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Government tightens application checks on ICV programme
To ensure applicants don’t abuse the ICV programme, the government has stepped up checks to ensure assistance is provided to SMEs that qualify.
SMEs can boost innovation with government grants
The Innovation and Capability Voucher (ICV) programme, run by SPRING Singapore, gives SMEs a boost towards raising productivity and growing their capabilities by providing grants for companies to engage consultants or implement solutions.
Companies can apply for up to eight vouchers for $5,000 each that will enable them to engage consultants to help develop innovation, productivity, HR development or financial-management solutions. Alternatively, SMEs can use the vouchers for productivity solutions such as buying equipment, renovating their premises or installing technical solutions.
Skylace Language School[1], for example, used an ICV voucher to conduct an overall business diagnosis and identify areas for improvement. The school then looked at implementing solutions such as software for streamlining existing processes and creating a centralised database for marketing.
Utilising grants in the right way
There have been allegations of companies submitting fraudulent applications in order to take advantage of the grants. After implementing stricter checks for the ICV program recently, SPRING found that some applicants have indeed been abusing the system.
ICV isn’t the only program that has had fraudulent applications. The Productivity & Innovation Credit (PIC) scheme, which provides grants for information technology and automation equipment, ran into the same problem. Since PIC was introduced in 2010, the Inland Revenue Authority of Singapore (IRAS) has probed 158 cases of people using fake documents or shell companies, or listing relatives and friends as staff, in order to qualify for the scheme. After investigating suspicious applications, IRAS recovered or blocked payments in 49 cases involving a total of almost $3 million.
After SPRING uncovered the fraudulent ICV applications, and learning from the PIC program, In an interview with Channel NewsAsia, Minister of State for Trade and Industry Teo Ser Luck said tighter controls will be introduced in the ICV application process so that the government can prevent fraudulent applications.
"I think it necessary to be fair to all the applications and in order to be fair to all the applications, you also want to make sure that our due diligence system is also tight and foolproof," he said.
ICV still offers excellent opportunities
For companies that have real needs and want some help, the ICV programme still offers great benefits. At a time when competition and labour constraints make business even more challenging, using grants to find ways to improve productivity and efficiency can provide real value. As long as their applications are accurate, SMEs have an excellent opportunity to boost productivity and increase their competitiveness.
ICV Criteria
All local SMEs can apply for ICV if they meet the following criteria:
- Registered and operating in Singapore
- Have a minimum of 30% local shareholding
- Have group annual turnover of not more than $100 million OR group employment size of not more than 200 employees
More Information
Apply online via the ICV portal