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International Development


ASSISTANCE


Human Resource Assistance Schemes

The International Business Fellowship Programme (IBF), an International Enterprise Singapore initiative, aims to develop a pool of talents with in-depth knowledge of the business environment in global markets. This programme supports Singapore-based companies in training fresh graduate and mid to top level executives to acquire business knowledge and build networks in the supported markets of Central Asia, China , India , the Middle East, Russia and Vietnam.

BCA is the appointed agency to administer the IBF Programme for the construction industry.



Financial Assistance Schemes

As companies venture overseas, the need for financing increases exponentially and the level of risks companies become exposed to also amplified. Mindful of this, government agencies have developed various financial assistance schemes to help Singapore-based companies to internationalise as well as to equip them acquire the right financial management skills for globalisation.

Depending on the needs of your company, the available initiatives that you may wish to consider are as follows:

  1. The Loan Insurance Scheme II (LIS II) offers Singapore-based companies an additional source of financing to fuel their entrepreneurial aspirations. It is a variable-cost financing programme that meets a company's working capital needs in Singapore and overseas. A portion of the loans are insured against the borrowers' default risks and the government will co-share the premium cost with borrowers.
  2. The Internationalisation Finance Scheme (IF Scheme) is designed to help Singapore-based companies support their expansion overseas. Financing is typically a challenge because of the inherent risks associated with overseas ventures. The Scheme addresses the issue of limited access by companies to funds for their overseas expansion by co-sharing their default risks with the participating financial institutions. The loans available under the IF Scheme can be used to acquire fixed assets for overseas use, and fund overseas projects and sales orders. The IF Scheme is developed by International Enterprise Singapore to assist Singapore-based companies to grow and internationalise successfully.
  3. The Trade Credit Insurance Programme offers Singapore-based companies a risk management tool to protect themselves against the risk that goods exported overseas will not be paid for. With greater certainty of payment, suppliers can offer more competitive credit terms to their buyers. Also, with insured accounts receivables, companies’ access to financing is enhanced. Apart from offering protection on accounts receivables, the Programme also offers financing to meet companies’ working capital needs.
  4. The Deal Flow Connection assists enterprises to gain access to over 100 financial intermediaries and various sources of funds. Through the intermediaries, enterprises can receive assistance on financial management as well as other finance related advisory news, government financial assistance programmes and finance-related information. Sources of funds could be venture capital funds, debt financing, private equity as well as hybrid financing.
  5. The Enterprise Fund is an alternate channel of financing to companies that have encountered difficulties with traditional bank financing, due to lack of collateral, and conventional venture capital financing which is usually more inclined towards high technology businesses.

For more information, please contact:

International Enterprise Singapore (IE Singapore)
Customer Service Centre at (65) 6337 6628

SPRING Singapore EnterpriseOne hotline at Tel: (65) 6898 1800 or email enterpriseone@spring.gov.sg



International Business Fellowship Programme (IBF)

The International Business Fellowship Programme (IBF), an International Enterprise Singapore initiative, aims to develop a pool of talents with in-depth knowledge of the business environment in emerging global markets. This programme supports Singapore-based companies in training fresh graduate and mid to top level executives to acquire business knowledge and build networks in the supported markets of Central Asia, China , India , the Middle East, Russia and Vietnam .

BCA is the appointed agency to administer the IBF Programme for the construction industry.

How does the IBF Programme help Singapore-based companies and executives? *

IBF Programme assists companies to develop manpower talent and business networks in growing Central Asia, China , India , the Middle East, Russia and Vietnam markets. It provides an opportunity for individuals to gain practical knowledge and skills, experience the culture and build networks in these emerging markets.

The programme provides the following funding to the successful trainee:

Market Immersion Programme
(Company Trainee)

Executive Programme

Postgraduate Programmes

Up to S$32,500 per selected staff to any of the supported markets for market immersion training Up to 70% of course fees. Capped at $350 per day for China and India, and S$500 per day for Middle East (for 10 days). Up to 70% of course fees

^ The company remains responsible for the payment of salary and bonuses to the employee, and all administrative costs (as per company employment terms and conditions).

*Programme details are subject to change without prior notice.

Components of the IBF Programme:-

  • Market Immersion Programme (MIP) for Company Trainee
    This programme offers the opportunity for companies to send fresh gradutes or mid-level executives for on-the-job training in the supported market for 12 months of training. During this period, the trainee should acquire in-depth knowledge of business operations, market expertise and establish business contacts in the host country.

    Typical funding amount for a 12-month MIP is up to S$29,500 , which consists of monthly living allowance, one time set-up cost and return airfare. 50% co-funding to a cap of S$2,000 is available for recruitment advertisment for both the IBF Trainee and Company Trainee schemes.
  • Postgraduate Programme
    This programme caters to high potential candidates to undertake approved business-related full-time or part-time Masters Programme in the top universities located in the supported markets.
  • Executive Programme
    This component supports middle and senior management of Singapore-based companies to attend short-term programmes in top training institutions located in supported markets. The duration of the programme should not exceed 10 days.

Eligibility Criteria:-

  • Companies: IBF Programme is open to Singapore-based companies including foreign-owned companies. These companies should have substantial headquarter operations in Singapore and possess substantive plans to expand their business in the supported markets.

  • Trainees: Trainees must be either Singapore Citizens or Singapore Permanent Residents. For postgradute programme, trainees must be Singapore Citizens. Inaddition, MIP trainees should not have more than 1 year of work experience in the supported markets.

Other criteria under MIP

  • Training Areas: Training should be in business-related areas that facilitate market entry and expansion including sales and marketing, business development, etc. The Training Partner should provide meaningful and structured training. A training plan would be required.

  • Training Partner: The Training Partner may be subsidiaries of the Singapore-based companies, or leading local companies in the supported markets. Training partners should be companies that have substantial presence and operating experience in the supported markets.

Other Conditions of the IBF Programme:-

Legal Commitment Under the MIP and Postgraduate Programme, the trainees are legally bonded with the sponsoring Singapore-based companies for two years to undertake work related to the market of immersion upon completion of the training.

Application

Applicants would be required to submit to BCA two copies of the duly completed IBF Application Forms, at least two months prior to the start of training, together with the items below:

  1. Current Financial Year (FY) report and last two audited FY reports of the company
  2. Short write-up on proposed training partner(s)
  3. Details of Training Programme

Details

The IBF Programme is an International Enterprise Singapore initiative. For more information about the programme, please visit www.iesingapore.gov.sg/ibf

BCA is the appointed agency to administer the IBF Programme for the construction industry. To obtain application forms for construction-related companies, please contact:-

Mr ACS Jayapaul
Regional Director (South Asia & Middle East)
Enterprise Promotion Department
Business Development Division
Building and Construction Authority
DID: 6248 9969
Email: paul_acs@bca.gov.sg

Mr Aung Phyo Kyaw
Enterprise Promotion Department
Business Development Division
Building and Construction Authority
DID: 6248 9976
Email: aung_phyo_kyaw@bca.gov.sg



Loan Insurance Scheme II (LIS II)

What is the Loan Insurance Scheme II (LIS II)?

The Loan Insurance Scheme II (LIS II) is an IE Singapore and SPRING Singapore initiative. This scheme offers Singapore-based companies an additional source of financing to fuel their entrepreneurial aspirations through the use of loan insurance. LIS II is a variable-cost financing scheme that meets a company's short-term financing needs in Singapore and overseas. Loans offered under LIS II are partially insured against the borrowers' default risks. Participating Financial Institutions (PFIs) have the flexibility to package attractive loan facilities to companies based on their assessment of the companies' risk profiles. 50% of the premium cost is sponsored by the Government.

Available Loan Facilities & Terms of Loans

Loan Type

Maximum Quantum Financed

Maximum Repayment Period

Eligible Companies

Inventory / Stock Financing Facility Up to 90% of the purchase price 1

 

 

 

1 to 3 Years

SME
Structured Pre-delivery Working Capital (includes revolving working capital facility) 2 Up to 90% of Letters of Credit or of Confirmed Sales Order, except for revolving working capital facility which shall not exceed 20% of the total facilities given under this category. SME

ISC

Factoring / Bill or Invoice or Accounts Receivable Discounting with Recourse Up to 90% of invoice value. SME

ISC

Overseas Working Capital Loans Support Facility via Standby Letter of Credit Up to 90% of the aggregate amount of overseas trade related working capital loans facility limit granted by financial institutions outside of Singapore. SME

ISC

Notes:

  • Any disbursement under this loan type must be made directly by the PFIs to the vendors / suppliers of the Borrowers.
  • The facility must relate to specific sales and/or purchase orders and/or letters of credit from the Borrower's customers. A revolving working capital facility does not need to relate to any specific sales and/or purchase orders and/or letters of credit from the Borrower's customers albeit related to underlying trade transactions.
  • 1 year refers to the maximum duration of the facility to be granted to a Borrower commencing from the date of first disbursement or the date on which the liability was first incurred. The facility must be first disbursed within 3 months of the date of acceptance of the relevant letter of offer. Within each type of facility granted, the maximum aggregate repayment term with respect to each advance / disbursement and/or liability incurred shall not exceed 12 months from the date of the first disbursement or the date on which liability was first incurred except that this requirement would not be applicable with respect to revolving working capital facility granted.
  • Type and quantum of financing of trade related working capital loans shall be determined solely at the discretion of the overseas financial institutions as long as the Standby Letter of Credit Facility herein is issued to support granting of trade related working capital loans to overseas majority owned subsidiaries of the Borrower.

Use of Loans

Loan facilities extended under LIS II can be used for the following purposes:

  • Establish a viable new business
  • Support the establishment of an inventory storage and distribution hub
  • Expand existing manufacturing capacity
  • Diversify into other product lines and capabilities
  • Augment working capital needs
  • Expand trade into new markets
  • Broaden distribution channels
  • Support and fund companies' majority-owned overseas subsidiaries

Interest Rates

The interest rate charged throughout the tenure of loans offered under LIS II can either be fixed or floating, depending on which option best meets the need of the enterprises. For more information on interest rates, please contact any of the PFIs.

Requirement of Collateral

The nature of the collateral to be provided by the Borrower will be determined by the PFI on a case-by-case basis. Generally, a lien will be taken on the goods or assets financed. Joint and several personal guarantees may also be required in accordance with the PFI's internal credit policies and procedures.

Insurance Premium

An insurance premium of 2% per annum computed based on the total loan amount approved, will be imposed for all types of loan facilities granted under LIS II. SPRING Singapore and IE Singapore will jointly co-share the insurance premium with the companies, hence bearing 1% of premium cost. The remaining 1% insurance premium will be collected by the PFIs from the Borrower upon loan approval.

Eligibility Criteria

To be eligible, a company must either be a small and medium-sized enterprise (SME) or an internationalising Singapore company (ISC) meeting the following conditions:

To qualify as a SME

  • A company must have at least 30% local shareholding.
  • A company's fixed assets (at net book value) must not exceed S$15 million*.
  • If a company is in the service industry, it must also have an employment size not exceeding 200 workers*.

To qualify as an ISC

  • A company must have at least 30% local shareholding.
  • A company's fixed assets (at net book value) should exceed S$15 million but not more than S$50 million*.
  • If a company is in the service industry, it must also have an employment size of more than 200 but not more than 500 workers*.

* Computed on a group basis.

How to Apply

Applications must be made on the prescribed forms available from any of the PFIs and submitted directly to them.

  • For ISCs, please click here to download the application form
  • For SMEs, please click here to download the application form

Enquiries on LIS II can be made at any of the following PFIs:

Participating Financial Institutions (PFIs) Contact Info
DBS Bank Ltd
6 Shenton Way
Singapore 068809
1800 222 2200

http://www.dbs.com/sg/enterprise/credit/

GE Commercial Financing (Singapore) Ltd
6 Temasek Boulevard #35-01
Suntec Tower Four
Singapore 038986
6226 3822

http://www.gecfsg.com.sg/prodser/prod_intro2.htm

Hong Leong Finance Ltd
16 Raffles Quay #01-05
Hong Leong Building
Singapore 048581
6415 9640

http://www.hlf.com.sg/loans/smeloan/lis2.html

Sing Investments & Finance Ltd
96 Robinson Rd
SIF Building
Singapore 068899
6221 9998

http://www.sif.com.sg/

United Overseas Bank Ltd
80 Raffles Place #11-00
UOB Plaza 1
Singapore 048624
6533 9898

http://www.uob.com.sg/pages/business/loans/gvtasstsch.html

Please visit http://www.iesingapore.gov.sg/events/index.jsp?vert=BZ&secfield=2&catfield=9&subfield=184 or http://www.spring.gov.sg/portal/products/assist/edf/LIS.html for updates of this scheme.



Internationalisation Finance Scheme

What is the Internationalisation Finance Scheme (IF Scheme)?

It is a scheme which designed to help Singapore-based companies support their expansion overseas. Financing is typically a challenge because of the inherent risks associated with overseas ventures. The Scheme addresses the issue of limited access by companies to funds for their overseas expansion by co-sharing their default risks with the participating financial institutions. The loans available under the IF Scheme can be used to acquire fixed assets for overseas use, and fund overseas projects and sales orders. The IF Scheme is developed by International Enterprise Singapore as part of our efforts to assist Singapore-based companies to grow and internationalise successfully.

How does this programme benefit my company?

Companies can tap on this scheme to finance the acquisition of fixed assets for use overseas and fund the expenses of overseas projects and sales orders. This is a government-assisted financing scheme where the government co-shares the default risk with the participating financial institutions.

Types of Loan available under the IF Scheme

(A) Asset-based Financing to purchase fixed assets for use overseas, or to purchase or construct factories or buildings overseas (including land)

Used assets are permitted as long as an independent valuation by a reputable valuer is obtained to ascertain the market value.

(B) Structured loan (SL) to finance secured overseas projects or confirmed overseas sales orders

SL must relate to and be backed by evidence of specific sales and/or projects from the borrowers’ customers.

Features of the Scheme

Types of loan Maximum Loan period Maximum quantum of financing3 Interest rates
(A) Asset-based Financing   90% 1 The participating financial institutions (PFIs) shall determine whether these shall be fixed or floating.
- Factories/buildings/land 15 years
- Other fixed assets 6 years
(B) Structured Loan 3 years 90% 2

Notes:
(1) Based on valuation or purchase price whichever is lower.
(2) Based on value of the sales order or contract amount or project value
(3) The quantum of financing shall be pro-rated in proportion to the percentage of the Singapore-based company’s shareholding in the overseas operations, unless the asset financed is for the Singapore-based company’s equity injection purposes.

Repayment Period

The repayment schedule including any provision of grace period shall be determined at the discretion of the PFI, provided that the loan tenure does not exceed the maximum loan period set out above for each of the various facilities. Any grace period extended shall be treated as part of the loan tenure.

Loan Limit

The financing shall be denominated in Singapore dollars and the maximum loan extended to the company on a group basis shall not exceed S$15 million.
* Includes the company’s directly owned subsidiaries and associated companies.

Collateral Requirement

The requirement for any collateral shall be determined by the PFIs.

Disbursements

Disbursements of approved loans will be made directly to the vendors or suppliers, unless otherwise approved by the PFIs.

How can my company qualify?

  • The applicant can either be a Singapore-based company or its overseas subsidiary (backed by the corporate guarantee of the Singapore-based parent company). The overseas associated company may also apply if there are restrictions/limits imposed by the overseas government that preclude the Singapore-based company from owning 50% or more in the overseas entity.*
  • On a group basis (as defined above), the turnover shall not exceed S$200 million or $500 million for trading companies at the time of application. Your company is considered a trading company if more than 50% of turnover is derived from trading.
  • The overseas business must complement the activities of the Singapore operations and result in economic spin-offs to Singapore.

* Documentary evidence must be produced.

Application

Applications can be downloaded here or through the prescribed forms available from any of the PFIs. Completed applications should be submitted directly to the PFI.

Participating financial institutions Contact Number
DBS Bank Limited
6 Shenton Way #28-08
DBS Building Tower Two
Singapore 068809
Tel: 1800 222 2200
GE Commercial Financing (Singapore) Limited
6 Temasek Boulevard #35-01
Suntec Tower Four
Singapore 038986
Tel: 65 6226 3822
IFS Capital Limited
7 Temasek Boulevard #10-01
Suntec Tower One
Singapore 038987
Tel: 65 6270 7711
Maybank
Maybank Tower
2, Battery Road
Singapore 049907
Tel: 65 6550 7113 / 6550 7586 /
6550 7562 / 6468 9986
ORIX Leasing Singapore Limited
331 North Bridge Road #19-01/06
Odeon Towers
Singapore 188720
Tel: 65 6339 3622
Oversea-Chinese Banking Corporation Limited (OCBC Bank)
65 Market Street #29-00 OCBC Centre
Singapore 049513
Tel: 65 6318 7222
Standard Chartered Bank
51 Bras Basah Road
Singapore 189554
Tel: 1800 743 3000
The Hongkong and Shanghai Banking Corporation Limited
21 Collyer Quay #08-01
HSBC Building
Singapore 049320
Tel: 65 6216 9008
United Overseas Bank Limited
80 Raffles Place #12-00
UOB Plaza 1
Singapore 048624
Tel: 65 6539 1236
(Closed for lunch between 12-2pm)

Where can I get more details?

For further details on the IF Scheme, please contact any of the PFIs or IE Singapore's Customer Service Centre at 1800-IESPORE (1800-4377673) or for overseas callers +65 6337 6628.

Or Visit IE Singapore website.



Enterprise Fund

Grow & Internationalise Your Business

Enterprise Fund is an alternate channel of financing to companies that have encountered difficulties with traditional bank financing, due to lack of collateral, and conventional venture capital financing which is usually more inclined towards high technology businesses.

Profile of Potential Investee Companies

Singapore-based companies that are seeking financing should meet the following general profile:

  • Non-industry specific
  • Profitable traditional and/or asset-light businesses with a proven cash-flow generation record
  • No minimum paid-up capital requirement
  • Privately-owned businesses
  • Sound management

General Investment Terms

  • Investments are usually structured as convertible loans or debts with equity options, with pre-defined repayment tenures
  • Investment amount of S$1 - 3 mil
  • Financial participation in the company

Funding Needs of Potential Investees

The Enterprise Fund can customize the investment to each company’s needs to achieve maximum financial efficiency. Singapore-based companies with any of the following funding needs can approach the Enterprise Fund.

  • Capital for expansion and internationalisation
  • Project-based financing
  • Short-term working capital
  • Asset-based financing
  • Acquisition financing

For more information, please visit IE Singapore website.