Depending on the industry or sector that your company is operating in, you might be eligible for the numerous entrepreneur grant Singapore.
Why is the Singaporean government heavily encouraging new entrepreneurs and startups?
This occurred against the backdrop of a large growth in the number of start-ups in the country over the previous decade or so. In 2015, the figure was 48,000, up from 22,000 in 2003.
And, with recent developments in which the government has provided greater assistance to start-ups in terms of finance and talent, this figure is sure to rise even higher, further cementing Singapore’s status as a regional center for start-ups.
WHAT ARE THE GRANTS AVAILABLE FOR ENTREPRENEURS IN SINGAPORE?
Singapore’s government has been aggressively implementing policies to assist and expand the business scene. We’ve compiled a comprehensive list of schemes for you to take advantage of, ranging from grants and subsidies to funding and tax breaks. The list of grants that are available can be seen below:
GRANTS FOR STARTUPS
- Startup SG was established in 2017 as a platform for entrepreneurs to have access to local assistance programs. Startup SG Founder is the most relevant of the six Startup SG pillars for first-time entrepreneurs. Enterprise Singapore provides assistance through Startup SG.
- Startup SG Founder offers coaching and a startup capital grant of up to $30,000 on a co-matching basis to first-time entrepreneurs. This implies that the plan will match $3 for every $1 raised by the entrepreneur up to $30,000. As a result, in order to earn the full value of the $30,000 award, the entrepreneurs must raise and commit $10,000 to the business.
Startup SG Tech
- Startup SG Tech, which is also part of Startup SG, is aimed at tech startups and offers successful applicants with early-stage investment for the commercialization of proprietary technology. Depending on the level of development of their idea or concept, tech startups can apply for a Proof-of-Concept (POC) grant of up to $250,000 or a Proof-of-Value (POV) grant of up to $500,000.
- A POC project is one that is still in the conceptualization stage, and the technical/scientific viability of your proposal must be tested. A POV Project, on the other hand, is one in which you already have a technically/scientifically plausible notion and wish to construct a functioning prototype.
GRANTS FOR ALL SECTORS
Utilizing the technology to digitize a business
Productivity Solutions Grant (PSG)
- The Productivity Solutions Grant (PSG) was introduced in April 2018 to help businesses on their way to becoming more productive. The Productivity Solutions Grant (PSG) also aims to assist businesses interested in implementing IT solutions and equipment to improve their current business processes and productivity.
- The PSG pays up to 70% of the expenses of investing in long-term technology solutions certified by the government, such as Customer Relationship Management systems and Human Resource Management systems.
Technology for Enterprise Capability Upgrading (T-Up)
- The Technology for Enterprise Capability Upgrading (T-Up) helps companies in their innovation journey by engaging A*Star Research scientists and Engineers from research institutes to identify and execute suitable Research and Development for innovation projects to upgrade their operations.
- The main perk of this program is that A*Star Research Scientists and Engineers from RIs will be connected to your company for up to two years to find and implement relevant R&D or innovation projects to modernize your operations.
PROMOTING BUSINESS OVERSEAS
Market Readiness Assistance (MRA) Grant
- Small and medium enterprises (SMEs) will benefit from the Market Readiness Assistance (MRA) grant, which will help them expand internationally.
- Eligible SMEs will obtain the following assistance: –
Up to 70% of eligible costs with a limit of S$100,000 per company per new market, from 1 April 2020 to 31 March 2023 covers: –
- Overseas market promotion (Maximum of S$20,000)
- Overseas company development (Maximum of S$50,000)
- Overseas market set up (Maximum of S$30,000)
Multichannel E-commerce Platform (MEP) Programme
- Singapore enterprises interested in launching cross-border online operations can use the Multichannel E-commerce Platform (MEP) Programme to implement a multichannel cross-border e-commerce solution.
- Under this initiative, SMEs will not only profit from MEP solutions, but they will also be trained with the necessary skills to run a successful online business. Singapore Institute of Retail Studies (SIRS) has been appointed as the training partner to construct the training program with MEP providers to assist SMEs in onboarding the providers’ platforms, gaining insights into the e-commerce ecosystem, and succeeding in their online company.
HIRING AND TRAINING EMPLOYEES
- The Critical Infocomm Technology Resource Programme Plus (CITREP+) is a programme within IMDA’s TechSkills Accelerator (TeSA) initiative that supports continual ICT worker upskilling and reskilling through short-form courses and/or certification fee support.
- Individuals may develop specialised in-demand ICT skills through CITREP+ to improve their employability and stay current. There are courses and professional certifications available in sectors like 5G, Cybersecurity, and Cloud.
Company-Led Training (CLT) Programme
- The Company-Led Training (CLT) programme aims to accelerate professional development by providing on-the-job training for entry-level to mid-level professionals acquiring competencies for jobs in high demand by industry.
- The organised training will be aligned with the ICT Skills Framework and will focus on building tech skills, particularly in new areas such as Artificial Intelligence, Cybersecurity, IOT, Data Analytics, Blockchain, and so on. The CLT programme has also been broadened to assist the development of Digital Leadership Capabilities, where businesses may provide structured training programmes to educate employees to take on digital leadership responsibilities.
Design Thinking Business Transformation Programme
- Design Thinking is a human-centered design process that assists businesses and people in driving ideas in an organised manner by understanding their consumers and markets. It also allows organisations to look at challenges from multiple perspectives and use creative problem-solving techniques to better address human needs and pain points.
- The Design Thinking Business Transformation Programme, one of Workforce Singapore’s programmes and initiatives, assists organisations in applying the Design Thinking approach to innovate and change their businesses, with the goal of achieving one of the following: –
- Innovation in products or service
Leads to new markets and revenue growth.
- Innovation in business model
Creates new business models and value prepositions for customers, which leads to the creation of new markets.
- Innovation in process
Simplifying internal procedures to increase productivity and reduce labour costs.
GRANTS FOR SPECIFIC SECTORS
Agri-Food Cluster Transformation (ACT) Fund
The Agri-food Cluster Transformation (ACT) Fund promotes the transformation of the agri-food industry into one that is highly productive, resilient to climate change, and resource-efficient.
The ACT Fund is made up of three co-funding components that help local farmers grow and increase their production capacities and capabilities, which are:
- Capability development.
- Test-bedding and innovation.
- Upscaling technology.
Call for Innovative Solutions (CFIS)
The Infocomm Media Development Authority (IMDA) has issued a Call for Innovative Solutions (CFIS) to solicit proposals for the development of innovative solutions suitable to Smart Estates. JTC Corporation and Ascendas-Singbridge Group are among the partners involved.
The goal of this CFIS is to stimulate collaboration between Singapore-based technology businesses, building developers, and facility management organisations in order to create and test novel solutions. The consortium/partnership method guarantees that novel ideas are developed holistically and approved by purchasers. The winning ideas will be evaluated for pilot implementation both locally and internationally.
Tourism Project Development Fund (TPDF)
The Singapore Tourism Board (STB) manages the Tourism Product Development Fund (TPDF), which promotes the creation, development, and/or substantial revitalization of existing tourism goods in order to boost Singapore’s attractiveness to visitors.
Successful applicants will be awarded financing for qualifying expenditures, subject to the scope of the project and STB’s appraisal of the initiative’s merits. Third-party project-related expenditures such as professional services, hardware/equipment and software, materials and consumables, and manufacturing costs may qualify.
In addition to the mentioned grants, Singapore offers numerous other government-backed grants. If you need a complete list of further details, feel free to contact our agents at Relin Consultants for professional assistance.
How do I start a business in Singapore?
Starting a business in Singapore involves several steps, including registering your company with the Accounting and Corporate Regulatory Authority (ACRA), obtaining necessary licenses and permits, opening a corporate bank account, and hiring employees if necessary. It is also important to have a solid business plan and to understand the legal and financial requirements for operating a business in Singapore.
You can refer to our article for a general guidance on how to register and incorporate a business in Singapore.
Is the Productivity Solutions Grant (PSG) grant liable for tax?
The Productivity Solutions Grant (PSG) is a grant provided by the Singaporean government to help businesses adopt and implement productivity solutions.
The grant is not considered as income and is, therefore not taxable. However, any income generated from the productivity solutions implemented using the PSG may be subject to tax. It is always advisable to consult with a tax professional for specific advice on tax liabilities.
What should I do if I’m not sure which government scheme I should apply for?
If you are not sure which government scheme you should apply for, you can consult with a business consultant or advisory firm that specializes in this area such as Relin Consultants. We can provide you with advice on the available government schemes that are suitable for your business and help you navigate the application process. You can also reach out to the relevant government agencies directly for guidance and assistance.
Alternatively you can find out using e-Advisers for Licenses, a free online tool that can aid you in selecting the appropriate assistance packages for your company. We also strongly recommend you to seek advice from us, before you make any decisions.