The Singapore Government has set up a $90 million pot of funds for SMEs to collaborate and develop productivity solutions. Read on to find out just how your business can benefit.
By the myBusiness techblog team
First announced during the budget 2013 by Deputy Prime Minister Tharman Shanmugaratnam, the Ministry of Trade and Industry (MTI) outlined key initiatives to help enable SMEs in the coming three years. The Government plans to set aside $90 million in funds to encourage collaboration and development of productivity solutions, and has also apportioned $18 million in grants to help SMEs finance advisory costs when seeking help with venturing overseas. Here are some of the details for these schemes.
Collaborative Industry Projects (CIPs) for increased productivity
The CIPs are a three-year $90 million initiative aimed at bringing together SMEs of a sector to develop solutions to help increase productivity. Already in-force for industries such as medical technology manufacturing, it will be extended to six more industries, namely: food services, food manufacturing, retail, textile & fashion, furniture manufacturing, printing & packaging, and social services sectors.
In order to gain access to funding, a group consisting of more than three Singapore SMEs must be formed. The Singapore Government will then provide funding support of up to 70% for qualifying costs.
Senior Minister of State for Trade and Industry Lee Yi Shyan said that “the objective of these CIPs is to help achieve a step change in the productivity of a large group of companies by encouraging them to work together in areas that can bring them the benefits of integration and economies of scale.”
The current Partnership for Capability Transformation (PACT) will also benefit from an enhancement, which will now allow companies from all industries to foster collaboration with large enterprises in areas such as co-innovation, technology bed-testing, knowledge transfer and sharing of best practices.
Introducing the Marketing Readiness Assistance (MRA) Grant
Another way SMEs can help boost their revenues is by tapping on overseas markets with the help of the Marketing Readiness Assistance Grant (MRA). The MRA is a new grant commencing in April this year that helps SMEs to appoint a pre-approved advisor or consultant for areas such as foreign market assessment and entry.
Aimed at Singapore SMEs with a global headquarters here and turnover of less than $100 million, the Government is allocating $18 million worth of funds to help SMEs in defraying the costs of legal advice, tax advisory and consultancy services.
Under the three-year-long scheme, International Enterprise (IE) Singapore will co-fund up to 50% of qualifying costs, capping at $20,000 annually per company. The MRA is also extended to eligible trade associations and chambers of commerce, where a separate $5 million has been set aside to support the hiring of in-market agents to seek out overseas business opportunities for members.
Launching of new SME Centres
Another method the Government is looking to enable SMEs is through the formation of SME Centres, which will be set up to act as one-stop destinations to receive advice on all the schemes they can tap on, even if they are being administered by different agencies. They will also replace the current Enterprise Development Centres and provide access to SME programmes across all government agencies.
Other areas that the SME Centres will cover include the provision of business and productivity-related advice, business matching and networking opportunities, and will also conduct outreach and education initiatives.
On top of the five main SME Centres, smaller ones will be set up across Singapore, in particular “in areas with a high concentration of SMEs”, to enhance reach, added Minister of Trade and Industry Teo Ser Luck.
Increased accessibility for SME schemes
The Government is also making it easier for SMEs to gain access to its schemes, by streamlining all programmes administered by SPRING Singapore, including the CIPs, into one programme. In April, SPRING Singapore will introduce the Capability Development Grant—a programme to support SMEs in improving productivity and developing their capabilities. SPRING will also reduce the application form steps, as well as offer an online portal for SMEs to conveniently check on application statuses.
SME Talent Programme
Other initiatives the Government is looking to implement include the SME Talent Programme, which will match local students that have completed at least one year in local polytechnics or ITEs with SMEs over the next five years. It will also provide up to 70% funding support from SPRING for qualifying SMEs, as well as pay school fees and a monthly allowance for the students. In turn, these students will have to work with an SME for the following two years after graduation.
How will your business make full use of the various schemes listed above? Do you think they will help your business increase productivity? Let us know in the comment box below.