Budget 2020 pushes the boundaries for internationalisation

IF AT first you do not succeed, try again. And again. And again. So it seems to be with the government's efforts to get Singapore companies to become more successful in overseas markets. None of the measures announced by Deputy Prime Minister and Finance Minister Heng Swee Keat were really new. They repeated, extended or built on older ideas and concepts. The reality is that there are Singapore exporters and would-be exporters that need convincing. Let us digest some of the most relevant components of the Budget in a little more detail.

The Market Readiness Assistance (MRA) scheme was first introduced in 2013. It aims to help companies set up shop overseas, identify business partners and market their products. This is achieved through grants for pre-scoped activities. The challenge with such grants is that they could be given for something that a company is not well-equipped to do. Such companies may dabble in something that requires no cash outlay from them, but abandon the endeavour once the grant monies run out.

The latest enhancements to the MRA focus on co-funding a large part of the cost of expert advice on utilising Singapore's network of Free Trade Agreements (FTAs). Provided the engaged experts can help exporters identify opportunities in this area as well as, importantly, implement practical processes that last - this could be the game-changer that the Ministry of Trade and Industry (MTI) has been looking for for 20 years.