In order to support Singapore’s Small and Medium Enterprises (SMEs) to expand their operations into the international market, MRA Grant was introduced by the Government. It aims at providing information, learning opportunities, and financial assistance which helps companies to easily expand their arms into new territories and mitigates the risk of uncertainty.
What is Enterprise Singapore’s Market Readiness Assistance (MRA) Grant?
In the Singapore budget 2021, various measures were introduced to enhance the current provisions to further encourage companies to go global. Following are the enhancements introduced by the government:
- The government Enhanced the MRA support level of up to 80% and extended its date from 30 Sep 2021 to 31 Mar 2022
- Trade Credit Insurance (TCI) to be supported as a qualifying cost from 1 Apr 2021 onwards. It will encourage firms to protect themselves against buyer defaults in new overseas markets
Eligibility Criteria for MRA Grant
- A business entity that is registered/incorporated in Singapore, having at least 30% local shareholding, with Company’s Group Annual Sales Turnover not exceeding S$100 million or Employment Size not exceeding 200 workers, will be eligible for MRA Grant. Moreover the companies have the provision to apply in the new markets concurrently as long as the market criteria is met. However applications from sole proprietors are assessed on a case-by-case basis.
- The annual overseas sales in the country where the company is expanding should not exceed S$100,000 in each of the preceding three years. However, the companies that have previously benefited from MRA, but whose overseas sales for that market has not exceeded S$100,000, can continue to be supported during the enhancement period of 1 April 2020 to 31 March 2023.
Business Activities Covered Under MRA Grant
The S$100,000 grant cap is subdivided on the basis of following activities:
- S$20,000 for Overseas Market Promotion: Consist of all activities that support the SMEs global marketing strategies. These activities significantly help companies to educate and inform the new market about their products and services with the goal of establishing a business connection.
- S$50,000 for Overseas Business Development: Include activities that help SMEs to define their market position. It also involves in-market business development wherein a 3rd party BD service provider facilitates various BD activities. It helps companies to review their marketing strategy and develop new business leads.
- S$30,000 for Overseas Market Set-up: In order to carry out the operations within the legal framework, activities related to advisory and legal documentation services help companies to seamlessly sail through the hardship of setting up business in international markets.
What Does The Process Look Like?
For a company to take the first step towards internationalization, Applications must be made 6 months before the start of the project/activity. The Applicant shall ensure that the suppliers and service providers engaged in this project do not have any relationship, connection, association or dealings with the Applicant. Companies can proceed to sign the contract with the third-party consultant/vendor after submitting the application via Business Grants Portal. The maximum support period for an approved activity under the MRA Grant is 12 months.
With the exception of Enterprise Singapore’s list of FTA consultants, companies can tap on the reference list or approach their preferred consultants to seek quotations. Companies are strongly encouraged to exercise due diligence prior to appointing any consultant.
The information required in the proposal includes but is not limited to:
- Testimonials/credentials of the project team (with the exception of Enterprise Singapore’s list* of Free Trade Agreement [FTA] consultants
- Track records of past completed projects (with the exception of Enterprise Singapore’s list* of FTA consultants)
- Detailed scope of services
- Cost breakdown by the scope of services
- Expected deliverables for the project
Expand to Indonesia with Ease!
The company registration process could be challenging for companies to spread their footprints into new territories. A company from Singapore might face difficulties while registering its business in Indonesia as they might not be very well versed with various business nuances that are being followed in the country.
In order to make the complete registration process seamless, Cekindo’s consultants can bridge the gap between where you are and where you want to be by providing comprehensive business solutions to set up for success. To know more about how Cekindo’s solutions can help you register your company in Indonesia, please fill out the form below or talk to an expert on our chatbot.