Guidebook Growing Our SMEs

7/24/2019 Guidebook Growing Our SMEs

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BUILDING BUSINESS CAPABILITIES

EXPANDING YOUR BUSINESS OVERSEAS

FINANCING YOUR BUSINESS

DEVELOPING PEOPLE

GROWINGOUR SMES ANDMICROENTERPRISESKEY ASSISTANCE SCHEMES FOR BUSINESSES


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We support businessin 4 Key Areas:

Small and Medium

Enterprises (SMEs) and

micro-enterprises play

a signifcant role in the

economy.

The Government has a

wide range of schemes tohelp businesses overcome

challenges and tap

opportunities for growth.

BUILDING BUSINESS CAPABILITIESCapability Development Grant (CDG) p5

Innovation & Capability Voucher (ICV) p6

Increase SME Productivity with Infocomm p7Adoption & Transformation (iSPRINT)

Productivity and Innovation Credit (PIC) p8

EXPANDING YOUR BUSINESS OVERSEASMarket Readiness Assistance (MRA) Grant p10

Global Company Partnership (GCP) Grant p11

Double Tax Deduction (DTD) p12

International Marketing Activities Programme (iMAP) p13

Market Access Incubation Programme (MAIP) p13

FINANCING YOUR BUSINESSMicro Loan Programme (MLP) p15

Loan Insurance Scheme (LIS) and LIS+ p15

DEVELOPING PEOPLEP-Max p17

HR Shared Services p18

Enhanced Training Support for SMEs p19

Enterprise Training Support (ETS) Scheme p20

Wage Credit Scheme (WCS) p21

WorkPro p22

SME CENTRES

The SME Centres provide free, one-stop business advisory and diagnosisto enterprises. Make an appointment with the SME Centres to find outmore about government assistance schemes for SMEs.

You dont have to remember allour schemes. The SME Centrebusiness advisors can help you.

SME Centre@ASMEAssociation of Small and

Medium Enterprises (ASME)

W: smecentre-asme.sg

T: 6513 0388

E: [email protected]

A: 167 Jalan Bukit Merah

#03-13 Tower 4 S(150167)

SME Centre@SMCCISingapore Malay Chamber of

Commerce and Industry (SMCCI)

W: smecentre-smcci.sg

T: 6293 3822


A: 15 Jalan Pinang S(199147)

SME Centre@SCCCISingapore Chinese Chamber of

Commerce and Industry (SCCCI)

W: smecentre-sccci.sg

T: 6337 8381


A: 47 Hill Street #09-00 S(179365)

SME Centre@SMFSingapore Manufacturing

Federation (SMF)

W: smecentre-smf.sg

T: 6826 3020


A: 2985 Jalan Bukit Merah

S(159457)

SME Centre@SICCISingapore Indian Chamber of

Commerce and Industry (SICCI)

W: smecentre-sicci.sg

T: 6508 0147


A: 31 Stanley Street SICCI

Building S(068740)

SATELLITE SME CENTRES

SME Centre@North West(managed by SMF)

W: smecentre-smf.sg

T: 6839 4963


A: North West Career Centre

Woodlands Civic Centre

900 South Woodlands Drive

#04-07 S(730900)

SME Centre@South West(managed by SMF)

W: smecentre-smf.sg

T: 6316 1616


A: The JTC Summit

8 Jurong Town Hall Road

#03-11 S(609434)

SME Centre@Central(managed by SCCCI)


T: 6397 7420


A: HDB Hub BizThree

490 Lorong 6 Toa Payoh

#07-11 S(310490)

SME Centre@South East(managed by ASME)


T: 6243 8753


A: South East Community

Development Council

10 Eunos Road 8

Singapore Post Centre #09-01B

S(408600)

SME Centre@North East(managed by ASME)


T: 6424 4000


A: North East Community

Development Council

300 Tampines Avenue 5

NTUC Income Tampines

Junction #06-01 S(529653)

SME Centre@Changi Simei(managed by ASME)


T: 6513 0388


A: Changi Simei Community Club

10 Simei Street 2 S(529915)

SME Centre@Ang Mo Kio(managed by SCCCI)


T: 9457 2265


A: Ang Mo Kio

Community Centre

795 Ang Mo Kio Avenue 1

#03-03 S(569976)

USEFUL RESOURCES

EnterpriseOne Portal : www.enterpriseone.gov.sg

EnterpriseOne Hotline : 6898 1800

Way To Go Productivity Portal : www.waytogo.sg

SME Centre Website : SMECentres.sg


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BUILDING BUSINESS CAPABILITIES

To find out more :

BUILDING BUSINESS CAPABILITIES 5

Supports capability upgrading initiatives that help SMEs to grow theirbusinesses.

The CDG helps SMEs defray up to 70% of qualifying project costs in 10 areas:

To make CDG more accessible to companies, the application process for projects with grant

support of S$30,000 or less has been simplified.

CDG is awarded based on project proposals submitted by businesses. Approved project

expenses are funded on a reimbursement basis.

Visit the nearest SME Centre Visit the SPRING website (www.spring.gov.sg/CDG)

Call the EnterpriseOne hotline at 6898 1800

(i) Business excellence

(ii) Brand development

(iii) Financial management

(iv) Human capital development

(v) Enhancing quality and standards

(vi) Business innovation

(vii) Intellectual property and franchising

(viii) Service excellence

(ix) Technology innovation

(x) Productivity improvement

Capability Development Grant (CDG)


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Visit the nearest SME Centre Visit the IRAS website (www.iras.gov.sg/irashome/PIcredit.aspx)

Contact IRAS at 1800-356-8622 (for companies) and

6351 3534 (for self-employed/partnership)

Taking the first steps towards capability development? You can

defray the cost of consultancy projects and also implement

simple solutions to raise productivity and improve your business

efficiency with the Innovation & Capability Voucher (ICV). Each

voucher is worth S$5,000.

Consultancy ProjectsThe ICV can be used to obtain consultancy services in these

four capability areas from a list of approved service providers:

(i) Innovation

(ii) Productivity(iii) Human resources

(iv) Financial management

An SME may apply for a maximum of two vouchers per

capability area.

Productivity SolutionsICV supports the implementation of recommendations from

previous consultancy projects as well as simple productivity

solutions under the supportable cost categories of:

(i) Equipment & Hardware,

(ii) Technical Solutions & Training, and

(iii) Design & Renovation.

Integrated Solutions

Developed in collaboration with SMEs, industry partners and

experts, Integrated Solutions are easy-to-adopt, pre-scopedsolutions to help SMEs achieve productivity gains. Examples

of Integrated Solutions include Point-of-Sales System, HR

E-scheduling and Product Display & Store Layout.

Out of the 8 vouchers per SME, up to 2 can be used for the

implementation of productivity solutions to upgrade capabilities.

Visit the nearest SME Centre Visit the IDA website (www.ida.gov.sg)

Call the iSPRINT hotline at 6211 1212

To find out more :

Under iSPRINT, SMEs can receive funding for adopting ICT in specific areas:

Packaged Solutions pre-qualified under Enhanced iSPRINTUp to 70% funding for SMEs to adopt Basic (e.g. Payroll), Intermediate (e.g. Customer Relationship Management) and

Sector-Specific Solutions (e.g. Sales Persons Management System).

Piloting New Sector SolutionsUp to 80% funding for SMEs, capped at S$1 million per SME, to pioneer the use of new and scalable sector-specific

solutions with vendors1.

High Speed ConnectivityFunding support for monthly fibre subscription and cost of Wireless@SG equipment.

1 Note that the Enhanced iSPRINT support is generally taxable.

Visit the nearest SME Centre Visit the SPRING website (www.spring.gov.sg/ICV)


To find out more :

BUILDING BUSINESS CAPABILITIES 76 BUILDING BUSINESS CAPABILITIES

Innovation & Capability Voucher (ICV) Increase SME Productivity with Infocomm Adoption& Transformation (iSPRINT)


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To find out more :To find out more :

GROWING YOUR BUSINESS OVERSEAS 98 BUILDING BUSINESS CAPABILITIES

EXPANDING YOUR BUSINESS OVERSEAS

PIC BONUSFROM YA2013 TO YA20152

On top of the PIC tax deduction/allowance or

cash payouts, businesses get a dollar-for-dollar

matching cash bonus payout of up to S$15,000

for the three YAs combined.

2 To qualify, businesses need to have operations inSingapore, spend at least S$5,000 in PIC qualifyingexpenditure for that YA and hire at least 3 localemployees. The PIC Bonus will expire in YA2015.

PIC+

From YA 2015, the expenditure cap for qualifying

SMEs will be raised for each qualifying activity

from the current S$ 400,000 to S$600,000.

Visit the nearest SME Centre Visit the IRAS website (www.iras.gov.sg/irashome/PIcredit.aspx)

Contact IRAS at 1800-356-8622 (for companies) and

6351 3534 (for self-employed/partnership)

1 400% tax deduction capped at S$400,000 per year for each qualifying activity; or cashpayout capped at S$100,000 per year across all activities (60% of investment spending).

Businesses may invest in these six qualifying activities:

(i) Acquisition/Leasing of PIC IT and automation equipment

(ii) Employee training(iii) Registration of intellectual property

(iv) Acquisition/Leasing of intellectual property

(v) Approved design projects

(vi) Research and Development

EXTENSION OF PIC1

From Year of Assessment (YA) 2011 to 2018, all businesses can enjoy PIC tax

deductions/allowances under the PIC scheme. To qualify for PIC cash payout,

businesses need to have operations in Singapore and must have employed at

least three local employees.

Productivity and Innovation Credit (PIC)


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MRA supports pre-determined activities in overseas market set-ups, identification of business partners and overseas

market promotion.

What does the funding support? 70% of the eligible cost for activities listed above, capped

at S$20,000 per company per fiscal year

Maximum of two approved applications per fiscal year,

starting on 1 April and ending on 31 March the following year

Limited to one activity (e.g. market assessment or market

entry) per application

1. Overseas market set-up

Feasibility studies

Incorporation of business

entities in overseas markets

IP registration

2. Identification of overseasbusiness partners

Licensees

Franchisees

Agents and distributors

Joint venture partners

3. Overseas market promotion

PR & marketing activities of

pop-up stores, in-store

promotions and road shows

Online marketing

Participation in non-iMAP

supported overseas tradeshows

To qualify, your company needs to have: Turnover of less than S$100 million per annum in

the latest audited report, and

Global headquarters based in Singapore

Market Readiness Assistance (MRA) Grantenhanced

There are four supportable areas under the GCP Grant and examples of the

more commonly supported activities under each area include, but not limited to:

enhanced

1. Market Access Market research Market feasibility studies

M&A due diligence Setting up overseas

marketing presence

2. Capability Building Branding

Franchising

E-commerce Internationalisation strategy

Intellectual property management

3. Manpower Development Overseas market attachments

Recruitment of critical talents International Business

Fellowship (iBF) Executive

Programme International HR strategy

4. Access to Financing Internationalisation Finance

Scheme

Loan Insurance Scheme

Political Risk Insurance Scheme Trade Credit Insurance Scheme

What does the funding support? For SMEs: Up to 70% support of eligible

expenses for Market Access, Capability

Building and Manpower Development

activities

For other Singapore-based companies:

Up to 50% support of eligible expenses

To qualify, your company needs to have: Global headquarters based in Singapore

Annual turnover of at least S$500,000 inthe latest audited report

Annual total business spending of at least

S$250,000 in Singapore for each of the

past three years

Minimum paid-up capital of S$50,000

At least three managerial staff based

in Singapore

EXPANDING YOUR BUSINESS OVERSEAS 1110 EXPANDING YOUR BUSINESS OVERSEAS

To find out more : Visit the nearest SME Centre

Visit www.iesingapore.com/MRAGrant

Write to [email protected] or

call 1800-IESPORE (1800-437 7673)

To find out more : Visit the nearest SME Centre

Visit www.iesingapore.com/GCP


call 1800-IESPORE (1800-437 7673)

Global Company Partnership (GCP) Grant


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Visit the nearest SME Centre

Visit www.iesingapore.com/IMAP or www.iesingapore.com/MAIP


call 1800-IESPORE (1800-437 7673)

To find out more :To find out more :

DTD provides a 200% tax deduction on eligible expenses for supported market expansion and investment development activities.

Qualifying activities include:

What does the funding support? 200% tax deduction on eligible expenses

To qualify, you: Have to be a Singapore-registered company

or a firm with permanent establishment in

Singapore

Are not enjoying other government tax

incentives or concessions

Engaging third-party

professional consultant for:

Design of packaging for

overseas markets

Products/services certification

for overseas markets

Overseas market survey/feasibility study

Participating in overseas

business/market development

trips or missions

Exhibiting in overseas and

approved local trade fairs

Overseas advertising and

promotions

Production of corporate

brochures for overseas

distribution

Advertising in approved local

trade publications

Establishing overseas trade offices

Promoting the companys master

license and franchise overseas

Engaging third-party professional

consultant for investment

feasibility/due dilligence studies

Participating in overseasinvestment development trips or

missions

Overseas Market Development activities Overseas Investment Development activities

MARKET PREPARATION MARKET & PROMOTION MARKET PRESENCEMARKET INTRODUCTION

Through this programme, start-ups can receive up to 70% funding to cover airfare,

accommodation, rental of exhibition space and booth construction costs, when they

participate in overseas fairs and missions organised by approved incubators.

Through iMAP, funding for selected business missions and Singapore

Pavilions at international trade fairs led by trade associations and

chambers of commerce (TACs) is provided.

For trade fairs not supported by iMAP, you may consider applying for

MRA grant.

Funding is disbursed through TACs to eligible SMEs when they

participate in iMAP-approved business missions or are part of the

Singapore Pavilions at international trade fairs.

What does the funding support? 50% to 70% of eligible expenses at

iMAP-supported missions and trade fairs.

Percentage of funding support is dependent

on the regions where the missions and trade

fairs are held.

Supportable costs include booth rental,

booth construction, publicity and fair/mission

consultancy costs.

Visit the nearest SME Centre Visit www.iesingapore.com/DTD


call 1800-IESPORE (1800-437 7673)

Double Tax Deduction (DTD) International Marketing Activities Programme (iMAP)

Market Access Incubation Programme (MAIP)

EXPANDING YOUR BUSINESS OVERSEAS 1312 EXPANDING YOUR BUSINESS OVERSEAS

FINANCING YOUR BUSINESS 15


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FINANCING YOUR BUSINESS

SMEs can borrow money to finance their business daily operations or automate and upgrade

factory and equipment.

Local SMEs with 10 or fewer employees or annual sales not exceeding S$1 million are eligible for

loans of up to S$100,000 at a minimum15.5% interest rate for loan tenure of 4 years and below.


Visit the SPRING website (www.spring.gov.sg/MLP

or www.spring.gov.sg/LIS)


To find out more :

FINANCING YOUR BUSINESS 15

1 Subject to Participating Financial Institutions assessments of risks involved.

*Annual sales turnover and employment size will be computed on agroup basis. (i.e. All levels up for corporate shareholders holding> 50% of total shareholding of the applicant company and anysubsequent corporate parents, and subsidiaries all levels down)

Micro Loan Programme (MLP)

Loan Insurance Scheme (LIS) and LIS+

The LIS helps SMEs secure short term trade financing loans

from Participating Financial Institutions (PFIs). The loans will

be underwritten by commercial insurers working with the PFIs.

The loan insurance premium will be co-shared between the

Government and the SMEs.

LIS+ is a complementary programme to LIS where the

Government will underwrite new loans which are beyond the

capacity of the commercial underwriters.

Local SMEs registered and operating in Singapore with

more than 30% local shareholding, and group annual

sales not exceeding S$100m or group employment size

not more than 200 workers are eligible*.

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DEVELOPING PEOPLE


Contact any of the respective Programme Managers under P-Max:

ASME: Call 6513 0349 / 0350 or email [email protected]

SNEF: Call 6827 6977 or email [email protected]

To find out more :

The Place-and-Train (PnT) programmes under P-Max seek to assist SMEs to better recruit, train, manage and retain newly-

hired Professionals, Managers and Executives (PMEs), encourage the adoption of progressive human resource (HR)

practices within SMEs, and help place job-seeking PMEs into suitable SME jobs.

P-Max provides the following support:

Job-seeking PMEs will be screened and placed into suitable positions in hiring SMEs, while SMEs with newly-hired PMEs

are also eligible to participate;

SME and PME workshops will be conducted under the Programme:

i. SME workshop SME Representatives will learn how to better communicate with their newly-hired PMEs, and to

adopt and incorporate progressive HR best practices/guidelines within their SMEs

ii. PME workshop Newly-hired PMEs will learn how to better acclimatise to and take on SME jobs;

One-time S$5,000 Assistance Grant upon successful completion of the six-month follow-up and retention of the newly-hired PME(s) upon completion of workshops under the Programme.

P-Max

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More information on the approved list of HR solution

providers and qualifying activities will be made

available at: www.spring.gov.sg/hcd

To find out more :

HR Shared Services

SMEs that send eligible employees for certifiable skills training can receive the following support:

REQUIREMENTS Organisation must be registered or incorporated in Singapore

At least 30% local shareholding by Singapore Citizens or Singapore Permanent Residents

Employment size of not more than 200 (at group level) or annual sales turnover (at group level) of not more than

S$100 million

Trainee must be a Singapore Citizen1

Trainee must be a bona fide employee (i.e. hired in accordance with the Employment Act) and fully employer

sponsored for the training

Certifiable Courses Supported by the Singapore Workforce Development Agency (WDA) 90% course fee subsidy, capped at S$30 per hour for certifiable courses

90% course fee subsidy for Continuing Education and Training (CET) Centres courses

S$15 per hour for in-house certifiable training

Absentee payroll of 80% of basic hourly salary, capped at S$7.50 per hour

Academic CET Courses 90% subsidy for the cost of Polytechnics academic CET programmes

Absentee payroll of 80% of basic hourly salary, capped at S$7.50 per hour for Polytechnics and Institute ofTechnical Educations academic CET programmes


Visit the WDA website (www.wda.gov.sg)

Call WDAs hotline at 6883 5885 or

view list of eligible courses at www.skillsconnect.gov.sg

To find out more :1Singapore Permanent Residents also qualify forhigher funding for certifiable courses supported bythe WDA, except for academic CET courses at thePolytechnics/ ITE

Enhanced Training Support for SMEs

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The HR Shared Services programme aims to help SMEs reduce time and resources spent on HR administration and focus

on their core business, talent management and development.

Interested SMEs can tap on a pool of solution providers for HR services and systems and outsource their administrative HR

activities such as payroll, employee data and benefits administration. Participating SMEs can also benefit from access to

professional HR advisory and info systems to complement their existing HR team and processes.

SMEs will receive up to 70% funding support for qualifying development and adoption costs from SPRING.

A pool of HR solutions providers will be appointed starting 1 May 2015.

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Under the WCS introduced in Budget 2013, the Government co-funds 40% of the wage increases

that are given to Singaporean employees from 2013 to 2015. Wage credit will be given only for

Singaporean employees who earn a gross monthly wage of up to S$4,000.

In Budget 2015, it was announced that the WCS scheme will be extended for two years (2016 - 2017),

with the Government co-funding at 20% of wage increases for Singaporean employees.

For wage increases given in 2015 which are sustained in 2016 and 2017, employers will continue to

receive 20% co-funding for two additional years from 2016 to 2017.


Visit the IRAS website (www.iras.gov.sg/irasHome/wcs.aspx)

Call the WCS hotline at 1800-3524727

To find out more :

Wage Credit Scheme (WCS)Enterprise Training Support (ETS) Scheme


Visit the WDA website (www.wda.gov.sg)

Call WDAs hotline at 6883 5885

To find out more :

Employers may tap on the five grants under ETS to implement progressive and innovative HR systems, as well as enhance

their in-house training infrastructure and capabilities such as training, planning, and skills development.

The five grants under the ETS Scheme are:

Training Grantis a mandatory component under ETS that supports the cost of Singapore Workforce Skills Qualifications

(WSQ) training and structured non-WSQ training; and/or On-the-Job Training (OJT).

Curriculum Contextualisation and Alignment Grantcan help companies defray costs in developing and/or

contextualising WSQ training modules; and/or converting existing WSQ training modules to e-learning or mobile learning

modules; and/or developing OJT blueprints.

Capability Grantcan help companies build their in-house capabilities in training delivery and infrastructure.

HR Development Grantcan help companies defray costs of engaging consultants to improve their learning anddevelopment system.

Compensation and Benefits System Review Grant can help companies defray cost of consultancy to review and

benchmark compensation and benefits to industry standards.


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Employers may tap on the following grants and incentives to build progressive workplaces as well as to recruit and

retain back-to-work locals and mature workers:

Age Management Grant to acquire capabilities to adopt good management practices

Job Redesign Grantto support redesigning jobs or work processes to improve productivity.

Work-Life Grantto support the implementation of work-life strategies, e.g. flexible work arrangements

Recruitment and Retention Incentivesto implement measures to retain new hires

On-the-Job Training (OJT) Allowance for each new hire

New Hire Retention Incentive to retain new hires earning a gross monthly salary of up to S$4,500, and recruited

through WDA touch points, e.g. WDA Career Centre and e2i

Mentorship Allowance to mentors who provide mentorship support to each new hire for at least three months

Under WorkPro, back-to-work locals refer to Singapore Citizens (SCs) or Singapore Permanent Residents (SPRs) who are

aged 30 years and above and have not been working for the past three months or more. Mature workers refer to SCs or

SPRs aged 40 years and above.

WorkPro

Notes

WorkPro


Visit the WDA and MOM websites (www.wda.gov.sg/workpro

and www.mom.gov.sg/workpro)

Call WDAs hotline at 6883 5885

To find out more :


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Published in March 2015

SPRING Singapore1 Fusionopolis Walk, #01-02 South Tower, Solaris, Singapore 138628

Tel: +65 6278 6666 Fax: +65 6278 6667www.spring.gov.sg

Documents

Guidebook Growing Our SMEs