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Grants and schemes: Financial leg-up for SMEs

 
 
Latest government grants and assistance schemes help SMEs grow their business, automate, attract talents in a tight labour market with increasingly stiff competition.
 

Often time-poor and with limited resources, SMEs could use a little financial help to grow their business, enhance their Search Engine Optimisation (SEO) for greater web traffic, increase automation, and attract and retain talents.

Here’s an overview of what’s available.

Enhanced iSPRINT

The result of the merger of the $500-million Productivity and Growth (IPG) Programme with the well-established iSPRINT scheme, iSPRINT allows businesses to apply for incentives of both schemes through just one integrated programme.

Valuable additional features include:
  • Up to 70 per cent funding for sector-specific solutions to automate various business processes and increase productivity.
  • Two years of support, disbursed directly to the vendor, for subscription-based solutions.
  • Up to 80 per cent of funding needed, with a cap of $1 million per SME, for those partnering tech firms to develop original, scalable ICT solutions.
  • Subsidies to get access to high-speed connectivity.
Wage Credit Scheme (WCS)
Running from 2013 to 2015, this government scheme co-funds 40 per cent of the wage increases for Singaporean employees earning up to a gross monthly wage of S$4,000. No application is required and funds are automatically paid to qualifying companies. However, the employee must:
  • Be a Singapore citizen, who has worked at least three months the previous year.
  • Earn a gross monthly wage of up to and including S$4,000.
  • Have paid the employee CPF contribution for at least three months in the calendar year.
  • Have had a gross monthly wage increase of at least S$50 the previous year.

Government-related entities and entities not registered in Singapore are excluded.

Expanded Innovation & Capability Voucher (ICV) Programme

The scope of the $42-million ICV programme now supports implementation of solutions for innovation, productivity, human resources development, and financial management.

SMEs can apply for a maximum of two $5,000-vouchers for consultancy, and a maximum of another two for the adoption and implementation of mandated solutions from the categories of equipment & hardware, technical solutions, professional services and design & renovation.

To find out more about the ICV (including areas which you can utilise the ICV) and to apply, visit the SPRING website.

Extended Productivity & Innovation Credit (PIC) scheme

Extended by three years to 2018 at a cost of $3.6 billion to the government, this popular scheme allows SMEs to enjoy 400% tax deduction/allowances (to 2015) and/or 40% cash payout for investments in productivity and innovation improvements in six qualifying areas.

SMEs can claim up to 400% tax deductions on up to $400,000 of their expenditure on qualifying activities. They can convert up to S$100,000 of their expenditure in the qualifying areas into a non-taxable payout at a rate of 40% of expenditure.

There is also the PIC Bonus on top of the tax deduction or cashback, which gives businesses a dollar-for-dollar matching cash bonus, capped at $15,000, for the period 2013 to 2015.

The PIC+ scheme

This assists firms making substantial investments to transform their businesses. It raises the expenditure cap of the current PIC scheme to $600,000 from year of assessment 2015.

Technology Adoption Programme (TAP)
Not strictly a financial assistance scheme, A*STAR’s TAP helps SMEs tap the right technology to enhance productivity, increase efficiency, and gain a competitive edge for their business. Innovation and technology are key differentiators for SMEs. TAP helps them by:
  • Identifying productivity opportunities.
  • Advising them on relevant technology and matching them with available technology solutions.
  • Identifying a technology developer if a solution is not readily available.
  • Working with them on technology implementation and scale-up.

Where solutions are not available or suitable, A*STAR’s technology intermediaries will identify suitable technology developers and help deploy the solution with the company.

TAP provides neutral and unbiased advice that ensures an SME is matched with the right technology intermediary. The intermediary’s role does not stop with technology identification, but continues to the pilot technology and the productivity outcome stages. Training is also provided as required. TAP services are free.

Businesses can get in touch with A*STAR by either calling (65) 6825 6108 or emailing A-STAR_TAP@a-star.edu.sg.