How the MRA Grant Helps Singapore Companies Expand Overseas

For many small and medium-sized enterprises (SMEs) in Singapore, going global is a key growth strategy. However, the cost, uncertainty, and complexity of entering new markets can be daunting. To support local businesses in their internationalisation journey, Enterprise Singapore offers the Market Readiness Assistance (MRA) grant — a government initiative that provides financial support to SMEs planning to venture overseas. In this article, we’ll explore how the MRA grant helps Singapore companies expand into foreign markets, the types of activities it covers, and how businesses can maximise its benefits.

What is the MRA Grant?

The Market Readiness Assistance (MRA) grant is a financial assistance scheme offered by Enterprise Singapore to help Singaporean SMEs defray the costs of expanding into international markets. It supports activities such as overseas market set-up, business development, and marketing efforts.

With the MRA grant, eligible companies can receive up to 50% of eligible costs, capped at S$100,000 per new market per company per fiscal year (as of 1 April 2020). This cap is broken down into:

S$20,000 for Overseas Market Promotion
S$50,000 for Overseas Business Development
S$30,000 for Overseas Market Set-up

This targeted support is aimed at reducing the risks and financial barriers companies face when exploring unfamiliar territories.

Key Ways the MRA Grant Supports Overseas Expansion

1. Facilitates Market Research and Entry Strategy

Before entering a new market, companies must understand the local business environment, consumer behaviour, legal frameworks, and competitive landscape. Market research is essential, but it can be expensive.

The MRA grant covers consultancy services provided by third-party experts who assist in:

Market feasibility studies
Customer analysis and segmentation
Competitor benchmarking
Go-to-market strategy development

By subsidising the cost of hiring international business consultants or market research firms, the MRA grant enables SMEs to make data-driven decisions and tailor their approach for better chances of success.

2. Supports Overseas Business Development

Expanding overseas often requires hiring in-market representatives or appointing distributors and business development partners. These local representatives help bridge cultural gaps and provide vital connections within the new market.

Under the MRA grant, businesses can get support for:

Business matching services
Participation in business missions and trade shows
Marketing and promotion in foreign markets
Hiring in-market business development staff (through eligible consultants)

This component of the grant reduces the cost of building valuable networks and engaging with potential clients or partners abroad.

3. Covers Overseas Marketing and Branding Activities

Branding and marketing are crucial to gaining traction in a new market. The MRA grant helps defray the costs of overseas marketing campaigns by covering:

Design and production of marketing materials (e.g., brochures, videos)
Digital marketing activities targeting overseas markets (e.g., SEO, SEM, social media advertising)
Participation in overseas trade fairs and exhibitions
Public relations campaigns and promotional events

By supporting these activities, the MRA grant empowers SMEs to build visibility and credibility in their target markets.

4. Assists with Overseas Company Set-Up

Setting up an overseas entity or office involves significant legal and administrative costs. The MRA grant helps companies with:

Legal fees for business incorporation
Intellectual property application costs
Advisory fees related to tax, compliance, and regulatory issues

Having a physical presence in the target market enhances customer trust, facilitates smoother operations, and creates a stronger foothold for long-term growth.

Eligibility Criteria

To qualify for the MRA grant, businesses must meet the following criteria:

Be registered/incorporated in Singapore
Have at least 30% local shareholding
Group annual sales turnover of not more than S$100 million or group employment size of not more than 200 employees
Be new to the market (i.e., less than S$100,000 of overseas sales in the target market over the last three years)

Engaging Enterprise Singapore-recognised consultants or vendors is also a requirement for certain activities.

Application Process

Applying for the MRA grant is a relatively straightforward process. Here’s a brief overview:

Determine Eligibility: Ensure your business meets the criteria and that the target market is “new” under the grant’s definition.
Prepare Proposal: Engage qualified third-party vendors and prepare a detailed proposal, including cost breakdown and intended outcomes.
Submit Application: Apply via the Business Grants Portal (BGP) before starting the project.
Approval and Claim: If approved, proceed with the project. Upon completion, submit claims with supporting documents for reimbursement.

Most applications are processed within 6–12 weeks. It’s crucial to keep clear records and invoices to support your claim.

Case Study: A Singapore F&B Brand Expanding to Malaysia

Let’s say a local food and beverage (F&B) brand plans to expand into Kuala Lumpur. Using the MRA grant, they could:

Hire a consultant to conduct market research on Malaysian consumer trends (covered under Market Feasibility).
Appoint a Malaysian distributor and travel for meetings and trade discussions (covered under Business Development).
Create a marketing campaign including Facebook and Instagram ads targeting Malaysian consumers (covered under Overseas Promotion).
Engage a legal firm to help incorporate a subsidiary in Malaysia (covered under Market Set-Up).

With total estimated expenses of S$80,000, the business may receive up to S$40,000 in MRA support — significantly lowering the cost and risk of expansion.

Benefits of the MRA Grant

1. Reduces Financial Risk

One of the biggest barriers to internationalisation is cost. The MRA grant shares the burden, encouraging companies to explore new markets without overextending themselves financially.

2. Encourages Strategic Expansion

With access to professional advice, businesses can make smarter decisions, select the right markets, and execute entry plans effectively.

3. Supports Long-Term Growth

A successful expansion opens doors to new customer bases and revenue streams. The MRA grant supports not just the first step but lays the groundwork for sustainable growth.

4. Boosts Singapore’s Global Business Presence

On a macro level, the grant encourages the growth of Singaporean brands on the global stage, reinforcing Singapore’s reputation as a hub for innovation and entrepreneurship.

Conclusion

The Market Readiness Assistance (MRA) grant is a powerful tool for SMEs in Singapore that are looking to internationalise. By easing the financial burden and providing support for critical expansion activities, it empowers businesses to enter new markets with confidence and a well-structured plan. For any SME with global ambitions, leveraging the MRA grant should be a key part of their overseas expansion strategy.

If you’re considering taking your business global, now is the time to explore how the MRA grant can give you that extra push. With proper planning and execution, the world could be your next big market.