Enterprise Singapore’s MRA Grant FAQ: The Application Process for the MRA Grant

Singapore’s Market Readiness Assistance MRA Grant Application Process

Singapore SMEs must recognise that they cannot sign a contract, make a payment, or commence work without first submitting the Market Readiness Assistance MRA grant unless they are deposits for trade exhibitions.

Once accepted, customers must follow the terms and conditions indicated in the contract. This includes only spending the money for the objectives mentioned in the proposal and adhering to any other deliverables established by Enterprise Singapore.

Clients should also retain precise and complete records of all costs, as they may be required to deliver to Enterprise Singapore for audit as part of the claims process. Clients should also be informed that they must employ an accredited auditor to check their claims before submitting them. ESG gives audit financing of up to S$500.

Overall, clients must completely grasp and adhere to the terms and conditions to achieve a happy and successful end.

What is the objective of MRA Grant?

The Market Readiness Assistance (MRA) Grant allows Singaporean enterprises to obtain up to S$100,000 in financing help to cover 50% of the costs associated with company growth, promotion, and early expenses when expanding into a foreign market.

What is the eligibility criteria for the MRA Grant?

1. A lawfully registered firm that conducts business in Singapore can apply.
2. Singaporeans or Singapore Permanent Residents must possess at least 30% of the firm, either directly or indirectly, according to the final individual ownership.
3. The firm is newly entering overseas markets.
4. The company’s group’s total sales turnover cannot exceed S$100 million, nor may the group’s total number of workers exceed 200.

What benefit does the MRA Grant provide for my business?

Enterprise Singapore has approved grants for up to half of local small and medium-sized businesses to cover qualified expenditures. Each firm can receive up to S$100,000 for each new country. The sponsored activities that are eligible for this award include:

• Marketing products or services in overseas markets (limited to S$20,000 for market promotion).
• Establishing a presence in international markets, including the use of intellectual property, costs S$30,000 for market set-up and S$50,000 for commercial growth.

How long does it take to approve the grant?

Due to the large number of applications submitted, it takes 8-12 weeks to process rather than the usual 6-9 weeks.

Is the MRA grant difficult to apply?

It is laborious but not difficult to implement. The completeness and accuracy of your documentation determine how soon it is accepted. Thus, we strongly advise outsourcing the document preparations to ensure a seamless application.

Can Singapore PRs apply for the MRA grant?

Yes, they can.

What are the requirements for sales in the target market to qualify as a new market?

This refers to a new foreign target country that the company is venturing into, where its yearly sales in the target market must not have exceeded S$100,000 in any of the preceding three years.

Is it possible for a company that already operates internationally or has sales overseas to apply for MRA assistance?

Companies that have previously benefited from MRA but have not established international sales surpassing S$100,000 in a given market can still obtain assistance.

However, enterprises that have already used the maximum assistance amount of S$100,000 for a certain market will no longer be eligible for future awards in that market.

What is the maximum number of MRA applications that a firm in the designated market can submit?

Companies can make as many entries as they like because there is no defined maximum restriction. This enables them to personalize and regulate the rate at which they grow into overseas markets.

Can a corporation apply in more than one new target market at the same time?

Certainly, provided that the new nation conditions are met and the projects fit under each activity award sub-limit.

Will the S$100,000 grant ceiling apply if both the parent firm and its subsidiary apply for the MRA Grant?

During the term, each different entity/business may receive up to S$100,000 in grants. Enterprise Singapore will review submissions based on the applicant company’s globalization strategies. ESG will classify any distinct applicant organizations with similar business registration information (such as kind of company, location, shareholders/directors, and so on) as related enterprises and subject them to a combined grant ceiling of S$100,000 throughout the term.

Can a firm receive funding from both the Enterprise Development Grant (EDG) and the MRA Grant simultaneously?

Indeed, enterprises that match the conditions can apply for both EDG and MRA funding through Enterprise Singapore or other organizations, as long as the work, services, or activities funded do not overlap.

What is the maximum period of assistance for an approved activity under the MRA Grant?

12 months.

When can a corporation start the project?

Companies can proceed with signing the contract with the third-party consultant/vendor after submitting their application through the Business Grants Portal. The project start and end dates must match the project assistance term provided on the Business Grants Portal.

Is it necessary for a corporation to choose consultants from Enterprise Singapore’s provided list?

Except for the list of FTA and Trade Compliance consultants published by Enterprise Singapore, firms can seek bids from various sources or approach their chosen experts directly. Before hiring consultants, organizations should conduct extensive research and evaluations.

What assistance is available for businesses experiencing difficulties throughout the MRA application process at the Business Grant Portal (BGP)?

MRA provides advisory services via face-to-face, WhatsApp, email, and other communication methods for inquiries and replies. When it comes to quotes, we provide input to make sure the text is clear and understood. For business plans, we give input on particular areas such as market position to help improve your BGP proposal. When examining grant application forms in the BGP, we ensure that the amount funded, all dates, numbers, and facts are accurate and consistent. We maintain a two-tier security approach by engaging with SME center officials on expertise and verification.

After approving the grant, we will walk you through the claims process via the business grant site. The audit grant cost will be S$500. The MRA claims are subject to approval.

Who will apply for the MRA award on my behalf?

Finally, the company’s business director/employee should log in using their Singpass to complete the BGP filing. The individual who accepts the letter of offer should be the company’s director. Nonetheless, we can aid you in putting together your whole application until you are ready to log in, review, and submit it.

When will the financing end?

The Singapore Government normally releases its Budget Statement in February, during which it announces its decision on the destiny of the MRA, including whether it would prolong, grow, reduce, or stop the enhanced ceiling of up to S$100,000, which will be extended until March 31, 2025.

Can a freshly established/one-year-old firm apply for the MRA grant?

Establishing eligibility might be difficult for a freshly created firm. However, if an existing brand or firm is forming a new corporation for an international project, they can submit an explanation and gain clearance.

For example, a Singaporean firm, Mr Mala Hotpot Pte Ltd, formed a new subsidiary, MH Franchise Pte Ltd, to facilitate business matching in China. The corporation can use its parent company’s strong support to establish the project’s viability.

As a result, for newer enterprises that are one year old or less, acquiring the MRA may be difficult because the filing procedure considers the previous year’s financial results. However, if a firm has performed well in Singapore in less than a year, they can go through the application process with greater confidence.

Is it feasible for a dormant firm to apply for the MRA grant?

It is not suggested that a dormant firm apply unless it has the support of an established brand/business (i.e., a subsidiary or related company) to justify the inactive condition and the feasibility of the expansion for the application process.

For example, an established local Singaporean firm Trading Hotpot Pte Ltd has a dormant subsidiary THC Pte Ltd that is no longer in operation owing to a lack of international contracts. Now that THC is ready to expand its intellectual property into China, it may use the assistance of its parent business to demonstrate the project’s viability.

Will my grant be rejected?

In our experience, we have not gotten an official “rejection letter” through BGP. Instead, EnterpriseSG may eliminate items that they believe are ineligible. As a result, they effectively “reject” line items in your quotation by not supporting them.

This is why we propose informing customers about the eligibility requirements before they apply on the site so that they understand which things are eligible or ineligible in terms of the amount provided.

What are the most prevalent reasons for rejecting an MRA claim?

It is normally not rejected, although some costs may be considered invalid. You will not be able to obtain compensation for these specific charges via the BGP. For example, if your claim for staff compensation includes charges for flights and lodging that are not covered, it will be denied. Similarly, if your office claim exceeds the designated area for one person, the price will be prorated proportionally.

Can e-commerce companies apply for the MRA?

Yes, it applies to all sectors and enterprises. Smaller e-commerce businesses, on the other hand, may face significant scrutiny over the feasibility of their development and may discover that the quantity of paperwork necessary for a small sum is not worth the effort.

We have helped larger e-commerce firms obtain items from China and India, as well as create offshore factories or warehouses.

Can startups and small enterprises enter the MRA application process?

Yes, you can. Startup enterprises, particularly those that are one year old or less, will be required to demonstrate the project’s feasibility because your previous year’s financial accounts will be evaluated during the filing. If you have better company performance, you may apply with greater confidence.

Is it possible for a sole proprietorship or partnership to apply?

Yes, you can. 4 main types of business entities apply through BGP:

1. Sole-Proprietorship or Partnership
2. Limited Partnership (LP) can also apply on the BGP, based on their group annual sales turnover and group employment size.
3. Limited Liability Partnership (LLP)
4. Company

These entities can also apply for the scheme on the BGP, based on their group annual sales turnover and group employment size.

Conclusion

Finally, navigating the Market Readiness Assistance (MRA) procedure may be an important step for Singaporean SMEs seeking to extend their presence in overseas markets. Understanding the complexities of the application process, qualifying requirements, and utilization rules is critical to a successful conclusion. From following pre-submission processes to keeping thorough records for post-approval audits, every step is critical. The insights presented in this detailed FAQ guide can help firms make educated decisions and maximize the benefits of the MRA Grant. With caution, strategic preparation, and experienced advice, SMEs may confidently begin on their foreign growth trips, knowing they will have the support they require to prosper in new market regions.