How to Leverage the Enterprise Development Grant (EDG) for Your Singapore IT Projects

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How to Leverage the Enterprise Development Grant (EDG) for Your Singapore IT Projects

In Singapore’s ever-evolving digital economy, businesses are constantly looking for ways to stay competitive, innovative, and efficient. One of the most strategic moves for local enterprises, especially SMEs, is to leverage government support schemes such as the Enterprise Development Grant (EDG). For companies embarking on IT projects—from developing proprietary software to upgrading their cybersecurity infrastructure—EDG can be a powerful tool to ease financial burdens and accelerate implementation.

This article explores how you can leverage the EDG to support your IT initiatives in Singapore.

What is the Enterprise Development Grant (EDG)?

The Enterprise Development Grant (EDG) is a scheme administered by Enterprise Singapore (EnterpriseSG) to support local companies in growing and transforming their businesses. It provides funding support for projects under three key pillars:

  1. Core Capabilities – Strengthening your business foundations.
  2. Innovation and Productivity – Supporting process redesign, technology adoption, and automation.
  3. Market Access – Expanding your business overseas.

IT-related projects often fall under the Innovation and Productivity pillar, especially when they involve automation, system integration, and digital transformation efforts.

Why IT Projects?

Technology has become central to operational efficiency, customer experience, and long-term competitiveness. With the rise of cloud computing, data analytics, artificial intelligence (AI), and cybersecurity threats, IT investments are no longer optional.

Common IT projects that can be funded under EDG include:

  • Custom software development
  • ERP or CRM implementation
  • Cybersecurity enhancements
  • E-commerce platform development
  • Data analytics solutions
  • Robotic Process Automation (RPA)
  • Cloud migration and DevOps setup
  • Mobile app development
  • IoT integration and smart sensors

By supporting such initiatives, EDG helps SMEs bridge the gap between vision and execution, empowering them to implement scalable and secure technology.

Eligibility Criteria for EDG

To qualify for EDG, your business must:

  • Be registered and operating in Singapore
  • Have at least 30% local shareholding
  • Be financially viable to start and complete the project

For IT projects, the vendor must generally be an experienced third-party consultant or service provider. While in-house developments can sometimes qualify, most successful applicants work with accredited vendors who provide structured project scopes and deliverables.

Funding Support

The EDG typically funds up to 50% of eligible project costs for most SMEs. This includes:

  • Consultancy fees
  • Software and equipment costs
  • Internal manpower (based on time-costed basis)
  • Training and related implementation costs

For more strategic projects or those with strong industry-wide impact, the support level may be higher (up to 70% for firms undergoing transformation or severely impacted by economic downturns or COVID-19 recovery).

Steps to Leverage EDG for Your IT Project

1. Identify Business Needs and IT Gaps

Start by assessing your current IT infrastructure and business processes. Where are the inefficiencies? Do you lack a centralised customer management system? Is your backend too reliant on manual tasks? These gaps will form the basis of your IT project.

2. Engage a Qualified Vendor or Consultant

EDG applications require you to provide a detailed project proposal and quotation from a third-party vendor. Choose a vendor who is experienced in delivering similar projects, and ideally one who has helped other businesses successfully apply for EDG.

Look for IT consultants or software vendors who can provide:

  • Detailed scope of work
  • Timeline and milestones
  • Cost breakdown
  • Project outcome metrics

3. Define Your Project Deliverables

Be specific about what your IT project will achieve. EnterpriseSG evaluates the commercial viability and impact of your project. For example:

  • A CRM system that reduces customer response time by 50%
  • An automated inventory management system that reduces stock wastage
  • A data dashboard that improves sales forecasting accuracy

Clarity in outcomes increases your chances of approval.

4. Prepare Your EDG Application

You can apply for EDG via the Business Grants Portal (BGP) at https://www.businessgrants.gov.sg.

Key documents required include:

  • Company’s latest ACRA profile
  • Audited financial statements for the past 2 years
  • Vendor proposal and quotation
  • Project proposal (may be submitted via a template)
  • Cost breakdown and justification

Make sure your application explains how the project aligns with your business goals, and why it is necessary for growth or transformation.

5. Await Evaluation and Approval

EnterpriseSG will assess your application based on:

  • Project scope and outcomes
  • Vendor credentials
  • Company’s financial health
  • Long-term value and sustainability of the solution

The review process typically takes 8–12 weeks, so plan your project timeline accordingly.

6. Project Execution and Claims

Once approved, you may begin executing the project based on the submitted timeline. Keep detailed records of:

  • Invoices and receipts
  • Contracts and progress reports
  • Internal timesheets (if manpower cost is included)

After project completion, you must submit a final report and claims via the BGP for reimbursement.

Tips for Successful EDG IT Applications

  • Align with national digitalisation goals: Projects aligned with Smart Nation or Industry 4.0 strategies have higher approval chances.
  • Quantify impact: Use numbers to show how your project will improve productivity, increase revenue, or reduce costs.
  • Work with experienced vendors: They can help structure your proposal to meet EDG requirements.
  • Avoid generic scopes: Be specific with your IT goals, implementation methodology, and expected outcomes.
  • Ensure financial stability: EnterpriseSG needs confidence that you can co-fund the project and sustain it after implementation.

Real-Life Examples

Here are a few simplified examples of IT projects supported by EDG:

  • A logistics SME received EDG funding to implement a custom warehouse management system integrated with barcode scanning and fleet tracking, reducing order fulfilment time by 40%.
  • A manufacturing firm used EDG support to adopt RPA for invoicing and inventory updates, cutting down manual hours by 70%.
  • A retail company received funding to build a custom mobile loyalty app, increasing repeat customer purchases and enabling better data collection.

Conclusion

In a fast-paced digital economy, adopting the right IT solutions is no longer optional—it’s essential. With the support of the Enterprise Development Grant, Singapore SMEs can confidently invest in strategic IT projects that improve efficiency, reduce costs, and build long-term competitive advantages.

Whether you’re planning to build a bespoke CRM, migrate your systems to the cloud, or automate back-office functions, EDG can significantly reduce your upfront investment and make these transformations feasible.

If you need help structuring your EDG application or choosing the right IT solution, consider working with a trusted grant consultant or a digital transformation partner familiar with EDG requirements.

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