As part of the Singapore Budget 2015, the Government announced enhancements to the Capability Development Grant (CDG) to encourage and help companies to innovate. The changes will help SMEs with ongoing restructuring and support a range of activities from developing intellectual property to business innovation and human capital development. With this focus in mind, SPRINGnews singles out three ways SMEs can benefit from the CDG.
1. Supporting Business Growth
The CDG is a customisable and flexible grant that helps SMEs defray up to 70% of the cost of a qualifying project. It supports a wide range of activities to deepen capabilities, including innovation and productivity improvements. It also supports a range of diverse projects to facilitate business growth such as brand development, business excellence, intellectual property and franchising, financial management, service excellence and human capital development. The CDG factors in every SME’s unique needs and the scope of its different projects.
2. Driving Innovation
Grant support will be strengthened for every form of innovation. This includes a whole spectrum of activities – anything from technology research to automation in processes, product development or the creation and marketing of a new brand. The CDG will help more companies improve their business capabilities and add value from these types of activities, which will in turn support SMEs attempting breakthroughs or expanding their operations overseas.
3. Increasing Convenience With A Simpler Application Process
With enhancements made to the CDG, the application process will be simplified for grant support of $30,000 or less, while enhanced funding of up to 70% of costs will be extended for three more years to 31 March 2018. The CDG currently supports around 1,200 projects a year. This is expected to increase over the next three years, with approximately $600 million worth of funding expected to be used till March 2018.
Who Can Apply For The CDG?
All SMEs are eligible for funding support through the Capability Development Grant, provided the SME is:
- Registered and operating in Singapore,
- Has at least 30% local shareholding and;
- Has group annual sales of not more than $100 million or group employment size not exceeding 200 employees.
To find out more about the CDG, please visit www.spring.gov.sg/CDG or approach a business advisor at an SME Centre.