With diminishing margins, increased competition, a small domestic market and escalating manpower costs, doing business in Singapore has never been so challenging before.
There was a sign of relief when Productivity & Innovation Credit (PIC) was around but no longer. Unless you are involved in Deep Tech or Advanced Manufacturing, you are not going get much cost defrayments.
Fortunately there are still many business grants Singapore businesses can tap on.
Types of Singapore Business Grants
The problem is there are more than 100 over Singapore business grants available. It can be tricky to navigate the list since they are managed by different bodies and each comes with their own paperwork.
We distill down to the few which we believe would be applicable for most Singapore businesses that is not R&D heavy.
This applies to the retailers, food & beverage outlets, service providers, engineering shops, IT equipment distributors, etc.
In a Nutshell:
The Productivity Solutions Grant (PSG) is a new initiative, coordinated by MTI’s Grants Management Office (GMO) and administered by the relevant agencies, to assist businesses in its transformation journey.
Aligned to the Industry Transformation Maps (ITMs), PSG provides support for the adoption of IT solutions and equipment that have been pre-scoped by the industries’ lead agencies.
As part of the Government’s efforts to simplify the overall grant landscape, PSG streamlines existing grant schemes with pre-scoped solutions into one.
Businesses that wish to undertake productivity solutions will only need to apply for support under one grant scheme.
PSG also aims to better support businesses in the next phase of transformation, which may require more substantial investments and longer term commitments.
PSG will be available on the Business Grants Portal (www.businessgrants.gov.sg)
In a Nutshell:
For businesses who require a more holistic and customized support for innovation and internationalization, the Government will offer a new Enterprise Development Grant (EDG) from the merger of two existing grants, CDG and GCP, run by Spring Singapore and International Enterprise (IE) Singapore respectively.
It will be run by Enterprise Singapore, the new agency emerging from the marriage of Spring and IE Singapore.
The EDG will provide up to 70 per cent of co-funding for companies to build a range of deeper capabilities and scale up.
- Brand and marketing strategy development;
- Financial management;
- Technology innovation;
- Business excellence;
- Business strategy development;
- Enhancing quality and standards;
- Human capital development;
- Intellectual property and franchising;
- Productivity improvement;
- Service excellence.
In lieu of the announcement made during the Budget pertaining to the EDG, which stands to be effective only in Q4 2018, more details will be released during the second half of the year.
In the meantime, businesses can continue to apply for the CDG this year.
3. HR Technology
In a Nutshell:
To encourage businesses to adopt innovative HR technologies, Enterprise Singapore appointed a pilot pool of pre-scoped HR Tech solutions so that you can get access to the latest HR analytical tools and systems and be more operationally efficient.
You can look forward to savings in costs and resources by adopting the right tools and solutions to implement operational HR activities, such as conducting employee surveys and benefits administration.
By putting in place the right systems and processes, you can focus on strengthening other HR areas as well as growing the company.
Select from 4 areas of HR technology solutions for your business. These areas cover
- Employee Engagement
- Compensation and Benefits
- Learning and Development
- Recruitment and Selection.
Businesses can receive funding support of up to 50% of qualifying costs, including a one-time setup cost (if applicable), a monthly subscription cost capped at 12 months.
The following activities can be supported under the one-time set up cost (if applicable):
- Needs analysis
- Data migration from existing process/system
- Administrator Training
The following activities can be supported under the monthly subscription cost:
- Subscription cost of engaging appointed HR technology providers, up to 12 months.
Select an Appointed HR Tech Providers, download and complete the HR Tech Project Template. Log onto the Business Grant Portal (BGP) and select Human Capital Development as the development area. Complete the online application form and upload the completed project proposal.
In a Nutshell:
The Market Readiness Assistance (MRA) grant, offered by Enterprise Singapore, supports Singaporean SMEs who have plans to take their business overseas for the first time, and require financial assistance to assess the market before jumping straight in.
The MRA grant funds up to 70% of the qualitative project costs, capped at $20,000 per fiscal year which follows the period of 1 April 20xx to 31 March the next year.
Businesses must take note as well that they will only be allowed only two MRA grant applications per fiscal year, and each application has to pertain to different specific areas. Applications submitted after 10 March, will be considered as part of the next fiscal year.
Key areas that are supported by the MRA include:
- Market Entry;
- Business Matching;
- Overseas Marketing and PR Activities;
To apply for the MRA, businesses will first have to access the Business Grants Portal and fill in the required details of each project to do so. An MRA Application will have a turnaround time of approximately 1.5 months.
Getting The Approval
Most applications are also gauged based on how well the proposal is written.
Bordering on the expectation of an ‘A’ Level General Paper, missing paragraphs here and there would mean huge adjustment to the amount of approved funding.
With team members formerly from PWC and SPRING Singapore, we are well equipped to help our clients with a top notched proposal.