The Business Times
SINGAPORE BUDGET 2023

Singapore boosts grants, tax schemes for companies going abroad; new Scale-Up X for promising local enterprises

Chong Xin Wei
Published Tue, Feb 28, 2023 · 12:59 PM

BUSINESSES are getting more help to venture abroad with enhanced grants and schemes, while a new Scale-Up X programme will give tailored help to promising local enterprises, Minister for Trade and Industry Gan Kim Yong said at his ministry’s Committee of Supply debate on Tuesday (Feb 28).

The higher S$100,000 cap for the Market Readiness Assistance grant – introduced in 2020 and meant to expire on Mar 31, 2023 – will be extended two years to Mar 31, 2025.

This is because “many companies’ internationalisation plans have been disrupted by the pandemic”, said Gan. The scheme helps small and medium-sized enterprises set up shop overseas. 

Companies will also gain more access to export financing, with more financial institutions participating in the Enterprise Financing Scheme (EFS).

The pool is being expanded to include "selected foreign-based financial institutions and multilateral development banks with strong expertise and appetite in emerging markets”, such as the International Finance Corporation and the Asian Development Bank. In Budget 2023, it was announced that enhancements to the EFS will be extended for another year till Mar 31, 2024.

To support the use of e-commerce platforms, related costs will now qualify for the Double Tax Deduction Scheme for Internationalisation, said Gan. These may include costs arising from business advisory, product listing and marketing content creation.

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Meanwhile, promising local companies will get “bespoke support” under Enterprise Singapore’s Singapore Global Enterprises initiative, with an intended pool of 100 to 200 such companies.

They will get support to “build sustained innovation as a core competitive strategy”, expand abroad and diversify their supply chains. This could include customised financial support such as co-funding to set up in-house research and development or innovation centres.

Eligible employers will be able to use the Skills Future Enterprise Credit to offset qualifying expenses under Scale-Up SG and the Singapore Global Executive Programme.

And a new Scale-Up X programme will offer specialised capability building support in areas such as leadership; readiness for investments and initial public offering listings; and internationalisation strategies and execution plans.

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