticed by offering finance of S$10000 to invest in corporate transition and organizational growth. This finance can be used for SFEC-approved programs involving the organization or workforce evolution.
A fund of S$10,000 is given to help pay approximately 90% of project-related costs. The SFEC stipulates that S$3,000 cost should be put towards workforce transition programs, with an additional available cost of S$7,000 for enterprise evolution.
Eligibility Criteria for SkillsFuture Enterprise Credit(SFEC)
- Have offered a minimum of S$750 Skills Training levy over the duration.
- Have recruited at least 3 citizens or permanent residents from Singapore.
- Have not met the requirements at any of the preceding applications.
E) Business Improvement Fund(BIF)
Business Improvement Fund (BIF) seeks to promote technological innovation and acceptance. It tries to streamline procedures and revamp SMEs’ business strategies. This platform will enhance the efficiency and productivity of SMEs.
The BIF, in contrast to the PSG, concentrates on tourism and enhances the following:
- Core Competencies– By bolstering their business foundations, projects under Core Capabilities assist businesses in preparing for growth and development. It focuses on-
- Developing corporate strategies
- Financial Administration
- Developing Human Resources
- Quality Assurance process
- Development of a targeted brand and promotion
- Technological Innovation–SMEs project under technological innovations provides assistance to businesses looking to explore new markets or improve operational effectiveness. It focuses on areas like-
- Automation
- Process Improvement
- Product Creation
Eligibility Criteria for Business Improvement Fund(BIF)
All Singapore-registered enterprises and companies starting projects with a clear tourist focus are eligible for the Business Improvement Fund.
These corporations are:
- Tourism businesses engaging in efforts for capability development.
- Technology firms that produce inventive goods and services for the travel industry.
F) P-Max Program
The P-Max program’s primary objective is to support SMEs in talent acquisition, mentoring, organizing, and retaining newly employed PMETs (Professionals, Managers, Executives, and Technicians).
Enrolled SMEs can also get up to 90% off course fees for PMET, SME training sessions, and Age Management sessions for senior workers.
Furthermore, upon the end of the Program and six-month engagement of recently recruited PMETs, qualified SMEs shall obtain a one-time $5,000 Assistance Grant or $10,000 Assistance Grant for Older Employees.
Eligibility criteria to qualify for P-Max Program
You must fulfill the following SME Criteria in order to be eligible for the grant’s support and subsidy:
- Be formed and listed in Singapore
- Citizens or permanent inhabitants of Singapore must own at least 30% of the local shares.
- Prior to enrolling in this course, recruited a PMET and offered them a gross monthly remuneration of a minimum of S$2,500.
Conclusion
The government of Singapore has introduced numerous grants and incentives to support business expansion. These grants offer financial support and other advantages to SMEs formed in Singapore, assisting them in overcoming different business obstacles and fostering long-term growth.
In this article we have discuss some of the SMEs grant Singapore as well as the requirements for receiving them. You must apply for the grants that are the most appropriate for you if you wish to benefit from government grants.
You can consult ODINT Consultancy with any further questions regarding the SME Grant Singapore. We will assist you to solve your questions.
FAQ’s
SMEs Grant in Singapore is an initiative taken by the government to give credit and support to companies so they can expand.
The different SMEs grants offered in Singapore are-
- Land Productivity Grant (LPG)
- Enterprise Development Grant (EDG)
- Progressive Wage Credit Scheme (PWCS)
- Small Business Recovery Grant (SBRD)
- Productivity Solutions Grant (PSG), etc.
As per the Ministry of Trade and Industry, an enterprise with fewer than 200 employees or yearly revenue of less than $100 million will be defined as an SME in Singapore.
- The firm must be registered and integrated in Singapore.
- The IT solutions or technology have to be purchased, leased, or subscribed to in Singapore.
- Possess a minimum of 30% local ownership; possess yearly group sales revenue of under S$100 million; or possess fewer than 200 workers.
The major goal of SMEs Grant Singapore is to provide small and medium-sized businesses with the assistance they need to be competitive while also assisting in their expansion and growth. It lowers project expenses for organizations and enterprises and raises productivity through increased profitability.
