Unlocking International Markets: How the MRA Grant Can Propel Your Business Expansion

Singapore’s favourable business environment, supported by a range of government grants and incentives, has made it an attractive destination for both local entrepreneurs and foreign investors. Among these incentives,?the Market Readiness Assistance (MRA)?grant stands out as a significant initiative aimed at helping Singaporean SMEs expand their operations beyond domestic borders.

We understand the complexities of navigating such government schemes. To assist small and medium-sized enterprises (SMEs) in leveraging the MRA grant, we’ve compiled a detailed overview that addresses the most common questions and concerns.

What is the MRA Grant?

The MRA grant is a strategic initiative by Enterprise Singapore (ESG) designed to support local SMEs in their efforts to internationalise. It provides financial assistance to companies that are ready to explore new markets, covering a significant portion of the costs associated with establishing an overseas presence.

Eligible companies can receive up to 70% funding for qualifying expenses, with a maximum grant of S$100,000 per new market. This funding enables businesses to explore multiple international markets simultaneously, making it a valuable resource for ambitious SMEs.

Eligibility Criteria for the MRA Grant

To qualify for the MRA grant, your business must meet the following criteria:

• Singapore-Based Operations: Your company must be legally incorporated in Singapore and actively conducting business here.
• New Market Entry: The business should not have exceeded S$100,000 in annual overseas sales for the past three years in the target market.
• Local Ownership: At least 30% of your company’s shares must be locally owned.
• Business Size: Your group’s annual sales turnover should not exceed S$100 million, or you must have fewer than 200 employees.

Key Benefits of the MRA Grant

The MRA grant provides substantial financial support to SMEs, helping them manage the costs associated with international expansion. Here’s how it can benefit your business:

1. Market Promotion: Funding of up to S$20,000 is available for activities that promote your products or services in new markets.
2. Business Development: Receive up to S$50,000 to identify and engage with potential business partners, agents, and distributors overseas.
3. Market Set-Up: Up to S$30,000 can be allocated for setting up your overseas operations, including intellectual property applications.

The Application Process: What to Expect

While the MRA grant offers significant advantages, the application process requires careful attention to detail. Typically, it takes between 8 to 12 weeks to process an application due to the high volume of submissions. The process involves substantial paperwork, so ensuring that your documentation is complete and accurate is crucial for a smooth approval.

Frequently Asked Questions About the MRA Grant

1. How Can the MRA Grant Support My Business Expansion? The grant can significantly reduce the financial burden of expanding into new markets. From market promotion to setting up operations, the MRA grant covers a range of activities that are essential for international growth.
2. How Long Does It Take to Get Approval? Given the current demand, it might take between 3 to 4 months to receive approval. Once your application is submitted, ESG may request additional information, so working with a consultant can expedite the process.
3. What Costs Are Not Covered? The MRA grant does not cover expenses such as Goods and Services Tax (GST), certain government fees, and direct costs like airfare, accommodation, and in-house employee costs. It’s important to review the specific exclusions to manage your expectations.
4. Can Newly Established Companies Apply? Newly established companies may find it challenging to qualify for the MRA grant unless they have strong support from an existing brand or parent company. Demonstrating financial stability and a viable business plan is key to gaining approval.
5. Is It Possible to Include Digital Marketing in the Grant? Yes, digital marketing expenses aimed at establishing a presence in new markets can be included. This covers activities such as social media campaigns, content dissemination, and online media coverage.

Working with MRA Consultants

Choosing the right MRA consultant can significantly impact the success of your application. It’s important to select a consultant with a proven track record, strong testimonials, and local knowledge of your target market.

At Creative For More, we offer?comprehensive support for businesses looking to expand internationally. Our team is well-versed in navigating the complexities of the MRA grant, ensuring that your application is both thorough and strategically aligned with your business goals.

Conclusion

The MRA grant is an invaluable tool for Singaporean SMEs looking to explore new markets. While the application process may seem daunting, the potential rewards in terms of financial support and international growth are well worth the effort. By partnering with experienced consultants like Creative For More, you can maximise your chances of success and take your business to new heights.

For more information on how we can assist with your MRA grant application, feel free to reach out to us. We’re here to help you unlock your business’s full potential on the global stage.