In the digital age, innovation is crucial for small and medium-sized enterprises (SMEs) to stay ahead of the competition. However, the costs of research and development, talent acquisition, and marketing can be significant barriers to entry. This is where government grants come in – providing a much-needed boost to help SMEs innovate and grow. Singapore, a hub for entrepreneurship and innovation, offers a range of grants to support its SMEs in the digital age. In this article, we’ll explore the various business grants available to Singaporean SMEs and how they can benefit from them.
Enhancing Productivity and Innovation
One of the primary goals of the Singaporean government is to enhance productivity and innovation among its SMEs. To achieve this, the government has introduced various initiatives, including the Productivity and Innovation Credit (PIC) scheme. The PIC scheme provides a 60% to 300% tax deduction or cash payout for qualifying R&D expenses, training costs, and productivity solutions. This scheme is open to all SMEs, with a total of SGD 1.5 billion set aside for the 2020-2025 period.
Supporting Enterprise and Technology (SET) Grant
The SET Grant is another initiative aimed at supporting start-ups and growth-oriented enterprises. This grant provides funding of up to SGD 1.5 million for projects that focus on developing innovative products, processes, or services. The SET Grant is open to both local and international start-ups, as well as joint ventures between Singaporean and foreign partners. To be eligible, applicants must demonstrate a minimum of SGD 5 million in revenue for the past two years and a minimum of 30% equity holding by the start-up or growth-oriented enterprise.
Food, Beverage and Tobacco Manufacturing (FBT) Grant
The FBT Grant is a specific initiative aimed at supporting the food, beverage, and tobacco manufacturing sector in Singapore. This grant provides funding of up to SGD 1.5 million for projects that focus on developing innovative products, processes, or services. The FBT Grant is open to local and international companies, as well as joint ventures between Singaporean and foreign partners. To be eligible, applicants must demonstrate a minimum of SGD 5 million in revenue for the past two years and a minimum of 30% equity holding by the company.
Infocomm Technology (ICT) Fund
The ICT Fund is a grant aimed at supporting the growth of the infocomm technology (ICT) sector in Singapore. This fund provides funding of up to SGD 1 million for projects that focus on developing innovative ICT solutions. The ICT Fund is open to local and international companies, as well as joint ventures between Singaporean and foreign partners. To be eligible, applicants must demonstrate a minimum of SGD 5 million in revenue for the past two years and a minimum of 30% equity holding by the company.
Conclusion
In conclusion, Singapore’s business grants for SMEs provide a much-needed boost to help them innovate and grow in the digital age. With a range of initiatives, including the Productivity and Innovation Credit (PIC) scheme, the Support for Enterprise and Technology (SET) Grant, the Food, Beverage and Tobacco Manufacturing (FBT) Grant, and the Infocomm Technology (ICT) Fund, SMEs can gain access to funding, talent, and resources to drive their business forward. Whether you’re a start-up or an established company, these grants can help you take your business to the next level.
FAQs
Q: What is the eligibility criteria for the Productivity and Innovation Credit (PIC) scheme?
A: To be eligible for the PIC scheme, SMEs must be registered and operating in Singapore, with a minimum of 30% local equity holding. The scheme is open to all SMEs, with a total of SGD 1.5 billion set aside for the 2020-2025 period.
Q: What is the funding amount available for the Support for Enterprise and Technology (SET) Grant?
A: The funding amount available for the SET Grant is up to SGD 1.5 million for projects that focus on developing innovative products, processes, or services.
Q: What is the eligibility criteria for the Food, Beverage and Tobacco Manufacturing (FBT) Grant?
A: To be eligible for the FBT Grant, applicants must demonstrate a minimum of SGD 5 million in revenue for the past two years and a minimum of 30% equity holding by the company. The FBT Grant is open to local and international companies, as well as joint ventures between Singaporean and foreign partners.
Q: How do I apply for the Infocomm Technology (ICT) Fund?
A: To apply for the ICT Fund, applicants must submit a project proposal that focuses on developing innovative ICT solutions. The application process typically involves submitting a detailed project proposal, including a project plan, budget, and timelines. Successful applicants will be notified within six weeks of application.
Q: Are there any other grants available for SMEs in Singapore?
A: Yes, there are several other grants available for SMEs in Singapore, including the Startup Singapore Founder’s Office, the National Research Foundation (NRF), and the Singapore Maritime and Port Authority (MPA). It is recommended that SMEs explore these initiatives to find the most suitable grant for their business needs.
Q: Can I apply for multiple grants at once?
A: Yes, SMEs can apply for multiple grants at once, as long as the project scope and budget are clearly articulated and justified. However, it is recommended that SMEs prioritize their applications and focus on the most relevant grants for their business needs.
Q: What is the deadline for applying for the grants?
A: The deadline for applying for the grants varies depending on the specific grant and initiative. It is recommended that SMEs check the official website of the relevant grant provider for the application deadline and eligibility criteria.
