BUSINESS VENTURES INTO OVERSEAS
Singapore Government is encouraging Small and medium enterprises (SMEs) to expand their business to overseas.
Type of government supports for internationalisation:
(i) Market Readiness Assistance (MRA) Grant
- Support of Up to 70% of eligible costs, capped at S$100,000 per Company per new market* from 1 April 2020 to 31 March 2023 that covers:
| Type | Supportable Activities |
|---|---|
| Overseas Marketing Promotion (capped at $20,000) | Overseas marketing and PR activities |
| Participation in overseas trade fairs NOT supported under LEAD International Fairs & Missions (LEAD) | |
| Overseas Business Development (capped at $50,000) | Business matching |
| Overseas Market Setup (capped at $30,000) | Market Entry |
| In-depth Free Trade Agreement (FTA) Consultancy |
- MRA Grant is eligible for Company who meet following criteria:
- Business entity is registered/incorporated in Singapore
- At least 30% local shareholding
- Group Annual Sales Turnover of not more than S$100 million; OR Company’s Group Employment Size of not more than 200 employees
- Each application is limited to one activity in a single overseas market. No limitation on how many applications for a Company per year.
- Click here for the updated list of MRA supportable activities
(ii) Enterprise Development Grant (EDG)
Type: Overseas Marketing Presence (OMP)
- You must:
- Use the grant for marketing and/ or business development.
- Meet the New Market Criteria (NMC), which is defined as a new city where the company has not had sales in excess of S$100,000 in any one year for the past three years.
- Post at least one Singaporean or Permanent Resident to be based in the market to conduct marketing and/ or business development work.
- Eligible expenses:
- Salary of maximum two business development staff stationed at the market (of which, one has to be a Singaporean or Permanent Resident).
- Rental expenses of the specified location.
- All projects are subjected to:
- A grant cap of S$100,000 per project
- Maximum support duration of 12 months per project
- Support level:
- SMEs can receive up to 80% of qualified costs (non-SMEs up to 60%) from 1 April 2020 to 31 December 2020. From 1 January 2021 onwards, support level changed to 70% for SMEs, 50% for non-SMEs
(iii) Double Tax Deduction for Internationalisation (DTDi)
- DTDi will be extended by Five years to 31 December 2025.
- Click here to view the updated list of qualifying activities and expenditure available for double tax deduction
YTK is one of the market leaders for assisting our clients to venture overseas market as well as to support their internationalisation’s plan.
YTK has grown its network of associates over the years and shortlisted only responsive and trustworthy associates in other countries to make sure our clients have been well taken care of. Currently YTK has footprints in 16 countries.
If you want to know more about Government Grants and need our assistance to help you venture into overseas, feel free to drop us an enquiry and one of our representatives will get back to you shortly.