GOVERNMENT PLAYS SANTA CLAUS TO SINGAPORE BUSINESS CLASS

Singapore's open door immigration policy for foreign workers keeps a downward pressure on wages. The open arms policy for the rich and business class which generated massive wealth inflow, keeps an upward pressure on high end products and services, particularly housing, which has a multiplier effect on all general price levels. The middle class is crushed like an empty Coke can.

The government is loud in its financial packages to help the lower income group, but does not holler out publicly of its massive spending in grants to the rich business class. 

The business class is pampered to the brim by the government with grants like manna from the sky. This blog looks at some of the grants the government is dishing out to the business class. It looks like Ah Kong’s money supply is endless with no balance sheet to show. By the time you get to the 10th item in the list below, your patience is tested. And that’s exactly, the point. There are simply way too many grants being dished out.

The featured image above says it all. Government freebies have become products unto itself, to be purveyed in the market.

Of course there are lots of requirements to be satisfied – qualifying applicants, costs and projects. For individuals, a few grants are restricted to Singapore citizens (SC), majority are for SC & PR, and there are some that are for everyone including foreigners. For legal entities, majority are for ACRA-registered companies with 30% Singaporean shareholdings, some are for all entities resident in Singapore (local branches of foreign companies). Direct benefits appear to skew more to foreigners.

Some of the support schemes carry a notification - “Due to a large number of grant applications submitted, you may encounter a longer processing time than usual.” They are flowing like hot cakes, as most freebies do.

Make no mistake. The government is dead serious in the schemes they promote. Some of these schemes are very big ticket items running into millions per application. Example in 2020 EMA awarded Senoko Energy Pte Ltd, Tuas Power Generation Pte Ltd and YTL PowerSeraya Pte Ltd with a total of $23 million to embark on energy efficiency projects.

Bottom line is all these awards are geared towards the attainment of government social-economic policy goals, primarily in environmental sustainability and digitilisation. Sometimes I wonder, does it matter if the hawker vendors have an e-payment system or not. So when Singaporeans take in the accolades of being top in this and that, just be balanced and understand the costs of such accomplishments at taxpayers expense. Are  they jacking up GST to help pay for all these? 

With all these freebies in place, boy oh boy, wouldn't you want to be one of the accredited product and service vendors. And when Ah Kong is picking up a big chunk of the tab, who cares about the price. Wink-wink. I wonder what sort of pricing control is in place.

Below is a list of grants available. They are certainly not exclusive. Other freebies and partial freebies omitted here such as the vast array of educational scholarships and bursaries, and special loan packages. . .

AF (Accessibility Fund)
Agency : BCA
For building owners to upgrade their existing buildings with essential accessibility and Universal Design features. (a) For private buildings built before the implementation of Code on Barrier-free Accessibility in Buildings 1990 that do not have Basic Accessibility features (Ramps, accessible toilets; signage. lifts compliant with SS 550, accessible car park lots:):
* Gov co-pay up to 80% of the construction cost
* Up to S$200,000 each for lift
(b) For private buildings built before the implementation of Code on Accessibility in the Built Environment 2013 that have Accessibility features (Grab bars, Child-friendly WC/urinal/wash basin; Lactation room, Diaper-changing room, Hearing enhancement systems, Braille and tactile features; and Family car park lot)
* Up to 60% of construction costs.

Low-GWP Refrigerant Chillers
Agency : BCA
To encourage owners and operators of existing buildings to adopt water-cooled chillers using refrigerants with low GWP early, before the ban on sales of water-cooled chillers using high-GWP hydrofluorocarbons (HFC) refrigerants takes effect in 2022.
Scheme has expired.
Note - This is a big ticket item. Considering the number of buildings there are, the total sums expended could be billions?

PIP (Productivity Innovation Project)
Abency : BCA
For construction-related companies registered and located in Singapore to encourage technology adoption and innovations that improve productivity at construction sites.
Up to 70% of costs. These are big ticket projects that run into tens of millions.

ACT (Agri-Food Cluster Transformation Fund)
Agency : SFA
Supports the transformation of the agri-food sector into one that is (a) highly productive, (b) climate-resilient and (c) resource-efficient. The ACT Fund comprises three co-funding components for local farms to build and expand their production capacities and capabilities:
* Capability Upgrading
* Innovation and Test-bedding
* Technology Upscaling
The ACT Fund is available for applications until 31 December 2025.
N0t clear on funding sum. Some projects receive 30% cash advancement.

Citrep+
Agency : IMDA
Build ICT technical skills for employees in areas such as cyber security, data analytics, network and infrastructure and software development.
Funding support of up to 90%.

CLT (Company-Led Training Programme)
Agency : IMDA
To accelerate the professional development of tertiary graduates and mid-career professionals including mature PMETs, through an on-the-job training programme. 
To enable local professionals to stay employed while being reskilled or upskilled via the CLT.
Funding to support companies in hiring and training.

HGD (Hawkers Go Digital)
Agency : IMDA
For stallholders in hawker centres, wet markets, coffee shops and industrial canteen to encourage adoption of e-payments.
Bonus of $300 per month over 5 months

 
ISET (Innovative Smart Estate Trial Solutions)
Agency : IMDA
To encourage partnerships among Singapore-based technology companies, building developers and facility management companies to develop and trial innovative solutions in areas of enhancing smart environment, experiences and living.
Up to 50% of project costs

SDP (Start Digital Packs)
Agency : IMDA & ESG
Support more SMEs to go digital in building their foundational digital capabilities with easy-to-deploy solutions.
Receive minimum 6 months waiver of solution providers’ fees

DGI (Grow Digital Initiaive)
Agency : IMDA + ESG
Participate in Business-to-Business (B2B) and Business-to-Consumer (B2C) e-commerce platforms to sell overseas
Up to 70% funding to participate in the platforms

CRT (Power Systems Competitive Research and Test-bedding Funding)
Agency : EMA
EMA rolls out competitive grant calls to catalyse applied research and development (R&D) of innovative technologies and solutions.
Over the past few years, EMA has awarded over $100 million in grants, benefitting over 60 companies and 20 Institutes of Higher Learning/Research Institutes.
Latest – 2023 to develop and testbed innovative Energy Storage Systems (ESS) solutions. Another few millions up for grabs.

DII (Digital Integration Incentive)
Agency : IRAS
For software developer partners to integrate IRAS APIs in their solutions. Scheme ends 31 Dec 2024.
Up to $30,000

PWC (Progressive Wage Credit Scheme)
Agency : IRAS
Very complicated. Basically, under the Progressive Wage and Local Qualifying Salary requirements, companies need to make mandatory wage increases for lower-wage workers. Companies can also voluntarily increase other low wage workers.
Government will help pay for the salary increases for those in S$2,500 and S$3,000 group up to 2026.

SSGF (Startup SG Founder) programme:
Agency : ESG
Encourages and supports aspiring first-time entrepreneurs to start their own innovative businesses, by providing mentorship and financial support.
Capital put up by applicant must be at least S$20,000
Grant S$50,000

ESG (Enterprise Development Grant)

Agency : ESG
For all legal entities. Supports companies with projects that help upgrade, innovate, grow and transform their business.
Up to 50% of eligible costs for local SMEs (sustainability-related projects may be supported at up to 70% from 1 April 2023 to 31 March 2026).

Very broad based scheme.

LEAD (Local Enterprise and Association Development)
Agency : ESG
For trade associations and chambers that aim to drive capability development and internationalisation projects for SMEs. Means help these associations to help other companies.
Up to 70% of eligible costs

MRA ( Market Readiness Assistance)
Agency : ESG
Helps companies expand into new markets overseas by defraying the costs of overseas market promotion, business development and set-up.
Up to 50% of eligible costs , capped at S$100,000 per company per new market

3RF (3R Fund) NEA
To encourage organisations to reduce waste disposed of at NEA's incineration plants and disposal facilities through the implementation of waste minimisation and recycling projects.
Up to 80 per cent of qualifying costs, caped at $1 million per project or per applicant.

E2F (Energy Efficiency Grant)
Agency: NEA
To help manufacturing SMEs to adopt pre-approved energy efficient equipment in the following categories: LED lighting, air-conditioners, cooking hobs, refrigerators, water heaters and clothes dryers.
Up to 70%

HDG (Healthier Dining Grant)
Agency : HPB
Help Healthier Dining Programme Partners to publicise their healthier menu options either online or offline.
NETS gives $3 cash bonus for every 10 NETS transactions to all hawkers as well as canteens, coffee shops, food courts, and eating houses when they accept NETS payments until 31 July 2021

HDI (Healthier Dining Innovation Grant)
Agency : HPB
HDI is a funding scheme of up to $5,000 for F&B operators to take their first step towards capability upgrading in 4 areas: R&D, Purchase of Healthier Ingredients, Culinary Training, and Recipe Reformulation.
Up to S$5,000

HIPS (Healthier Ingredient Promotion Scheme)
Agency : HPB
A Go-To-Market grant that incentivises food ingredient manufacturers/suppliers to promote the adoption of healthier ingredients, among F&B businesses and consumers.
Up to 80% qualifying project costs, cap at $300,000.

BES (Business Events in Singapore)
Agency : TPB
For MICE  businesses. To encourage the business events industry to anchor and grow quality events as well as catalyse the innovation of new content.
Grant amount unknown

BIF (Business Improvement Fund)
Agency : TPB
To encourage technology innovation and adoption, redesign of business model and processes in the tourism sector to improve productivity, sustainability initiatives, and competitiveness.
Grant amount unknown

CDF (Cruise Development Fund)
Agency : TPB
Supports cruise industry players in activities that will build strong consumer demand for cruises from Singapore.
Grant amount unknown

ESF (Experience Step-Up Fund)
Agency : TPB
For all legal entities. Supports development and enhancement of Singapore’s tourism experiences that increase the attractiveness of Singapore to visitors.
Grant amount unknown

KF (Kickstart Fund)
Agency : TPB
For all legal entities. Supports the creation and test-bedding of innovative consumer-focused concepts and events with strong tourism potential and scalability. This is with the aim of adding to the existing quality tourism software and enhancing the vibrancy of Singapore as a tourist destination.
Grant amount unknown

TPD (Tourism Product Development Fund)
Agency : TPB
For all legal entities. Supports the creation, development of new tourism products and/or major rejuvenation of existing tourism products to increase Singapore destination attractiveness to visitors.
Grant amount unknown

TIPT (Training Industry Professionals in Tourism)
Agency : TPB
For all legal entities. Supports tourism companies in employee upgrading and leadership development, including training in sustainability-related areas.
Grant amount unknown

LEF (Leisure Events Fund)
Agency : TPB
For all businesses. Supports the launch and development of world-class, differentiated, and celebrated leisure event experiences in Singapore so as to deliver key tourism outcomes and to contribute towards the agenda of establishing Singapore into one of the world’s most vibrant cities.

OMNI (Operations Management Innovation Programme)
Agency : SIMTech)
The programme aims to train key personnel such as engineers, managers and senior staff of companies to be technology innovators to achieve manufacturing excellence.
Up to 90% course fee

OTR (Operation & Technology Roadmap)
Agency : Astar
Development of technology roadmaps to map out priorities that are aligned to businesses’ strategies and developmental plans.
May receive up to 80% funding support.

T-Up (Technology for Enterprise Capability Upgrading)
Agency : Astar & ESG
A*STAR seconds scientists and research engineers to aid local SMEs in Research and Development projects for up to two years.
Up to 70% grant to offset qualifying cost.

PSG (Productivity Solutions Grant)
Agency : MTI
The Productivity Solutions Grant supports businesses in the adoption of pre-scoped IT Solutions and/or Equipment that improve productivity.
Up to 50% funding support for eligible costs

SSG (SkillsFuture) for employers
Agency : MTI & ESG
To support the skills development of the workforce to keep up and advance with the business as it transforms and grows
Up to 70% - 90% of course fees.
Absentee payroll claims (for employees attending courses)

CTE (Career Trial for Employers)
Agency : WSG
Employers that want to be certain of engaging a right employee can put candidates on a Career Trial. Government will pay the worker:
• Training Allowance from $7.50/hour to $15/hour.
• Retention Incentive of $500 at the 3-month retention mark;
• Additional Retention Incentive of $1,000 at the 6-month retention mark for unemployed jobseekers who have been actively looking for jobs for at least 6 months; or for jobseekers who are Persons with Disabilities regardless of unemployment duration.

PTR (New Part-time Re-employment Grant)
Agency : WSG
For employers who offer part-time re-employment, other flexible work arrangements (FWAs) and structured career planning (SCP) to senior workers.
Up to S$125,000 per company.

PSG-JR (Productivity Solutions Grant)
Agency : WSG & SNEF
Support for Job Redesign under Productivity Solutions Grant
Up to 70% funding for consultancy services, capped at $30,000 per enterprise.

WEF (Water Efficiency Fund)
Agency : PUB
Provides funding and technical support to facilitate the execution of approved projects in collaboration with industrial water users. Proects need to reduc consumption by 5-1o%.
Funding – not disclosed.

AFL (Asian Financial Leaders Scheme)
Agency : IBF
The AFLS initiative helps financial institutions defray part of the costs incurred in sending promising C-1/C-2 Singaporean finance professionals on eligible leadership programmes.
Up to 75% of programme fees (exclude airfare, accommodation, absentee payroll and allowances) Capped at S$50,000 per paruicipant.

FAM (Finance Associate Management Scheme)
Agency : IBF
The FAMS helps FIs defray part of the costs incurred in the hiring of Singapore citizen staff who would be trained under their structured management/functional programmes.
* S$1,000 per eligible SC hire per month of programme (capped at 24 months)
* $2,000 per eligible SC hire per month of programme (capped at 24 months) for programmes in some priority areas.
* $5,000 per month for overseas exposure (capped at 6 months).

IPP (International Postings Programme)
Agency : IBF
The iPOST initiative helps FIs defray part of the costs incurred in sending Singapore citizen staff on global and regional attachments or postings.
50% of qualifying costs, cap per SC per year up to 2 years S$80,000 in Asia, S$50,000 in other countries.

FINANCIAL SECTOR TECHNOLOGY & INNOVATION SCHEME
Agency : MAS
The Financial Sector Technology and Innovation scheme provides support for the creation of a vibrant ecosystem for innovation. The FSTI scheme is valid until March 2023
These were very big ticket expenditures.

1. Innovation Centre
The Innovation Centre track seeks to attract financial institutions to set up innovation centres of excellence or labs in Singapore to test-bed innovative ideas and roll out market solutions.
Up to 50% co-funding.

2. Institution-level Projects
The Institution-level Projects track encourages Singapore-based financial institutions to catalyse innovative ideas and market solutions to advance the competitiveness of the financial institution and the sector.
Up to 50% of level of funding support, capped at S$1 million

3. Industry-wide Technological Infrastructure or Utility
The Industry-wide Projects track seeks to build industry-wide technological/ utility infrastructure and/or improve efficiency and boost productivity in the financial services sector.
Up to 70% of level of funding

4. Cybersecurity Capability Grant
The Cybersecurity Capability Grant (CCG) is launched as part of the Financial Sector Technology and Innovation (FSTI) scheme under the Financial Sector Development Fund (FSDF) to deepen cybersecurity capabilities and develop local cybersecurity talent in Singapore’s Financial Services sector.
Up to 50% co-funding of qualifying expenses, cap of $3 million.

5. AIDA (Artificial Intelligence and Data Analytics)
For projects that are focused on AIDA adoption, that is, using AI & DA techniques that achieve business objectives of strategy & decision making with consideration of workforce impact.
Up to 50% co-funding.

6. Proof-of-Concept Grant
The MAS Financial Sector Technology and Innovation (FSTI) Proof of Concept (POC) scheme provides funding support for experimentation, development and dissemination of nascent innovative technologies in the financial services sector.
Up to 70% of qualifying costs and up to a cap of S$400,000

GEMS (GRANT FOR EQUITY MARKET SCHEME)
Agency : MAS
MAS introduced the Grant for Equity Market Singapore (GEMS) scheme to support listings and expand the equity research ecosystem in our public equity market:

1. Listing Grant
Supports potential issuers to list in Singapore by funding part of their listing-related expenses.
For IPO:
* Capitalization above S$1b -- 70% co-funding of eligible expenses, cap of S$2m
* Capitalization below S$1b -- 70% co-funding of eligible expenses, cap of S$1m
Subsequent fund raising:
* Within 6 months -- 70% co-funding of expenses, cap of S$1.5m
* 6 - 2 months -- 70% co-funding of expenses, cap of S$1m
* After12 months -- 70% co-funding of expenses, cap of S$500,000.

2. Research Talent Development Grant
Supports efforts to expand Singapore’s resea
rch coverage of listed companies and develop equity research talent. (SG citizen and PR)
* Fresh grads --70% co-funding of salaries over 2 years, capped at S$4,200 per month.
* Experienced professionals -- 50% co-funding of salaries over, capped at S$6,000 per month (for SG up to 2 years, for PR up to 1 year.
3. The Research Initiatives Grant
Supports initiatives that will catalyse public market activities in Singapore and boost the development of Singapore’s equity research ecosystem.
Grant quantum unknown

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