In the modern interconnected global economy, small and medium-sized enterprises (SMEs) are pivotal in driving economic growth and fostering innovation. Recognizing their significance within Singapore’s business landscape, the Market Readiness Assistance (MRA) grant has emerged as an invaluable resource for SMEs seeking international expansion. Initially, the grant offered financial support covering up to 70% of market expansion costs, capped at S$100,000, with an extension announced in the 2021 Singapore Budget until March 31, 2023.
This discussion delves into the essential aspects of the MRA grant, highlighting its key features, eligibility criteria, and application process. Additionally, it showcases compelling case studies of businesses that have successfully ventured into the Vietnamese market with the aid of the MRA grant. These examples illustrate the practical benefits and opportunities the grant provides to SMEs aspiring for international growth.
By leveraging the MRA grant, Singaporean SMEs can effectively navigate the complexities of entering new markets, transforming challenges into growth opportunities and making ambitious visions a reality.
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MRA Grant in Vietnam
The MRA grant is designed to propel SMEs toward international growth by providing essential financial support. As of July 2023, the grant covers up to 50% of eligible expenses, with a maximum of S$100,000 for each new target market. The funding is allocated across three primary categories:
- Overseas Marketing and PR (up to S$20,000): This category aims to boost brand visibility through marketing campaigns, participation in trade fairs, and strategic public relations efforts.
- Overseas Business Development (up to S$50,000): This supports activities such as business matching, establishing a marketing presence, and crafting market entry strategies.
- Overseas Market Setup (up to S$30,000): This includes assistance with legal, tax, and licensing issues, as well as the formation of a subsidiary entity.
By focusing on these critical areas, the MRA grant helps SMEs establish a robust foundation for successful international expansion, making it an invaluable resource for companies looking to enter new markets, including Vietnam.
Download the full infographic about Singapore’s MRA Grant – Market Expansion into Vietnam here!
Navigating Eligibility and Getting Started with the MRA Grant
To qualify for the MRA grant, businesses must satisfy the following requirements:
- The business must be registered and operating in Singapore.
- At least 30% of the company’s equity must be held by Singapore citizens and/or permanent residents.
- The company must be targeting a new overseas market for expansion.
- Annual sales in the target market must have been less than S$100,000 for each of the last three years.
- The group’s annual sales turnover should not exceed S$100 million, or the group should have fewer than 200 employees.
Meeting these criteria allows businesses to utilize the MRA grant to support their expansion into international markets.
How to Apply for an MRA Grant in Vietnam
The application process is listed below:
- Identify the Target Overseas Country: Ensure that your annual sales in the target market have not exceeded S$100,000 in any of the past three years.
- Select Eligible Activities:
- Overseas Market Promotion
- Overseas Business Development
- Overseas Market Set-up
- Prepare Documents: Consult the MRA application checklist to gather all necessary documents and information required for the grant application.
- Apply for the MRA Grant: Submit your application on the Business Grants Portal (BGP) or through a corporate service provider. This involves creating a Corppass account, following the provided guide for setup, and using the Corppass account to transact on the BGP portal.
After applying, the next steps are as follows:
- Receive the Letter of Offer: If your grant application is approved, you will receive an offer letter with details including:
- Conditions of support
- Grant amount awarded
- Project qualifying period
- Make sure to review and accept the offer within the specified timeframe.
- Submit Claims: Upon project completion, engage an auditor from Enterprise SG’s Pre-Qualified Panel and submit your claim through the Business Grants Portal (BGP) by the deadline indicated in your Letter of Offer. You can check your application status on the portal.
- Receive Disbursement: Notification of grant approval will be sent via email. Approved amounts will be disbursed via GIRO to the designated bank account within 6-8 weeks.
Latest Changes to the MRA Grant for Singaporean Investors
As of 2024, several significant updates have been made to the Market Readiness Assistance (MRA) grant to better support Singaporean SMEs in their international ventures:
- Increased Grant Cap: The maximum grant amount has been raised from S$70,000 to S$100,000 per new target market. This increase allows companies to access more substantial financial support for their expansion efforts.
- Extended Grant Duration: The enhanced MRA grant has been extended and will now be available until March 31, 2025. This extension provides SMEs with a longer timeframe to plan and execute their international market entry strategies.
- Adjusted Support Level: The level of financial support provided by the grant has been adjusted from covering 70% of eligible costs to covering 50%. While the percentage of support has decreased, the overall cap has increased, offering a balanced approach to funding.
- Longer Grant Period: The grant period has been extended from the previous 12 months to 18 months. This extension allows companies more time to complete their projects and achieve their market expansion goals.
- Relaxed Eligibility Criteria: The criteria for eligibility have been relaxed, allowing companies with an existing overseas presence or overseas sales to apply for MRA support. This change broadens the scope of the grant, enabling more businesses to benefit from it as they look to strengthen and expand their international operations.
These updates reflect Enterprise Singapore’s commitment to providing more flexible and robust support for SMEs as they navigate the challenges and opportunities of global markets.
Read More: 9 Reasons Why Singaporean Businesses Should Invest in Vietnam Now
Real Success Stories: MRA Grant in Action
Case Study 1: Milieu’s Expansion into Vietnam
Milieu, a platform specializing in opinion-based insights, aimed to extend its presence into the Vietnamese market. However, this endeavor posed typical challenges of entering new territory. To facilitate the expansion, Milieu leveraged the MRA grant and collaborated with strategic partners. Recognizing the potential benefits, Milieu partnered with InCorp Vietnam to navigate the unfamiliar landscape. InCorp Vietnam assisted with Milieu’s subsidiary registration and provided essential BPO services like HR payroll and accounting. This collaboration resulted in a smooth, low-risk entry into Vietnam. The MRA grant alleviated financial pressures, facilitating Milieu’s successful market penetration.
Case Study 2: CargoSavvy’s Expansion into Vietnam
CargoSavvy, a logistics solutions provider with decades of experience, aimed to expand into Vietnam. However, the unfamiliar legal and business environment presented challenges. Anticipating these hurdles, CargoSavvy sought guidance from InCorp Vietnam, a professional consulting firm. Recognizing the value of the MRA grant, InCorp Vietnam provided comprehensive consultation services and facilitated the incorporation of a wholly foreign-owned entity. The strategic establishment of CargoSavvy Vietnam, with necessary licenses, was achieved. InCorp Vietnam’s expertise and the MRA grant support were pivotal. InCorp Vietnam continued to assist with accounting, tax reporting, and HR payroll, leading to a partnership with CargoSavvy in Vietnam.
Concluding Thoughts: Embracing Global Opportunities
The Market Readiness Assistance (MRA) grant serves as a vital support system for Singaporean SMEs aspiring to expand their reach into Vietnam and other international markets. By offering substantial financial incentives and a well-structured approach, the MRA grant enables these enterprises to confidently navigate the intricate challenges of entering new global territories.
The success stories of Milieu and CargoSavvy underscore the significant impact of the MRA grant. These narratives vividly demonstrate how the grant can transform potential obstacles into opportunities and ambitious visions into tangible realities. For Milieu, the grant facilitated a smooth, low-risk entry into Vietnam, allowing them to establish a robust presence with the support of strategic partners. Similarly, for CargoSavvy, the grant’s support was instrumental in overcoming the complex legal and business landscape of Vietnam, ultimately enabling them to establish a wholly foreign-owned subsidiary with all the necessary logistics licenses.
Additionally, the MRA grant has benefited many other SMEs, as evidenced by the comprehensive list of SMEs in Singapore that have successfully leveraged this support to internationalize their operations. This list includes diverse companies across various sectors, all of which have capitalized on the grant’s financial and strategic advantages.
As Singaporean SMEs continue to seek new horizons and expand their global footprint, the MRA grant remains an indispensable ally. It not only eases the financial burden associated with international expansion but also provides a framework for strategic planning and execution. This combination of financial support and strategic guidance is crucial for SMEs to thrive in competitive global markets.
In conclusion, the MRA grant stands as a cornerstone of support for Singaporean SMEs on their journey to international success. It empowers businesses to seize global opportunities, transforming the complexities of foreign markets into avenues for growth and innovation. As these enterprises venture into new territories, the MRA grant will continue to guide and support them, ensuring that their aspirations for international success are realized.
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