We answer your FAQ’s on the new EDG.
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For the past year and a half, we have been privileged to work with various local SMEs and we’re finally happy to announce that Kim Sang Hee, our Managing Consultant, from Alto Marketing Pte Ltd is now an Enterprise Singapore-recognised consultant!
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What does this mean?
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Sang Hee is now able to share her skill sets and know-hows on EDG processes in order to heightened the growth of SMEs using Enterprise’s EDG Grant.
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What happened to CDG?
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CDG is short for Capability Development Grant. This financial assistance program is created to help SME business owners enhance competitiveness by developing their business capabilities across 10 key business areas.
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With effect from 25 October 2018, the Enterprise Development Grant (EDG) will replace the existing CDG and Global Company Partnership (GCP) Grant.
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What is EDG then?
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The EDG acts as a single grant that combines both aspects of CDG and GCP. EDG provides support to companies who are looking to upgrade and innovate themselves or venture overseas.
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Previously under CDG, companies can apply under 10 key business areas. Whereas, under the EDG, these key business areas are categorised under 3 main pillars.
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- Core Capabilities
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This pillar is for business that are looking to grow and transform their businesses by strengthening their business foundations.
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Business Strategy Development
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Financial Management
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Human Capital Development
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Service Excellence
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Strategic Brand and Marketing Development
- Innovation and Productivity
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This pillar is for companies that are looking to explore new areas of growth, or are looking for ways to enhance efficiency.
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Automation
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Process Redesign
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Product Development
- Market Access
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This pillar is for companies that are willing and ready to venture overseas.
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Mergers and Acquisition (M&A)
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Overseas Marketing Presence (OMP)-
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Pilot Project and Test Bedding
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Standards Adoption
Can I still apply for CDG, now that EDG is launched?
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No, you can no longer apply for CDG but you are encouraged to complete your EDG applications early as there will be an increase in web traffic expected during this transition period.
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Who is eligible for the EDG?
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You are eligible for the EDG if you are a Small Medium Enterprise (SMEs) and meet the following criteria:
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Currently registered and operating in Singapore
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Own at least 30% local shareholding
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In a financially viable position to start and complete the project
Is the EDG suitable for startups?
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Startups in general are not eligible for EDG as it requires you to have at least 3 years of your company’s past financial statements. If you are a startup, you can approach the SME Centre for advice instead.
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Can I still apply if I have already engaged a service provider?
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No, projects submitted needs to be new. This means that no revenue has been generated at point of application. Hence, your project is not considered new if you have already engaged any suppliers/ service providers, began work on the project scope or provided payment for the project.
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What if I work alone?
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Unfortunately, consideration is given to companies that are looking to expand and hire more staff. Your chances of applying a grant are lowered if you are a sole proprietor or have less than 3 employees.
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Do I need to have a minimum number of CPF paying employees?
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Since Enterprise Singapore focuses on developing and growing enterprises, your company will stand a better chance in applying for the EDG if you plan to increase the number of employees once they commence on their EDG project.
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Is there a minimum revenue before I can apply to the Enterprise CDG Grant?
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Technically, there is no minimum revenue indicated. However, your P&L statements versus the project sum is expected to be justifiable and reasonable as Enterprise Singapore will be assessing these.
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How much grant can I get?
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Eligible SMEs can get up to 70% grant on qualifying costs and up to 50% of qualifying costs for non-SMEs.
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How do I apply for an EDG?
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Easy, just follow these steps.
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Step 1
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Identify the key project category that you wish to apply for.
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Here are the project details within each section if you need help to identify the relevant project category.
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EDG Project Proposal Template – Core Capabilities
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EDG Project Proposal Template – Innovation Productivity
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EDG Project Proposal Template – Market Access
Step 2
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Consult your project with an Enterprise Singapore officer or an SME Centre business advisor and identify suitable providers to support your project.
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Is it a must to engage a consultant?
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Yes, if you are applying for EDG support for consultancy-related costs. The management consultant will need to have Enterprise Singapore-recognised certification.
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Step 3
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Time to prepare your project proposal!
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What documents should I get ready?
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ACRA information
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Audited financial statements
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Relevant proof of quotation or proposal
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Management consultancy scopes
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Relevant consultants’ certification
Click here for EDG Application Checklist.
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Applicants will also have to provide projected figures in the following areas arising from the implementation of the project:
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Company revenue
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Staff remuneration
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Depreciation
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Net operating profit before tax for three years’ post-project (inclusive of the year of project completion)
Step 4
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Submit your EDG application online via your company’s CorpPass account at the Business Grants Portal: www.businessgrants.gov.sg.
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How long do I have to wait for an EDG application to be processed?
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Complete submissions will usually take 8 to 10 weeks from the time of submitted project application.
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How do I know if my EDG is approved?
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A Letter of Offer (LOF) with conditions of support and amount of grant awarded will be sent out to your company on successful approval of grant. You must accept and acknowledge the receipt within the given timeline.
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What can I do with an EDG Grant Program for Branding and Marketing?
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In terms of Brand Development:
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Execute well-planned brand development strategy
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Enhance brand competitiveness
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Grow market share
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Build customer loyalty and increase brand value
Supported Activities:
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Conduct brand audit and research
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Develop and reinforce brand position and brand strategy
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Conducting brand advisory and education
In terms of Marketing Strategy Development:
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Execute effective marketing strategy
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Understand target audience
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Support marketing efforts
Supported Activities:
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Conduct market research and devise a strong market strategy
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Define target markets and market positioning
How long is the duration of each project?
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Upon successful application of grant, project should be completed within 12 to 18 months. However, a project must be completed within 12 months if they are under the Overseas Marketing Presence (OMP).
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Can you commence project before application of CDG?
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No, you can only embark on your project on or after the Project Commencement Date stated in your EDG application after submission to Enterprise Singapore.
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How long does it take for the money to be reimbursed?
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Money is reimbursed after completion of your project. You can submit your claim to the auditor and Enterprise officer for final verification. You will receive the disbursement of funds within 6 to 8 weeks via GIRO to your designated bank account.
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How to make sure my EDG application is foolproof?
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By avoiding common mistakes such as:
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Including key business areas that are not supported under EDG.
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Working with consultants that are not Enterprise certified
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Having an incomplete breakdown of costs
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Excluding productivity outcomes or tangible benefits
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Project scope that is too narrow
Who approves the EDG grant?
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The grant will be approved by Enterprise Singapore after a thorough assessment of your application based on project scope, project outcomes and competency of service provider.
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What can I do if I fail to get the CDG grant?
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You can appeal to Enterprise Singapore via email.
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How do I increase my chances of grant approval?
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To ensure a smooth application process, you can work with certified and experienced consultants to ensure that that all the correct requirements for the application has been filled. Insufficient or incorrect information will result in delays in approval.
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Can I apply for multiple projects at the same time?
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Yes, multiple project applications are allowed. However, you need to ensure that you have enough resources to see through and implement the projects while at the same time handling your daily business operations.
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I have an existing project that was awarded CDG. How will I be affected?
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Companies who have previously been awarded the CDG will not be affected and can proceed to submit your claims.
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What do I benefit from working with Enterprise Singapore-recognised consultants?
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They are specifically appointed and certified by certification bodies to assist businesses in their upgrading journey. Management consultants with the certification possess the proper knowledge, competence and ethics to support businesses in their projects and growth strategies.
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How do I know if the consultant i’m working with posses Enterprise Singapore-recognised certification?
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You can head over to Enterprise Singapore website for the list of certified consultants. There are three certification bodies with reputed certification programmes appointed by Enterprise Singapore.
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Kim Sang hee, our Management Consultant, from Alto Global Pte Ltd is also listed on the Enterprise Singapore CDG consultant list (page 25) as Registered Management Consultant (RMC) certified by Institute of Management Consultant (Singapore). Her main area of expertise lies in Marketing & Branding, Info Communications.
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Parting Words
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Sang Hee is ready to offer her services as your trusted Enterprise EDG consultant under the area of ‘Branding & Marketing’. Together, she will strive to enhance your business capabilities and help you define and achieve your business objectives!
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Reach out to the Alto team at hello@alto.sg for a free consultation. We’ll be more than happy to help you out 🙂
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