Need Advice ?
Speak to a Lawyer Now
At Lions Chambers LLC, we pride ourselves on being responsive. We understand that some problems need immediate attention, let us assist you.
Singapore Government SME Grants
In these uncertain times dominated by the effects of a global pandemic, it may be a wise idea to hunker down and re-invest in your business, spend some money to prepare for opportunities post-Covid-19, or apply for some government grants to give your business some breathing space.
This article seeks to introduce you to the grants available for you to do just that.
But before we do that, let’s just make it clear what the government means when it says SME.
SMEs are companies with at least 30% local (Singaporean or Singapore Permanent Resident) shareholding, and group annual sales turnover not more than S$100 million or group employment size of not more than 200 employees.
Productivity Solutions Grant (PSG)
What it’s for: This grant supports your SME’s adoption of long-term high-tech solutions that boost productivity and would be ideal for SMEs which seek digital automation or the improvement of digital processes. These solutions also cover inventory tracking, customer relationship management (CRM) software, data analytics and financial management.
Industries covered: This grant covers many industries, like precision engineering, construction, landscaping, retail, food and beverage, and logistics sectors. It also supports the adoption of solutions across.
How much is the grant for: Subsidies of up to 80% till 30 September 2021.
Enterprise Development Grant (EDG)
What it’s for: This grant assists SMEs to develop their internal competencies in 3 areas:
- Core Capabilities:
- Strategic Brand & Marketing
- Business Strategy
- Human Capital
- Service Excellence
- Financial Management
- Innovation and Productivity:
- Product Development
- Process Redesign
- Automation
- Market Access:
- Pilot Project & Test Bedding
- Overseas Marketing Presence
- Mergers & Acquisitions
- Adoption of Standards
How much is the grant for Subsidies of up to 80% to offset the costs of qualifying projects till 31 March 2022.
Innovation and Capability Voucher (ICV)
What it’s for: These grants are disbursed to assist SMEs with consultancy projects in 4 areas:
- Productivity
- Innovation
- Financial Management
- Human Resources
How much is the grant for: You may apply for up to a maximum of 2 grants of $5,000 each for each of the 4 areas outlined above.
Market Readiness Assistance Grant (MRA)
What it’s for: This grant is especially useful for SMEs seeking to expand into or explore overseas markets. It covers 3 areas, which each have their own maximum grant limit:
- Overseas Market Promotion – maximum of $20,000
- Overseas Business Development – maximum of $50,000
- Overseas Market Setup – maximum of $30,000
Do take note that the grant will cover 70% of eligible costs per new market till 31 March 2023.
Financial Sector Technology and Innovation Scheme
What it’s for: The FSTI scheme supports the development of innovative solutions and the implementation of industry-wide technology infrastructure for SMEs in the financial sector.
How much is the grant for:
- Innovative solutions: up to 50% of funding support (capped at $1 million)
- Industry-wide Infrastructure Projects: up to 70% of funding support for qualifying solutions
Take note that this grant is available till March 2023.
FSTI-Proof of Concept (POC) Grant
What it’s for: If your SME is in the early stages of a business venture and investigating fresh or novel approaches to resolving business use-case problems by using technology or business processes, then this grant may be the right one for you.
How much is the grant for Grant of up to 70% of qualifying costs (capped at $400,000) for 18 months.
Digital Acceleration Grant
What it’s for: This grant is only for local financial institutions and FinTech businesses with under 200 employees. The grant co-funds the adoption of eligible digital solutions in the finance sector.
How much is the grant for 80% of qualifying costs incurred (capped at $120,000) over 1 year.
Marine and Process Support Package
What it’s for: This grant is only for the marine and process sectors, which relies heavily on manual work processes and large manpower needs. There are 2 schemes to take advantage of in these economically uncertain times:
- Marine and Process Safe Restart Package seeks to protect the safety and well-being of employees in this sector, granting:
- $400 cash support for business-level measures like protective gear and individually-packed meals; and
- 50% co-funding of worksite safety enhancement measures.
- Productive Safe Restart Scheme (PSRS) helps with transformation models and technological solutions which will keep them competitive in the long run, granting up to 80% support for qualifying joint or independent transformation projects.
Startup SG Equity
What it’s for: This scheme was introduced by the government for it to join venture capital firms in co-funding local tech startups with intellectual property and global market potential. It applies to all technology businesses and sectors, with a primary focus on the following sectors:
- Advanced Manufacturing and Engineering
- MedTech
- Biomedical Science
- Agri-Food Tech
How much is the grant for At least $50,000 for selected businesses.
Business Improvement Fund
What it’s for: The Singapore Tourism Board uses the Business Improvement Fund (BIF) to encourage technology innovation and adoption, redesign of business models and processes in the tourism sector to improve productivity and competitiveness. It is open to all Singapore-registered businesses/companies embarking on projects with a clear focus on tourism. There are 2 pillars – (i) core capabilities and (ii) innovation and productivity.
Projects under Core Capabilities help companies prepare for growth and transformation by strengthening their business foundations.
- Business Strategy Development
- Financial Management
- Human Capital Development
- Service Excellence
- Strategic Brand and Marketing Development
Projects under Innovation & Productivity support companies that explore new areas of growth, or look for ways to enhance efficiency via automation, process redesign and product development.
How much is the grant for Funding support varies from project to project.
Conclusion
In these uncertain and troubling times, it makes sense to join hands with others to help your SME survive and thrive. It makes even more sense when it’s the government that is lending a helping hand. In many cases, these grants open up doors for your business to take advantage of.
The government has launched a one-stop site – the Business Grants Portal – where all the information you would need may be accessed. This portal is maintained by the Ministry Of Finance, Ministry Of Trade And Industry and Government Technology Agency.
Do check it out at https://www.businessgrants.gov.sg.
How We Can Help You
Lions Chambers LLC is an established law firm in Singapore. Our team of lawyers specialise in various areas of law and will be able to assist you. Our consultations are free. Please call +65 8777 3677 or click here to WhatsApp us today.