The Singapore government provides subsidies to employers through the Future Skills Enterprise Credit (SFEC) program to encourage them to invest in corporate and workforce transformation. Eligible employers will receive a one-time credit of S$10,000, which can be used to cover up to 90% of out-of-pocket costs.

How can companies benefit from the SFEC program?

The Future Skills Enterprise Credit (SFEC) assists companies in two key areas: business transformation and workforce transformation.
However, to encourage employers to invest in training and skills upgrading for workers, companies are required to use at least SGD 3,000 of the credit for workforce transformation programs, and a maximum of SGD 7,000 for business transformation. There is no maximum limit on the amount that can be used for workforce transformation programs.

The corporate transformation programs supported under SFEC are as follows:
(Image source: Enterprise Singapore)

The labor transformation programs supported under SFEC are as follows:
(Image source: Enterprise Singapore)

What kind of companies can apply for this SFEC program?

Employers do not need to apply for this Future Skills Enterprise Credit (SFEC), as Enterprise Singapore (ESG) will notify eligible employers in writing.
Employers can start applying for the support program from April 1, 2020, to June 30, 2023, and companies will receive compensation starting April 1, 2021.

The Singapore government launched the Productivity Solutions Grant (PSG) to support companies in adopting and implementing IT solutions and equipment that can help improve the efficiency of their business processes.

What does the Productivity Solutions Grant (PSG) cover?

The Productivity Solutions Grant (PSG) is a subsidy that helps companies implement technology solutions by providing up to 70% funding support. This allows companies to take advantage of this substantial funding assistance to execute long-term technology investment plans.

PSG covers solutions for specific sectors such as retail, food and beverage, and logistics. In addition, PSG also supports the implementation of cross-sector IT solutions, including customer relationship management (CRM), data analysis, financial management, inventory tracking, and e-commerce. Government agencies such as Enterprise Singapore and the National Parks Board (NParks) have already determined a list of solutions that are eligible for this subsidy.

What are the requirements for applying for PSG?

Small and medium-sized enterprises (SMEs) that meet the following criteria are eligible to apply for the Productivity Solutions Grant (PSG):

• • The company is **registered and operates in Singapore**.
• • IT solutions or equipment purchased/leased/ordered **must be used in Singapore**.
• • Have **at least 30% local ownership**; and the company group has **annual revenue of less than SGD 100 million** or **fewer than 200 employees** (only applicable to certain solutions).

Small and medium-sized enterprises (SMEs) in Singapore can apply for MRA (Market Readiness Assistance) grants to fund projects and help their businesses expand into overseas markets.
From April 1, 2020, to March 31, 2023, each company can receive up to 70% of eligible costs, with a maximum limit of SGD 100,000 per new market, covering the following:

Eligible SMEs will receive the following support:

• • **Overseas marketing and public relations activities** (up to SGD 20,000).
• • **International business development**, such as participation in **physical or virtual trade shows**, as well as business partner search activities such as licensing, franchising, distribution, or joint venture partnerships (up to SGD 50,000).
• • **Establishment of overseas branch offices**, including legal and documentation costs for market entry, as well as in-depth consultation on **free trade agreements (FTAs)** (limit up to SGD 30,000).

Update: From November 1, 2020 to September 30, 2021, companies can receive up to 80% support through an additional funding scheme. With border restrictions still in place, the scope of the Enhanced MRA Grant scheme has also been expanded to support companies’ participation in virtual trade shows to find new business opportunities.

There is no limit to the number of MRA applications that a company can submit. Each grant can only be used for one activity at a time, with a maximum support period of 12 months. Companies may also simultaneously apply for other grants, such as the Enterprise Development Grant (EDG).

What are the requirements for applying for an MRA?

SMEs must meet the following criteria:

• • Be a **business entity registered or established in Singapore**.
• • Meet **new market access criteria**, namely annual overseas sales not exceeding **SGD 100,000 in the last three years**.
• • Have **at least 30% local ownership**.
  • Based on the latest audit report, the company group has **annual revenue not exceeding SGD 100 million** or **fewer than 200 employees**.

The Enterprise Development Grant (EDG) launched by Enterprise Singapore (ESG) helps Singaporean companies expand their operations. Projects supported by this grant can grow their business in three key areas: innovation, overseas investment, or core capabilities.

Core Capabilities

Projects under the core capabilities category help businesses prepare for growth and transformation by strengthening their operational foundations. These initiatives should go beyond basic functions such as sales and accounting.

Innovation and Productivity

Projects under Innovation and Productivity support companies exploring new areas of growth or seeking efficiency improvements. This may include reviewing and redesigning workflows and processes. Companies can also leverage automation and technology to improve efficiency in day-to-day tasks.

Market Access

Projects under Market Access support Singapore companies that are willing and ready to invest overseas. You can utilize EDG to help cover some of the costs associated with expanding into foreign markets.

What does EDG offer businesses?

This assistance covers up to 70% of eligible project costs, including third-party consulting fees, software and equipment, and internal labor costs.

Who can apply? To be eligible for EDG, you must:

• • Is a company registered and operating in Singapore
• • Has a minimum of 30% Singapore local capital ownership
• • Is in a sound financial position to commence and complete the project

Enterprise Singapore will assess applications based on the scope of the project, expected outcomes, and the capabilities of the service provider.

Companies designated as Pioneer Companies (covering the manufacturing and service sectors) can enjoy preferential treatment in the form of corporate income tax exemption for 5 to 10 years on income derived from their pioneering activities, starting from the date of commencement of production. Pioneer Company status is determined by the Singapore Economic Development Board. In general, companies engaged in production or services that are not yet widely developed in Singapore but are considered important for economic development, or those involved in production or services with favorable growth prospects, can apply for Pioneer Company status.

Starting from the date set by the government, corporate income exceeding a certain threshold will be subject to a preferential corporate income tax rate of at least 5% to 10% for a period of ten years, which can be extended to a maximum of twenty years. This policy is primarily aimed at encouraging companies to gradually increase investment in high-tech and high value-added sectors while improving equipment and operational standards. Both companies that have previously obtained Pioneer Company status and other eligible entities can apply for this preferential treatment.

The Corporate Research Incentive Scheme aims to encourage and assist Singapore-registered companies and institutions in establishing research and development centers in Singapore, as well as developing internal strategic technology research and development capabilities, thereby strengthening the long-term industrial competitiveness of companies.

All companies and commercial institutions registered in Singapore are eligible to apply to the Singapore Economic Development Board (EDB). Requirements include: the project must develop or introduce R&D capabilities that significantly enhance the company’s competitiveness; the project must be suitable for long-term R&D investment and provide significant economic benefits to Singapore; the project must substantially increase R&D expenditure within a specified period and have measurable milestones; and it must significantly enhance and train scientific researchers and engineers.

This incentive scheme generally subsidizes a portion of the approved costs, with the grant rate determined based on individually approved cost items. The scope and maximum subsidy rates include: 50% of labor costs, 30% of equipment and material expenses, 30% of professional services, and 30% of intellectual property costs. Payments are made to companies receiving subsidies in the form of cost reimbursement.

Corporate training subsidies aim to improve employees’ ability to adopt new technologies, industry skills, and specialized knowledge by financing their participation in training programs. Eligible companies can receive up to 30% of the trainees’ salaries and overseas training costs.

Approved by the Singapore Economic Development Board (EDB), this scheme aims to encourage companies to establish Financial and Treasury Centers (FTCs) in Singapore and improve their cash management capabilities, enabling them to carry out strategic financial and treasury operations from Singapore. Eligible companies will enjoy a preferential tax rate of 8% for a period of 5 to 10 years on income derived from fund management activities, including fees, interest, and dividends. Interest payments made to banks and recognized network companies for loans used in FTC activities will be exempt from income tax.

MLP is a loan assistance program for small and medium-sized enterprises (SMEs). MLP only provides small loans of up to S$100,000 for local SMEs with a maximum of 10 employees and an annual turnover of S$1 million. These loans are primarily intended for business operations and equipment upgrades.

Note: The interest rate for loans with a tenor of less than four years is 5.50%, with a maximum loan tenor of four years.

I. Application Process

Step 1.

Determine eligibility and consult with banks or other financial institutions that provide MLP.

Required documents: Company profile, financial statements, bank accounts, directors’ personal income tax returns, etc.

Step 2.

Submit via LEFS.

After downloading the LEFS form and attaching the relevant supporting documents, submit your application. Banks or financial institutions usually respond within three weeks.

Step 3.

After receiving the loan, ensure timely payments. (Payments begin one month after the loan is disbursed.)

II. Eligible Companies.

• Registered and operating in Singapore;
• At least 30% of shares are owned by Singapore residents;
• Annual business turnover is below S$1 million, or has fewer than 10 employees;
• Annual group turnover is below S$100 million, or has fewer than 200 employees;

Note: This scheme is primarily intended for newly established MSMEs. Therefore, businesses applying must have been registered for no more than three years.