Introduction
As one of Asia’s most advanced economies, Taiwan offers Singapore small and medium-sized enterprises (SMEs) a fertile landscape for expansion. Known for its high-tech manufacturing, well-educated population, and strong demand for quality products and services, Taiwan is an attractive destination for Singapore businesses looking to grow overseas.
However, tapping into a new market—no matter how promising—requires preparation, strategic planning, and financial investment. That’s where the Market Readiness Assistance (MRA) Grant by Enterprise Singapore can play a pivotal role. Offering co-funding of up to 50% (capped at S$100,000 per fiscal year), the MRA Grant helps SMEs offset the costs of internationalisation, including market setup, promotion, and business development.
In this article, we explore the potential of expanding into Taiwan, outline the business opportunities available for Singapore SMEs, and explain how the MRA Grant can be utilised to ease your entry into the Taiwanese market.
Why Taiwan?
1. High Consumer Spending Power
With one of the highest GDP per capita figures in Asia, Taiwanese consumers are well-informed, brand-conscious, and willing to spend on premium goods and services. This makes Taiwan ideal for Singapore brands focused on quality and innovation.
2. Tech-Savvy Population
Taiwan has a highly connected and digital-first society. With over 90% internet penetration, online marketing, e-commerce, and digital solutions enjoy widespread reach and acceptance.
3. Ease of Doing Business
Taiwan consistently ranks highly for ease of doing business. The regulatory environment is stable, IP protection is strong, and foreign businesses are welcomed in most sectors.
4. Cultural Compatibility
Taiwanese society shares certain cultural and business similarities with Singapore, such as a strong focus on education, health, and efficiency. This helps Singapore SMEs better adapt their offerings and communication styles.
5. Strategic Location in East Asia
Located between China, Japan, and Southeast Asia, Taiwan can act as a regional hub or test market for North Asian expansion.
Industries with High Potential for Singapore SMEs
1. Food & Beverage (F&B)
Taiwanese consumers are passionate about food and are open to trying new international cuisines and dining concepts. Singapore food brands and cafes with a strong identity can thrive in urban centres like Taipei and Taichung.
2. Education and Enrichment
There is strong demand for English language learning, coding, STEM education, and early childhood enrichment. Singapore’s reputation in academic excellence makes this an ideal market for education providers.
3. Health & Wellness
Taiwan’s aging population and increasing health awareness create demand for supplements, wellness services, aesthetic clinics, and health monitoring tech—areas where Singapore brands excel.
4. IT and SaaS Solutions
Taiwanese SMEs and corporations are actively upgrading their digital infrastructure. B2B software, e-commerce platforms, cloud solutions, and cybersecurity services from Singapore have strong market potential.
5. Retail & Lifestyle
Fashion, skincare, and personal care products from Singapore are appreciated for quality, safety, and branding. Taiwan’s department stores and boutique platforms provide various channels for entry.
Challenges to Be Aware Of
1. Local Competition
Taiwan has a vibrant local business scene. To succeed, Singapore SMEs must differentiate through branding, product quality, and service experience.
2. Language Barriers
While English is spoken among professionals, most business is conducted in Mandarin. Marketing materials, packaging, and websites should be localised.
3. Distribution Complexity
Taiwan’s retail ecosystem includes large chains, boutique stores, and online marketplaces. Finding the right distributor or channel partner is crucial for success.
4. Customer Preferences
Taiwanese consumers value authenticity and emotional connection. Brand storytelling and social proof matter as much as product performance.
These challenges can be managed by partnering with experienced vendors and utilising support from the MRA Grant.
How the MRA Grant Supports Expansion into Taiwan
The MRA Grant funds three key areas of market entry:
1. Overseas Market Promotion
This covers marketing and brand awareness activities, such as:
- Digital marketing campaigns on Taiwanese platforms and social media (e.g., Facebook Taiwan, LINE, Instagram, YouTube)
- Creation of promotional materials in Traditional Chinese
- Public relations and influencer (KOL) campaigns with local tastemakers
- Participation in trade fairs or pop-up stores in Taipei, Kaohsiung, or Taichung
Example: A Singapore wellness brand launching in Taiwan can use the MRA Grant to run a LINE marketing campaign and collaborate with local beauty bloggers for brand awareness.
2. Overseas Business Development
This category includes professional services that help you validate your product-market fit and build local relationships. Eligible expenses include:
- Market feasibility studies
- Business matching services with Taiwanese partners or agents
- Hiring consultants to support local market entry strategy
Example: A Singapore SaaS startup could use the grant to work with a Taiwanese business consultant who provides insights into regulatory compliance and customer acquisition.
3. Overseas Market Setup
This supports legal and compliance-related activities, such as:
- Incorporation of local entities or representative offices
- Legal fees for company registration and commercial agreements
- Accounting and tax advisory services
- Intellectual property registration (trademarks, patents)
Example: A Singapore F&B chain looking to franchise in Taiwan can use the MRA Grant to fund the cost of registering its entity and trademarks.
MRA Grant Eligibility Criteria
To apply for the MRA Grant, your business must meet the following conditions:
- Be registered and operating in Singapore
- Have at least 30% local shareholding
- Have an annual turnover not exceeding S$100 million OR fewer than 200 employees
- Have no significant existing presence in Taiwan at the point of application
Note: Only third-party service costs are claimable, and work must not start until the grant is approved.
MRA Grant Application Process
Step 1: Plan Your Taiwan Expansion
Define your project goals, identify service providers, and obtain quotations. Draft a clear strategy that outlines marketing, business development, or setup activities.
Step 2: Submit via Business Grants Portal (BGP)
Log in using your CorpPass and provide the following documents:
- ACRA Business Profile
- Latest financial statements
- Vendor quotations
- Project description and KPIs
Step 3: Wait for Enterprise Singapore Review
Processing takes approximately 4–8 weeks. You may be asked to provide clarification or revise your scope.
Step 4: Receive Letter of Offer (LOF)
Once approved, a LOF is issued. You can only begin the project after this point—retrospective claims are not allowed.
Step 5: Carry Out the Project
Engage your vendors, launch your campaigns, or begin the market setup as approved.
Step 6: Submit Final Claims
Upon project completion, submit:
- Vendor invoices and payment evidence
- Deliverables (e.g., reports, registration documents)
- A final report summarising results and KPIs achieved
Sample Use Cases for Taiwan Market Entry
1. Retail Brand Expansion
A Singapore personal care brand enters Taiwan via an online marketplace. The company uses the MRA Grant to cover translation of product listings, digital ads targeting Taiwanese users, and local influencer reviews.
2. Franchise Setup
A Singapore bubble tea chain partners with a Taiwanese master franchisee. The grant supports legal contract drafting, IP registration, and feasibility research.
3. Tech Deployment
A Singapore-based ERP software firm expands into Taiwan’s manufacturing sector. It engages a Taiwanese consultant to assess market readiness and build distribution partnerships.
Success Tips for the Taiwan Market
1. Localise Your Brand and Marketing
Ensure your brand message, visuals, and tone resonate with Taiwanese consumers. Use Traditional Chinese and culturally appropriate content.
2. Invest in Social Media and KOLs
Taiwanese consumers are highly engaged online. Collaborate with local KOLs on YouTube, Facebook, and Instagram for credibility and reach.
3. Build Trust
Taiwanese consumers value transparency, consistency, and quality. Offer excellent customer service and deliver on your brand promise.
4. Choose the Right Entry City
Taipei is the commercial hub, but Kaohsiung and Taichung are growing markets with lower entry costs and strong consumer bases.
5. Leverage B2B Opportunities
Don’t overlook Taiwan’s industrial sector. Singapore tech and professional service providers can tap into B2B opportunities in manufacturing, logistics, and finance.
Conclusion
Taiwan is a dynamic and sophisticated market that aligns well with the strengths of Singapore SMEs. With a population that values innovation, quality, and education, it offers strong demand for products and services across multiple sectors.
While entry does require thoughtful localisation and strategic planning, the MRA Grant provides the financial and operational support needed to reduce risk and increase the chances of a successful market launch. From branding to incorporation, the grant gives you the flexibility to explore Taiwan confidently.
For Singapore businesses ready to expand into North Asia, Taiwan offers not just opportunity—but real potential for long-term growth and brand recognition. With the right partners and the support of the MRA Grant, your Taiwan journey starts on a strong footing.