Posted 7.04. 2021 by Cekindo
Market Readiness Assistance (MRA) is a government grant that supports Singapore’s SMEs (Small and Medium Enterprises) to expand operations into a new international market. It is aimed to act as a catalyst for SMEs to grab opportunities and access the international market.
As announced at the Budget 2021, the maximum support level of up to 80% will be extended for 6 months, until 31 March 2022, thereafter, support level of up to 70% will be extended until 31 Mar 2023. The MRA Grant will also be enhanced to include Trade Credit Insurance (TCI) as a supportable area under the overseas market set-up pillar to encourage firms to protect themselves against buyer defaults in new overseas markets with effect from 1 April 2021.
A business entity registered/incorporated in Singapore with at least 30% local shareholding, annual sales turnover of not more than S$100 Million and an Employment Size of not more than 200 workers, whose overseas sales does not exceed S$100,000 in each of the preceding three years is eligible to apply for the grant.
Companies that have previously benefited from MRA, but whose overseas sales for that market has not exceeded S$100,000, can continue to be supported during the enhancement period, however, companies that have used up the maximum S$100,000 support are not eligible.
Companies can apply to multiple new markets concurrently provided the new market criteria is met. Since the MRA grant encourages internationalisation, business activities within Singapore will not be eligible for support.
Overseas Marketing Promotion (Capped at S$20,000): This includes activities that include SMEs global marketing strategies. PR activities and marketing events including In-Store Promotions, Roadshows, Pop Up Store and Overseas Physical/Virtual trade Fairs. This aims to educate the new market about the enterprise’s products or services.
Overseas Business Development (Capped at S$50,000): This encapsulates activities that help SMEs define their market position. This includes business matching endeavors or setting up of an Overseas Market Presence. This also covers In-Market Business Development which aids in engaging a third-party outsourced BD provider to facilitate activities such as Product training, implementation of market entry activities, reviewing market entry strategies and developing new business leads.
Overseas Market Set-up (Capped at S$30,000): This includes activities pertaining to establishment of the business in the international scene. Advisory and Legal Documentation Services are largely included in this section. Appointment of such consultants largely helps a company to overcome the legal and technical challenges faced during incorporation of a new business internationally.
Companies can appoint consultants from Enterprise Singapore’s list of FTA consultants or can approach their preferred consultants to seek quotations. Companies can proceed to sign the contract with the third-party consultants after submitting the application via Business Grants Portal. Project commencement and completion dates must be in accordance to the project support period stipulated in the Business Grants Portal.
MRA Grant Applications should be made 6 months before the start of the project with the maximum support period for an approved activity under the MRA Grant being 12 months. The information required in the proposal from the third-party consultant/vendor includes but is not limited to:
Setting up an enterprise overseas can be a daunting task. Cekindo’s consultants help overcome the hurdles faced during international incorporation and eases the process of overseas company registration.
Cekindo provides professional assistance in the application for such grants and mitigates the challenges faced in international company registration. To know more about how Cekindo’s solutions can help you register your company in Vietnam, please fill out the form below or talk to an expert on our chatbot.