Research and Innovation Scheme for Companies RIS(C)

RIS(C) is relevant to companies that are registered or incorporated and operating in Singapore and that intend to undertake a qualifying new R&D or innovation project locally.

A fundamental eligibility condition is the company's ownership profile.

Less than 30% local ownership

RIS(C) is intended for companies with less than 30% Singaporean / Singapore PR ownership.

This makes it particularly relevant to:

• multinational groups;
• foreign-owned Singapore subsidiaries;
• overseas technology companies establishing R&D operations in Singapore;
• foreign companies expanding an existing Singapore technical team.

A company can therefore have some Singaporean or PR ownership and still fall within the RIS(C) route, provided local ownership remains below the applicable 30% threshold.

Companies with 30% or more Singaporean / Singapore PR ownership are not eligible for RIS(C) and should assess other support mechanisms.

RIS(C) and the Enterprise Singapore EDGE Grant serve different company profiles.

For a foreign-owned company establishing or expanding a substantive R&D activity in Singapore, RIS(C) is therefore one of the principal grant routes to assess.

Explore the EDGE Grant

Routine implementation, technology adoption, ordinary production and business-as-usual engineering generally fall outside RIS(C). Transferring an existing capability without new development work is also insufficient.

Having an existing R&D team in Singapore does not necessarily prevent a company from considering RIS(C).

The key question is whether the company is undertaking a new or expanded R&D and innovation programme that represents an additional commitment.

For example, a company may already employ engineers in Singapore but be planning to:

• create a new product-development team;
• add a new technology platform;
• establish a new research programme;
• materially expand its R&D headcount;
• move a new global R&D mandate into Singapore.

In those circumstances, the incremental project may still justify assessment.

RIS(C) should not, however, be viewed as funding for existing business-as-usual R&D expenditure without a new qualifying project or capability expansion.

RIS(C) can provide support towards qualifying expenditure incurred in carrying out the approved R&D and innovation project.

The principal cost categories are:

Local R&D manpower

Qualifying Singapore-based employees directly involved in the approved project can form a major component of the grant.

Current programme parameters provide support of up to 60% of qualifying local manpower costs.

The relevant personnel must be directly involved in the R&D or innovation activities covered by the award.

Foreign R&D manpower

Foreign technical personnel directly contributing to the project may also qualify.

Current programme parameters provide support of up to 30% of qualifying foreign manpower costs.

This can be relevant where specialist expertise needs to be brought into Singapore as part of establishing or developing the new R&D capability.

R&D equipment

Equipment required to perform the approved R&D and innovation activities may also be supported.

Current programme parameters provide support of up to 30% of qualifying equipment expenditure.

Depending on the approved project, this may include the purchase or eligible financing or leasing cost of equipment together with certain directly related delivery, calibration or installation costs.

Funding is linked to actual qualifying expenditure

The approved grant amount should not be treated as an unconditional lump-sum subsidy.

The amount ultimately claimable depends on:

• the approved project;
• the expenditure actually incurred;
• whether the expenditure falls within the qualifying period;
• whether the cost is eligible under the award;
• whether the required supporting documentation is available;
• whether the company meets the relevant project conditions and milestones.

This makes expenditure planning and Post-Award Management an important part of a RIS(C) project.

Companies undertaking substantial R&D in Singapore should generally consider both grant funding and R&D tax incentives when assessing the economics of the programme.

The two mechanisms operate differently.

RIS(C) provides project-based grant support linked to an approved R&D and innovation programme.

Singapore's R&D tax incentives operate through the corporate tax system and depend on whether the underlying activities and expenditure satisfy the relevant tax requirements.

The same wider R&D programme may therefore need to be considered across both funding and tax workstreams.

However, companies should not assume that the same expenditure can simply receive unrestricted support under multiple government mechanisms. The interaction between the grant award and tax treatment should be reviewed carefully.

Explore Singapore R&D Tax Incentives

A strong RIS(C) project is not assessed only on whether its technical work can be described as innovative.

The wider question is what new R&D and innovation capability the company is committing to build in Singapore.

This can include:

R&D expenditure

How much qualifying R&D and innovation expenditure will be undertaken locally?

R&D employment

What technical, engineering, scientific or innovation roles will be created or maintained in Singapore?

Technical capability

What new knowledge, technology or development capability will sit within the Singapore operation?

Project outcome

What products, processes, technologies or applications will be developed?

Strategic role of Singapore

How does the project strengthen Singapore's role within the company's regional or global R&D organisation?

The strongest projects connect these elements into a coherent investment case rather than presenting the application purely as a request for reimbursement of R&D costs.

EDB assesses RIS(C) applications based on both the proposed project and the company undertaking it.

The assessment can include quantitative and qualitative considerations.

Quantitative considerations

These can include:

• proposed R&D and innovation expenditure;
• R&D employment;
• equipment investment;
• scale of the project;
• level of new activity being established in Singapore.

Qualitative considerations

These can include:

• technical and innovation substance;
• novelty of the proposed development;
• significance of the new Singapore capability;
• company's R&D track record;
• feasibility of the proposed programme;
• strategic value of the activity being located in Singapore;
• ability of the company to deliver the project.

Meeting the expenditure and employment thresholds associated with a standard package does not guarantee that EDB will approve that package.

The application therefore needs to demonstrate both the scale of the commitment and the quality of the proposed R&D programme.

The work does not end when the grant is awarded.

A multi-year RIS(C) project requires continued alignment between the approved project, the company's actual R&D activity and the expenditure being claimed.

Key areas include:

• tracking qualifying manpower;
• monitoring R&D expenditure;
• maintaining supporting financial documentation;
• monitoring equipment expenditure;
• following project milestones;
• documenting technical progress;
• identifying material project changes;
• preparing claims;
• responding to EDB clarification or verification requests.

Potential issues are much easier to manage during the qualifying period than at the end of the project when the claim is being reconstructed retrospectively.