This document summarizes information from a Maybank business workshop on grants and tax incentives for SMEs in Singapore. It provides details on several grants including the Enhanced Worklife Grant, Age Management Grant, and Job Redesign Grant which provide cash funding for implementing flexible work arrangements, age management practices, and job redesign respectively. It also outlines tax incentives such as the Special Employment Credit for hiring older or disabled workers, tax exemptions for new start-ups, and partial tax exemptions. Case studies are given to illustrate how companies can benefit from these different funding and tax relief programs.

1. MAYBANK POWER-UP
BUSINESS WORKSHOP
BY KEN LEONG
361 DEGREE GROUP

2. KEN LEONG
FOUNDER & DIRECTOR
361 DEGREE GROUP
• CPA (Aust), MBA
• More than 20 years of experience in MNC & SME
• Featured in newspapers & TV

4. GRANTS
FOR SMEs
BRIEF INTRODUCTION

5. • Adopt flexible work arrangements
Enhanced Worklife Grant
• Adopt good age management practices
Age Management Grant
• Support job redesign
Job Redesign Grant

6. Enhanced Worklife Grant
Cash grant up to S$105K over 2 years

7. • Employer to adopt Tripartite Standard on FWAs
• Employer has not claimed for FWA Incentive
$2K per worker on FWA
Max $70K over 2 years
$3.5K per PMET on Job-Sharing
Max $35K over 2 years
Enhanced Worklife Grant

8. Enhanced Worklife Grant
Case Example
• XYZ Accounting Co. offered staggered working hours and
telecommuting for 10 and 5 local employees respectively.
• Total 15 local employees benefitted.
• 15 employees x $2K each = $30K per year.
• $30K x 2 years = total $60K received over 2 years.

9. Age Management Grant
• Minimum 5 employees > 50 years to qualify
• One-time cash grant of S$20K

10. Age Management Grant
Case Example
• ABC Manufacturing Co. employs a total of 10 staff, out of
which 7 are aged > 50 years old.
• The company implemented 4 age management practices:
• Performance Appraisal for mature staff
• HR handbook with Fair Employment Codes
• Mentoring Programme pairing young and mature
• Redesign workplace for better Ergonomics

11. Job Redesign Grant
• Must benefit employees aged >50 years
• Cash grant of either:
• S$10K per worker (50-59 yrs) and
S$20K per worker (>60 yrs)
• OR 80% of project cost
(whichever is lower)
• Total grant up to S$300K per organisation

12. Job Redesign Grant

13. Job Redesign Grant
Case Example
• PQR Logistics Co. invested in 4 forklifts to help its mature staff to
lift heavy and bulky items in the warehouse.
• 2 staff aged 50 – 59 years and 1 staff aged > 60 years
benefitted.
• Each forklift costs S$30K.

14. Job Redesign Grant
Case Example
Original
Funding based on
Workers
S$ 10,000 X 2 staff (50-59 yrs)
+
S$ 20,00 X 1 staff (>60 yrs)
ie. S$ 40,000
Funding based on
project cost
S$ 30,000/forklift X 4 sets X 80%
ie. S$ 96,000
Total Funding for Company : S$ 40,000 (lower of the 2)

15. Capability Devt Grant (CDG)
Expires 30 Sept 2018

16. Capability Devt Grant (CDG)
Expires 30 Sept 2018
• For SMEs registered and operating in Singapore
• At least 30% local shareholding
• Group annual turnover < S$100m or employment size
<200 employees
• Funds up to 70% of cost, such as:
Consultancy Training Certification &
Equipment

17. Glocal Company Partnership Grant (GCP)
Expires 30 Sept 2018
• Support the internationalisation efforts of Singapore
companies when expanding overseas
• To be eligible, companies must have:
• management control functions based in Singapore
• annual sales turnover of at least S$500K
• minimum paid up capital of S$50K

18. Glocal Company Partnership Grant (GCP)
Expires 30 Sept 2018
Funding up to 70% of eligible cost

19. Glocal Company Partnership Grant (GCP)
Expires 30 Sept 2018
Funding up to 70% of eligible cost

20. Glocal Company Partnership Grant (GCP)
Expires 30 Sept 2018
Funding up to 70% of eligible cost

21. Enterprise Devt Grant (EDG)
Estimated to be ready 4th Quarter 2018
Market & Business
Development
Innovation and
Productivity
Core Functions and
Capability
Funding up to 70% of eligible cost

22. Productivity Solutions Grant (PSG)
• Supports pre-scoped IT
solutions & equipment to
boost productivity
• CRM, HR & Payroll,
Inventory Management,
POS etc
• Funding up to 70% of
eligible cost

23. Productivity-Max Grant (P-Max)
Supports SMEs to recruit, train, manage
and retain PMEs
• For SMEs registered and operating in Singapore
• At least 30% local shareholding
• Group annual turnover < S$100m or employment size <200
employees
• Up to 90% funding support for training
• Once-off S$5K grant if PME retained > 6 months

24. Enhanced Work Trial For Employers
• Encourage recruitment of Singapore citizens who have been
unemployed and actively looking for jobs for > 6 months
• Allows companies to assess jobseeker’s fit for a short term before
offering official employment
• Receive wage support of 30% capped at S$900 per month, up to 6
months (total S$5,400)
Register as
a Career
Trial host
company
Develop
customised
training stint
of 16 to 480
hours per
jobseeker
Offer
employment
of at least
S$1,500
per month
Conduct
performance
assessment
after trial

25. Career Support Programme (CSP)
• Encourage recruitment of PMEs by companies registered in
Singapore
• PMEs recruited must:
• be either retrenched or out of work for > 6 months
• have minimum monthly gross salary of S$4K
• be offered employment for at least a 12-month basis
• Receive wage support for up to 1 year of employment

26. Career Support Programme (CSP)

27. Career Support Programme (CSP)
Case Example
• Sally is a Singaporean citizen aged 52. She has been
retrenched from her Operations Manager post in Feb 2016 as
her company shifted overseas and shut down local operations.
• Subsequently in Aug 2017, Sally was offered a permanent
position as an Ops Assistant Manager in a local manufacturing
company, earning S$5,000 monthly.

28. Career Support Programme (CSP)
Case Example
Original Funding Nett by Company
Salary Support
(1st 6 months)
S$ 5,000/mth X 6 mths
ie. S$ 30,000
40% funding
ie. S$ 12,000
S$ 18,000
Salary Support
(next 6 months)
S$ 5,000/mth X 6 mths
ie. S$ 30,000
20% funding
ie. S$ 6,000
S$ 24,000
Total Savings for Company : S$ 12,000 + S$ 6,000 = S$ 18,000!!

29. Professional Conversion Programme (PCP)
• Encourage companies to take on mid-career switchers without
relevant skills/experience
• Funding available for training and wage support

30. Professional Conversion Programme (PCP)
Case Example
• John is a Singaporean citizen aged 45. He has been retrenched
from his engineering position in Dec 2016.
• Subsequently in Sept 2017, John joined a local SME hotelier as
an Assistant Sales Manager.
• The hotelier pays John S$5,000 monthly, and sends him for a
related 4-mth PCP course offered by SHATEC.

31. Professional Conversion Programme (PCP)
Case Example
Original Funding Nett by
Company
PCP Course Fee S$ 3,000 90% funding
ie. S$ 2,700
S$ 300
Salary Support
(4 months)
S$ 5,000/mth X 4 mths
ie. S$ 20,000
90% funding
ie. S$ 18,000
S$ 2,000
Total Savings for Company : S$ 2,700 + S$ 18,000 = S$ 20,700!!

32. TAX INCENTIVES
FOR SMEs
BRIEF INTRODUCTION

33. Special Employment Credit (SEC)
Supports SMEs to hire/re-employ older
Singaporeans and persons with disabilities
• Employers who hire Singaporeans aged 55 or older, and
earning < $4,000
• Receive monthly wage offsets between 3% to 8%
• Employers who hire persons with disabilities
• Receive monthly wage offsets of 16%, capped at $240

34. Tax Exemption For New Start-Ups
• Company must be incorporated in Singapore
• Company must be a tax resident in Singapore for that YA
• Company’s total share capital is beneficially held directly by no more
than 20 shareholders throughout the basis period for that YA where:
• all of the shareholders are individuals; or
• at least 1 shareholder is an individual holding at least 10% of the
issued ordinary shares of the company

35. Tax Exemption For New Start-Ups
• The tax exemption is open to all new companies except these two
types of companies:
• A company whose principal activity is that of investment holding;
and
• A company which undertakes property development for sale, for
investment, or for both investment and sale.

36. Tax Exemption For New Start-Ups
Tax Exemption for First 3 Consecutive YAs where
YA falls in 2019 (FY2018) and before
• Full exemption on the first $100,000 of normal chargeable
income; and
• A further 50% exemption on the next $200,000 of normal
chargeable income.
Chargeable Income % Exempted from Tax Amount Exempted from Tax
First $100,000 100% $100,000
Next $200,000 50% $100,000
* The maximum exemption for each YA is $200,000 ($100,000 + $100,000).

37. Tax Exemption For New Start-Ups
Tax Exemption for First 3 Consecutive YAs where
YA falls in 2020 (FY2019) onwards
• 75% exemption on the first $100,000 of normal
chargeable income; and
• A further 50% exemption on the next $100,000 of normal
chargeable income.
Chargeable Income % Exempted from Tax Amount Exempted from Tax
First $100,000 75% $75,000
Next $100,000 50% $50,000
* The maximum exemption for each YA is $125,000 ($75,000 + $50,000).

38. Partial Tax Exemption (PTE)
• Partial tax exemption is open to all companies including companies
limited by guarantee unless:
• they have already claimed the Tax Exemption for New Start-Ups

39. Partial Tax Exemption (PTE)
Partial Tax Exemption where YA falls in
2019 (FY2018) and before
• 75% exemption on the first $10,000 of normal chargeable
income; and
• A further 50% exemption on the next $290,000 of normal
chargeable income.
Chargeable Income % Exempted from Tax Amount Exempted from Tax
First $10,000 75% $7,500
Next $290,000 50% $145,000
* The maximum exemption for each YA is $152,500 ($7,500 + $145,000).

40. Partial Tax Exemption (PTE)
Partial Tax Exemption where YA falls in
2020 (FY2019) onwards
• 75% exemption on the first $10,000 of normal chargeable
income; and
• A further 50% exemption on the next $190,000 of normal
chargeable income.
Chargeable Income % Exempted from Tax Amount Exempted from Tax
First $10,000 75% $7,500
Next $190,000 50% $95,000
* The maximum exemption for each YA is $102,500 ($7,500 + $95,000).

41. Corporate Income Tax Rebate
Year of Assessment (YA) Corporate Income Tax
Rebate
Capped at
2019 20% $10,000
2018 40% $15,000
2017 50% $25,000
2016 50% $20,000
2013 to 2015 30% $30,000

42. THANK YOU