Market Readiness Assistance FAQ Series: Application Process for the Grant

Singapore Market Readiness Assistance MRA Grant Application Process

Singapore SMEs must understand that they cannot sign a contract, make a payment, or begin any work before submitting the Market Readiness Assistance MRA grant unless they are deposits for trade fairs.

Once approved, clients must adhere to the terms and conditions outlined in the contract. This includes using the funds only for the purposes specified in the submission and complying with any other deliverables set forth by Enterprise Singapore.

It is also important for clients to keep accurate and detailed records of all expenses, as these may need to be provided to Enterprise Singapore for audit as part of the claims process. Clients should also be aware that you need to engage an approved auditor to verify before submitting your claims. ESG provides funding capped at S$500 for audit.

Overall, it is crucial for clients to fully understand and comply with the terms and conditions to ensure a positive and successful outcome.

What is the purpose of the MRA Grant support?

The Market Readiness Assistance is for local companies in Singapore to receive up to S$100,000 of funding assistance in defraying the costs by 50% for the growth of their business, advertising, and initial expenses when expanding into a foreign market.

What are the eligibility criteria for the MRA grant?

1. A legally registered company conducting business activities in Singapore can apply.
2. The company must have a minimum of 30% ownership, either directly or indirectly, by Singaporeans or Singapore Permanent Residents, as determined by the ultimate individual ownership.
3. The company is newly venturing into international markets.
4. The total sales turnover of the company’s group must not surpass S$100 million, or the total number of employees in the group must not exceed 200.

How does the MRA Grant help my business?

Local small and medium enterprises have received grant approvals from Enterprise Singapore to fund up to half of their eligible expenses. Each company can receive a maximum of S$100,000 for each new country. The supported activities that qualify for this funding include

• promoting products or services in international markets (capped at S$20,000 for market promotion)
• developing new business opportunities overseas by looking for joint venture partners, agents and distributors (S$50,000 for business development), and
• establishing a presence in foreign markets including intellectual property application (S$30,000 for market set-up).

How long does it take to approve the grant?

Due to the large number of applications submitted, it takes 8-12 weeks to process rather than the usual 6-9 weeks.

Is the MRA grant difficult to apply?

It is tedious but not difficult to apply. The completeness and correctness of your paperwork determine how quickly it gets approved. Thus, we strongly recommend outsourcing the document preparations to ensure a smooth application.

Can Singapore PRs apply for the MRA grant?

Yes, they can.

What are the requirements for sales in the target market to qualify as a new market?

This refers to a new foreign target country that the company is venturing into, where its yearly sales in the target market must not have exceeded S$100,000 in any of the preceding three years.

Is it possible for a company that already operates internationally or has sales overseas to apply for MRA assistance?

Companies that have previously received benefits from MRA but have not made overseas sales exceeding S$100,000 for a specific market can still receive support.

However, companies that have already utilized the maximum support amount of S$100,000 for a particular market will no longer qualify for any additional grants for that market.

What is the limit on the number of MRA applications that a company in the selected market can submit?

Companies have the freedom to submit numerous submissions as there is no set maximum limit. This gives them the opportunity to customize and control the speed at which they expand into international markets.

Can a company simultaneously apply in multiple new target markets?

Certainly, provided that the new country requirements are fulfilled and the projects fall under each activity grant sub-limit.

If both the main company and its subsidiary apply for the MRA Grant, will they have to comply with the S$100,000 grant cap?

The maximum grant amount of S$100,000 is applicable to each distinct entity/business during the period. Enterprise Singapore will assess the applications according to the internationalization strategies of the applicant company. ESG will consider any separate applicant companies with comparable business registration information (such as type of business, location, shareholders/directors, etc.) as related enterprises and will subject them to a combined grant limit of S$100,000 during the period.

Can a company receive support from both the Enterprise Development Grant (EDG) and MRA Grant at the same time?

Indeed, companies that meet the requirements can seek assistance through both the EDG and MRA grants via Enterprise Singapore or other agencies, as long as they do not overlap in terms of the work, services, or activities being supported.

What is the maximum duration of support for an approved activity under the MRA Grant?

12 months.

When can a company begin the project?

Companies are able to proceed with signing the contract with the third-party consultant/vendor once they have submitted the application through the Business Grants Portal. The project start and end dates must align with the project support period specified on the Business Grants Portal.

Is it obligatory for a company to select consultants from Enterprise Singapore’s given list?

No, except for the list provided by Enterprise Singapore of FTA and Trade Compliance consultants, companies have the option to consult different references or approach their preferred consultants for quotations. It’s highly recommended for companies to thoroughly research and evaluate consultants before appointing them.

What support is available for companies encountering challenges during the MRA application process in the Business Grant Portal (BGP)?

How we assist you:

• MRA support consultancy services via face to face, WhatsApp, E-mail etc communication channels for questions and answers.
• When it comes to quotations, we offer feedback to ensure that the content is clear and understandable.
• For business plans, we provide feedback on specific areas such as market position that will enhance your submission on BGP.
• When reviewing grant application form in the BGP, we check the amount supported, all dates, numbers, and details for accuracy and consistency.
• We maintain a 2-layer security process by collaborating with SME center officers for their expertise and vetting.

After approving the grant, we also guide you through the claims via the business grant portal. There will be an audit grant fee of S$500. MRA claims are subject to approval.

Who will apply for the MRA grant on my behalf?

In the end, the company’s business director/employee should use their Singpass to log in for the submission via the BGP. The individual who will accept the letter of offer should be the company’s director. Nevertheless, we can assist in assembling your complete submission until you are ready to log in, review, and submit it.

When will the MRA funding come to an end?

The Singapore Government typically presents its Budget Statement in February, during which it will disclose the decision on the fate of the MRA, including whether it will extend, enlarge, decrease, or discontinue the enhanced cap of up to S$100,000, which will be extended until 31 March 2025.

Can a newly set up company/1 year old company apply for the MRA grant?

Establishing eligibility can be quite challenging for a newly established company. However, if an established brand or business is creating a new company for a project abroad, they can provide an explanation and obtain approval.

For instance, a local company in Singapore, Mr Mala Hotpot Pte Ltd, established a new subsidiary, MH Franchise Pte Ltd, for the purpose of business matching in China. The company can leverage its strong support from the parent company to demonstrate the feasibility of the project.

Therefore, for newer companies that are one year old or less, obtaining the MRA may not be very high because the submission process takes into account the financial statements from the past year. However, if a company has demonstrated strong performance in Singapore in less than a year, they can apply with greater confidence.

Is it possible for a dormant company to apply for MRA grant?

It’s not recommended for a dormant company to apply unless it has the backing of an existing brand/business (i.e. it is a subsidiary or related company) to explain the dormant situation and how feasible the expansion is.

For example, an existing local Singapore company Trading Hotpot Pte Ltd has had a dormant subsidiary THC Pte Ltd not in use due to lack of overseas projects. Now that THC is prepared to extend their intellectual property into China, they can leverage the support of their parent company to showcase the project’s feasibility.

Can a loss-making company apply?

Yes, you can. Past year financial statements are considered during submission, but loss-making does not disqualify you from applying. There may be additional questions on the feasibility of your expansion and your plans in the new market.

Will my MRA grant be rejected?

In our experience, we have not received a formal “rejection letter” in BGP. Instead, EnterpriseSG may exclude certain expenses that they consider to be ineligible. As a result, they sort of “reject” line items in your quotation by not supporting it.

This is why we recommend advising clients of the eligibility criteria before they apply on the portal, in order to clarify which items are eligible or ineligible for their understanding with respect to amount supported.

What are the common reasons for the rejection of an MRA claim?

It is usually not rejected, but certain expenses may be deemed ineligible. You will not be able to request reimbursement for these particular expenses through the BGP. For instance, if your claim for staff salary includes costs for flights and accommodation, which are not eligible, it will be rejected. Similarly, if your office claim exceeds the intended space for one person, the amount will be pro-rated accordingly.

Can I submit multiple applications if I haven’t fully utilized the grant?

To start, each part – such as OVERSEAS MARKET PROMOTION, OVERSEAS BUSINESS DEVELOPMENT, and OVERSEAS MARKET SET-UP – requires a separate submission via the business grant portal.

• You can submit 3 submissions for all sections at the same time per new market.
• After that, if you haven’t fully maximised the grant, you can submit another submission. For example:

When can I start work for my project?

Firstly, DO NOT start your project before submission unless you are putting deposits for trade shows.

After submitting via the BGP, you may start your project based on the declared start date. For instance, if you submitted the submission on January 15, 2024, and stated that the project will start on January 16, 2024, then you can start the project on the specified date.

Can an e-commerce company apply for the MRA?

Yes, it is available to all industries and businesses. However, smaller e-commerce companies may encounter a fair amount of scrutiny regarding the feasibility of their expansion and may find that the amount of paperwork required for a small amount may not be worth the effort.

We have assisted larger e-commerce companies to source products in China and India, as well as establishing overseas factories or warehouses.

Can startups or small businesses apply for the MRA?

Yes, you can. Startup companies, especially those that are 1 year old or less, will have to justify the feasibility of the project since your past year financial statements are considered during the submission. If you have stronger business performance, then you can apply for with more confidence.

Must I wait for MRA to be approved before I start work/project?

No, you do not need to wait for a letter of offer before you can start work. As long as you declare in your submission the start date, you can proceed with work even before receiving a letter of offer.

For example,

• 15 January 2024 submission with a declared start date of 16 January 2024
• 16 January 2024 you can start work
• 1 April 2024 received letter of offer

It is important to remember that in this scenario, your service provider will typically ask for up front payment. If any items are deemed ineligible and not covered by the grant, you would still be responsible for the full payment.

This is why we always make sure to discuss with our clients which items will are eligible and which are not. This will give you peace of mind as you begin your project.

Is there an appeals process for companies dissatisfied with the outcome of their application?

No, you either accept or reject your letter of offer and reapply. It is encouraged to consult us before your submission to understand which items are eligible or ineligible.

Can companies make multiple claims in the BGP under the MRA for different internationalization activities?

Yes. Services that Singapore SMEs can engage in cover 3 different activities with a total of S$100,000 per company per new market for all activities:

• OVERSEAS MARKET PROMOTION capped at S$20,000
• OVERSEAS BUSINESS DEVELOPMENT capped at S$50,000
• FOREIGN MARKET SET-UP activities capped at S$30,000

In addition, this grant support repeats for each new overseas market you enter into via the BGP:

• Vietnam market entry – S$30,000
• China market entry – S$30,000
• Indonesia market entry – S$30,000

It could be debated whether China and India, as well as West vs East Malaysia, should be seen as two distinct markets due to their size. However, it is generally recommended to consider “markets” as equivalent to “countries”.

Is it possible for a sole proprietorship or partnership to submit an application?

Yes, you can. There are 4 main types of business entities that apply through BGP:

1. Sole-Proprietorship or Partnership
2. Limited Partnership (LP) can also apply on the BGP, based on their group annual sales turnover and group employment size.
3. Limited Liability Partnership (LLP)
4. Company

These entities can also apply for the scheme on the BGP, based on their group annual sales turnover and group employment size.

Conclusion

In conclusion, navigating the Market Readiness Assistance (MRA) process can be a crucial step for Singaporean SMEs looking to expand their presence in international markets. Understanding the intricacies of the application process, eligibility criteria, and utilization guidelines is essential for a successful outcome. From adhering to pre-submission protocols to maintaining meticulous records for post-approval audits, every step is pivotal. Leveraging the insights provided in this comprehensive FAQ guide can empower businesses to make informed decisions and maximize the benefits offered by the MRA Grant. With diligence, strategic planning, and expert assistance, SMEs can embark on their overseas expansion journeys with confidence, knowing they have the support needed to thrive in new market territories.