Singapore’s government offers a comprehensive suite of grants and support schemes tailored to assist service-based businesses in enhancing productivity, fostering innovation, and expanding into international markets. These initiatives are designed to bolster the competitiveness of Singaporean enterprises in the global economy. Below is an overview of key grants and support schemes available as of April 2025.
1. Enterprise Development Grant (EDG)
The EDG is a pivotal program aimed at supporting Singapore companies in their growth and transformation endeavors. It funds projects that help businesses upgrade capabilities, innovate, and venture overseas. The grant covers up to 50% of eligible costs for small and medium-sized enterprises (SMEs).
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).
- Financially ready to start and complete the project.
Project Categories:
- Core Capabilities: Projects that strengthen business foundations, such as business strategy development, financial management, human capital development, service excellence, and strategic brand and marketing development.
- Innovation & Productivity: Initiatives that support companies in exploring new areas of growth or enhancing efficiency, which may include product development, process redesign, and adoption of automation and technologies.
- Market Access: Assistance for companies aiming to expand into overseas markets, including support for overseas marketing presence, pilot projects, and market entry.
2. Productivity Solutions Grant (PSG)
The PSG supports companies keen on adopting IT solutions and equipment to enhance business processes. It covers sector-specific solutions including retail, food, logistics, precision engineering, construction, and landscaping industries. The grant provides funding support of up to 50% for eligible costs.
Eligibility Criteria:
- Registered and operating in Singapore.
- Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore.
- Have a minimum of 30% local shareholding.
3. Market Readiness Assistance (MRA) Grant
The MRA Grant assists SMEs in expanding into overseas markets by providing up to 70% support for eligible costs, capped at S$100,000 per company per new market. This includes support for overseas market promotion, business development, and set-up costs.
Eligibility Criteria:
- Business entity is registered and operating in Singapore.
- At least 30% local shareholding.
- Group annual sales turnover not exceeding S$100 million or group employment not exceeding 200 employees.
4. Energy Efficiency Grant (EEG)
The EEG aims to help businesses within the Food Services, Manufacturing, or Retail sectors cope with rising energy costs by co-funding investments in more energy-efficient equipment. The grant 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 entity registered and operating in Singapore in the specified sectors.
- Minimum 30% local shareholding, with at least one local employee.
- Group annual sales turnover of no more than S$500 million.
5. Start Digital
Start Digital is designed for SMEs new to using digital technology. It allows businesses to adopt any two solutions, such as Digital Marketing, Digital Collaboration, Accounting, HR/Payroll, or Cybersecurity, at no cost for at least six months (with a minimum 18-month contract).
6. SkillsFuture Enterprise Credit (SFEC)
The SFEC encourages employers to invest in enterprise transformation and capabilities of their employees. Eligible employers receive a one-off S$10,000 credit to cover up to 90% of out-of-pocket expenses on qualifying costs for supportable initiatives.
Eligibility Criteria:
- Have contributed at least S$750 Skills Development Levy over the qualifying period.
- Have employed at least three Singapore Citizens or Permanent Residents every month over the same period.
- Have not been qualified for SFEC at any of the earlier periods.
7. Business Improvement Fund (BIF)
The BIF supports projects that improve productivity and competitiveness through the adoption of technology and innovation. It is applicable to tourism-related companies and technology companies that create innovative technology products and services for the tourism sector.
Eligibility Criteria:
- Registered and operating in Singapore.
- Proposed project should demonstrate clear tourism focus and benefits.
Application Process for Grants
To apply for these grants, businesses can utilize the Business Grants Portal (BGP), a one-stop platform for businesses to apply for various government grants. The portal simplifies the application process by providing a centralized location for grant information and submissions.
Steps to Apply:
- Assess Eligibility: Ensure your business meets the specific eligibility criteria for the desired grant.
- Prepare Documentation: Gather necessary documents such as project proposals, financial statements, and quotations.
- Submit Application: Log in to the BGP using your CorpPass account and submit the application along with the required documents.
4. Await Assessment:
Once submitted, the relevant government agency—such as Enterprise Singapore or IMDA—will assess your application. This may involve clarifying project details or submitting additional documents. Processing time typically ranges from 6 to 12 weeks depending on the complexity of the application and the grant type.
5. Receive Approval and Begin Project:
Upon approval, you will receive a Letter of Offer stating the amount of funding granted. You must formally accept the offer before beginning your project. The grant is disbursed on a reimbursement basis, so ensure that all invoices and payments are well documented.
6. Claim Disbursement:
After completing the project, submit your claim through the Business Grants Portal. This should include final invoices, proof of payment, and a report on the project outcome. Audits may be conducted to ensure the integrity of the grant process.
Key Tips to Maximize Your Grant Application Success
- Align with Government Priorities:
Projects that demonstrate alignment with national initiatives—such as digital transformation, sustainability, or internationalization—tend to be favored. - Work with Pre-Approved Vendors:
For schemes like the PSG, using vendors on the pre-approved list makes the application faster and more likely to succeed. - Plan Realistically:
Budget and timeline estimations should be detailed and feasible. Overestimating costs or project complexity may raise red flags. - Stay Updated:
Grant criteria and support levels change over time. Regularly check the official grant websites or subscribe to newsletters to stay informed of updates. - Engage a Grant Consultant (Optional):
If you’re unsure of how to write a strong proposal or identify the best grant for your business, a grant consultant can help streamline the process.
Real-Life Application for a Services Business
Let’s consider a digital marketing agency based in Singapore. Here’s how the grants can support its growth:
- Enterprise Development Grant (EDG):
The agency wants to expand to Southeast Asia. EDG can subsidize their overseas market research, branding for international audiences, and consultancy fees. - Productivity Solutions Grant (PSG):
The agency invests in project management or CRM software. PSG can subsidize part of the cost if the software is on the pre-approved list. - SkillsFuture Enterprise Credit (SFEC):
The agency sends staff to advanced digital advertising and analytics training. The SFEC helps offset training costs. - Market Readiness Assistance (MRA):
When opening a representative office in Indonesia, the MRA covers expenses related to setting up a presence, marketing campaigns, and business matching services.
Conclusion
Singapore’s pro-business stance is evident in the diverse range of grants available to local enterprises, especially service-based businesses. Whether you’re just starting out, planning to digitalize your operations, aiming to upskill your workforce, or thinking of overseas expansion, there’s a government grant that can support your goals.
To truly benefit from these schemes, service businesses must stay informed, plan strategically, and ensure they meet all criteria. With the right approach, government support can significantly reduce the financial burden of business growth and innovation.