- By Netto & Magin LLC
- 5 Minutes Reading
GRANTS FOR LOCAL SMEs
Many SMEs in Singapore are missing out on significant government support simply because they are unsure which grants apply to them or how to get started.
In today’s era of economic and political uncertainty, driven by rising global tensions, it is critical for local SMEs to remain adaptable, competitive and agile. Protecting your Intellectual Property (IP), strengthening your core capabilities and expanding into overseas markets are no longer hopeful aspirations, they are essential requirements for long term resilience and growth.
Local businesses and SMEs must take full advantage of the available grants to safeguard innovations and scale effectively, particularly in a time of profound global change. SMEs that fail to leverage these grants risk falling behind competitors who are actively subsidising their growth and expansion.
This article provides a summary of the key grants available to local businesses and SMEs. Get in touch with us to find out which grants are available to your business and how to apply.
Key Takeaways :-
- Singapore SMEs can access major grants like EDG, MRA, and EIS to support growth and innovation
- EDG supports business transformation, productivity, and expansion
- MRA helps SMEs enter overseas markets with up to S$100,000 support
EIS provides 400% tax deductions for R&D, IP, and training - Many SMEs miss out due to lack of awareness or application complexity
- Proper guidance can significantly improve approval chances and funding outcomes
SUMMARY OF GRANTS AVAILABLE
1. Enterprise Development Grant (EDG) administered by Enterprise Singapore
- Supports projects and initiatives which help companies upgrade, innovate, grow and transform their business.
- EDG funds qualifying costs, including third party consultancy fees, software and equipment, and internal manpower costs.
- SMEs can receive up to 50% support under the EDG grants. Sustainability related projects may be supported up to 70%.
2. Market Readiness Assistance Grant (MRA) administered by Enterprise Singapore
- Supports companies expand into new markets overseas by defraying the costs of overseas market promotion, business development and set up.
- The support is capped at S$100,000 per company per new market and covers activities under three pillars:
- Overseas market promotion (capped at S$20,000)
- Overseas business development (capped at S$50,000)
- Overseas market set up (capped at S$30,000)
3. Enterprise Innovation Scheme (EIS) administered by the Inland Revenue Authority of Singapore (IRAS)
- The EIS offers 400% tax deductions or allowances on up to S$400,000 of qualifying expenditure per year for each of the 4 qualifying activities:
- Qualifying Research and Development (R&D) undertaken in Singapore
- Registration of Intellectual Property
- Acquisition and Licensing of Intellectual Property Rights
- Training courses that are eligible for SkillsFuture Singapore funding and aligned with the Skills Framework
ENTERPRISE DEVELOPMENT GRANT (EDG)
Who is eligible for the EDG Grant?
To be eligible for the EDG Grant, your business must be:
- A business entity registered and operating in Singapore
- At least 30% local equity held directly or indirectly by Singaporean citizens or PR, determined by ultimate individual ownership
- Financially ready to start and complete the project
How does the EDG Grant help your business?
The EDG Grant helps local entities grow and transform by supporting projects that help upgrade your business, innovate or venture overseas under 3 categories:
Core Capabilities
Are you looking to strengthen your foundations as your business expands?
Projects under Core Capabilities include business strategy, financial management, human capital development, service excellence, and strategic brand and marketing development. Obtaining legal advice on Intellectual Property strategy, reviewing IP related agreements and providing Freedom to Operate analysis fall under this category.
Innovation and Productivity
Looking to improve efficiency and streamline your operations?
Innovation and Productivity projects include initiatives to automate, optimise resources to make routine tasks more efficient, and improve performance. For example, acquiring a new software to automate internal processes would qualify under this category.
Market Access
Got a fresh business idea or considering expanding into ASEAN and beyond?
Defray the costs of expanding overseas or entering new product markets by building your track record and testing your products. Areas covered include assessment, training, first time certification and adoption of relevant standards for business growth and sustainability standards adoption.
MARKET READINESS ASSISTANCE GRANT (MRA)
Who is eligible for the MRA Grant?
To qualify for the MRA Grant, your business must be:
- A business entity registered and operating in Singapore
- At least 30% local equity held directly or indirectly by Singaporean citizens or PR
- New to the target overseas market
- Group Annual Sales Turnover not exceeding S$100 million OR Group employment size not exceeding 200 employees
Employers eligible for the SkillsFuture Enterprise Credit can qualify for additional subsidies under the MRA Grant.
How does the MRA Grant help your business?
The Market Readiness Assistance Grant supports companies in overseas expansion by covering up to 50% of costs for activities across 3 pillars:
Overseas Market Promotion (capped at S$20,000)
Qualifying activities include conducting marketing or public relations campaigns to promote products and services, or participating in overseas trade fairs.
Overseas Business Development (capped at S$50,000)
Qualifying activities include identifying potential overseas partners such as distributors or JV partners, engaging business development services overseas, or deploying an employee overseas to conduct business development.
For example, an SME entering Indonesia for the first time can use this grant to subsidise partner sourcing and on ground market research.
Overseas Market Set Up (capped at S$30,000)
Qualifying activities include advisory, legal and documentation expenses relating to Intellectual Property protection, overseas incorporation, and import and export licenses.
IRAS ENTERPRISE INNOVATION SCHEME (EIS)
Who is eligible for the Enterprise Innovation Scheme?
To qualify for enhanced tax deductions or allowances under the EIS, your business must be actively operating in Singapore and have incurred qualifying expenditure on qualifying activities for the relevant Year of Assessment between 2024 to 2028.
Who is eligible for the Enterprise Innovation Scheme?
Types of Qualifying Activities
Qualifying expenditure must be incurred on one of the following five qualifying activities under the EIS:
- Qualifying research and development undertaken in Singapore
- Registration of intellectual property
- Acquisition and licensing of intellectual property rights
- Training courses eligible for SkillsFuture Singapore funding
- Innovation projects carried out with polytechnics, ITE, or other qualified partner institutions
What Counts as Qualifying Expenditure?
Based on IRAS conditions, qualifying expenditure may include:
- Staff costs and consumables incurred on qualifying R&D projects
- Official filing and professional fees for registering intellectual property
- Capital expenditure to acquire qualifying intellectual property rights
- Training expenditure for approved courses
- Qualifying innovation expenditure with partner institutions
HOW WE CAN HELP
Navigating the complexities of the various grants, understanding which grant best suits your business and preparing the documentation for submission can be challenging and time consuming.
We are committed to helping our clients make full use of the available grants to compete in an increasingly challenging environment.
Not sure which grants your business qualifies for or how much funding you can secure? Our team provides practical guidance from identifying suitable grants to preparing and submitting strong applications.
Reach out to our team today for a discussion on how your business can leverage these grants to grow, expand and stay competitive in today’s market.
Netto & Magin LLC
Netto & Magin LLC is a boutique law firm in Singapore, boasting over 50 years of proven experience. Our specialized expertise covers Family Law, Syariah Law, Corporate Law, Employment Law, Fraud, and Commercial and Civil Litigation. With a dedicated team of industry-leading experts located strategically in Singapore's central business district, we stand ready to serve as your trusted legal partner.
Contact us for a free consultation.
