Ever wondered what it’d be like to bring your business here in Singapore abroad? Imagine the endless opportunities that would bring for your business, in the ever diversifying global platform. Expanding overseas exposes businesses to different types of resources, platforms and pushes beyond what the local market has to offer. Thus, unleashing the true potential of your business in the global playing field.

That being said, expanding your business overseas to tap on possibilities even beyond Singapore’s market is a dream that’s yet to be realised for many businesses in Singapore. However, many companies find themselves fearing to do so, and it can be due to a myriad of reasons, concerns and limitations. The most significant of which stems from funding, as it proves to be a common concern. For there are already numerous measures put in place to help businesses in their journey to expand overseas, such as the different types of Singapore grants to help with overseas expansion. For further enquires, our Paul Hype Page will be glad to assist you with your Singapore overseas expansion grants

Overseas expansion grants are extremely useful in helping businesses in Singapore to successfully achieve their ambitions of venturing their companies overseas, pushing beyond the limits of what Singapore’s market has to offer. It reduces the financial burden a company has to bear in order to expand abroad, which has proven to pile up dangerously fast. Here we will discuss the forms of grants and other types of support already available in Singapore.

Singapore grants for overseas expansion’s common eligibility criteria to note before applying:

  • Your business entity has to be either registered or incorporated within Singapore
  • Criteria for entry into new markets (The applicant did not exceed $100,000 in overseas sales in the selected country abroad in each of the last three preceding years)
  • Minimum of 30% local shareholding
  • Less than S$100 million in Group Annual Sales Turnover or Company’s Group Employment Size not exceeding 200 employees
  • Be financially feasible state that is able to begin and complete the project
grants for overseas expansion’s common eligibility criteria in Singapore

Types of Singapore grants for overseas expansion available:

  • Market Readiness Assistance (MRA) Grant
    The Market Readiness Assistance (MRA) Grant is a Singapore Grant that can make a great difference for companies considering overseas expansion. It assists businesses by covering as much as 70% of eligible costs. This grant is capped at S$100,000 for each company in every new market. It also only allows one activity in one overseas market for each applicant.
  • Enterprise Development Grant (EDG)
    The Enterprise Development Grant (EDG) is another grant offered in Singapore to aid businesses in expanding overseas. The difference is that this grant is aimed at paying for other types of costs that may arise from overseas expansion, such as consultancy fees from third parties, infrastructural and labour. It also differs from MRA in that it can cover as much as 80% of eligible expenses.
  • PACT Programme
    The PACT programme is an interesting form of grant to encourage overseas expansion for businesses in Singapore. It incentivises the partnerships between companies whose businesses are complementary and synergistic. The amount of assistance this programme can provide for companies in Singapore to expand overseas depends on the type of company it is, as Small and Medium Enterprises can receive up to 70%, while companies who are not SMEs can only receive up to 50%.

Other types of support for companies in Singapore to consider overseas expansion:

Other than grants, there are actually numerous other ways where Singapore offer assistance to firms to help them expand overseas.

  • The first of which is Enterprise Financing Scheme (EFS), a platform that aids in six aspects of financing requirements that may be faced by firms when expanding overseas. Namely, they are the SME Working Capital Loan, SME Fixed Assets Loan, Venture Debt Loan, Trade Loan, Project Loan and the Mergers & Acquisitions Loan.
  • Another useful form of support for overseas expansion is the Double Tax Deduction Scheme for Internationalisation (DTDi). It offers a substantial 200% deduction in taxes on qualifying spendings used for overseas expansion as well as investment developments. Used correctly, this can certainly make a significant change in your journey towards venturing your business abroad.
  • The next form of assistance you should consider to aid in overseas expansion is the Trade Credit Insurance (TCI). It is a form of protection for your company against customers or clients who do not pay up. It enables you to do business in the foreign market with greater ease of mind, which can prove to be immensely useful when you’re in a new environment and the possibilities are endless.
  • On this note, a grave concern that many companies will face when deciding whether or not to expand their businesses abroad is the political stability in that region. Here in Singapore, we are lucky to be in a peaceful climate, which is helpful for businesses due to the confidence it brings about. However, this does not hold true everywhere. We live in an increasingly Volatile, Uncertain, Complex and Ambiguous (VUCA) world, which makes doing business abroad risky and dangerous. The country that a company chooses to expand into may fall into political instability, which can greatly threaten business prospects and harm their financial situations. As such, it is paramount for a company to protect itself from such risks. Thankfully, there is a scheme in place to help businesses, the Political Risk Insurance Scheme (PRIS). Eligible companies in Singapore may receive half of the premiums supported by Enterprise Singapore, for a maximum of three years for each policy. It is, however, limited to a maximum value of S$500,000 for each eligible company based in Singapore.
  • The last point concerns the type of support available to help with labour. Consider this, in order to compete in the international arena, a company must certainly have highly skilled and competent labour. Labour is the driving force of every company, as such, it is important for businesses to find ways to acquire manpower that are not only fit for the job, but are also able to deliver the demands of doing business in a foreign land, where the playing field, rules and environment may be vastly different than that in Singapore. This is by no means an easy feat, as properly skilled labour that are trained in being effective in other markets do not come by easily or by chance. Thankfully, there is already a programme in place to help companies acquire such skilled personnel. The Global Ready Talent Programme (GRT) develops Singaporeans, helping them to improve their skills in that will help them be more prepared to work on the international level, through exposure to jobs abroad.

To sum all of it up, the existence of these grants and all the other forms of support offered in Singapore to help businesses expand abroad can alleviate much of the financial woes. This significantly boosts the confidence of local firms, as it makes it much easier for companies to take that leap of faith and leverage on the opportunities available out there, beyond what is available here locally.

With all these grants and support schemes to help you and your company to venture into foreign markets, you may feel more confident in taking the first step into expanding your business overseas. If that’s the case, let us at Paul Hype Page & Co, help you in your journey into venturing your business overseas. Our experienced, dedicated and professional team will work hand in hand with you and help you to navigate past the challenges, to soar to greater heights in your endeavour to bring your business abroad. Feel free to approach us and clarify more about our services and how we can help you leverage on such resources available.

Covering the different Singapore Overseas Expansion Grants FAQs