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.