Top 5 Grants in Singapore to Help Expand Your Business
If you’re looking to expand your business in Singapore, you’ve come to the right place. This article will provide useful information about leveraging on available grants and financial schemes for expansion.
Usually, businesses are attracted to expand into Singapore because of the country’s ease of doing business as well as the vibrant workforce provided by the country. Importantly, the Singaporean government strives to ensure that the country’s environment remains conducive for businesses.
Concurrently, the government seeks to empower SMEs with useful grants to subsidy their expansion cost. The grants are designed to ease operating costs and cater funds to increase their productivity and capabilities.
Before looking at the grants, think about your expansion plans.
To make sure that your business expansion in Singapore is successful, you need to have a detailed plan. It is wise to weigh up the needs your expansion is looking to address and the modes of expansion. A thorough market research is also required.
Also, ascertaining the feasibility of your business expansion before expansion can help to save you a lot of funds. With that said, you will then be able to identify the grants for your business to apply.
Next, even with the help of available grants, ask yourself this question: Is your business ready to expand?
Although your business might be doing well, it might not be ready for expansion. Therefore, before you even start thinking of expansion, make sure that your business has a strong foundation.
Grants and financial support to help you expand in Singapore
Now, let’s look at 5 grants in Singapore that will help your business expansion. These grants are easy to apply with the help of the Business Grant Portal, created by the Ministry of Trade and Industry.
I. Capability Development Grant (CDG)
“Singapore companies have a small window of opportunity to ramp up their digital transformation efforts and raise productivity over the next few years”, said Finance Minister Heng Swee Keat in Budget 2018. The Capability Development Grant (CDG) is specially designed to help SMEs to grow on their capability & productivity of the business by supporting up to 70% of the qualifying cost.
Here are some important ways that CDG can benefit your business:
- Expand Branding and Marketing – CDG can help your business create a unique brand image and increase brand awareness amongst consumers. With a strong marketing strategy, you will be able to build up your brand equity over time.
- Business Excellence – CDG can allow you to take on projects with the goal of enhancing management systems and formulating strategic roadmaps. Enhancing your business processes will grant you increased efficiency and competitiveness.
- Financial Management – CDG will enable you optimize the allocation and deployment of internal resources, potentially improving your profitability and sustainability.
- Human Capital Management – Employees are a crucial component of your business. With CDG, you can develop strong human capital by strengthening your HR policies and practices.
- Product Development – With the CDG grant, you can embark on ambitious product development efforts. Innovative and differentiated products will help your company increase its scalability and profits in a sustainable manner.
- Service Excellence – Successful companies adopt a customer-centric mindset. Using CDG, you will be able to embark on projects to understand customer needs and build a comprehensive service process to improve customer experience.
II. Market Readiness Assistance (MRA)
Market Readiness Assistance (MRA) is a grant designed for businesses expansion overseas. This grant supports nearly 70% of all eligible third-party expenses including market set-up, and market promotion overseas. To qualify for this loan, your business must be headquartered in Singapore and must have a yearly turnover of not more than one hundred million Singaporean dollars.
The activities supported by MRA include:
- Market Assessment – Costs covered by MRA includes market research and market feasibility studies to access your company’s readiness for the market. Also covered are advisory reports on legal, tax, labor, import and export regulations as well as recommendations for mode of entry into foreign countries.
- Market Entry – MRA supports documentation expenses on company registration, IP and various drafting of licenses and agreements.
- Business Matching – MRA will support costs incurred to identify potential business partners or corporate customers.
- Overseas Market Promotion – MRA will support marketing and PR activities; including digital and online advertising campaigns.
With the MRA grant, you will be better prepared and ready to face the challenges of expanding your business abroad.
III. Global Company Partnership (GCP)
Global Company Partnership (GCP) grant will ease the financial burden associated with expanding into a new overseas market. In addition to providing financial support, the GCP can help your business to access the new overseas market, develop the right manpower, and build internal capabilities. The government will support up to 70% of the qualifying expenses in your business expansion plan.
Activities supported by GCP includes:
- Capability Building – GCP will reduce the burden of cost for engaging a third-party professional to help your business develop growth strategies for overseas expansion.
- Market Access – Costs incurred in engaging third-party professionals to enhance your company’s presence in international markets are supported by the grant. Cost of entry into new overseas market will be supported too under the GCP grant.
- Manpower Development – Finding the right talent when your company expands overseas is challenging. With the GCP grant, you can expand your talent search efforts by engaging recruitment agencies locate key professionals. GCP grant also covers costs incurred by engaging HR consultancy firms. These firms can help your business develop a resilient international HR policy, allowing you to attract and retain valuable employees.
IV. Productivity Solutions Grant (PSG)
Expanding or upgrading a business requires a lot of work and money. Sometimes businesses are not ready to tap into expansion opportunities due to sluggish productivity, and that’s where the PSG grant comes in. This grant will come in handy especially if your company is looking to expand but its bogged down by low productivity.
PSG will cover technological solutions that can help your business automate its processes and increase its efficiency. These solutions include customer management, data analytics, financial management and inventory tracking. By integrating technology into your business, you will be able to increase your productivity through efficient processes, thus giving you a leg up in expansion.
V. Enterprise Development Grant (EDG)
You can also look into the EDG grant to streamline your expansion in Singapore. The grant mainly supports Singaporean enterprises in their efforts to internationalize and develop capabilities to increase their competitiveness locally or abroad. EDG will cover some of the costs in business development, innovation and core capabilities development.
The EDG is easy to apply through the Business Grants Portal.
Business expansion is not an easy task. With multiple aspects of expansion, it can be overwhelming for a business owner to cover every nook and cranny of business expansion. At Enterprise Assurance PAC, our team of expert chartered accountants can help you! With many years of experience in services spanning from company incorporation to auditing, we consult and advise you on grants that can help your business expand based on your needs and suitability. Drop us an email today and our experts will talk to you!