What Kind of Government Grant Can an Aerospace Business Get in Singapore?
Singapore’s aerospace industry is one of the most sophisticated in Asia, with capabilities ranging from Maintenance, Repair and Overhaul (MRO) to component manufacturing, systems integration, and aviation R&D. As part of the country’s long-term plan to position itself as a global aviation hub, the Singapore government offers several grants and schemes to help aerospace businesses innovate, digitalise, and grow sustainably.
This article explores the major government grants available to aerospace companies in Singapore and how they can be used to support business transformation and competitiveness.
1. Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) is a comprehensive grant that helps aerospace businesses strengthen their capabilities, innovate processes, and expand overseas.
Supports Projects Involving:
- Core Capabilities: Strategic brand development, internal process restructuring
- Innovation and Productivity: Smart factory implementation, robotics, predictive maintenance systems
- Market Access: Establishing international MRO facilities or regional offices
Funding Support: Up to 50% of eligible costs for SMEs
Example: An MRO company can use the EDG to implement an AI-based predictive maintenance system that reduces downtime and improves service turnaround.
2. Aviation Development Fund (ADF)
Administered by the Civil Aviation Authority of Singapore (CAAS), the Aviation Development Fund supports initiatives to boost productivity, innovation, and manpower development in the aviation and aerospace sectors.
Focus Areas:
- Skills upgrading and manpower development
- Technology innovation and digitalisation
- Sustainability and green aviation
Example: An aerospace engineering firm can use ADF to co-fund development of sustainable aircraft materials or aviation emissions tracking software.
3. Productivity Solutions Grant (PSG)
The PSG supports adoption of pre-approved IT solutions and equipment for productivity improvements.
Applicable to Aerospace SMEs Needing:
- Inventory and logistics management software
- Maintenance scheduling tools
- Cybersecurity upgrades
Funding Support: Up to 50% of eligible costs
Example: A parts supplier may adopt a PSG-supported ERP system to better manage component inventories and supply timelines.
4. SkillsFuture Enterprise Credit (SFEC)
The SkillsFuture Enterprise Credit provides funding for both business transformation and workforce upskilling.
Support: Additional 90% on top of existing subsidies, up to S$10,000
Example: An aerospace company may use SFEC to train engineers in additive manufacturing (3D printing), composite materials, or aviation cybersecurity.
5. Startup SG Tech
While traditionally associated with tech startups, Startup SG Tech is also suitable for aerospace firms with proprietary innovation.
Supports:
- Proof-of-Concept (POC): Up to S$250,000
- Proof-of-Value (POV): Up to S$500,000
Eligibility: Less than 5 years in operation, 30% local shareholding, innovative product
Example: A startup working on autonomous drone inspection systems for aircraft fuselages can seek funding for prototype development and validation.
6. Advanced Digital Solutions (ADS)
The ADS programme supports industry-wide digitalisation, including the aerospace sector.
Examples of Supported Technologies:
- IoT for aircraft part condition monitoring
- Digital twins of MRO processes
- Blockchain for parts traceability
Funding Support: Up to 80% of qualifying costs
Example: An aerospace manufacturing firm could partner with tech providers to implement digital twin models of assembly lines to improve accuracy and reduce rework.
7. Market Readiness Assistance (MRA) Grant
The MRA Grant is ideal for aerospace companies planning to enter or grow in overseas markets.
Covers:
- International market entry consulting
- Participation in aviation expos and trade shows
- Overseas incorporation and licensing
Funding Support: Up to 50% of eligible costs, capped at S$100,000 per new market
Example: A Singapore-based aerospace tooling manufacturer can use MRA to expand into the UAE aviation market by exhibiting at industry expos and hiring consultants.
8. Research, Innovation and Enterprise (RIE2025) Aerospace-related Funding
Part of the RIE2025 strategy, this initiative provides significant support for R&D in emerging aerospace technologies.
Focus Areas:
- Green aviation fuels
- Unmanned aircraft systems
- Air mobility infrastructure and technologies
Example: A consortium of companies working on hybrid-electric aircraft technologies can apply for RIE2025 grants to co-fund research and test-bed the technology with regulators.
9. Sustainability Grants for Aerospace
In line with Singapore’s Green Plan 2030, there are specific sustainability-related grants for industries including aerospace.
Supports:
- Electrification of ground support equipment
- Carbon offset and emissions tracking systems
- Sustainable hangar and facility upgrades
Example: An MRO firm might apply for funding to install solar energy systems or use recycled materials for hangar refurbishment.
Final Thoughts: Sky’s the Limit for Aerospace Innovation
The aerospace sector in Singapore is on the verge of a digital and green transformation. From AI-powered maintenance tools to next-gen aircraft systems, government grants provide a strong foundation for companies ready to lead in innovation.
Each grant targets specific aspects of business development, so identifying the right mix and ensuring strong documentation and alignment with grant objectives is key to successful applications.
Need Help Navigating Aerospace Grants? Work with GrantConsultant.sg
At GrantConsultant.sg, we help aerospace businesses in Singapore identify and apply for the right grants—from R&D support to internationalisation and sustainability initiatives. Our expertise ensures your project is aligned with government priorities and application requirements.
Contact us today to elevate your aerospace ambitions with the power of strategic grant funding.