Popular Singapore Government Funding Schemes for Small to Medium Businesses
The business sector is rapidly expanding all around the world. Singapore as a nation in Asia has embraced the development in business in various ways. The most outstanding feature is the assistance offered by the Singapore Government to assist Singapore SME owners as well as larger companies establish and grow their business. Numerous grants for startups as well as operational SME’s are generously availed to eligible applicants.
What is this government funding scheme?
The government of Singapore is dedicated to helping entrepreneurs develop their businesses. It issues funds to support business through different programs designed to help varying business needs. With highlights like the transition support packages, improved measures for business innovation, and temporary employment credit from the year 2015 budget, SME’s are impacted to attain greater heights.
The government funding scheme is made available through relevant administration programs. Examples of these include SPRING which offers ACE for technology startups among other grants. Another is the NRF which offers funding to investors with creative tech ideas. The kind of government funding and the amount you can receive depend on the entrepreneurial enterprise you want to put in place as well as the initial investment you want to put in since the government funding matches up to the amount you have in place. There is also a limit as to the maximum amount the government of Singapore can offer in terms of funding investors.
Examples of government funding schemes available in Singapore
1. PIC –Productivity & Innovation Credit
The PIC scheme allows businesses to enjoy up to 400% tax deductions or allowances and up to 60% cash payout of their investment. This is on the years of assessment between 2013 and 2018. From the year of assessments between 2013 and 2015, businesses are in a position to enjoy a PIC bonus. This is done in addition to the tax deductions or allowance and cash payout. Sole proprietors, partners, and companies are eligible for the PIC.
- Acquisition and the leasing of PIC IT and automation equipment
- Acquisition and licensing of intellectual property rights
- Registering of patents, designs, and trademarks
- Employee training
- Research and development
- Investing in design projects
Other popular funding updates
2. IDP – Incubator Development Programme
The IDP is designed to make 70% grant support available to assist investors with innovative start-ups. The IDP scheme is designed to cover costs such as monitoring of start-ups, operational expenses, and nurturing of start-ups. These 3 aspects of the IDP scheme helps the investor kick start an enterprise and incubates it to provide stability.
- Having venture accelerators that have a unique programme which will nurture innovative startups
- Having a sustainable revenue model
- Having an expert team with management experience to keep the start-up moving
3. ICV – Innovation and Capability Voucher
The ICV is designed to encourage Small and Medium Enterprises to achieve development. The voucher is valued at $5,000 for use to upgrade and strengthen their core businesses in areas like innovation, human resource, financial management, and productivity. Every SME can access up to a maximum of 8 vouchers. The business has to ensure that a project is completed before an application is made for a voucher.
- The business is registered and operates in Singapore
- The business has a minimum of 30% local shareholding
- The business has a group employment size of no more than 200 workers and annual turnover of $100 million or less
4. ACE – Action Community Entrepreneurship
ACE is a scheme designed to help aspiring entrepreneurs to start up. It builds a vibrant community while connecting these entrepreneurs to knowledge, resources and people. The ACE programme reaches out to youths and schools in an attempt to support individuals’ entrepreneurial efforts. It also works with communities to support entrepreneurs while also acting as their voice in lobbying for policy changes.
- Entrepreneurs who are Singapore citizens and permanent residents
- Entrepreneurs who hold at least 51% company equity
- Entrepreneurs who are first timers
- Entrepreneurs who have full time commitment and are key decision makers in the business
- The business should not fall under eateries, bars, beauty spas, casinos, employment agency, or escort services to qualify for the ACE
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5. CDG – Capability Development Grant
The CDG is designed to help grow businesses both locally and globally. This scheme is good for projects like product development, increasing productivity or new market ventures among others. When you are looking to have excellence and refine your business operations, CDG is the right scheme to take up. This scheme is overseen by SPRING which will assess the application by looking at your needs versus the businesses capabilities
- Your business must be registered and operates in Singapore
- You must at least have 30% local shareholding
- The group annual sales turnover should not exceed $100 million
- The business should have no more than 200 employees
6. IPG - ICT for Productivity & Growth
The IPG programme is designed to increase the productivity of SME’s. The businesses can enjoy a much broader coverage on simplified applications processes and technology solutions. Businesses can have an easy time incorporating ICT solutions to their companies. This makes their businesses highly competitive while using government resources.
- Singapore registered business with 30% local shareholding
- Annual sales turnover of not exceeding $100 million and employee size of no more than 200
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Singapore government grant table summary
Piloto Asia comes in as a source for help to investors in Singapore. We offer our clients the assistance needed to put in play business ideas that will help them access government funding to grow their businesses or start up new business ventures. Whether you need cash grants, business incubator schemes, tax incentive schemes, or debt financing schemes: we are here for you. You can also access other services like digital solutions, tax and accounting, trouble free immigration, or corporate business services.