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3 Grants Singapore Retailers Should Apply For

Whether you’re a local start-up or large company every manager abides by a simple rule.

Maximise Profit and Minimise Cost.

One of the key ways many local businesses minimise cost today is to utilise the government grants that are available in the market.

If you’re a local retailer in Singapore, this is one of the key things your business should capitalise on.

Right now there are 10 different types of government grants that are available to startup, local companies, and partners.

But only three of these are useful to local retailers.

This article will serve as a simple guide that aims to educate local retailers on the grants available. 

Government Grants Available

Feel free to skip any of the grants section if you’ve already applied for it.

1. Productivity Solution Grant
2. Enterprise Development Grant
3. Market Readiness Assistance Grant

Productivity Solution Grant (PSG)

What is it?

PSG grant aims to support local companies that want to adopt IT solutions and equipment to enhance business processes

Eligibility?

1) The business entity must be registered in Singapore

2) Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore

3) Have a minimum of 30% local shareholding (for selected solutions only)

What support does it provide?

Up to 70% funding support, for companies making long-term technology investments

PSG is the most essential grant you should know about because retail is one of the main target sectors of the scheme.

They provide subsidies for a wide range of IT solutions and equipment that you can employ. 

(Here is a list of supportable solutions on Tech Depot.)

A great example of how a retailer can utilize PSG would be applying for the grant to purchase essential equipment such as point of sale (POS) systems.

Brands like EPOS now offer pre-approved PSG grants for POS systems that operate on a cloud-based system capable of linking multiple outlets together and can be managed through a single portal. 

Because it is no longer a simple cash register, prices can range up to S$ 6000.

However by utilizing the grant, you can save up to S$ 4,200 on the original cost.

Here’s the best part, the grant can be used multiple times on different equipment until it hits the accumulated grant cap of S$ 30,000.

More information on PSG can be found here.

Enterprise Development Grant (EDG)

What is it?

EDG grant aims to support local companies that want to adopt technology and innovative process or grow their online presence

Eligibility

1) The business entity must be registered in Singapore

2) At least 30% local shareholding 

3) Be in a financially viable position to start and complete the project
Applications will be assessed by Enterprise Singapore based on project scope, project outcomes, and competency of the service provider.

What support does it provide

It funds up to 70% of qualifying project costs namely third party consultancy fees, software and equipment, and internal manpower cost.

This grant aims to support businesses which wish to improve in three different aspects: 

1. Core Capabilities
The grant will support projects that want to improve the business foundation beyond the basic sales and accounting model.

2. Innovation and Productivity
The grant will support projects that seek to explore new areas of growth and look for new ways to increase efficiency in the business.

3. Market Access
The grant will support Singapore companies that are looking to venture overseas by providing funds to mitigate some of the cost of expanding to an overseas market.

What you should be looking at here are Innovation and Productivity. 

As a retailer, there are many ways new automation methods can help merge the business process into a simplified system.

A great example of how you can utilize this grant to benefit your business is to adopt the Augmented Demand Planning System (ADPS) by SIMTech. 

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The system helps to automate the process of demand forecasting, demand sensing and demand shaping of your goods to help align your customers and market requirements.

The typical cost of adopting such a system would be roughly S$ 25,000 but EDG can mitigate up to S$ 14,000 through funding, this leaves you paying only S$ 11,000 of the original cost. 

Here is a list of other tech solutions that can be adopted, although grant approval is subject to approval.

More information on EDG can be found here.

Market Readiness Assistance (MRA) Grant

What is it?

MRA grant aims to support local SMEs that plans to take their business overseas

Eligibility

1) The business entity must be registered in Singapore

2) At least 30% local shareholding 

3) Group annual turnover does not exceed over S$100 million per annum on most recent audit report or group employment does not exceed 200 employees

What support does it provide

It grants up to 70% of the eligible cost of eligible activities (see below) which is capped at S$ 20,000 per fiscal year

If you’re a local retailer that is looking to expand into the overseas market, you should apply for this grant.

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It provides financial assistance for a wide range of different overseas expansion activities from the market set up, business partners, market promotion to deliverables.

(Click here for a full list of grant eligible activity)

A great example of how to use this grant as a retailer would be applying for the grant when you participate in an overseas trade fair. 

Assuming the total cost to set up and participate in the event is S$ 9,000. 

The grant which covers third party cost for space rental, booth design and construction can cover up to S$ 6,300 (70%). This means you only have to pay S$ 2,700 of the original cost.

More information on MRA can be found here

Final Note

As a local retailer, you should at a minimum apply for PSG to purchase IT solutions or equipment that are essential to your business at a subsidized rate. 

Depending on which stage your business is at, you can look at automation and innovation solutions to simplify your business process and utilize EDG for financial assistance.

Finally, if you are looking to expand overseas, make use of the MRA grant to help significantly reduce the cost of overseas expansion.

Here’s even better news.

All three grants are not mutually exclusive, which means you can apply for all of them if they’re applicable for your business.

The above-mentioned grants can be applied via the Business Grant Portal (BGP).

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