What Kind of Government Grant Can a Logistics and Supply Chain Business Get in Singapore?
Singapore’s strategic location and world-class infrastructure make it a global logistics hub. The logistics and supply chain sector plays a critical role in supporting trade, e-commerce, and manufacturing. With growing demand for digitalisation, automation, and sustainability, Singapore’s government offers a broad range of grants to help logistics businesses upgrade their operations and remain globally competitive.
This article explores the key government grants available for logistics and supply chain businesses in Singapore and how they can be leveraged for growth, transformation, and internationalisation.
1. Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) is one of the most versatile grants for logistics companies. It supports projects in three main areas:
- Core Capabilities: Strategy development, branding, HR
- Innovation and Productivity: Warehouse automation, fleet management systems, route optimisation
- Market Access: Expansion into overseas markets, partnerships, and logistics network development
Funding Support: Up to 50% of qualifying costs for SMEs
Example: A logistics firm might apply for EDG to implement automated warehouse robotics to reduce manual labour and improve accuracy.
2. Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) is ideal for logistics SMEs adopting off-the-shelf IT solutions and equipment to streamline operations.
Pre-Approved Solutions Include:
- Fleet tracking systems
- Warehouse management systems (WMS)
- Inventory management
- Transportation management software
Funding Support: Up to 50% of qualifying costs
Example: A last-mile delivery company may adopt a PSG-approved GPS-enabled fleet tracking system to monitor drivers in real-time.
3. Logistics Productivity Grant (LPG)
For SMEs specifically within the logistics sector, the Logistics Productivity Grant (LPG) helps co-fund productivity solutions tailored for logistics operations.
Covers:
- Conveyor systems
- Autonomous Mobile Robots (AMRs)
- Sorting and packaging machines
Administered by: Enterprise Singapore in partnership with industry associations
Example: A company handling e-commerce fulfilment could use the LPG to implement automated sorting lines to increase efficiency.
4. Advanced Digital Solutions (ADS)
The Advanced Digital Solutions (ADS) program supports sector-wide digital transformation initiatives.
Supports:
- IoT-enabled logistics infrastructure
- AI-based demand forecasting
- Blockchain for supply chain transparency
Funding Support: Up to 80% of qualifying costs
Example: A logistics company could co-develop an AI-powered demand forecasting solution to optimise fleet scheduling and reduce idle capacity.
5. SkillsFuture Enterprise Credit (SFEC)
The SkillsFuture Enterprise Credit provides extra support for transformation and capability-building initiatives, including workforce upskilling.
Support: Additional 90% funding for training and enterprise development activities, capped at S$10,000
Example: A freight forwarding company may use SFEC to subsidise training for staff in digital freight platforms and customs clearance systems.
6. Smart Logistics Solutions by IMDA
The Infocomm Media Development Authority (IMDA) encourages the use of smart technologies in logistics through initiatives that support:
- Data analytics for route and load optimisation
- Robotics Process Automation (RPA) in documentation
- Digital integration with shippers and suppliers
Support varies depending on the project scale and tech maturity
Example: A SME may implement RPA to automatically process delivery orders and reduce paperwork.
7. Green Freight Programme
In alignment with Singapore’s sustainability goals, the Green Freight Programme offers support for logistics companies to reduce carbon emissions.
Support Includes:
- Fleet renewal to electric or hybrid vehicles
- Driver training for fuel-efficient practices
- Telematics and emission monitoring systems
Example: A logistics firm might apply for funding to retrofit existing trucks with emission-reduction technology.
8. Market Readiness Assistance (MRA) Grant
The MRA Grant helps logistics businesses expand into overseas markets through support in:
- Market research
- Overseas business development
- International branding and marketing
Funding Support: Up to 50% of eligible costs, capped at S$100,000 per new market
Example: A freight forwarding company aiming to open a branch office in Vietnam can use MRA to fund feasibility studies and legal consultations.
Final Thoughts: Building the Future of Logistics
As the global supply chain becomes more complex and digitally driven, Singapore’s logistics firms must innovate to stay ahead. Government grants provide critical funding for upgrading infrastructure, adopting technology, and entering new markets.
Selecting the right combination of grants can help logistics businesses accelerate growth and transformation. However, it’s important to align each project with the strategic direction of your business and ensure applications are well-supported by data and documentation.
Need Help Applying for Logistics Grants? Partner with GrantConsultant.sg
At GrantConsultant.sg, we guide logistics and supply chain businesses in Singapore through the grant application process. Whether you’re digitising your fleet, automating your warehouse, or expanding overseas, our team ensures your project qualifies for the right support.
Contact us today to discover how we can help your logistics business grow with the right government grants