Leveraging the MRA Grant to Mitigate the Effects of Global Tariffs on Singapore Businesses

In 2025, Singaporean businesses are facing a new wave of uncertainty as global tariffs—particularly those introduced by major economies like the United States—reshape international trade dynamics. With export costs rising and traditional markets becoming more challenging to access, companies must rethink how they expand, operate, and remain competitive.

One strategic tool available to Singapore SMEs during this volatile period is the Market Readiness Assistance (MRA) Grant, a government initiative designed to support internationalisation. While many companies view the MRA Grant as a way to expand globally, it also offers a crucial buffer against tariff-induced challenges.

In this article, we explore how leveraging the MRA Grant can help Singapore businesses diversify market risk, strengthen competitiveness, and build economic resilience in the face of global trade disruptions.

Understanding the MRA Grant

The Market Readiness Assistance (MRA) Grant is administered by Enterprise Singapore and provides up to 70% funding support, capped at S$100,000 per new market over a 12-month period. The grant supports three core areas:

1. Overseas Market Promotion (e.g. marketing campaigns, branding)

2. Overseas Business Development (e.g. market entry consultancy, in-market staff)

3. Overseas Market Set-Up (e.g. legal and tax advisory, company incorporation)

To qualify, companies must:

• Be registered and operating in Singapore

• Have a minimum of 30% local shareholding

• Be a Small and Medium Enterprise (SME) with annual revenue of under S$100 million or less than 200 employees
  

The Impact of Global Tariffs on Singapore Businesses

Global tariffs introduced in 2025 have had a pronounced effect on Singapore’s trade-reliant economy. The U.S. has imposed a 10% tariff on goods from multiple countries, including a large volume of Singaporean exports. As a result:

• Exporters face increased costs, reducing margins

• Demand from key partners like the U.S. and China has softened

• Supply chains are under pressure due to rising import duties

• SMEs are experiencing cash flow constraints and contractual disruptions

For businesses that rely heavily on exports to high-tariff regions, these changes can be devastating. But rather than retreating, the key is to pivot and diversify—which is where the MRA Grant becomes incredibly valuable.

How the MRA Grant Helps Mitigate Tariff Risks

1. Diversifying into New Markets

One of the most effective ways to reduce exposure to tariff-hit countries is to expand into alternative markets. For instance, while U.S.-bound shipments may face a 10% tariff, exports to Southeast Asian, Middle Eastern, or European markets may remain unaffected or enjoy preferential rates under Free Trade Agreements (FTAs).

How MRA Helps:

• The MRA Grant subsidises up to 70% of costs related to exploring and entering these new markets.

• Businesses can fund market entry studies, business matching, and incorporation fees in countries like Vietnam, Australia, South Korea, or the UAE.

• This allows companies to shift or expand their customer base, reducing reliance on any one country or region.

Business Outcome: Reduced overdependence on high-tariff export destinations, stabilising revenue streams.

2. Building Market Visibility Without Straining Cash Flow

With tighter margins due to tariffs, companies must continue to promote their products overseas—but budget constraints make marketing harder. The MRA Grant makes it possible to run high-impact marketing campaigns without the full financial burden.

How MRA Helps:

• Businesses can fund digital marketing efforts (Google Ads, Facebook Ads) targeting customers in tariff-free markets.

• The grant also supports design and production of promotional materials, translation work, and even overseas trade fair participation.

Business Outcome: Stronger brand awareness in new territories, enabling faster market penetration.

3. Funding In-Market Staff and Business Development Efforts

Expanding to new markets usually requires having someone on the ground to manage distributors, partners, and customers. This is especially important in complex B2B sectors such as manufacturing, wholesale trade, or logistics.

How MRA Helps:

• The MRA Grant can co-fund in-market staff salaries, helping businesses build direct relationships with buyers and avoid going through costly intermediaries.

• It also covers business matching services, which help firms find local distributors or resellers.

Business Outcome: A lean but scalable entry into new regions with human resources partially subsidised.

4. Managing Compliance and Reducing Legal Risks

When entering new markets, companies often face new legal, tax, and regulatory environments. Mistakes here can be costly and could offset any gains from tariff avoidance.

How MRA Helps:

• The grant covers costs of legal and tax advisory services for new market entry, ensuring proper company incorporation, local licensing, and tax compliance.

• This helps companies avoid expensive errors that could derail their expansion plans.

Business Outcome: Smooth, compliant, and legally secure entry into new countries.

5. Creating a More Sustainable Export Strategy

Tariffs are not the only risks to global trade. Currency fluctuations, shipping disruptions, geopolitical tensions, and changes in consumer preferences also pose long-term challenges. The MRA Grant allows SMEs to strategically plan for long-term internationalisation instead of reacting to crises.

How MRA Helps:

• By reducing the cost barrier to market exploration, companies can test several potential markets before committing large resources.

• It enables businesses to build a multi-market portfolio, increasing resilience.

Business Outcome: A well-diversified export strategy that protects the company from global shocks.

Case Example: A Singapore Furniture Exporter

Let’s say a Singapore-based furniture manufacturer traditionally exports 60% of its products to the United States. With new tariffs adding a 10% cost to every shipment, the company’s gross margins are under serious pressure.

Instead of scaling down operations, the company applies for the MRA Grant and:

• Engages a consultant to identify high-growth markets in the Middle East

• Hires a local sales agent in the UAE using the grant’s business development support

• Launches a digital marketing campaign in English and Arabic for the Gulf region

• Registers a local business entity in Dubai with tax advisory support funded by MRA

Within six months, the company secures new buyers in the UAE and Saudi Arabia, gradually reducing its dependency on the U.S. market.

This move not only offsets losses from the tariffs but positions the business for long-term growth in a new region.

Tips for Successfully Applying for the MRA Grant

1. Start with a Clear Market Entry PlanDefine your objectives, target market, and strategic approach before applying.

2. Engage Pre-Approved VendorsEnterprise Singapore has a list of eligible vendors for market entry and business development services.

3. Keep Documentation OrganisedYou’ll need quotations, project scopes, and incorporation documents. Your accounting or grant consultant can help ensure everything is in order.

4. Measure Your KPIsDefine expected outcomes such as lead generation, sales targets, or local partnerships to evaluate ROI and qualify for future grants.

5. Avoid Duplicate ClaimsEnsure your project isn’t being funded by other Enterprise Singapore schemes concurrently.
   

Why Work With a Grant Consultant or Accounting Firm?

Applying for the MRA Grant can be time-consuming and complex—especially if you are entering multiple markets or planning to stack grants. Working with a qualified grant consultant or accounting firm offers several advantages:

• Faster application processing

• Strategic planning across markets

• Accurate financial budgeting

• Compliance with Enterprise Singapore’s rules

• Peace of mind when dealing with audits or claims

A good advisor helps you maximise funding support while keeping your expansion plans efficient and compliant.

Final Thoughts

In a world where global tariffs and protectionist trade policies are reshaping the way business is done, standing still is not an option. For Singapore SMEs, leveraging the MRA Grant is not just about expansion—it’s about mitigation, diversification, and resilience.

Rather than succumbing to shrinking margins or market contractions, companies can take charge of their future by entering new markets, building brand presence, and reducing dependency on tariff-heavy regions.

If you're ready to explore how the MRA Grant can support your business through these uncertain times, our team at Koh Management is here to guide you—step by step.

Need help applying for the MRA Grant or developing your market expansion strategy? Contact us today for a free consultation.