Contrary to what most people feel, 2020 was a year of opportunities. It was a year that allows us to be creative in how we overcame problems, resourceful in gathering what we needed and, a year that our government came through for us by providing businesses with many lifelines in the form of grants.
Singapore businesses have always benefitted from government grants. But in 2020, it was a year where they needed it more than ever. Therefore, there were several announcements made over the year to adjust the grants to meet local businesses’ needs. Of course, these adjustments are not forever (just like how COVID-19 is not forever). There are already some adjustments and packages that have expired as of 31 Dec 2020.
Here are two great enhancements to schemes that you might have missed out on:
(1) Expanded Scope of Solutions to PSG to Help Enterprises Implement COVID-19 Business Continuity Measures
This was an add-on to the current Productivity Solutions Grant (PSG) and was added to help businesses adhere to safety measures that were required for their business to continue. In order to do, some business might have to purchase devices or subscribe to new services.
This included solutions related to:
- Online collaboration tools
- Virtual meeting and telephony tools
- Queue management systems
- Temperature screening solutions
For example, one of the roles & responsibilities of the Safe Management Officer (SMO) is to ensure regular checks for temperature for all employees and visitors. They would need to show proof that arrangements for such measures have been taken. Under the COVID-19 Business Continuity Measure, they would be able to purchase a Temperature Screening Device such as from Pensees or EP-Tec to ensure this. Such a device would have received a subsidy of up to 80% under the expansion of this scheme.
(2) Enterprise Development Grant, maximum subsidy of 90%
With no changes to the scope, EDG had the ability to subsidize up to 90% of the project based on how severe the business had been impacted by. This would have been reviewed on a case-by-case basis. As of 1 January 2021, the maximum subsidy amount is at 80%.
Now, let’s look at current opportunities instead of missed ones!
The 10 Reasons You Should Tap On Grants Now is because of the additional 10% subsidy given for PSG & EDG.
As of 1st April 2020, EDG & PSG have increased their maximum support level from 70% to 80%. This increased support level will cease on 30th September 2021.
Now between PSG & EDG, which grant should you be going for? Let’s have a look at the difference.
| Description | PSG | EDG |
|---|---|---|
| List of Vendors | Has to be selected from a pre-approved list. Selected and vetted vendors have pre-fixed packages which companies can choose from. | Does not require any pre-assessment by EDG. Companies can choose to purchase from any vendor. |
| Capped Amount | $30,000 cap between 1 April to 31 March yearly. | There is no cap to the grant amount that will be disbursed. |
| Scope of Eligibility | The scope of pre-approved packages includes software, services (such as payroll outsourcing) and equipment, depending on which package you choose. | The project can consist of third party consultancy fees, software, equipment and internal manpower costs. |
| Approval Duration | Typically takes around 4 to 6 weeks. | About 8 to 10 weeks, providing there are no further clarifications needed based on the documents provided. |
| Eligibility | – Registered and operating in Singapore – Purchase/lease/subscription of the solutions or equipment must be used in Singapore – Have a minimum of 30% local shareholding – Company’s Group annual sales turnover to be less than $100 million OR have less than 200 employees Only SMEs may apply. | – Be a business entity registered and operating in Singapore – Have a minimum of 30% local shareholding – Be in a financially viable position to start and complete the project SMEs & non-SMEs may apply. |
Don’t miss out on this chance to further subsidize the technology which will optimize your operations! Now is the best time to drill into your operations and digitalize them to prepare for future growth. Speak to our team to find out about the pre-approved packages that Frontier e-HR has. Our team will ride on their experience to advise which package and grant is best for you.
