As one of the most ideal business hubs in Southeast-Asia, the Singapore government has always been supportive of SMEs. Especially so by supporting them with initial capital grants.
To put things into perspective, SMEs are firms with an annual turnover of less than S$100m or employing fewer than 200 workers, play an essential role in the economic development of Singapore.
SMEs contribute 48% of Singapore’s GDP and has hired about 65% of the country’s workforce. Additionally, SMEs constitute 99% of all enterprises in Singapore.
The Singapore government has recognised the significance of SMEs and offers grants to help the enterprises thrive. This article provides details about the top government grants for SMEs in 2020 and outlines the top 50 SMEs in Singapore today.
Top Government Grants for SMEs in 2020
1. Productivity Solutions Grant (PSG)
The PSG is designed to help SMEs that would like to invest in the field of information technology. The grant also covers various industries including real estate, construction, landscaping, logistics, precision engineering, and food and beverage.
SMEs that are involved in financial management, data analytics, inventory, and customer management can also benefit from the PSG funds.
2. Enterprise Development Grant (EDG)
The purpose of the EDG is to help Singapore-based SMEs that would like to increase their presence in the foreign market. The grant is used to support the development of a strong business foundation, technology use, and innovative production.
SMEs that would like to apply for EDG must meet the following requirements:
- Be registered and operating in Singapore.
- Have at least 30% local shareholding.
3. PACT
The PACT grant programme establishes cooperation between SMEs and other firms in Singapore. The partnership between SMEs and other firms goes further than the usual business activities.
In the plan, one of the firms takes a leading position as the ‘lead enterprise’ and drives the partnership project to profitability. The government provides 70% of the qualifying costs, which include the cost of capability development, co-innovation, knowledge transfer, resource pooling, and alliance building.
The following conditions are mandatory when forming a PACT grant partnership:
- The ‘lead enterprise’ must have clear competitive advantages over other companies. The lead company must also be responsible for the successful completion of the project.
- Most of the firms should be from Singapore. However, foreign firms can still join in the partnership.
- The lead company must support smaller firms that go beyond their shared interests.
4. Market Readiness Assistance (MRA) Grant
The purpose of the MRA grant is to help SMEs in Singapore to expand their operations into the foreign markets.
It was developed by Enterprise Singapore to help SMEs with information and as well as financial assistance. SMEs that are qualified get 70% of the qualifying costs, and the amount that one SME may get is up to S$20,000. Eligibility to apply for the MRA grant is as follows:
- The SME must have at least 30% local shareholding.
- The company must operate in Singapore.
5. Double Tax Deduction for Internationalisation (DTDi)
The DTDi grant is meant to support SMEs that want to expand their operations overseas. It provides a 200% tax deduction. To be eligible for DTDi, an SME should meet the following conditions:
- Be incorporated in Singapore and have a primary goal of promoting trade in goods or services.
- The company’s global headquarters must be in Singapore.
6. Venture Debt Programme (VDP)
VDP is a grant offered to grow start-ups that have been established by venture capitalists.
SMEs and new businesses can apply for it in the form of venture debts and get a pay-out of up to S$5 million for use as working capital, for buying assets, for facilitating mergers or acquisitions, or for use in any other relevant project.
Eligibility criteria for the VDP grant are as follows:
- The applying SME must operate in Singapore.
- The firm’s shareholding must be 30%
Top 50 SMEs in Singapore Today
Below are the top 50 SMEs in Singapore based on the E50 Ranking System for 2019.
1. Agorae Pte Ltd
Agorae Pte Ltd is the holding firm for the Teledirect, a group of companies that provide business process services.
2. Soilbuild Group Holdings Ltd
Soilbuild is an integrated property developer that builds mid- and high-end residential properties and offers business space for SMEs and multinational corporations.
3. Valency International Trading Pte Ltd (VIT)
VIT is an international multinational commodity trading company based in Singapore.
4. Huttons Asia Pte Ltd
Huttons Asia Pte Ltd is a real estate agency established in 2002.
5. Midas NSSG International Pte Ltd
This company that is involved in the wholesale trade of gaseous, liquid, and solid fuels and related products like bitumen.
6. Chye Thiam Maintenance Pte Ltd
This company provides commercial cleaning and maintenance services such as cleaning of commercial buildings, recycling, waste management, integrated cleaning, and related services.
7. Seng Hua Hng Foodstuff Pte Ltd
This SME processes and distributes nuts and associated products.
8. Top International Holding Pte Ltd
It is a mining and trading firm that specialises in bauxite export and distribution in Singapore, China, Taiwan, Thailand, Hong Kong, Indonesia, Malaysia, and Guinea.
9. Akribis Systems Pte Ltd
Akribis Systems Pte Ltd is a company that designs and manufactures stages, direct-drive motors, and precision systems applied in equipment manufacturing, testing, and inspection.
10. Hua Yu (S) Pte Ltd
Hua Yu (S) Pte Ltd is a company that deals with photographic equipment.
11. Leacov Singapore Pte Ltd
It is a security agency that provides security training and consultancy services.
12. Fortrec Chemicals and Petroleum Pte Ltd
This a company that manufactures and distributes petrochemicals and petroleum products.
13. Citus Trading Pte Ltd
Citus Trading is a group of companies that trades in a wide range of products including bulk materials, agricultural commodities, energy commodities, and timber.
14. D-Team Engineering Pte Ltd
It is an engineering firm established in 2011. The company provides installation, testing and commissioning services for air-conditioning and mechanical ventilation systems.
15. Executive Ship Management Pte Ltd
Executive Ship Management Pte Ltd provides management services for all types of vessels.
16. Seiko Architectural Wall Systems Pte Ltd
Seiko Architectural Wall Systems Pte Ltd is a group of companies that offer different types of architectural services.
17. Team-Metal (S) Pte Ltd
Team-Metal (S) Pte Ltd manufactures precision machined products such as modular assemblies and products used in medical, lifestyle, and office automation equipment.
18. Total Facility Engineering Pte Ltd
This company provides facility management services such as designing facilities, project management, and construction.
19. Supreme Components International Pte Ltd
Supreme Components International Pte Ltd is a firm that specialises in the franchised distribution of LED components and hi-tech electronic devices.
20. Victory Shipping Pte Ltd
Victory Shipping provides global dry bulk shipping services from its main base in Singapore.
21. Asiatic Agricultural Industries Pte Ltd
This firm manufactures a wide range of agricultural inputs, including pesticides, herbicides, fungicides, and plant nutrition products.
22. Lintec & Linnhoff Asphalt Pte Ltd
Lintec & Linnhoff Asphalt Pte Ltd is an engineering and technology firm that manufactures and deals in asphalt and concrete products.
23. V3 Smart Technologies Pte Ltd
It is a technology company that provides services such as fleet management, workforce assignment and mobility, waste and utility management, cloud robotics, and taxi dispatching and management.
24. Fong’s Engineering and Manufacturing Pte Ltd
Fong’s Engineering and Manufacturing Pte Ltd is an SME that manufactures medical and surgical equipment and also provides complex precision machining services.
25. Ya Kun (S) Pte Ltd
Ya Kun (S) Pte Ltd is a chain of Singaporean cafés.
26. Lintec & Linnhoff Concrete Pte Ltd.
This SME manufactures concrete batching plants.
27. Ademco (Far East) Pte Ltd
Ademco (Far East) Pte Ltd is a company that provides security services and solutions to governments and businesses in various countries in Asia.
28. JK Technology Pte Ltd
This company provides information technology services to SMEs, educational institutions, and government agencies.
29. Adam Khoo Learning Technologies Group Pte Ltd
Adam Khoo Learning Technologies Group Pte Ltd provides financial education services as well as strategic business coaching and training services.
30. M-DAQ Pte Ltd
It is a company that offers financial technology services such as online payments across borders.
31. Mao Sheng Quanji Construction Pte Ltd
This SME is involved in construction and landscaping.
32. Creative Eateries Pte Ltd
It is a food and beverage company.
33. Mlion Corporation Pte Ltd
The company produces construction materials for different types of industries.
34. RMA Contracts Pte Ltd
The company provides a wide range of business process outsourcing services in Singapore.
35. Mr Bean International Pte Ltd
It is a food and beverage company.
36. QXY Resources Pte Ltd
The firm provides integrated design and building services.
37. HSF Global Pte Ltd
It is a company that supplies seafood in Singapore.
38. Kaer Pte Ltd
The SME designs and operates air conditioning systems for industrial and commercial buildings.
39. JS Creates Pte Ltd
It is a company that deals with air conditioning equipment.
40. Connect Group Pte Ltd
It is a search and recruitment consultancy.
41. SMJ Furnishings (S) Pte Ltd
The firm provides carpet and tile solutions.
42. Feinmetall Singapore Pte Ltd
The firm offers contact technology services.
43. Daiya Engineering & Construction Pte Ltd
It provides building construction services.
44. Adroit Overseas Pte Ltd
It is a multinational company that is involved in the export of agricultural commodities.
45. Sing Fuels Pte Ltd
This SME deals with fuels.
46. Mud Logic Asia Pte Ltd
The company was founded in 2012 and trades intelligence information.
47. Octopus Distribution Networks Pte Ltd
It specialises in the importation, distribution and marketing of beverages.
48. OTTO Solutions Pte Ltd
It provides electrical, design and automation services.
49. MCI Career Services Pte Ltd
The firm offers career, consultancy, outsourcing, and event and production services.
50. FotoHub Holdings Pte Ltd
This firm provides photography services.
During this COVID-19 period, government grants can prove to be extremely helpful in cushioning the economic impact. However, these government grants might be more tedious to apply for. Think long application processes, heavy paperwork and lower approval processes. Thus, it pays to have a reliable financial institution that can provide you with the necessary funding in times of need. If you require any form of financial help for your business, MPM Capital can offer you a business loan between $20,000 to $2 million.
