What this is about:
Are you an SME that is ready to take the enterprise to the next level? Are you keen on expanding its operations overseas?
When you provide products or services in an untapped market internationally, you can establish a new base of customers without the immediate threat of competition. When you expand to a country with a more favorable business climate, you can take advantage of the fewer business regulations and maybe a lower operating cost. When you take your business internationally, you can create an exposure that will enhance your brand’s authority both locally and overseas.
In fact, even if you are struggling at the moment because of saturated market or shrinking market share, you can revive your business by looking for new outlets for your products and services in another country.
As an SME, the idea of venturing into the international market is exciting but can also be frightening. Business expansion is an important decision that involves time, requires careful planning, and takes a lot of adjustments that may alter the business’ current processes.
The Singapore government has recognized the enormous benefits of SME’s tapping into the international market, and the challenges that come along with it. And so, to help those who are ready to take on the challenge, it created grant programs to help SMEs defray costs related to expanding overseas.
When you provide products or services in an untapped market internationally, you can establish a new base of customers without the immediate threat of competition. When you expand to a country with a more favorable business climate, you can take advantage of the fewer business regulations and maybe a lower operating cost. When you take your business internationally, you can create an exposure that will enhance your brand’s authority both locally and overseas.
In fact, even if you are struggling at the moment because of saturated market or shrinking market share, you can revive your business by looking for new outlets for your products and services in another country.
As an SME, the idea of venturing into the international market is exciting but can also be frightening. Business expansion is an important decision that involves time, requires careful planning, and takes a lot of adjustments that may alter the business’ current processes.
The Singapore government has recognized the enormous benefits of SME’s tapping into the international market, and the challenges that come along with it. And so, to help those who are ready to take on the challenge, it created grant programs to help SMEs defray costs related to expanding overseas.
Top relevant grant:
1. Market Readiness Assistance Grant
The Market Readiness Assistance (MRA) grant supports Singapore’s SMEs to expand operations into a new international market. An eligible SME can receive support of up to 80% of eligible cost, capped at a maximum of S$100,000 per new market. The scheme has been updated in early 2021 to include additional components of support for overseas business development.
What are the eligible activities covered by the grant?
a) Overseas Marketing Promotion (capped at S$20,000)
Overseas marketing promotion are activities that support the SME’s global marketing strategies. It’s the events related to marketing and PR activities- including a launch of instore promotions, road shows, pop-up stores, and participation in overseas physical and virtual trade fairs. These efforts are done to educate and inform the new market about the enterprise’s products or services with the purpose of establishing a business connection.
b) Overseas business development (capped at S$50,000)
Overseas business development (BD) are activities that help SME’s define its market position. This can be business matching endeavors where it identifies franchisees, distributors, or joint venture partners; or the set-up of an Overseas Marketing Presence (OMP) like renting a BD office or the dispatch of a permanent staff (Singaporean or Foreigner) stationed at the OMP.
In-Market business development is in this category, too. This refers to engaging a third-party outsourced BD service provider to facilitate BD activities like market reviews, strategic planning, BD personnel training, and development of business leads.
c) Overseas market set-up (capped at S$30,000)
Overseas market set-up are activities related to the establishment of the business at the international scene. These are largely advisory and legal documentation services that may include in-depth Free Trade Agreement (FTA) consultancy, filing and registration for sales/representative offices or equity entity, IP (intellectual property) search and application, import and export licenses application, tax structure advisory, and drafting of legal agreements (franchising, licensing, agency, distributorship, joint venture).
More details on the supportable activities described above can be found here. Each application is limited to one activity in a single overseas market.
The Market Readiness Assistance (MRA) grant supports Singapore’s SMEs to expand operations into a new international market. An eligible SME can receive support of up to 80% of eligible cost, capped at a maximum of S$100,000 per new market. The scheme has been updated in early 2021 to include additional components of support for overseas business development.
What are the eligible activities covered by the grant?
a) Overseas Marketing Promotion (capped at S$20,000)
Overseas marketing promotion are activities that support the SME’s global marketing strategies. It’s the events related to marketing and PR activities- including a launch of instore promotions, road shows, pop-up stores, and participation in overseas physical and virtual trade fairs. These efforts are done to educate and inform the new market about the enterprise’s products or services with the purpose of establishing a business connection.
b) Overseas business development (capped at S$50,000)
Overseas business development (BD) are activities that help SME’s define its market position. This can be business matching endeavors where it identifies franchisees, distributors, or joint venture partners; or the set-up of an Overseas Marketing Presence (OMP) like renting a BD office or the dispatch of a permanent staff (Singaporean or Foreigner) stationed at the OMP.
In-Market business development is in this category, too. This refers to engaging a third-party outsourced BD service provider to facilitate BD activities like market reviews, strategic planning, BD personnel training, and development of business leads.
c) Overseas market set-up (capped at S$30,000)
Overseas market set-up are activities related to the establishment of the business at the international scene. These are largely advisory and legal documentation services that may include in-depth Free Trade Agreement (FTA) consultancy, filing and registration for sales/representative offices or equity entity, IP (intellectual property) search and application, import and export licenses application, tax structure advisory, and drafting of legal agreements (franchising, licensing, agency, distributorship, joint venture).
More details on the supportable activities described above can be found here. Each application is limited to one activity in a single overseas market.
How Real Inbound can help:
- Assess your overseas expansion plans and make recommendations on expansion strategy and implementation plans
- Search, assess and recommend credible service providers for overseas incorporation and set-up, business matching and outsourced in-market business development
- Provide end-to-end support in securing and claiming government grant funding of up to 80% of qualifying costs.
This service is suitable for your company if it:
- Registered and operating in Singapore with more than 30% local shareholding held by individuals
- Has its most recent full year turnover above S$300,000
- Is considered a Small-Medium Enterprise: Group Annual Sales Turnover of not more than S$100 million; OR Company's Group Employment Size of not more than 200 employees
- It has not exceeded S$100,000 in sales from the overseas target market, in each of the last three preceding years
If your company fulfils the above conditions, please contact us to find out more about how we can help.
Useful references:
Coming soon.