We have summarised the top 5 government grants and schemes from Budget 2019. Here are some updates you need to know important for your business.
1. Productivity Solutions Grant (PSG)
To help firms adjust better to impending foreign workforce changes taking place in 2020, the government will be extending the PSG support level of 70% to 31st March 2023. However, note that this is not applied to all sectors. The support levels for certain sectors will fall to 50% after 31 March 2020. More details will be provided by the Ministry of Trade and Industry (MTI) and Ministry of Education’s (MOE) Committee of Supply (COS).
While the support % of the grant is expected to decrease for certain sectors, the enhanced PSG will include a new component to support worker upgrading. Eligible Enterprises will receive a subsidy for up to 70% of their out of pocket training expenses which will be capped at $10,000 per enterprise. The subsidy includes the remaining amount which is not covered by other government training subsidies such as SkillsFuture. This new component is expected to be available until 31 March 2023. Enterprises applying for the training grant will be required to submit a training plan through the Business Grant Portal.
The PSG solution was originally rolled out in 2018 to support enterprises to adopt pre-scoped, off-the-shelf productivity solutions and technologies. Read here for more information.
2. Enterprise Development Grant
Following the changes in foreign workforce changes, the EDG support level of 70% for eligible expenses will also be extended to 31st March 2023. Note that this 70% is only applicable to SMEs, non-SMEs will only be supported up to 50%. With effect from 1st April 2020, enterprise will also have to commit to outcomes for workers such as wage increases to qualify the grant. More details to be announced later.
The EDG was originally rolled out in 2018 to support local enterprises for their growth and transformation. Read here for more information.
3. Enterprise Financing Scheme (EFS-New)
This scheme launching in October 2019 is set to cover financing needs across different stages of business growth, including trade, working capital, fixed assets, venture debt, mergers and acquisitions and project financing to build new capabilities and rapid expansion overseas. Note that the maximum insurance cover for overseas project financing will be raised to S$50 million, while the maximum tenure will be increased to 15 years.
The government will also support a higher risk-share for loans to young enterprises for both domestic and international projects. This includes Standard & Poor’s Sovereign ratings below BBB- or unrated. The existing SME Working Capital Loan will also be shifted to this new scheme and will be extended to 31 March 2021. This scheme is applicable to companies with more than 50% equity owned by individuals, at least 1 employee, incorporated within the last 5 years from the date of scheme application.
4. Scale Up SG Programme (New)
This new programme aims to groom high-growth enterprises by developing and implementing long term plans tailored to growth priorities. To remain high growth, these enterprises have to double its footprint through merger acquisitions (M&A), or developing its own products. Companies will receive support to develop commercially viable product as well as to shortlist and validate acquisition targets. Eligible companies will be funded up to 70% of the programme cost as well as support from expert partners and network. More details will be announced later.
5. Inclusive Growth Programme (IGP)
To provide an extra arm of support for businesses, the IGP currently administered by NTUC’s e2i to help companies kickstart productivity projects will be merged with the EDB. This programme aims to help companies improve productivity through supporting workers with higher wages. Learn more about the fundable scheme components here.
We hope that this article has allowed you to gain better clarity on the many grants and schemes announced since Budget 2019 Speech. As a HR software provider, JustLogin also supports various government grants and schemes to help companies move forward with their capabilities. If you are interested, you may also check out the grants we support.