How Singapore Businesses Can Leverage Government Grants to Expand Their Businesses

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Singapore is renowned for its pro-business environment, world-class infrastructure, and strong government support. One of the key ways the government supports local enterprises, especially SMEs (Small and Medium Enterprises), is through various grants and schemes designed to help businesses grow, innovate, and expand—both locally and internationally. However, many businesses either underutilise or are unaware of how to strategically leverage these grants to fuel growth.

In this article, we’ll explore how Singapore businesses can tap into government grants to accelerate expansion, improve operations, and build competitiveness in a global marketplace.

1. Understanding the Singapore Grant Landscape

The Singapore government, primarily through agencies like Enterprise Singapore, IMDA (Infocomm Media Development Authority), and Workforce Singapore (WSG), offers a wide range of grants that cater to different business needs—from digitalisation and innovation to internationalisation and workforce development.

Some of the most popular grants include:

  • Enterprise Development Grant (EDG)
  • Productivity Solutions Grant (PSG)
  • Market Readiness Assistance (MRA) Grant
  • SkillsFuture Enterprise Credit (SFEC)
  • Startup SG initiatives

Understanding the nature, purpose, and eligibility criteria of each grant is the first step for any business looking to leverage these resources effectively.

2. Using the Enterprise Development Grant (EDG) to Upgrade and Grow

The Enterprise Development Grant (EDG) is one of the most comprehensive grants available to local businesses. It helps Singapore companies grow and transform in three key areas:

  • Core Capabilities (e.g., branding, strategy, HR, financial management)
  • Innovation and Productivity (e.g., process redesign, automation)
  • Market Access (e.g., overseas market expansion)

With up to 50% support for qualifying costs, businesses can invest in consultancy, software, equipment, and manpower to execute strategic projects.

Example:

A local manufacturing firm can use EDG to automate its assembly line, improving output and reducing labour dependency—laying the groundwork for regional expansion.

3. Going Digital with the Productivity Solutions Grant (PSG)

In today’s digital economy, businesses need to adopt technology to stay competitive. The Productivity Solutions Grant (PSG) supports up to 50% of costs related to adopting pre-approved IT solutions and equipment.

It covers sectors like retail, logistics, construction, food, and more, as well as cross-sector solutions such as:

  • Accounting software
  • HR management systems
  • POS systems
  • Inventory management
  • Cybersecurity tools

PSG is perfect for SMEs looking for quick wins in operational efficiency and digital transformation.

Example:

A retail company can tap PSG to implement a cloud-based inventory system, streamlining stock tracking and minimising losses from stockouts or over-ordering.

4. Expanding Overseas with the Market Readiness Assistance (MRA) Grant

Going regional or global? The MRA Grant supports up to 50% of eligible costs (capped at $100,000 per company per new market) for:

  • Overseas market promotion
  • Business development
  • Market setup

This includes activities like participating in trade shows, engaging in overseas marketing campaigns, or setting up a rep office.

Example:

A homegrown F&B brand can use the MRA Grant to explore franchising opportunities in Malaysia or Indonesia by engaging consultants and launching overseas campaigns.

5. Upskilling Talent with SkillsFuture Enterprise Credit (SFEC)

To build a resilient and competitive workforce, businesses must invest in talent development. SFEC provides up to $10,000 in credits to offset out-of-pocket expenses for supportable training and job redesign projects.

Businesses can align employee development with business transformation, especially in digital skills, leadership, and emerging technologies.

Example:

A marketing agency undergoing digital transformation can train its staff in data analytics and AI-powered marketing tools using SFEC, enhancing service offerings and client retention.

6. Startups and Innovation: The Startup SG Grant

For startups and innovative ventures, Startup SG offers a suite of grants and equity co-investment schemes. These include:

  • Startup SG Founder: Up to $50,000 for first-time entrepreneurs with innovative business ideas.
  • Startup SG Tech: For deep-tech projects requiring R&D.
  • Startup SG Equity: Government co-investment for high-growth startups.

These grants help accelerate go-to-market strategies, R&D, and scaling.

Example:

A biotech startup developing a new diagnostic tool can leverage Startup SG Tech to fund prototype development and clinical validation.

7. Tapping Grants for Green and Sustainable Business Practices

With Singapore’s Green Plan 2030, there’s increasing focus on sustainability. Grants like Energy Efficiency Fund (E2F) and Resource Efficiency Grant for Energy (REG(E)) support companies in adopting sustainable practices.

Grants for solar panel installation, energy-efficient machinery, or waste management systems are available and can enhance both cost-efficiency and brand reputation.

8. Best Practices to Maximise Grant Benefits

To make the most out of these schemes, here are a few tips:

a. Align Grants with Business Strategy

Don’t apply for grants in isolation. Match them with your long-term business goals—whether it’s expansion, automation, or digital transformation.

b. Plan Ahead

Some grants take weeks or months to process. Start early, and ensure you factor in grant approval timelines into your project plans.

c. Engage Qualified Consultants

For complex projects (e.g., EDG applications), engage experienced grant consultants. They can increase approval rates and help structure compelling proposals.

d. Maintain Good Financial Standing

Most grants require applicants to be financially viable and registered/incorporated in Singapore. Ensure your ACRA records and CPF/IRAS filings are in order.

e. Track and Report Diligently

Grants come with audit and reporting requirements. Document your project milestones, expenses, and deliverables to stay compliant.

9. Common Misconceptions About Government Grants

  • “Grants are only for big companies”
    False—most grants are tailored for SMEs.
  • “The process is too complicated”
    While documentation is required, the government has simplified many applications. Pre-scoped solutions under PSG, for instance, are easy to apply for online.
  • “I won’t qualify”
    With proper planning and alignment, most businesses that are legally registered in Singapore and financially sound can qualify for multiple grants.

10. Final Thoughts

Singapore’s vibrant ecosystem of government grants can be a game-changer for businesses of all sizes. Whether you’re a startup aiming to bring an innovative product to market, an SME digitising operations, or an established brand going global—there’s likely a grant that can support your ambitions.

By staying informed, planning strategically, and tapping the right resources, Singapore businesses can turn government support into a competitive advantage—accelerating growth, building resilience, and expanding sustainably for the long haul.

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