How IE can assist in your overseas expansion. Mr Sam Yeo Senior Manager, Customer Services Group IE Singapore

Transcription

1 How IE can assist in your overseas expansion Mr Sam Yeo Senior Manager, Customer Services Group IE Singapore

2 Agenda 1. Overview of IE and its assistance 2. Market Readiness Assistance (MRA) Grant 3. Global Company Partnership (GCP) Grant 4. Financing Schemes 5. Double Tax Deduction (DTD) for Internationalisation

3 Overview of IE and its assistance

4 IE Singapore s mission is to drive Singapore s external economy More than 35 offices worldwide AMERICAS Los Angeles Mexico City New York São Paulo EUROPE Frankfurt Istanbul London Moscow MIDDLE EAST & AFRICA Accra Abu Dhabi Doha Dubai Johannesburg Riyadh CHINA North China Beijing Dalian Qingdao South China Guangzhou Wuhan East China Shanghai West China Chengdu Chongqing Xian SOUTH ASIA Chennai Mumbai New Delhi NORTH ASIA & PACIFIC Seoul Sydney Taipei Tokyo SOUTHEAST ASIA Bangkok Hanoi Ho Chi Minh City Jakarta Kuala Lumpur Manila Surabaya Yangon

5 IE provides assistance to grow Singapore companies at various stages of internationalisation Growth Restructuring Market Readiness Assistance (MRA) Programme Broad-based help to SMEs taking their first steps overseas Global Company Partnership (GCP) Programme Customised help to all Singapore companies to deepen global footprint Internationalisation

6 IE provides assistance to grow Singapore companies at various stages of internationalisation Growth Restructuring Market Readiness Assistance (MRA) Programme Broad-based help to SMEs taking their first steps overseas Financial assistance MRA Grant Enhanced Networking and learning Seminars and Market Info Insights and Publications Internationalisation Global Company Partnership (GCP) Programme Customised help to all Singapore companies to deepen global footprint Financial assistance GCP Grant Enhanced Double Tax Deduction (DTD) Financing Schemes, e.g. IFS, PRIS, TCIS, LIS/+ Advisory and Business Development Our global network (e.g. 35+ overseas offices)

7 IE s non-financial assistance for all companies Learning and Networking Opportunities IE Insights iadvisory Seminars for Market Knowledge Market 101 Guides iadvisory Workshops for capability building Research Databases iadvisory Exchange for peer-to-peer learning

8 Market Readiness Assistance (MRA) Grant

9 MRA Grant Overseas Market Set-Up Overseas Business Partners Overseas Market Promotion NEW Features of MRA Grant Quick assistance through pre-defined activities under 3 main scopes Support period of 6 months Companies can engage their preferred consultant or legal advisor Quantum of Support 70% of eligible third-party costs Up to $20,000 cap per company per fiscal year Up to two applications per company per fiscal year One activity per application form

10 MRA Grant Overseas Market Set-Up What activities are supported: 1.Market feasibility study 2.Advisory on tax, legal, import and export regulations 3.IP search, filing and registration 4.Drafting of franchising, distributorship and JV agreement

11 MRA Grant Overseas Business Partners What activities are supported: Identification of potential: 1.Licensees/ Franchisees 2.Agents and Distributors 3.Joint Venture Partners

12 MRA Grant Overseas Market Promotion NEW! What activities are supported: 1.Overseas Marketing and PR activities 2.Online Marketing Activities 3.Participation in overseas trade fairs

13 MRA Grant Overseas Market Promotion NEW! Overseas marketing and PR activities Online marketing activities Participation in overseas trade fairs Marketing and PR agency fees for marketing campaigns, including organising instore promotion, road shows or pop-up stores Search engine marketing and/or optimisation (SEO/ SEM) Social media marketing Listing on global e- commerce platforms * GCP-grant may also support a more comprehensive e- commerce strategy and the development of in-house e- commerce platform Space rental and construction cost (capped at 36 m 2 ) *Excludes overseas tradeshows already supported under imap

14 Example 1: Company A wants to set up an entity in Myanmar and requires advice on the legal set up and taxation What company A can do Approach a legal firm of their choice to provide the advice on legal and taxation in Myanmar Request the legal firm to register/incorporate an legal entity/rep office in Myanmar MRA Grant Support Up to 70% of the advisory cost, legal and documentation cost or cap at $20,000 per company per fiscal year (whichever is lower) Calculations If the total professional cost in providing the service is $15,000, MRA Grant supports up to $10,500

15 In the same fiscal year, company A wants to do a overseas marketing campaign in Malaysia to promote their new range of products What company A can do Approach a marketing agency of their choice to plan and execute the marketing campaign, including organisation of roadshows; in-store promotion etc. Up to 70% cost of the marketing fees of $20,000 Campaign support period will be limited to 6 months Company A can get support of up $14,000 (i.e. 70% of $20,000). MRA Grant Support Calculations However, company had been granted $10,500 for earlier activity in Myanmar Hence, the company is only eligible for the maximum grant support of up to $9,500 (within the total grant cap of $20,000)

16 Qualifying criteria for MRA-Grant Global HQ anchored in Singapore An annual turnover of less than S$100 million per annum based on the most recent audited report

17 Application Process Step 1: Download and fill in the application form ( Step 2: Request a cost quotation from the third party consultant/vendor that you would like to appoint. Step 3: Send the completed application form with quotation to mra@iesingapore.gov.sg For enquiries, please Call us at 1800-IESPORE ( ) or us enquiry@iesingapore.gov.sg

18 Global Company Partnership (GCP) Grant

19 IE s company engagement process Step 1 We will understand your business strategies, products and services, and plans for overseas growth. Step 2 Together, we will assess potential sectors within different markets, understand your capabilities and gaps, and identify relevant opportunities for growth. Step 3 We will customise a comprehensive suite of solutions for your international growth through IE s grants, tax and financing schemes.

20 GCP Grant to help companies defray costs in their overseas expansion GCP Grant Capability Building Market Access Manpower Development Ensure success overseas by building up your business capabilities Access new overseas markets and enhance your presence in existing markets Manage human resources and labour issues in foreign markets

21 GCP Grant Capability Building Supportable activities (non-exhaustive): Internationalisation Strategies Branding Design E-Commerce Financial Management Franchising and Licensing Intellectual Property Management Social Media Supply Chain Management Up to 70% support for costs incurred for SMEs Up to 50% support for costs incurred for non-smes

22 GCP Grant Market Access Supportable activities: ALL MARKETS Market Research Market Feasibility Study M&A Due Diligence Bidding Pilot & Test Bedding Identification of overseas distributors/ agents NEW MARKETS* Overseas marketing presence Business development Market start up Up to 70% support for costs incurred for SMEs Up to 50% support for costs incurred for non-smes *New markets are markets where company has not had sales of S$100K for any of the last three years (non-cumulative).

23 GCP Grant Manpower Development Supportable activities: Recruitment of C-suites and critical talent Overseas market attachments Customised training International HR strategy Up to 70% support for costs incurred for SMEs Up to 50% support for costs incurred for non-smes

24 Qualifying criteria for GCP-Grant Global HQ anchored in Singapore An annual turnover of at least S$500,000 per annum based on the most recent audited report An annual total business spending* of at least S$250,000 in Singapore for each of the past three years A minimum paid-up capital of S$50,000 At least three managerial staff based in Singapore * Total Business Spending refers to expenses incurred by the company-applicant, such as Staff costs (salary, training etc), Finance costs (bank loans/ overdrafts/ interest), Other operating expenses e.g. Advertising & promotion, audit fee, depreciation, director s remuneration, freight charges, insurance cost, office rental, professional consultant s fees, telecommunications, utilities etc. Total Business Spending excludes: Costs of goods sold/ Cost of sales/ Distribution and selling expense, Exchange-rate losses, Allowance for doubtful debts, Income tax expense, Property tax expense

25 Financing Schemes

26 Facilitating Access to Financing when venturing overseas Increase Bank s Risk Appetite to Lend to You Up to 50% support on insurance policy premium to mitigate risk For Internationalisation Internationalisation Finance Scheme (IFS) Helps companies secure loans of up to S$30 million for internationalisation from Participating Financial Institutions (PFIs) by insuring against insolvency risks Political Risk Insurance Scheme (PRIS) Protect overseas investments and projects in overseas markets from political risk For Exports Loan Insurance Scheme (LIS) Helps companies secure short-term trade financing loans from Participating Financial Institutions (PFIs) by insuring against insolvency risks Trade Credit Insurance Scheme (TCIS) Protect you against nonpayment risks of buyers

27 Double Tax Deduction (DTD) for Internationalisation

28 DTDi offers a 200% tax deduction on eligible expenses for overseas market development and investment development activities Market Preparation Market Introduction Marketing & Promotion Market Presence Engaging thirdparty professional consultant for Design of packaging for overseas markets Products/services certification for overseas market Overseas market survey/feasibility study Market development activities o Investment development activities Participating in overseas business/ market development trips Exhibiting in overseas and approved local trade fairs Overseas advertising and promotions Production of corporate brochures for overseas distribution Advertising in approved local trade publications Establishing overseas trade offices Promoting the company s master license and franchise overseas o Engaging third-party professional consultant for investment feasibility/ due diligence studies o Participating in overseas investment development trips or missions Posting of Singaporeans to new overseas entities NEW

29 IE s company engagement process Step 1 We will understand your business strategies, products and services, and plans for overseas growth. Step 2 Together, we will assess potential sectors within different markets, understand your capabilities and gaps, and identify relevant opportunities for growth. Step 3 We will customise a comprehensive suite of solutions for your international growth through IE s grants, tax and financing schemes.

30 q w e r t y u i o p a q w e r t y u i o p a How you can reach us enquiry@iesingapore.gov.sg Hotline: / 1800-IESPORE (Local Toll Free) Visit us at: 230 Victoria Street #10-00 Bugis Junction Office Tower, Singapore

31 Thank You