Expanding Globally: How Singapore’s MRA Grant Can Fuel Your SME’s Growth

For Singaporean SMEs, expanding into international markets can significantly enhance growth prospects. The Market Readiness Assistance (MRA) Grant is a valuable resource designed to support businesses in their efforts to tap into new global markets. This guide provides a comprehensive understanding of the MRA Grant, including eligibility, covered activities, and the application process.

1. Understanding the Market Readiness Assistance Grant

The MRA Grant helps manage the financial aspects of expanding into international markets by providing financial aid for various costs associated with international growth.

• Funding Limit: Up to 50% of eligible costs, with a maximum of S$100,000 for each new market.
• Objective: To ease financial burdens and enhance competitiveness.
• Covered Costs:
  • Market promotion activities
  • Business development initiatives
  • Expenses related to market entry

Example: Consider a local company in Singapore aiming to showcase its products at a European trade fair. The MRA Grant could subsidise their costs for exhibition space, marketing, and legal fees associated with setting up a presence in Europe.

2. Eligibility Criteria

To qualify for the MRA Grant, businesses need to meet the following criteria:

• Business Registration: Official registration and operational status in Singapore.
• Local Ownership: Minimum of 30% shareholding by Singaporean citizens or Permanent Residents.
• Overseas Sales Limit: Sales in the target market should not exceed S$100,000 annually in the past three years.
• Turnover and Employment Limits: Annual group turnover below S$100 million and fewer than 200 employees.

Example: A small tech startup in Singapore looking to enter the South Korean market needs to ensure it meets these requirements to qualify for the MRA Grant.

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3. Eligible Activities

The MRA Grant covers various activities essential for establishing a presence in new markets:

3.1 Market Promotion

• Includes marketing activities such as trade fair participation and promotional campaigns.
• Funding Limit: Up to S$20,000.

3.2 Business Development

• Covers consultancy fees for finding local partners and business matching services.
• Funding Limit: Up to S$50,000.

3.3 Market Entry Costs

• Assists with legal fees and registration costs for setting up operations.
• Funding Limit: Up to S$30,000.

Example: A wellness company from Singapore could use the grant for market research, engaging a local consultant in Japan, and covering the legal setup costs in that market.

4. Application Process

The process to apply for the MRA Grant involves:

• Determine Target Market and Activities: Identify the market and specify the activities for funding.
• Gather Required Documents: Prepare documents like financial statements, service quotations, and project plans.
• Submit Application: Submit through the Business Grants Portal for review.
• Receive Grant Offer: If approved, receive a Letter of Offer with terms and conditions.
• Execute Project and Submit Claims: Complete the project, submit claims for reimbursement with proof of expenditure.

Example: A digital marketing firm in Singapore planning to expand into Indonesia should carefully prepare and submit their application, use the grant for marketing and market entry costs, and file for reimbursement upon project completion.

Summary

The Market Readiness Assistance (MRA) Grant is an essential tool for Singaporean SMEs seeking to broaden their international presence. Understanding the grant’s scope, eligibility requirements, and application procedures is crucial for businesses aiming to optimise their global expansion strategies. By leveraging this grant effectively, SMEs can enhance their international competitiveness and achieve sustainable growth in new markets.

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