Singapore’s Food and Beverage (F&B) industry is a cornerstone of its vibrant economy, renowned for its diverse culinary landscape and dynamic dining culture. To support the growth and resilience of F&B businesses, the Singapore government offers a suite of grants and initiatives aimed at enhancing productivity, fostering innovation, and encouraging international expansion. This comprehensive guide delves into the various government grants available to F&B enterprises, providing insights into their objectives, eligibility criteria, and application processes.
1. Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) is designed to assist Singapore companies in their growth and transformation endeavors. It supports projects that upgrade business capabilities, drive innovation, or facilitate overseas ventures. The grant covers qualifying project costs, including third-party consultancy fees, software and equipment expenses, and internal manpower costs.
Key Features:
- Funding Support: Up to 50% of eligible costs for Small and Medium Enterprises (SMEs). Sustainability-related projects may receive up to 70% support from 1 April 2023 to 31 March 2026.
- Project Categories:
- Core Capabilities: Projects that strengthen business foundations, such as business strategy development, financial management, and strategic branding.
- Innovation and Productivity: Initiatives that enhance efficiency through automation, process redesign, or product development.
- Market Access: Efforts to expand into overseas markets, including market research and pilot projects.
Eligibility Criteria:
- Registered and operating in Singapore.
- At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore Permanent Resident(s).
- Financial readiness to start and complete the project.
Application Process:
Applications are submitted via the Business Grants Portal. Companies must provide detailed project proposals outlining business plans and expected outcomes. Enterprise Singapore assesses applications based on project scope, outcomes, and the competency of the service provider.
2. Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) supports SMEs keen on adopting IT solutions and equipment to enhance business processes. For the F&B sector, this includes implementing digital ordering systems, kitchen automation equipment, and customer management solutions.
Key Features:
- Funding Support: Up to 50% of the cost for pre-approved solutions.
- Scope: Covers sector-specific solutions for industries like food services, as well as solutions that cut across industries, such as customer management and data analytics.
Eligibility Criteria:
- Registered and operating in Singapore.
- Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore.
- Annual sales turnover ≤ S$100 million or ≤ 200 employees.
Application Process:
Applications are made through the Business Grants Portal. Businesses select from a list of pre-approved solutions and submit the necessary documentation for evaluation.
3. Energy Efficiency Grant (EEG)
The Energy Efficiency Grant (EEG) aims to help businesses within the Food Services, Manufacturing, or Retail sectors cope with rising energy costs by co-funding investments in energy-efficient equipment.
Key Features:
- Funding Support: Up to 70% of qualifying costs, capped at S$30,000 per company per financial year.
- Scope: Supports the adoption of pre-approved energy-efficient equipment, such as energy-efficient refrigerators, cooking hobs, and other kitchen appliances.
Eligibility Criteria:
- Registered and operating in Singapore in the Food Services sector.
- Minimum 30% local shareholding.
- Group annual sales turnover of no more than S$500 million.
Application Process:
Companies can apply for the EEG through the Business Grants Portal. It’s important to note that the grant application window is time-limited, and businesses should check the latest updates on the availability of funds.
4. SkillsFuture Enterprise Credit (SFEC)
The SkillsFuture Enterprise Credit (SFEC) encourages employers to invest in enterprise and workforce transformation. Eligible employers receive a one-time S$10,000 credit to cover up to 90% of out-of-pocket expenses on qualifying costs for supportable initiatives, over and above existing government grants.
Key Features:
- Funding Support: Up to 90% of out-of-pocket expenses, capped at S$10,000.
- Scope: Supports initiatives in enterprise transformation and workforce development, including training programs and job redesign projects.
Eligibility Criteria:
- Employed at least three Singapore Citizens or Permanent Residents every month over the qualifying period.
- Have not previously qualified for SFEC.
- Did not default on Skills Development Levy contributions during the qualifying period and have an active ACRA status.
Application Process:
There is no need to apply for SFEC. Eligible employers will be notified, and the credit will be automatically applied to qualifying expenses.
5. Hawkers Go Digital Programme
The Hawkers Go Digital programme aims to encourage stallholders in hawker centres, wet markets, coffee shops, and industrial canteens to adopt e-payment solutions.
Key Features:
- Incentive: Bonus of S$300 per month over five months for stallholders who adopt and actively use e-payment solutions.
Eligibility Criteria:
- Stallholders in hawker centres, wet markets, coffee shops, and industrial canteens.
- Must be onboarded with one of the government’s appointed payment providers such as NETS, DBS PayLah!, GrabPay, FavePay, or others under the SGQR initiative.
- Must have at least 20 transactions per month to qualify for the incentive.
Application Process:
No formal application is required. Payment providers work with stallholders to onboard them and track transaction activity for grant disbursement. Stallholders simply need to express interest and ensure consistent use of digital payment platforms.
6. Food Services Industry Digital Plan (IDP)
The Food Services Industry Digital Plan (IDP) is developed by IMDA and Enterprise Singapore to help F&B SMEs digitalise at different stages of growth. The IDP offers a roadmap on the types of digital solutions to adopt, and the training programs to support staff in adopting them.
Key Features:
- Structured Digitalisation Roadmap: Guides businesses on the relevant digital solutions depending on their growth stage.
- Sector-specific Solutions: Examples include digital ordering, e-invoicing, data analytics, and kitchen automation systems.
- Digital Consultancy Support: SMEs can engage digital consultants to guide them through the transformation.
Eligibility Criteria:
- Registered and operating in Singapore.
- Minimum 30% local shareholding.
Application Process:
No direct grant application is required. Companies can refer to the IDP via the GoBusiness portal, and apply for recommended digital solutions via the Productivity Solutions Grant (PSG).
7. Market Readiness Assistance (MRA) Grant
If your F&B business is looking to expand overseas – perhaps opening a franchise outlet or entering new export markets – the Market Readiness Assistance (MRA) Grant is worth exploring.
Key Features:
- Funding Support: Up to 50% of eligible costs, capped at S$100,000 per new market over a three-year period.
- Scope:
- Overseas market promotion (e.g., trade fairs, PR support).
- Overseas business development (e.g., setting up franchises).
- Overseas market setup (e.g., legal and tax advice).
Eligibility Criteria:
- Business entity registered in Singapore.
- At least 30% local equity.
- Group annual sales turnover ≤ S$100 million or group employment ≤ 200 employees.
Application Process:
Submit applications via the Business Grants Portal. A detailed project proposal and vendor quotations will be needed.
8. Specialised Assistance for Hawkers and Small Operators
Beyond mainstream F&B businesses, hawkers and micro F&B operators can also tap into specific support schemes:
a. NEA’s Incubation Stall Programme
Designed to help aspiring hawkers start their businesses in NEA-managed hawker centres. New entrants are offered subsidised stall rentals and training support for up to 15 months.
b. Enhanced Workfare Income Supplement Scheme
Eligible lower-income employees and self-employed individuals (including hawkers) can receive payouts to supplement income and encourage CPF contributions.
Tips for Successful Grant Application
- Prepare a Strong Business Case: Whether it’s digital transformation or overseas expansion, grants require a well-documented plan that aligns with government goals such as innovation, productivity, or globalisation.
- Stay Updated: Some grants (like EEG or MRA) have time-sensitive cycles or annual caps. Always refer to the GoBusiness Portal for the latest updates.
- Engage Approved Vendors: For PSG and EDG, you often need to engage vendors that are pre-approved or have strong track records in your area of focus.
- Seek Help from SME Centres: Singapore’s SME Centres offer free business advisory services and can guide you through your grant application process.
Conclusion
Singapore’s government has made a strong commitment to help F&B businesses stay competitive and resilient. Whether you’re running a hawker stall, a family-run café, a chain of restaurants, or planning to take your brand global, there are grants and support schemes tailored to your needs.
From digitisation to sustainability, workforce development to internationalisation, these grants serve as catalysts to drive transformation in the fast-paced and competitive F&B space. By leveraging them wisely, businesses can reduce operational costs, innovate more quickly, and stay relevant in an evolving marketplace.