In response to climate change, Singapore is one of many countries that advocate for green businesses. With Singapore’s Green Plan 2030 in place, there are plenty of benefits to becoming a green business in Singapore.
Singapore’s Perspective On A Green Future
Being one of the most urbanized countries, Singapore is surprisingly one of the greenest city in Asia. Singapore’s Green Plan 2030 is a nationwide movement to advance Singapore’s agenda on sustainable development.
To support this, there are plenty of initiatives by the Singapore government to encourage businesses to go green. Here are 4 benefits of starting a green business in Singapore,
1. Easily accessible resources and support
Singapore offers plenty of programs such as Singapore Packaging Agreement (SPA) and Packaging Partnership Programme (PPP), Energy Efficiency National Partnership (EENP), and more. Businesses can expect plenty of resources to assist them to incorporate or transition into a successful green business.
SG Eco Fund was one of Singapore’s support for green businesses. The SG Eco Fund is a $50 million fund set up in 2020 to fund projects that advance environmental sustainability. Currently, the application for SG Eco Fund is closed. However, there may be similar funds such as it in the future to continuously encourage businesses to go green in Singapore.
2. Active Grants – Green & Sustainability-Linked Loan Grant Scheme (GSLS)
Launched on November 24, 2020, the GSLS is a program within the Monetary Authority of Singapore (MAS)s’ Green Finance Action Plan that aims to accelerate green and sustainability-linked financing in Singapore.
The GSLS is the first of its kind in the world, and it assists businesses of all sizes in achieving green and sustainability-linked loans.
The funding also encourages banks to develop green and sustainability-linked loan frameworks to make financing accessible for Small & medium-sized businesses.
In a nutshell, when eligible, MAS will subsidize up to $100,000 in costs incurred by businesses to validate a loan’s green and sustainability credentials. Smaller businesses are able to follow existing frameworks developed by banks to receive sustainable financing of up to $20 million.
Read this brochure to learn more about GSLS.
3. Deduction of Taxes Through Participating In Green Projects
The Singapore Budget Plan 2021 continued to encourage businesses in Singapore to give back to the community. For example, businesses looking to go green can donate or volunteer at environmental charities such as Plant-A-Tree Programme.
By providing volunteering efforts and services, including secondments, to Institutions of a Public Character (IPCs). Businesses are granted a 250% tax deduction on qualifying expenditure such as the example above. This benefit is granted for all expenditures incurred now till 31 Dec 2023.
4. Partnerships and Green Work Spaces
Being a sustainable green business in Singapore opens up opportunities for partnerships. A common partnership for green businesses is with Singapore’s WWF. From campaign sponsorships to marketing partnerships, green businesses can look to expedite their growth through these marketing campaigns.
In addition, green businesses can look to rent office spaces with Green Mark Certification. Singapore’s Green Mark Certification is a green building rating system that assesses the environmental effect and performance of a structure. By renting office spaces in Green Marked Certified buildings, businesses can expect all tenants to follow energy efficiency activities. Building a focused community of like-minded people, which in turn fosters partnership opportunities that expedite business growth.
There is plenty of support for businesses going green in Singapore. Any environmentally focused business should definitely incorporate their company in Singapore to enjoy the closely-knit community and support grants provided.
Can’t wait to start your green business in Singapore now? Contact Us for us to help you incorporate your business into Singapore with an ease of mind. Being a highly digital corporate service firm, we ourselves are moving towards a greener business model.
Alternatively, book a meeting with us here