Market Readiness Assistance FAQ Series: Overseas Business Development

Are you a Singapore-based SME looking to expand your business into new overseas markets? If so, then the Market Readiness Assistance MRA grant offered by Enterprise Singapore (ESG) is the perfect opportunity for you. This grant supports Singapore companies in their overseas business development efforts by providing financial assistance.

To become eligible for the MRA grant, your company must register and operate in Singapore. The target market for your business’s growth must not have exceeded a certain level of sales, and you must submit your application through the designated application form. Upon approval of your grant application, you can anticipate support for your market strategy and coverage for various expenses.

The MRA grant offers a great opportunity for Singapore companies to explore new markets and expand their business horizons. So, don’t wait any longer – ensure that your grant is eligible for the market readiness assistance grant today, and begin the journey towards international success.

What are the eligibility criteria for the MRA grant in Singapore?

1. A legally registered company conducting business activities in Singapore can apply.
2. Additionally, 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 company’s group annual sales turnover must not surpass S$100 million, or the total number of employees in the group must not exceed 200.

What criteria define a new overseas market for eligibility under the Market Readiness Assistance Grant Singapore?

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

The Singapore Market Readiness Assistance (MRA) grant can cover consultant services for which purposes?

Overseas Business Development projects assist companies in conducting early-stage market exploration and on-the-ground business development activities, supported by applying for the MRA grant. The supported activities involve:

• business matching
• identifying potential partners overseas,
• establishing a marketing presence in foreign markets,
• deploying business development staff to understand the operating requirements, and
• engaging in business development efforts in the target market.

What are the eligible activities for an MRA grant under Overseas Business Development?

Can I apply for the MRA grant for travel/flight and accommodation expenses for business development staff?

No, travel, flight, and accommodation expenses are not eligible expenses. Only the monthly salary of the staff is an eligible expense for business development activities.

What if my staff quits halfway through my market promotion or market entry activities?

If your candidate quits halfway, it means that the approved project will remain incomplete. Consequently, it will then affect eligibility for the grant claim under the guidelines of Enterprise Singapore. You can find a replacement and file a change request to cover the new salary/candidate.

Does my staff need to be physically overseas for market presence?

Yes, if you intend on claiming their salary, the candidate will have to be based in the target market. We suggest 60% of the time to be there. Moreover, there is no written rule, but not being there the majority of the time puts your submission in question as we have encountered pro-rated submissions according to the time the candidate will spend in the target country. Ultimately, your overseas expansion plan submitted to the business grant portal will undergo review.

What if my staff has to travel around?

If you are sending a regional director to the target market, chances are, they will be travelling and not based in the target country. In such cases, we pro-rate salaries based on time spent in the target country.

Can I claim the salary of a director or a director who is also a shareholder during the MRA grant application process?

Yes, you can apply for the MRA grant to support these activities. However, this is subject to approval as the main concern is if the director is overseas, who will be managing the operations in Singapore? It typically works when other key management personnel are involved to address this problem in the market entry plan.

Can I claim a rental for my shop warehouse or studio for approval of the MRA grant?

Yes, you can apply for the MRA grant to support these activities. However, rental claims are only granted along with the BD personnel.. You cannot claim rental on its own without sending staff there as part of the market entry strategy. To acquire grant support for a new market, you must demonstrate that your BD personnel will be stationed at this location to carry out their BD operations, in accordance with the requirements for market promotion efforts.

If your location is in a studio (e.g. Whether it’s a yoga studio, dance studio, etc., or warehouse, or retail shop, it is still possible to claim a fraction of the designated space for your 1 BD staff, depending on the pro-ration of the ESG officer, which they will inform you through the business grant portal.

What documentation will be requested throughout the MRA grant application process?

Engage an auditor to verify your claim from EnterpriseSG’s pre-approved list. Audit costs are supported by EnterpriseSG, as per the Letter of Offer. Auditors usually request the following documents:

1. Letter of offer and any addendums
2. Invoices
3. Quotations
4. Bank statements to show proof of payment
5. Proof of completion of service by the vendor (usually following the deliverables stated in the letter of offer)

Upon approval, the business grant portal releases the received grant amount within 6-8 weeks.

Can my business development staff do different tasks during the overseas market promotion?

Your BD Staff is expected to adhere to the agreed-upon scope of work/job description supplied during business grant filing via the portal.

Furthermore, this is critical since, at the project’s conclusion, the projected deliverables must be provided for claims, proving the influence on new market entrance or expansion.

What are the required documents for the application process for the Market Readiness Grant in Singapore?

For overseas marketing presence to claim for staff salary and office rental:

• Company website/company profile/company deck for us to create a business plan
• Lease quotation of rental space
• Letters of employment or appointment are essential for those who must be salaried corporate employees.
• Staff’s NRIC or Passport number
• CPF Statement (latest month within the project period) or employment pass/work permit for foreign employees
• Proof of permanent residency for SG/PR, such as tenancy agreement, passport etc.
• Resume of candidate
• Start date of BD staff in the new position, as required for eligibility in the overseas market promotion scheme.
• Salary of this candidate, considering the guidelines set by Enterprise Singapore for overseas market promotion activities.
• Scope of work of the staff
• What KPIs are you implementing

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

In our experience, we have not received a formal “rejection letter” in the portal. 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.

Your claim for the entire compensation amount of a regional director who spends just a small portion of time in your target nation will probably be denied. In order to ensure eligibility for enterprise assistance schemes, the pay amount will be pro-rated based on the length of time spent in the target nation. This change simply affects your qualifying amount; it does not imply that your grant application is denied.

What expenditures are not covered by the MRA grant for Overseas Business Development?

• Goods and Services Tax (GST) imposed by Singapore
• Charges levied by other governmental agencies in Singapore
• Fee for successfully completing a commission
• Payment for access to generic databases or directories
• Expenses related to finding investors, suppliers, raising capital, and selling company shares
• Additional expenses, including overtime pay, transportation allowances, and out-of-pocket costs like airfare, transportation, hotel accommodations, and meals must not be part of the application to the business grant portal for the market promotion and overseas market entry.
• GST applicable only to Singaporean or Permanent Resident employees
• Costs associated with renting office equipment, fixtures, and utilities
• Expenses for renting warehouse, factory space, residential space, or hotel rooms/suites
• Payment of deposits and any initial payments
• Other expenses such as printing, internet, and telecommunication costs.

What do I need to show as a deliverable?

Business Matching

• Comprehensive analysis of the target market’s potential customers/partners and results of business matching activities for SMEs targeting grant support via new market expansions.
• Images capturing the meetings as well as copies of the name cards of promising customers or partners.

Overseas Marketing Presence (Staff salary & Office rental)

• Evidence of the successful establishment of a marketing presence in the overseas market (such as documentation of rental agreements or invoices, proof of bank transactions).
• Documentation that marketing activities were carried out in the market, such as company strategy plans, meeting minutes, progress reports or milestones, and marketing materials.
• Confirmation of the employment of the applicant’s staff members (Singaporean, Singapore Permanent Resident, or foreigners) (such as appointment letters, payslips to demonstrate payments made to staff, evidence of residence in the market such as rental or hotel agreements, passport records of departure and arrival dates, and proof of bank transactions).
• Verification of invoice rebilling to return expenditures to the Singapore applicant where foreign subsidiaries are engaged in the execution and payment of the expenses.

In-Market Business Development (Outsourced Business Development)

• Comprehensive assessment of the progress made by local BD staff, along with thorough documentation and summary of business meetings.
• Evaluation of market developments, including recommendations for establishing a presence in the new market or future strategies for market entry.

Conclusion

You have taken the first step towards expanding into a new market for your business growth with the help of MRA grant support. It is crucial that the grant covers the costs of overseas market promotion per company per new market. Remember, the purpose of the MRA grant is to support companies in Singapore looking to expand into new foreign markets. After submitting your grant application form, ensure that the grant covers the expenses of sales in the target market that must not have exceeded. The MRA claims are subject to review and it takes 8-12 weeks to process. The grant aims to help you tap into a new market and grow your business beyond borders.