27 March, 2020
Executive Summary
The Economic Development Board ("EDB") and Enterprise Singapore ("ES") have recently implemented the Tech@SG programme ("Tech@SG"), with the intention to help tech companies grow in Singapore and expand in the region.
Overview of the Tech@SG Programme
The initial plans were announced by both agencies in July 2019. Under the programme, tech companies are expected to have their Employment Pass ("EP") applications of their core team members facilitated so that they can get the necessary talent to set up their businesses in Singapore.
Qualifying companies can secure up to 10 new EPs (i.e. up to 2 years validity) for the core team members. The support under Tech@SG will also extend to cover the first renewal of these EPs (i.e. up to 3 years validity). In short, an EP can be supported by Tech@SG for up to 5 years. Thereafter the EP can be renewed under the prevailing eligibility criteria set by the Ministry of Manpower ("MOM").
Eligibility Criteria
a) Company
To qualify for Tech@SG, a company must meet all of the following criteria:
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Incorporated a business entity in Singapore with the Accounting and Corporate Regulatory Authority ("ACRA");
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Have a digital or technology offering as your core business product or service1;
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Secured more than USD 10 million (cumulative) in investment funding in the past 36 months;s
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Received funding (no minimum amount) from one of Tech@SG's recognized investment firms in the past 36 months.
b) Individual ("EP Applicant") i.e. Core Team Member
Once the company ensures that it qualifies for Tech@SG, it must also ensure that the EP Applicant meets all of the following requirements:
1. The fixed monthly salary drawn in Singapore meets the MOM's minimum prevailing EP salary criteria i.e. SGD 3,600 – older and more experienced applicants require higher salaries;
2. The EP Applicant passes the MOM's background and due diligence checks;
3. The EP Applicant is considered a core team member whose functional role and seniority are in line with the conditions set out below:
Functional role: The EP Applicant should be in a role that fall into one of the following categories:
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Core business functions e.g. business development, human resources, finance, partnerships, strategy, general management;
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Technical functions e.g. product management, product development, software engineering, solution architecting, product design, data science.
Seniority: The EP Applicant should be in a role that is managerial level and above.
How to Apply 1) Pre-application
Before applying for Tech@SG, the company should ensure that it has the following:
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Has a business entity in Singapore;
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Obtained a CorpPass account from ACRA;
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Enabled the "Enterprise Singapore Form SG" e-Service for the CorpPass account that will be submitting the application;
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Checked that it has met Tech@SG's eligibility criteria and has prepared the relevant information for the application form.
2) Apply for Tech@SG endorsement
A company with less than 30% local shareholding can submit its Tech@SG application to EDB, whereas a company with at least 30% or more local shareholding should submit its application to Startup SG, an entity under ES.
ES will advise the company of the outcome within 10 to 15 working days. This may take longer if ES requires additional information or verification.
The company may consider registering for the Employment Pass Online ("EPOL") account with the MOM while it is awaiting for the outcome from ES. The EPOL account is necessary for the submission of the EP applications to the MOM. The MOM may take up 5 working days to process the registration request.
3) Apply for EP(s)
Once the company has received ES' endorsement under Tech@SG, it can proceed to submit the EP application(s) for the EP Applicant(s) i.e. the core team members. The MOM will advise the company of the outcome within 21 working days.
Please note that the EP applications must be submitted within 2 years of the company being accepted into Tech@SG.
4) Updates from EDB and ES
EDB and ES will notify the company in relation to the end of support after 10 successful applicants or 2 years of support, whichever occurs earlier.
Useful Resources
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Tech@SG – Frequently Asked Questions (https://www.edb.gov.sg/en/how-we-help/incentives-and-schemes/tech- sg/frequently-asked-questions.html)
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ES (https://www.edb.gov.sg/en/how-we-help/incentives-and- schemes/tech-sg.html)
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Startup SG (https://www.startupsg.net/programmes/4898/startup-sg- talent/tech-sg)
Comments
The Singapore tech industry continues to grow in recent years. The implementation of Tech@SG is expected to help tech companies in the initial stages of their business operations in Singapore. The facilitation of bringing in the core team members is crucial as this will not only allow tech companies to gradually grow its operations, but will also create more employment opportunities for locals in Singapore.
For further information, please contact:
Kelvin Poa, Principal, Baker & McKenzie.Wong & Leow
kelvin.poa@bakermckenzie.com
1 This includes instances where the company has a business model built on proprietary hardware and/or software technologies, such as big data and analytics, artificial intelligence and cybersecurity. Examples include: software-as-a-service, e-commerce, digital media, digital gaming, medtech, biotech and fintech companies.
