Singapore is a competitive market for businesses. Especially for small and medium-sized SMEs, it can be challenging to compete with established service providers. Such businesses can struggle to tap into international markets to expand across borders.
However, the Market Readiness Assistance Grant provides essential support to local SMEs in Singapore to tackle the potential financial risks, empowering businesses to grow beyond geographical borders.
So, if you’re a local SME business owner in Singapore, this post will highlight everything you need to know about the MRA grant scheme and how to apply and extract maximum benefits out of this opportunity.
What is Market Readiness Assistance (MRA) Grant:
The Market Readiness Assistance MRA grant is a scheme supported by Enterprise Singapore ESG. That’s why it’s also commonly known as the ESG MRA Grant. Local businesses and SMEs who wish to internationalize their business can benefit from this scheme and cater to their financial needs in the expansion process.
The grant addresses the financial needs of business owners, such as:
- Market Assessment
- In-market Business Development Activities
- Business Matching
- Public Relation Activities
Eligible businesses can avail a significant percentage of their total expenses by submitting the grant application. If the business meets the eligibility criteria, it can make it much easier for business owners to expand their business across borders.
How Much Support Does the EDG MRA Grant Provide:
Depending upon the nature of the business and the requirement of funds, the EDG MRA grant can support up to 70% of the total expenses disclosed at the time of application. If a business satisfies the grant eligibility criteria, it can receive substantial financial support to fast pace the expansion process.
What are the Eligibility Criteria for the MRA Grant Singapore?
The MRA grant application process is quite strict, considering that the ESG supports up to $100,000 in financial support. Therefore, it’s critical to provide the correct and essential business details to stand a chance for the MRA grant approval.
If you want to apply for the Market Readiness Assistance Grant, here are the eligibility criteria to be fulfilled.
- Your business must be registered or incorporated in Singapore.
- There must be at least 30% local shareholding for your business.
- Your annual sales turnover must be less than $100,000 million, or your company size must be no more than 200 employees.
- Your business should meet the new market criteria of the country where you want to expand. If the annual sales in any of the last three years exceeded $100,000, you will not be eligible for the MRA grant Singapore.
What are the Components of the MRA Grant?
There are three components of the MRA for your business, so it’s essential to understand what areas the MRA grant addresses.
Firstly, you must know that the $100,000 cap for each company is divided into three main categories.
Overseas Market Promotion:
The overseas market promotion component is the first of the three MRA grant components. It has a cap of $20,000 provided for businesses willing to promote their company or brand in the overseas market.
This component focuses on creating brand awareness among potential overseas audiences. It’s recommended for B2B and B2C businesses. who want to sell their products or services in international fairs and events.
Overseas Business Development:
The Overseas Business Development component enjoys the largest share of the grant, capped at $50,000 per company. This component aims to establish a presence in the overseas market and create a network of clients or partners to establish the business foundation.
The business development component is suited for B2B companies who want distributors, partners, franchisors, and clients who would buy their products.
Overseas Market Setup:
The third component is the Overseas Market Setup capped at $30,000 funding per company. This component is suited for businesses that want to set up a company in the target market.
This component aims to provide full control for business owners over their businesses in any foreign region. The idea is to maintain a physical presence in the overseas market.
This is an ideal option for SMEs with a business in the target market and the owners plan to stay in the target country for longer durations. Hence, the component can cover work visa expenses and similar costs.
MRA Grant Singapore FAQs:
How Can I Apply for the MRA Grant Singapore:
The application process is quite simplified. It involves the submission of the necessary documents. Here is how you can apply for the Market Readiness Assistance Grant.
- Go to the MRA Grant portal and log in via your Singpass account. You must also ensure that the applicant is a registered Corpass administrator for your company.
- Start a new activity and submit the essential documents and information on the portal to complete your application.
- It’s essential to apply only once, even though you can submit it multiple times.
- You can submit one application for each activity.
How Long Does it Take For MRA Grant Approval?
Typically, it takes eight to twelve weeks to earn a grant approval. More importantly, it’s essential to apply for the grant at least six months before starting a new project.
What are the Benefits of Applying for the MRA Grant Singapore?
Market Readiness Assistance grant has some obvious benefits. While it supports the financial structure of the business, it also brings about some other valuable benefits, such as:
- Access to new projects in the target country
- Expansion of the consumer base across borders
- Access to tax incentives
- Reduction in operational and overhead cost
- Increased demand for products and services
- Access to manufacturing facilities in Malaysia, Indonesia, and Vietnam
- Access to the retail industry in Australia, Indonesia, and Malaysia
The MRA grant Singapore is an excellent option for local SMEs to expand without feeling the financial burden. The MRA scheme offers flexible solutions enabling local business owners to enhance their imagination and focus on a much larger audience that can become their potential buyers.
If you own a business and are looking for solutions regarding the MRA grant, contact us, and we will guide you with an optimal solution for the application process.