MRA Grant – Expanding Your Singaporean Business to Vietnam

For Singapore startups and SMEs looking to expand their business to Vietnam, the Market Readiness Assistance (MRA) Grant is a boon as it covers half of the expenses. Companies can spend up to S$100,000 per new market for overseas business development, as the MRA is capped at that point.

This article provides a comprehensive overview of the MRA Grant, including the application process, eligibility criteria, and benefits.

Investing in Vietnam? See InCorp Vietnam’s Market Entry & Company Registration Services for Singaporean SMEs

Understanding the MRA Grant

The Market Readiness Assistance Grant is custom-made for Singapore companies venturing into international markets. Administered by Enterprise Singapore, the MRA grant seeks to give financial assistance and consultancy services to local SMEs so that they can take the leap and pursue their global expansion plans.

The MRA Grant provides financial aid in three areas: overseas market set-up, identification of overseas business partners, and overseas market promotion. It doesn’t matter what your business development is; you can get assistance in legal and tax advisory, market research, and promotional campaigns. It ensures that there are no hurdles in your overseas business expansion plan, as you have all the resources needed to succeed in the target market.

As of 2024, the grant cap for the market readiness assistance MRA has been increased to S$100,000 per new market. However, as per the new market entry criteria, only 50% of your costs will be covered now, as opposed to the 70% coverage given earlier for market entry activities.

The MRA Grant offers the following benefits to Singaporean SMEs:

• It eases the financial burden of global expansion
• It helps SMEs establish a strong presence in foreign markets
• It showcases Singapore’s commitment to fostering global business growth amongst local companies.

Read More: Singapore’s MRA Grant – Market Entry Support for Singaporean SMEs

Key Benefits of the MRA Grant

The importance of the MRA Grant lies in its ability to lower the financial burden of business expansion in new overseas markets. Through this crucial benefit, 50% of the initial business spending of Singapore companies gets reduced as the grant allows government funds to support local SMEs in their global ventures.

Although the cap for financial support is S$100,000 per company per new market, it varies as per the nature of the business activities, which ensures the company spends the grant money on areas where it is most needed.

While the cap for overseas business development is S$50,000, for overseas market set-up activities it stands at S$30,000. In comparison, overseas market promotion gets the lowest allocation of S$20,000. This shows which activities are more crucial in business development and hence require the most support. It also ensures that the allocated funds are utilized strategically and efficiently.

Additionally, the grant helps companies conduct comprehensive market assessments to navigate challenges and opportunities. This financial support not only eases the initial investment needed for new market entry but also enhances the chances of successful international expansion. These benefits make the MRA Grant an invaluable tool for any Singaporean SME trying to capture the global stage.

Read Related: Top Business Opportunities in Vietnam: An In-Depth Guide to Investment Potential for Aspiring Investors

Eligibility Requirements for the MRA Grant

The MRA Grant has strict eligibility criteria, which you must fulfill to get market readiness assistance. The primary criterion is that the company applying for the grant must be incorporated in Singapore and operational in the country. Apart from that, the company also needs to have 30% of its shareholders as permanent residents (PRs) of Singapore or citizens of the country, directly or indirectly.

Other essential requirements include the group’s annual sales turnover and the group employment size of the business. While the sales turnover can’t exceed S$100 million, the local employment size can’t go above 200 employees. These particular criteria ensure that the financial assistance from the MRA grant only goes to small and medium enterprises that need it the most, thus preventing exploitation from big corporations.

Additionally, you need to keep in mind that the MRA grant is only available for new entrants to an overseas market. You can’t use it if your business entity already has a presence in the target overseas market. Companies entering a market for the first time and don’t have substantial sales and presence in a target overseas country can avail of this financial aid. Your annual sales in the target market in the last 3 years can’t exceed S$100,000 if you want to apply for this grant.

Eligible Business Activities

The market readiness assistance MRA Grant backs business activities that are vital for successful international expansion. These activities are related to three broad areas: overseas marketing presence, overseas market set-up and overseas trade fair participation.

1. Overseas Market Set-up

In the overseas market set-up, the following activities can help a Singaporean company understand the regulatory environment and the business landscape of the target country. This includes:

• Market entry support
• Trade compliance consultancy, including import and export licenses
• Market research
• Feasibility studies
• Legal and tax advisory
• Intellectual property searches
• Obtaining import-export licenses

2. Overseas Marketing Presence

For overseas market promotion, eligible activities include:

• Expos, Trade fairs and corporate events
• PR activities
• Marketing efforts like road shows and trade conferences
• Online marketing activities such as SEO optimization and online campaigns

Taking part in these trade fairs and online marketing activities ensures that the company has developed a marketing strategy for business development.

3. Overseas Trade Fairs

Participation in overseas trade fairs covers space rental and booth design, offering exposure and opportunities to connect with potential joint venture partners.

The cumulative effect of all three areas of market activities is to establish a strong presence of the company in its target markets.

How to Apply for the MRA Grant?

While the market readiness assistance MRA grant application process is straightforward and is easily done using a Singpass account through the Business Grants Portal, companies can also take the help of corporate service providers like InCorp for a hassle-free experience.

To apply for the grant, follow these three essential steps:

• Step 1: Get a registered Corppass Administrator for your company.
• Step 2: Access the Business Grants Portal using your Singpass account.
• Step 3: Submit the necessary documentation for the MRA Grant application.

Furthermore, you have to go through the following steps to complete the application, starting with:

• Requesting a cost quotation from a third-party professional for the qualifying activities.
• Applying no later than six months before the start of the project. Applications submitted after the project has started are not permitted.
• Ensuring that each project application does not exceed 12 months in duration.
• Take note that the current application window is open until March 31, 2025.
• Submit all documentation accurately and on time for a successful application.

Maximizing Your MRA Grant

Singapore companies trying to venture into international markets should engage with pre-approved vendors to make the most of the market readiness assistance grant, as it will streamline the process, especially for FTA and Trade Compliance Consultancy activities. Many businesses take the help of consultants to identify suitable vendors so that the application perfectly aligns with the MRA grant requirements.

Also, ensure that you apply for the market readiness assistance MRA grant well in time and don’t miss the 6-month time frame required for processing it so that the project doesn’t get delayed. Consultants can assist you in assessing the target overseas markets effectively, making sure you avoid pitfalls like entering multiple markets at the same time without any strategy.

Last but not least, ensure that all the project deliverables are fulfilled so that there isn’t any delay in claiming the MRA grant. All business activities should be completed as per the plan, which ascertains project completion, ultimately facilitating the approval of the grant.

Read Related: The Definitive Guide to Vietnam’s 17 Active Free Trade Agreements – FTAs

Common Pitfalls to Avoid

One significant aspect of getting a MRA grant is the common mistakes that everyone seems to make. The most common pitfall is not ensuring that the company’s group employment size and annual sales turnover criteria are fulfilled as per the requirements. Also, misaligning the project objectives with the grant’s requirements can lead to rejected applications.

Other common pitfalls that you need to avoid are not following the deadlines and submitting incomplete and inaccurate documents. While problems in documentation can either delay the grant approval or lead to complete rejection, missing deadlines automatically disqualify your application.

To ensure the application is successful, follow these steps diligently:

• Provide a comprehensive and well-structured proposal
• Include detailed financial projections and budget justifications
• Demonstrate the project’s viability and potential market impact

When all the guidelines are followed and everything is in order, the chances of grant approval are higher. However, you can’t apply for the MRA grant if you have already made payments for a project or started with the project. Retrospective applications are prohibited. So, ensure that you avoid these pitfalls for a successful grant application to expand into new markets.

How InCorp Consultants can Help?

Singapore-incorporated companies should maximize the benefits of the grant by collaborating with pre-approved vendors and consultancies for accurate and timely submission of applications, fulfilling all project deliverables. Consultants at InCorp Vietnam assist companies with the preparation of the required documents.

The expertise of our skilled and dedicated consultants ensures that the documentation is done correctly and all the necessary steps are fulfilled. They help in expediting the process, making way for quick approvals. 

Businesses should also take a cue from previous successful attempts in securing grants by other companies to avoid common pitfalls that can lead to disqualification and rejection of their applications. The MRA grant is a stepping stone for global success, which every eligible company should leverage.

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