If you’re a business owner based in Singapore whose looking to expand into new markets overseas, you might be interested in the Market Readiness Assistance (MRA) grant.
The MRA grant, an initiative by the Singapore government, is specifically designed to provide support and resources to Singaporean companies venturing into international markets. It aims to defray the costs associated with overseas market promotion, business development, and set-up, enabling businesses to explore new opportunities and establish their presence in foreign markets with greater ease and confidence.
Businesses can access financial assistance, receive expert guidance, and tap into valuable networks to navigate the complexities of expanding their operations globally. This grant serves as a valuable tool for those businesses seeking to expand their horizons and unlock the potential of international markets.
Eligibility Criteria for MRA Grant
To qualify for the grant, your business must meet certain eligibility criteria. These requirements are set by Enterprise Singapore, the government agency responsible for supporting the growth of local enterprises.
Business and Turnover Requirements
To be eligible for the MRA grant, your business must be registered and operating in Singapore. Additionally, your company must have an annual sales turnover of less than S$100 million or less than S$500 million for a group of companies. The grant is primarily aimed at helping small and medium-sized enterprises (SMEs) expand into overseas markets, so larger companies may not be eligible.
Local Shareholding and Company Size
Other important eligibility criteria for the MRA grant are local shareholding and company size. Your business must have at least 30% local shareholding held directly or indirectly by Singaporean(s) or Singapore Permanent Resident(s). This is to ensure that the grant is used to support local SMEs. Additionally, your company must have a maximum employment size of 200 workers or a maximum group employment size of 500 workers.
Meeting these criteria, you can apply for the grant to expand your business into overseas markets and defray the costs of overseas market promotion, business development, and set-up.
Application Process for MRA Grant
Suppose you are a Singapore-based company looking to expand your business overseas, the MRA grant can help you defray the costs of overseas market promotion, business development, and set-up.
Here is a step-by-step guide to the application process for the MRA grant.
Registration and Documentation
First, you need to register for a CorpPass account, which is a digital identity for businesses to transact with the Singapore government. Once you have a CorpPass account, you can log in to the Business Grants Portal to apply for the MRA grant.
Before you start your application, make sure you have the necessary documents ready, such as your company’s financial statements for the past three years. You will also need to obtain a cost quotation from a service provider for the eligible cost of your proposed overseas marketing activities.
Submission to the Business Grants Portal
Next, you can submit your application through the Business Grants Portal. The application form will ask for details such as your company’s profile, proposed overseas market and activities, and the cost quotation from your service provider.
Make sure you meet the eligibility criteria for the MRA grant, such as having a minimum of 30% local shareholding and a group annual sales turnover of not more than S$100 million or a group employment size of not more than 200 employees.
After you have submitted your application, Enterprise Singapore will assess your application and get back to you with an Offer Letter if your application is successful. The Offer Letter will contain details of the approved activities and the amount of grant support you will receive.
Make sure you meet the eligibility criteria and have the necessary documents ready before you start your application.
Eligible Activities and Costs
If you are a local SME looking to expand your business overseas, you may be eligible for the MRA grant. This grant helps defray the costs of overseas market promotion, business development, and set-up.
Overseas Market Promotion
The MRA grant covers up to 50% of eligible costs for local SMEs for overseas market promotion, capped at S$20,000. Eligible activities include participation in overseas trade fairs, advertising and publicity campaigns for overseas markets, and the development of marketing collaterals for overseas markets.
Business Development and Expansion
The MRA grant also covers up to 50% of eligible costs for local SMEs for overseas business development, capped at S$50,000. Eligible activities include feasibility studies, market research, and business partners and distributors identification.
Moreover, the MRA grant also covers up to 70% of eligible costs for overseas market set-up, capped at S$100,000. Eligible activities include:
- The establishment of overseas offices.
- The hiring of local staff.
- Obtaining necessary licenses and permits for overseas operations.
Other eligible costs for the MRA grant include consultancy, advisory, and legal expenses relating to in-depth assessment to identify Free Trade Agreements (FTAs) opportunities, export licenses, and marketing and PR activities.
Claiming the Grant
Once your MRA grant application has been approved and you have received the Letter of Offer, you can claim the grant. Here are the steps you need to follow to claim the grant:
Audit and Disbursement
Before you can claim the grant, you need to engage an auditor to conduct an audit of your project expenditure. The audit fee will be reimbursed by Enterprise Singapore, subject to a cap of $5,000 per project. You can find a list of approved auditors on the Business Grants Portal.
After the audit is completed, you can submit your claim for disbursement of the grant. The claim must be submitted within six months from the end of the project.
Letter of Offer and Claim Submission
To claim the grant, you need to sign and return the Letter of Offer to Enterprise Singapore. This letter will specify the terms and conditions of the grant, including the amount of grant awarded, the eligible expenses, and the disbursement schedule.
Once you have signed and returned the Letter of Offer, you can submit your claim for the grant. The claim must be submitted through the Business Grants Portal. You need to provide the necessary supporting documents, such as invoices, receipts, and bank statements, to substantiate your project expenditure.
After your claim is submitted, Enterprise Singapore will review it and the supporting documents. The grant will be disbursed to your designated bank account within six weeks if your claim is approved.
Remember that you need to comply with the terms and conditions of the grant, including the reporting and monitoring requirements. Failure to comply may result in the grant being withheld or clawed back.
Maximising the MRA Grant Benefits
If you’re planning to expand your business overseas, the MRA grant can be a great help. However, to maximise your benefits, you need to be strategic in your approach.
Here are some tips to help you get the most out of your MRA grant:
Leverage Free Trade Agreements
One of the best ways to maximise your MRA grant benefits is to leverage free trade agreements (FTAs). Singapore has signed FTAs with many countries, which can provide you with preferential treatment when you enter those markets. For example, if you’re exporting to Japan, you can enjoy lower tariffs under the Japan-Singapore Economic Partnership Agreement (JSEPA).
To take advantage of FTAs, you need to ensure that your products or services comply with the rules of origin and other requirements under the respective agreements. You may also need to engage FTA and trade compliance consultants to help you navigate the complex regulations.
Build Brand Visibility Overseas
Another way to maximise your MRA grant benefits is to build your brand visibility overseas. This can help you establish a strong marketing presence and generate more leads and sales. You can use your MRA grant to fund various market entry activities, such as attending trade shows, organising product launches, and conducting market research.
To build your brand visibility overseas, you need to develop a clear and compelling marketing message that resonates with your target audience. You may also need to adapt your marketing materials and strategies to suit the local culture and preferences.
Conclusion
Maximising the benefits of your MRA grant is crucial for business growth. By strategically allocating your funds, you can establish a robust presence in international markets and capitalise on lucrative growth prospects.
Moreover, partnering with seasoned consultants will assist you in navigating the intricate regulations associated with MRA grants. With meticulous planning and execution, you’ll pave the way for increased leads and sales abroad. Book an appointment with our Consultants and find out how we can structure the plan necessary for you in sourcing your business partners in the new market for your business’ growth and sustainability.