Higher funding support for enterprises to develop capabilities during the economic downturn is extended till 31 January 2011. Find out more about the changes.

Aims

• To encourage small and medium enterprises (SMEs) in the logistics industry to improve or develop new capabilities, processes and value-added services.
  
  
• To encourage companies in the logistics industry to form strategic alliances and jointly offer services to tap into global outsourcing opportunities.

For who?

• All SMEs in the logistics industry. Your business qualifies as an SME if:
  
  
  • your business has 30% - 100% in local equity
  • it has S$0 - S$15 million* in fixed assets at Net Book Value
  • you have 0 - 200 employees (for companies in the services sector)*

    *Computed on a group basis. Where 20% - 100% of your shares are owned by other companies, the total value of your fixed assets and employees is calculated 3 levels up. Where your company owns 51% - 100% of another company (subsidiary), your subsidiary's fixed assets and employees will also be added to the computation.

• You can use Logistics CDP for:
  
  
  • Enterprise-Level Projects – projects that improve your business’ capabilities
    
    
  • Industry-Level Projects – projects with other logistics SMEs which collectively improve capabilities

• Projects supported by Logistics CDP include:
  
  
  • Capabilities Upgrading Projects
    E.g. Projects that improve the quality of logistics services provided by your business.
    
    
  • Process Improvement Projects
    E.g. Projects to adopt industry best practices, implement IT applications or improve workflow processes, such as Enterprise Resource Planning, Electronic Data Interchange, etc.
    
    
  • Service Development Projects
    E.g. Projects to develop value-added services such as kitting and sub-assembly services, inventory management, e-procurement, etc. 
    
    
  • Certification Projects
    E.g. Projects leading towards internationally-recognised certification such as Responsible Care Programme and Hazard Analysis Critical Control Point (HAACP) certification.
    
    
  • Strategic Alliance Projects
    E.g. Projects leading to formation of strategic alliances with other service providers to offer a complete range value-chain of services and access new markets.

How much?

• Up to 70% of qualifying costs for industry-level projects and  enterprise-level projects.
  
  
• Qualifying costs include:
  
  
  • Manpower Costs
    E.g. Salaries of project members, airfare and overseas allowances and training costs.
    
    
  • Equipment & Materials
    E.g. Costs of industrial equipment, hardware/software, materials and consumable goods.
    
    
  • Professional Services
    E.g. Consultancy and sub-contracting expenses.

Things to note

• Do not start on your project until your application has been approved by SPRING. Funding will not be given for ongoing projects.

Background

• Logistics CDP is part of the S$35 million Capability Development Programme (CDP) launched in October 2006 to develop the capabilities of local SMEs.
  
  
• The Logistics CDP was the second CDP introduced. Other CDPs were for the Marine, Food & Beverage (F&B), Medical Technology, Semiconductor and Environmental Technology sectors.
  
  
• SPRING targets to generate S$600 million in total cumulative value-add over 5 years.

Changes from 1 February 2009 - 31 January 2011

• CCI is part of BUILD (Business Upgrading Initiatives for Long-Term Development) which helps businesses to strengthen their capabilities during the downturn for future growth.
  
  
• BUILD provides higher funding support to SMEs for all existing SPRING Singapore's capability development programmes. This applies to applications received between 1 February 2009 and 31 January 2011.

	Existing	Revised
Funding Support	Up to 50% of qualifying cost	Up to 70% of qualifying cost

For more info

Logistics Capability Development Programme (Logistics CDP)
SPRING Singapore

Officer-in-Charge

Mr John Lu
Head, Logistics
Industry Development Group
Tel: (65) 6279 3102
Email: john_lu@spring.gov.sg

Related Articles

• Government's logistics leg-up plan to yield $600M in value, The Business Times, 30 August 2007