This information is not on how start-ups or SMEs acquiring funds for the business. This issue is on how SMEs can benefit from grants like PIC, PIC plus schemes, CDG, IGP and WorkPro to cover their expenses for growth of their business.
These grants should be and must be used for growth of SMEs in innovation and upgrading of employees. Companies/organizations who misuse these schemes from government will be facing dire consequences upon discovered.
The grants we will be looking at in this blog are :-
(i) PIC
(ii) PIC+ schemes
(iii) CDG
(iv) IGP
(v) WorkPro
(i) PIC
(ii) PIC+ schemes
(iii) CDG
(iv) IGP
(v) WorkPro
We will talk about each grants that are available to
SMEs. I hope it can help SMEs in their business.
PIC
PIC is called Productivity,
Innovation and Credit Scheme. This scheme was introduced in budget 2010 and was enhanced in 2011 and 2012. The PIC scheme, which lapses in 2015,
will be extended for three more years ( ie YA2016 to YA 2018) at the current
support level. It was to encourage business to invest in productivity and
innovation. ALL BUSINESS BENEFITS,
ESPECIALLY SMEs.
There
are 6 activities covered in this scheme:-
i.
Purchase / leasing of PIC IT Automation
Equipment
ii. Training of Employees
iii. Acquisition of In-licensing of equipment
iv. Registration of Intellectual Property
v. Research & Development
vi. Approve Design Project.
-
Under these 6 activities in the scheme there is 400%
tax deduction /allowance on each of the 6 activities expenditure. SMEs can also
opt for cash payout in place of tax deduction / allowances (YAs 2011 to 2015*
New extension till 2018)
2011 to 2012
Combine
|
$800,000
|
800,000 x 400%
|
$3,200,000
|
2013 to 2015
Combine
|
$1,200.000
|
1,200,000 x 400%
|
$4,800.000
|
Budget 2014(NEW)
2016 to 2018
Enhancement
|
$1,200,000
|
1,200,000 x 400%
|
$4,800,000
|
PIC+ Scheme
In Budget 2014, from YA 2015 to 2018, qualifying business can enjoy 400% tax deduction / allowance up to $600,000 (previously $400,000) of their expenditure per year from each of the six qualifying activities under the PIC+ scheme. The annual expenditure cap of $600,00 may be combine as follows :
2013
to 2015 (Combine)
|
$1,400,000
|
$5,600,000
(400%
x $1,400,000)
|
2016
to 2018 (Combine)
|
$1,800,000
|
$7,200,000
(400% x $1,800,000 |
This includes for companies that are newly
incorporated / registered business whose 1st YA is YA 2012 and the
expenditure cap per activity is $400,000. It can also be converted to Cash
Payout Option.
Cash
Payout Option
All eligible businesses can apply to convert cash
payout option. Up to $100,000 of their total expenditure for each YA in all the
six qualifying activities. The cash payout is to support small and growing
business for their cash flow and in constrained to improve productivity or for
the growth of their businesses or having constrained to innovate.
2011
and 2012 (Combine)
|
$200,000
|
30%
|
$60,000
(30% x $200,000) |
2013
to 2015
(Cap cannot be combine) |
$100,000
|
60%
|
$60,000
per YA
(60% x $100,000) |
2016
to 2018 (NEW)
(Cap cannot be combine) |
$100,000
|
60%
|
$60,000
per YA
(60% x $100,000) |
For SMEs to understand more of the grant and qualification of eligibility or to determine eligibility please refer to http://www.iras.gov.sg/irasHome/page04.aspx?id=15548
To
know more about how to apply for cash payout and grant please visit:http://www.iras.gov.sg/irasHome/page04.aspx?id=10572
Capabilities
Development Grant (CDG)
The
capabilities Development Grant is a program aimed in helping SMEs in a form of
financial assistance. This program is an enhance funding support by SPRING to
support SMEs up to 70% of funding support for three (3) years until 31 March
2015.
Diagram from SPRING website
|
|
For more information on CDG please visit the website
:
http://www.spring.gov.sg/Enterprise/CDG/Pages/Capability-Development-Grant.aspx#.U1aBb_mSzLk
Inclusive Growth program IGP
http://www.spring.gov.sg/Enterprise/CDG/Pages/Capability-Development-Grant.aspx#.U1aBb_mSzLk
Inclusive Growth program IGP
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The IGP was launched by the labour Movement in 2010
to have industry re-development, to promote inclusive growth and to ensure productivity
gains to be shared with workers through higher wages.
It is a $100 million programme administered by the National Trade Union Congress e2i (Employment and Employability Institute) and partnered with government agencies, participating companies and the Labour Movement’s network of unions.
The programme's focus is on improving measurable productivity towards the lower 20% of the workforce who earns less than or equivalent to $1400 monthly.The programme is to increase value of low wage jobs, without down-sizing the local workforce and lengthening working hours of staff. Company’s management will have to pledge to share gains with workers through the productivity improvement project prior to the approval of scheme.
For case study on the project here is a recent link for more information :-
Yellow Submarines' Productivity Going Swimmingly
To join IGP please click on the link provided :-
WorkPro
WorkPro is a scheme jointly developed by Ministry of Manpower MOM) and Singapore Workforce Development (WDA). SNEF and NTUC will manage and administer the program for 3 years from 1st of April 2013 to Mar 2016.WorkPro aims to provide funding support for employers and employees, by helping employers improve their workplace practices and enhance work-life harmony. It is also to help employers to attract and retain back-to-work locals, as well as mature workers.
The Age Management Grant (20K per company) :-
- It requires employers to acquire necessary skills and knowledge on age management.
- The grant is paid in two (2) tranche.
Job redesign Grant (Max $300,000 per company)
- Purchases of equipment to automate certain work process.
Work Life Grant (Max $160,000 per company)
- Implementation of WLB flexible strategies.
New Hire Retention Incentive (Max $50K per company)
- To implement measure to better retain newly hired workers.
OJT training allowance
- Encourage employers to conduct OJT for newly hired back-to-work locals above 30 years of age.
To know more about these grants and initiatives there is a SUMMARY OF FUNDING SUPPORT PROVIDED BY WORKPRO. Please do take a look at how your business can benefit not only in having fund to enhance the organization culture but to encourage a culture of good practice to evolve in your policy making and structure for better growth.
http://www.mom.gov.sg/Documents/employment-practices/WorkPro%20funding%20summary.pdf
Here is a brochure on WorkPro
http://www.sgemployers.com/public/WorkPro/WorkPro-Brochure.pdf
SMEs can take these initiatives to use the grants available to have better policies and best practices and build a culture to maximize growth potential and enhance their business.
