All You Need To Know About EDG Grant Singapore

find out about edg grant singapore

 

Every Singaporean business/company yearns to break into the global front. With a government grant (such as the EDG), a company not only stamps authority as a global powerhouse, but also attains big-league status to start competing on an international front.

What is the Enterprise Development Grant?

The Enterprise Development Grant (EDG) is an Enterprise Singapore grant that empowers Singaporean in their quest to develop and evolve. The grant seeks to support specific projects that upgrade your business, inject innovations, and catapults your company into the global market.

EDG moulded out of the Global Company Partnership and Capability Development Grant In 2018The rationalised EDG model offers universal eligibility principles, bidding platform, and support level, thereby reducing mix-ups for companies.

The core mission behind this grant is to provide a holistic approach to companies wishing to develop deep capabilities when scaling locally and internationally.

What does EDG support?

In the process of offering capacity to different businesses, EDG supports them in three distinct areas. They are:

1. Core Capabilities

Supporting the Core Capabilities of your company endows you with the capacity to acclimatise to amplified growth levels and transformation. This covers five aspects.

Business Strategy Development

The objectives here point to the advancement and reconfiguration of current business strategies.

  • Crafting new strategies that incubate more opportunities and cutting Edge competitiveness
  • Improving research and development operations
  • Enhancement of management systems in tandem with the Business Excellence Framework to attain “Singapore Quality Class” certification

Financial Management

The objectives seek to streamline financial management strategies.

  • Creation of proven strategies that boost investments
  • Risk exposure analysis and application of the risk management process

Human Capital Development

The goal here is to buffer the human resource team

  • Restructure HR management and staffing
  • Compensation and benefits
  • Support employee skills training and development

Service Excellence

The objective is to polish customer service

  • Explore customer needs and decision-making process
  • Implementation of service delivery strategies to elevate the customer experience

Strategic Brand and Marketing Development

The goal of support here is to amplify company branding and marketing through the segmentation of products and services

  • Creation of compelling brand strategy hinged on unique selling propositions to attract consumers
  • Advancement of marketing and communications plan

Innovation and Productivity

Supporting the innovation and productivity pillar centres around analysing and enhancing workflow to bolster efficiency. It can be a business automating their processes through new technology.

Automation

The goal here is to transit operations towards the automation and use of technology.

  • Developing integrated hardware and software applications
  • Personnel training to implement smart

Process Redesign

The goal is to take stock and reprogram the current workflow process before automating them.

  • Studying the absorption of technology for process automation
  • Setting timelines to guide the way forward when automating

Product Development

Objective: To innovate technology applications for commercial use.

  • To assess market viability
  • To initiate small batch prototype production
  • To conceptualise commercialisation plans

Market Access

Market Access support motivates businesses to break into the global scene. It encourages enterprises to widen their reach and bolster their potential internationally. Here, EDG covers:

Mergers and acquisitions (M&A)

The goal is to anticipate and evaluate the impact of the proposed M&A

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  • Developing and applying M&A procedures
  • Evaluation of intended target for acquisition in financial and legal field etc.
  • Crafting change management strategies to facilitate a smooth integration

Overseas Marketing Presence (OMP)

Objective: To optimise OMP to attain optimum business growth.

Pilot Project and Test-Bedding

The goal is to establish product feasibility for rapid international growth and penetration.

  • EDG caters to costs associated with sample production to prove product efficacy and usability

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Standards Adoption

The support aims at the achievement of globally recognised standards and certifications.

NB: It doesn’t cater to basic standards, e.g., OHSAS 18001, ISO 9001, ISO 45001 and ISO 14001.

What Does the EDG Support?

EDG facilitates costs for qualified projects in different areas. It caters to the costs of hiring third party consultancy services, internal staffing, hardware, and software costs.

Enterprise Development Grant funds up to 70%for SMEs and 50% for non-SMEs. However, the amounts depend on the specific project category and requisite eligibility T&Cs.

According to Singapore’s Supplementary Budget 2020, the grant will offer support at 80% starting April 2020 to December 2020.

Businesses whose operations have been devastated by the COVID-19 pandemic qualify for 90% support levels depending on individual situations.

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Who Can Apply?

Singaporean businesses with a solid financial background are eligible to apply. There are other requisites, including:

  • The company should be registered and operational in Singapore.
  • Have a minimum of 30% local shareholding
  • Be financially capable of initiating and completing the proposed project
  • Business with a new project that isn’t generating income can qualify too

Applications are handled and reviewed by Enterprise Singapore based on the project scope, projected results, and the competency of the agents you appoint.

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Enterprise Development Grant Pre-Application Process

Before you apply for EDG funds, consider several factors that determine success. Check whether your business qualifies for the grant. You need to identify the project category, i.e., Core Capabilities, Innovative Productivity, or Market Access.

Consider getting advice from SME centres and qualified management consultants affiliated to enterprise Singapore. Certified consultants have the expertise and proficiency to angle your application in the right way.

Indeed, EDG exclusively supports new projects that are not generating income by the time they apply. If your company has entered into a contract and engaged suppliers, it doesn’t meet application criteria.

Prepare the project proposal

This phase requires you to provide crucial business information. You can use pre-made project templates to give details regarding the following.

  1. Latest ACRA profile- dated less than six months from the date of the grant application. It should include the names of corporate shareholders and parent companies.
  2. Latest audited financial statement-not earlier than 12 months from the date of the project application. Provide the consolidated financial statement of the parent company.
  3. Significant proof of quotation of project items that you need. If they are consultancy services, provide the consultant’s proposal detailing the nature of work, manpower cost per day, consultant’s credentials, and certificates.

To apply formally, you can log in to the Business Grants Portal using your CorpPass. Before you submit your proposal, ensure that you have accurate details. A credible consultant will guide you if you don’t have a CorpPass account, check CorpPass Guide for sign up assistance.

Applicants are required to submit figures in several areas after the implementation. These are:

  • Company revenue
  • Staff remuneration
  • Depreciation
  • Net operating profit before tax for three years
  • Impact on the community and employees- How they benefit from the project by way of better wages, job opportunities, training, and job description redesigning.

How Long Does the Application to Approval Process Take?

After submitting your project proposal, you will wait at least 8 to 10 weeks for the application to be processed. The Business Grants Portal provides updates and clarifications.

If you qualify, your company will receive a Letter of Offer (LOF). This letter stipulates the grant amount awarded. You need to acknowledge receipt and accept the terms and conditions of the LOF to avoid grant invalidation.

Enterprise Development Grant Frequently Asked Questions

  1. Can projects with local and overseas project interests get EDG support?
  2. Yes. The Enterprise Development Grant offers support to Singapore based companies as well as business that go international.
  3. Is it advisable to start a project before applying for EDG support?
  4. Project support is offered on or after the project commencement date that you specified in your grant application once you submit it to enterprise Singapore. Grant approval lies solely with Enterprise Singapore.
  5. How long does it take to know the outcome of my EDG application?
  6. After you submit your proposal, enterprise Singapore takes between 8 and 10 weeks. If your proposal contains inaccurate, vague, or incorrect details in the documentation, the process can take much longer.
  7. Who is my ideal contact person if I require help when compiling my EDG project proposal?
  8. The best resource person or expert, is a certified management consultant. Experts affiliated to enterprise Singapore can help you pitch your proposal according to your needs and project scope.
  9. Is there a limited number of times that I can apply for the EDG grant?
  10. No, you’re not restricted from applying. You can apply as many times, and you can liaise with management consultants continuously. You only need to complete one project before embarking on another.
  11. Will I get notified that enterprise Singapore has received my proposal?
  12. when you submit your proposal, you get an automated pop-up that your bid has been sent. Equally, Enterprise Singapore sends acknowledgement emails upon receiving your proposal.
  13. What is the average duration for an EDG project?
  14. An Enterprise Development Grant funded project can take varying timelines to complete. It depends on the nature of your project. Most projects take between 12and 18 months.
  15. How can I track the progress of my EDG grant application?
  16. It’s possible to follow up on the progress of your application. You need to log into the Business Grant Portal> go to>current projects. Enterprise Singapore will send you an email detailing the progress within 6-8 weeks after submission.
  17. Is it possible to make amendments to my EDG grant application after I have submitted it?
  18. No. after submitting your Enterprise Development grant application, it’s not possible to make amendments. If you submit an incomplete proposal, enterprise Singapore agents will request you to provide the missing information or correct anomalies in your bid before re-submission.
  19. What does “Be in a financially viable position to start and complete the project” mean?
  20. To qualify and get a project approved by enterprise Singapore, a business needs to demonstrate that they have the financial muscle-3 years audited accounts to initiate, execute and achieve what they have stipulated in their proposal.

EDG Claims Process

EDG projects are facilitated through a reimbursement model. After the deliverables are achieved, a business can make claims. The claims should be submitted to the Enterprise Singapore no more than six months from the last date of the project qualifying phase.

There are steps a business needs to follow.

Step 1: Refer to Letter of Offer

Critical areas for reference in the Letter of Offer include:

  • Project Qualifying Period
  • Project Deliverables

This means that a project needs to be completed within the stipulated period and the deliverables should be met.

Step 2: Documents Preparation

A business needs to prepare required documents for claims submission. The claims submission checklist offers guidance.

First-time claimants need to fill out a GIRO form and send it to the email specified.

If you previously provided similar information to the ESG, you don’t need to alter GIRO details.

Deliverables Documentation should include:

  • Project Summary report-(Project Summary template are available
  • Documentation of deliverables should indicate consultant reports or photos of equipment
  • Documented cost particulars and items. E.g., employment contracts, invoices, and bank statements

Step 3: Involves the submission of Claims to ESGP and nominated auditors.

To submit claims, you need to log onto Enterprise Singapore Grant Portal> Go To> Claims Submission. If you’re stuck, check out the Step-by-Step guide claims guide or refer to the Enterprise Singapore Grant Portal FAQ section for assistance.

After login in, you need to upload the project summary report and project deliverables documentation in the Project Information’ tab.

Select Auditors

When running the ESGP Claim application, you need to pick an auditor on Enterprise Singapore’s Pre-Qualified Panel. Unless Enterprise Singapore exempts your business, it’s mandatory to select an auditor to verify your claim.

You need to upload the cost-particular items as bank statements or invoices entered as Claims Submission documents on the ‘Claim Information’ tab.

After fulfilling these steps, you can submit your application. You’ll get a claim’s application code that you need to note for future reference.

What happens after submitting your claims?

After submission, Enterprise Singapore agents confirm whether the project deliverables have been achieved. They can contact you if they need to verify other details.

Verification can be done through site visits or presentation forums. Also, the agency can request a review of the project report if you omitted crucial information. You can avoid such hiccups by appointing an auditor.

If successful, the approved claim amount is disbursed through GIPO to your appointed bank account. Approval is subject to the verification of project deliverables and indicated costs.

NB: First-time applicants need to set up their GIRO account and provide accurate details to Enterprise Singapore for smooth disbursement.

You will be notified via email that the claims have been approved and disbursed.

How Can You Improve Your Chances of a Successful EDG Application?

Provide Accurate Information and Facts

Grants are state resources. The authorities treat the process judiciously and diligently. If you expect to be approved, provide all the factual information and accurate details when writing and submitting your project proposal. If you conceal the truth, relevant authorities will uncover falsified information.

Demonstrate Positive Business Effects to the Singaporean Economy

Your chances of succeeding will increase if you demonstrate that your business will, indeed, contribute positively to the growth of the country’s economy. Enterprise Singapore, in its quest to shortlist companies, evaluates the projects whose impacts are likely to assist the agency in empowering business while improving the standards of living.

You need the insights of an expert to help you demonstrate that your new business idea is innovative enough to propel change in Singapore’s socio-economic sector. A creative business can explain how the new project can generate more opportunities, income, and jobs.

Applying for the EDG through the Business Grant Portal

The Business Grants Portal (BGP) is a government-run one-stop portal that enables businesses to apply for sector-specific business grants without having to contact different agencies.

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Since its inception in 2017, the BGP portal makes it easy for Singaporean businesses to apply to available grants like EDG in a few clicks.

Top Features of the BGP Business Grants Portal

Streamlined Application Forms and Resources

Businesses wishing to apply for the Enterprise Development grant can leverage relevant forms and information need in the application process.

Direct Applications to Relevant Agencies

If you’re stuck with an EDG application, the BGP platform is designed to help you wizard the application seamlessly. The portal’s design help to route your application to the relevant agency based on what you feed it. Your EDG grant application is easily channelled to the enterprise Singapore portal efficiently.

Provides Company-Related Information

When you use the BGP portal to apply for an EDG grant, the system can extract requisite information from the ACCRA database. It relies on the Unique Entity Number to fetch accurate company data.

Grants Available on the BGP Portal

Other than the Enterprise Development Grant, businesses can apply for the

Market Readiness Assistance, Productivity Solutions Grant and Singapore Tourism Board’s Business Improvement Fund.

Steps to Applying for a Grant on the BGP Website

Step 1

Identify the right grant, such as the EDG and answer a few questions.

Step 2

Apply for grants

This requires you to fill out forms virtually. The system will direct your application to the relevant dispensing agency

Step 3

Manage your grants

At this point, you can see your applications, their status, and the agencies processing them.

Step 4

Preview and receive grants

At this point, you can receive a Letter of Offer that indicates that your application is successful.

Why Apply for the Enterprise Development Grant through the Business Grant Portal

Seamless End-To-End Grant Process

Previously, applicants looking for the EDG grant would send submissions that would be rejected or approved. Today, BGP has evolved technologically.

Applicants benefit from a streamlined post-application process. It’s easy to amend proposals and claim reimbursement seamlessly. Businesses don’t have to make these changes using conventional means.

Efficient Chatbot feature

Currently, the BGP portal offers a real-time response to applicants. The Chatbot powered virtual assistance on-site readily answers any query about the EDG grant application procedure if you’re stuck. The feature strikes out the need to respond to applicants using email

Takeaway Points

  • If you’re trying to apply for the Capability Development Grant or the Global Company Partnership grant via the BGP portal, it’s not possible since EDG replaced these grants in 2018
  • Enterprise Singapore facilitates the EDG grant under the auspices of the Ministry of Trade and Industry. Enterprise Singapore acts as a statutory body arising from the International Enterprise Singapore and SPRING merger.
  • Enterprise Singapore accredited management consultants handle projects under EDG. They hold Consultant Quality Initiative certification from Enterprise Singapore.

How Enterprise Development Grant Assists Business Strategy Development

The Business Strategy Development is one of the scopes that EDG covers under the Core Capabilities pillar. It enables Singaporean companies to re-align business strategies.

This component of the EDG helps companies improve their business strategies.

Who Does It Benefit?

It supports Small and Medium Enterprises covering up to 70% of the qualified costs. For Non-SMEs, it covers 50% of qualified costs.

Costs covered include:

  • Third-party consultancy services
  • Hardware and Software costs
  • Internal manpower costs

Eligibility

  • Singaporean SMEs with business strategy needs
  • Requirements
  • Registered businesses operating in Singapore
  • At least 30% local shareholding.
  • Demonstrate the financial capacity to start and finish the project
  • Engage Enterprise Singapore certified management consultants

Proposed projects should address:

  • Improvement of management systems/process centred on the Business Excellence framework benchmarks
  • Crafting of business development strategies to leverage opportunities and bolster competitiveness
  • Assessment of international tariffs and trade agreements impacts and drafting growth strategies for optimum business excellence
  • Creating new policies to safeguard intellectual property

What Enterprise Development Grant Covers under Overseas Marketing Presence (OMP)

Overseas Marketing Presence is a crucial component covered by the EDG under the market access pillar. It assists Singaporean companies to establish their global presence. It helps to incubate and launch business development activities overseas.

Who Does It Benefit?

It supports Small and Medium Enterprises with 70% of qualified costs. It offers Non-SMEs 50% for qualified costs

Eligibility

Singaporean SMEs with international expansion plans

Requirements

  • Businesses registered and operating in Singapore
  • 30% local shareholding-minimum
  • Financial viability to start and complete the project
  • Work with Enterprise Singapore certified management consultant if you need consultancy-related support

The Proposed Project Should Cover:

  • Marketing and business development

The company should not have sales exceeding S$100,000 in that city over the last three years.

The company should designate a Singaporean or Permanent Resident to oversee marketing or business expansion activities.

Costs covered include:

  • Salaries for two development employees {a Singaporean or Permanent)
  • Rent in a specified city

NB: Qualifying projects get grants capped at S$100,000.

Support doesn’t exceed 12 months.

How Enterprise Development Grant Supports Process Redesign

Process Redesign is a core area covered by the EDG under the innovation and productivity pillar. This concept enables Singaporean businesses to review redundancies and bolster process efficiency.

Process reengineering on touches areas such as digitisation, restructuring workflow processes, or resource management optimisation. It enables a business to internationalise with a “hit the ground running” mentality.

Who benefits?

Singaporean SMEs enjoy 50% for qualified software and equipment costs and 70% support for other qualified costs.

Non-SMEs enjoy 30% for qualified software and equipment costs and 50% for other qualified costs.

Eligibility

Singaporean SMEs with international expansion plans

Requirements

  • Businesses registered and operating in Singapore
  • 30% local shareholding-minimum
  • Proven financial capability to start and complete the project
  • Liaison with Enterprise Singapore certified management consultant(s) for consultancy-related support

Supportable Activities

  • Appraisal of existing business processes
  • Diagnosis of redundant processes and development of tracking systems to assess productivity
  • Assimilation and implementation of automation strategies to streamline business processes
  • Exploration of future technology to optimise automation
  • Creation of a comprehensive redesign roadmap for future improvement

NB: In the process redesign context, EDG doesn’t support costs associated with business set up, irrelevant software /equipment or items subsidised by other grants.

Ways Your Business Can Benefit from ESG Grants

Singapore is entrepreneurship hub for Southeast Asia.

The government is committed to providing favourable business grants for local SMEs with a vision for internationalization, innovation, and progressive productivity.

If your local business aspires to expand into a promising global market, here’s how some of the grants can assist you.

Enterprise Development Grant

The Enterprise Development Grant supports business innovation and productivity growth. The grant is extended to small and established companies that want a share of specified global market segments.

SMEs are likely to shy off the idea of going international given the steep expansion overheads. The Singaporean government remains committed to helping these businesses to grow at the local and international level.

The EDG grant is a highly recommended option given the ease of application and its reputation, having assisted numerous companies in soaring to international entrepreneurial levels.

Government Funding Improves Project Outcomes

With a grant like the EDG, a business can significantly improve proposed project outcomes. A company that utilizes the EDG fund can strategically expand, develop its management strategies and reap higher returns.

When approved, this grant can assist SMEs to expand project scope locally and overseas. In Singapore, government grants don’t necessarily go into new activities, but they can be used to restructure workflow or overall project reengineering.

How Singapore Businesses Can Benefit from EDG Funding

New Markets and Sales Strategies: When used optimally, the EDG grant can support critical areas, namely core capabilities, innovation and productivity and market access. Upcoming and established companies can leverage the grant to develop new market and sales strategies.

New Technology: SMEs struggling with efficiency bottlenecks can capitalize on EDG to acquire new technology, innovative equipment to deliver new capabilities and drive output.

Train Staff: Other companies can leverage EDG to train their staff. With new skill in the workplace, it becomes easy to boost productivity and the standard of living for employees.

Research and Development: Additionally, a business can use EDG funds for research and development. With innovative products that enrich consumer experiences, a small company can find footing on the global market.

Where Can I Find These Grants?

In Singapore, access to government grants isn’t elusive. You need to liaise with SME centres or Enterprise Singapore appointed management consultants. The agency can disseminate crucial information regarding the availability application and approval process involved.

Other Grants That Boost the Growth of Singaporean Businesses Internationally

The Singaporean government offers an arsenal of business grants to thrust local SMEs and non-SMEs into the global limelight.

Different authorities and agencies provide these grants to support the expansion and give upcoming companies a soft landing once they hit the global business runway. Other than the EDG grant, Here are additional grants to note.

Market Readiness Assistance (MRA) Grant

Outline: This grant is offered to businesses incorporated in Singapore. It provides support in their quest to expand globally

Dispensing Authority

IE Singapore

Benefits

The MRA grant provides support of up to 70% of eligible costs. It has a funding cap of S$20,000 per business.

Qualifying costs include third-party costs for marketing activities, advertising, market research, event promotion, and market feasibility.

Check out this link for additional information.

Mergers and Acquisitions (M&A) Scheme

Outline: This scheme fosters a culture of M&A between companies. It encourages rapid growth through these acquisitions. It targets Singaporean SMEs.

Dispensing Authority

EDB Singapore

Benefits

EDB grants businesses looking to buy shares in a targeted corporation several benefits, including:

A Mergers and Acquisitions allowance calculated on the gross total of the shares to be acquired in the target company.

Stamp Duty relief

Double Tax Deduction relief

(DTD) on the transaction cost.

The Singaporean government reviews these allowances, DTD, and stamp duty regularly.

Additional information here

International Growth Scheme (IGS)

Outline: This scheme seeks to promote the expansion of business incorporated in Singapore. Its objective is to support local companies to excel in the overseas front while operating locally

Dispensing Authority

IE Singapore

Benefits

It offers a concessionary tax rate of 10% for five years on the qualifying incremental income. This applies to qualified activities such as core business services and activities, manufacturing, engineering, and technical and professional services.

Regional & International Headquarters Awards

Outline: The scheme’s main objective is to incentivize corporations to migrate their regional or international headquarters to Singapore.

Dispensing Authority

EDB Singapore

Benefits

Regional Headquarters Award offers a concessionary corporate tax rate of 15%.

The International Headquarters Award offers a concessionary corporate tax rate of 5 to 10%.

The tax rate is based on incremental income generated from qualifying activities. The schemes offer relief of 5-7% compared to the17% applicable corporate tax rate in Singapore.

If you wish to tap on government grants please call 6789 9852 ext “0” to get consultancy straight away!

Author Bio

Tom Koh is widely recognised as a leading SEO consultant in Asia who has worked to transform the online visibility of the leading organisations such as SingTel, Capitaland, Maybank, P&G, WWF, etc. Recently he was instrumental in consulting for a New York-based US$30B fund in an US$4Bn acquisition. Tom is a Computational Science graduate of the National University of Singapore. In his free time he performs pro-bono community work and traveling.
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March 30, 2020

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