Singapore’s manufacturing sector stands as a cornerstone of its economy, contributing significantly to GDP and employment. Recognizing the pivotal role of manufacturing, the Singapore government has introduced a suite of grants and support schemes aimed at fostering innovation, enhancing productivity, and facilitating international expansion for manufacturing enterprises. This comprehensive guide delves into the various government grants available to manufacturing businesses in Singapore, detailing their objectives, eligibility criteria, benefits, and application processes.
Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) is a flagship initiative by Enterprise Singapore designed to support Singaporean companies in their growth and transformation endeavors. It provides financial assistance for projects that help businesses upgrade capabilities, innovate, and venture into overseas markets.
Key Features:
- Funding Support: The EDG covers up to 70% of qualifying project costs, including third-party consultancy fees, software and equipment, and internal manpower expenses.
- Focus Areas: Projects supported under the EDG fall into three main categories:
- Core Capabilities: Strengthening foundational business aspects such as strategic brand and marketing development, business strategy, and financial management.
- Innovation and Productivity: Enhancing efficiency through process redesign, adopting automation, and product development.
- Market Access: Assisting companies in expanding into overseas markets through market entry strategies and pilot projects.
Eligibility Criteria:
- Business entities registered and operating in Singapore.
- A minimum of 30% local shareholding.
- Financially viable to start and complete the project.
Application Process:
- Pre-Application: Identify the project category and prepare a detailed proposal outlining the project’s objectives, deliverables, and expected outcomes.
- Submission: Apply through the Business Grants Portal (BGP), providing necessary documentation such as project proposal, financial statements, and relevant quotations.
- Evaluation: Enterprise Singapore assesses the application based on project scope, outcomes, and the company’s financial health.
- Approval: Upon approval, a Letter of Offer is issued, detailing the grant amount and conditions.
- Project Implementation: Commence the project as per the approved plan, adhering to stipulated timelines and deliverables.
- Claims Submission: Submit claims with supporting documents upon project completion for reimbursement.
For more information, visit the Enterprise Development Grant page on GoBusiness Singapore.
Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) supports businesses in adopting pre-approved IT solutions and equipment to enhance productivity. It is particularly beneficial for manufacturing companies seeking to implement technological solutions to streamline operations.
Key Features:
- Funding Support: Up to 50% funding support for eligible costs related to the adoption of pre-approved solutions.
- Pre-Approved Solutions: A curated list of IT solutions and equipment tailored to various industries, including manufacturing.
Eligibility Criteria:
- Registered and operating in Singapore.
- Purchase/subscription of the IT solutions or equipment must be used in Singapore.
- A minimum of 30% local shareholding.
- Company’s Group annual sales turnover of not more than S$100 million or less than 200 employees.
Application Process:
- Identify Relevant Solutions: Access the list of pre-approved solutions on the GoBusiness Singapore website and select those aligned with your business needs.GoBusiness Singapore
- Obtain Quotations: Request quotations from pre-approved vendors.
- Submission: Apply through the Business Grants Portal (BGP), attaching the vendor’s quotation and necessary documentation.
- Approval: Upon approval, a Letter of Offer is issued.
- Implementation: Purchase and implement the solution.
- Claims Submission: Submit claims with invoices and proof of payment for reimbursement.
Detailed information is available on the Productivity Solutions Grant page on GoBusiness Singapore.
Energy Efficiency Grant (EEG)
The Energy Efficiency Grant (EEG) aims to help businesses within the manufacturing sector cope with rising energy costs by co-funding investments in energy-efficient equipment.
Key Features:
- Funding Support: Provides two tiers of support:
- Base Tier: Support for pre-approved energy-efficient equipment up to S$30,000.
- Advanced Tier: Support for larger investments that drive greater energy efficiency.
Eligibility Criteria:
- Business entities registered and operating in Singapore in sectors such as manufacturing.
- Purchase of energy-efficient equipment must be used in Singapore.
- A minimum of 30% local shareholding.
Application Process:
- Identify Eligible Equipment: Refer to the list of pre-approved energy-efficient equipment.
- Obtain Quotations: Request quotations from vendors.
- Submission: Apply through the Business Grants Portal (BGP), providing necessary documentation.
- Approval: Upon approval, proceed with the purchase and implementation.
- Claims Submission: Submit claims with supporting documents for reimbursement.
Further details can be found on the
Resource Efficiency Grant for Energy (REG(E))
The Resource Efficiency Grant for Energy (REG(E)) is designed to incentivize large energy-consuming industrial facilities — such as those in the manufacturing sector — to improve energy efficiency and reduce greenhouse gas emissions.
Key Features:
- Funding Support: Co-funding of up to 50% of qualifying costs, including equipment, materials, and third-party consultancy services for energy efficiency improvement projects.
- Objective: Encourages companies to undertake energy audits and implement projects that deliver measurable energy savings and carbon abatement.
Eligibility Criteria:
- Must be a business registered in Singapore.
- Must be classified as an industrial facility (typically manufacturers).
- The facility must consume at least 54 terajoules of energy annually.
- Projects should have a payback period of less than five years.
Application Process:
- Preliminary Audit: Conduct an energy audit to identify potential improvements.
- Proposal Submission: Submit a project proposal through the National Environment Agency (NEA).
- Evaluation: NEA evaluates proposals based on projected energy savings and cost-effectiveness.
- Implementation: Execute the project upon approval.
- Post-Project Review: Submit data on actual energy savings for validation.
More information is available at NEA’s website.
SkillsFuture Enterprise Credit (SFEC)
Though not a direct grant for machinery or expansion, the SkillsFuture Enterprise Credit (SFEC) helps manufacturers invest in human capital by subsidizing up to 90% of out-of-pocket expenses for enterprise and workforce transformation initiatives.
Key Features:
- Grant Amount: Each eligible company receives a one-time credit of S$10,000.
- Eligible Areas: Workforce upskilling, job redesign, and productivity improvements.
Eligibility Criteria:
- Must be a registered business in Singapore.
- Must have contributed at least S$750 of Skills Development Levy over the qualifying period.
- Must have at least three local employees.
How to Use:
Use the SFEC to offset supportable costs from existing government grants, including EDG, PSG, and Job Redesign programs under Workfare.
Market Readiness Assistance (MRA) Grant
If your manufacturing business is looking to expand into overseas markets, the Market Readiness Assistance (MRA) Grant can provide funding to reduce the risk and cost of doing so.
Key Features:
- Funding Support: Up to 70% of eligible costs, capped at S$100,000 per company per new market, over three years.
- Covers: Overseas market promotion (e.g. trade fairs), market entry (e.g. legal, tax advice), and business set-up.
Eligibility Criteria:
- Must be a Singapore-registered company.
- Must have at least 30% local shareholding.
- Annual turnover not exceeding S$100 million.
Application Process:
Apply via the Business Grants Portal (BGP), with a detailed plan for internationalisation.
Conclusion
Singapore’s manufacturing sector is supported by a well-developed ecosystem of government grants designed to encourage innovation, boost productivity, and promote sustainability. From automating production lines to training your team or expanding into new markets, there is a funding scheme tailored for every growth stage.
Here’s a quick summary of key grants for manufacturing companies:
| Grant | Purpose | Support Amount |
|---|---|---|
| Enterprise Development Grant (EDG) | Capability upgrading, innovation, overseas expansion | Up to 70% of qualifying costs |
| Productivity Solutions Grant (PSG) | Purchase of pre-approved productivity tools | Up to 50% |
| Energy Efficiency Grant (EEG) | Investing in energy-efficient equipment | Up to S$30,000 per project |
| REG(E) | Large-scale energy-saving projects | Up to 50% |
| SkillsFuture Enterprise Credit | Workforce transformation support | S$10,000 one-time credit |
| Market Readiness Assistance (MRA) | Overseas expansion support | Up to S$100,000 |