Introduction: Rising Costs and Opportunities in the F&B Sector
Running a restaurant in Singapore has always been both rewarding and challenging. While the island’s reputation as a global food capital brings strong demand, the F&B industry continues to face tight manpower, rising rental costs, and intense competition.
As we move into 2025, these challenges are balanced by a wide range of government grants that can help restaurants manage costs, adopt new technologies, attract and retain staff, and even expand into overseas markets.
From digitalisation and automation grants to hiring and training subsidies, Singapore’s ecosystem of enterprise support is designed to keep the F&B sector resilient, innovative, and competitive.
This guide explores the key grants suitable for restaurants in Singapore in 2025—what they are, how they work, and how to combine them for maximum benefit.
1. Productivity Solutions Grant (PSG)
Purpose:
To encourage F&B businesses to adopt technology solutions and equipment that improve productivity and efficiency.
Administered by:
Enterprise Singapore (ESG)
Support Level:
Up to 50% funding for pre-approved digital solutions and automation equipment.
Suitable For:
Restaurants aiming to streamline operations, reduce manpower dependence, and enhance customer experience.
Examples of PSG-Supported Solutions for Restaurants:
- Point-of-Sale (POS) Systems with real-time data analytics.
- Self-Ordering Kiosks or QR-based ordering systems for contactless dining.
- Digital Payment Solutions integrated with accounting software.
- Inventory Management and Procurement Systems for tracking stock.
- Kitchen Automation Equipment like robotic woks or dishwashing systems.
- Online Food Delivery Integrators to manage multiple delivery platforms from a single interface.
Why It Matters for Restaurants:
Labour shortages and high staff turnover are persistent issues. Automation allows restaurants to serve more customers with fewer employees, improving efficiency and consistency.
2. Energy Efficiency Grant (EEG)
Purpose:
To help F&B establishments adopt energy-efficient appliances and equipment to save on utility costs and reduce carbon emissions.
Administered by:
Enterprise Singapore (ESG)
Support Level:
Up to 70% co-funding capped at S$30,000 per company for energy-efficient equipment.
Eligible Equipment Includes:
- Commercial refrigerators and chillers.
- Cooking hobs and ovens with energy-saving certification.
- Dishwashers and water heaters with efficient energy ratings.
- LED lighting and air-conditioning systems designed for commercial kitchens.
Why It Matters for Restaurants:
Electricity is one of the largest overheads in F&B operations. By switching to more efficient equipment, restaurants can cut costs while aligning with Singapore’s sustainability push.
3. Job Redesign (PSG-JR) Grant
Purpose:
To help restaurants redesign job roles to make them more productive and attractive to local talent.
Administered by:
Workforce Singapore (WSG) & Enterprise Singapore (ESG)
Support Level:
Up to 70% of consultancy costs, capped at S$30,000 per company.
Examples of Job Redesign in Restaurants:
- Streamlining kitchen workflows using digital ordering systems.
- Cross-training kitchen and service staff to handle multiple roles.
- Introducing flexible shift systems for older workers.
- Integrating automation tools to reduce repetitive tasks.
Why It Matters:
By improving work processes, restaurants can better attract and retain Singaporeans in an industry often seen as labour-intensive. It also helps prepare for the implementation of the Progressive Wage Model (PWM) in the F&B sector.
4. Career Conversion Programmes (CCPs)
Purpose:
To help employers hire mid-career individuals or reskill existing employees for new roles in F&B.
Administered by:
Workforce Singapore (WSG)
Support Level:
Up to 90% salary and training support for the training period (3–6 months).
Suitable For:
Restaurants expanding their teams or retraining staff for supervisory, culinary, or managerial roles.
Examples of CCPs in F&B:
- CCP for Food Services Executives.
- CCP for Culinary Professionals.
- CCP for Digital Operations and Restaurant Management.
Why It Matters:
With manpower shortages common, CCPs let restaurants tap into mid-career hires who bring transferable skills while receiving government co-funding to offset wages during training.
5. SkillsFuture Enterprise Credit (SFEC)
Purpose:
To encourage employers to invest in workforce transformation and employee development.
Administered by:
SkillsFuture Singapore (SSG)
Support Level:
A one-time S$10,000 credit per eligible employer to offset up to 90% of out-of-pocket expenses for training and job redesign initiatives.
Eligible Activities:
- Sending employees for culinary, service, or digital courses under SkillsFuture.
- Using credits alongside other grants (e.g., CCPs or PSG-JR) to cover the balance costs.
Why It Matters:
Restaurants often find it hard to allocate budgets for staff training. SFEC allows them to upskill their team—whether in food hygiene, digital marketing, or leadership—without straining cash flow.
6. Progressive Wage Credit Scheme (PWCS)
Purpose:
To co-fund wage increases for lower-wage Singaporean employees, helping businesses implement the Progressive Wage Model (PWM).
Administered by:
Inland Revenue Authority of Singapore (IRAS)
Support Level (2025):
- 40% co-funding for wage increases given in 2025 (up from 30% in 2024).
- 20% co-funding for increases in 2026.
Why It Matters for Restaurants:
The F&B sector is among those required to comply with PWM wage standards for local employees such as service crew, kitchen assistants, and supervisors. The PWCS helps restaurants manage higher payroll expenses while maintaining competitiveness.
7. Career Trial Programme
Purpose:
To allow employers to assess jobseekers’ suitability through short-term work trials before formal hiring.
Administered by:
Workforce Singapore (WSG)
Support Level:
Employers receive up to S$7.50/hour of training allowance (for a max of 480 hours) co-funded by WSG.
Why It Matters:
Restaurants can test potential hires’ performance before committing to permanent employment—reducing the risk of high turnover in an industry where retention can be a challenge.
8. Enabling Employment Credit (EEC)
Purpose:
To support restaurants hiring persons with disabilities (PWDs).
Administered by:
Inland Revenue Authority of Singapore (IRAS)
Support Level:
- 20% wage offset (up to S$400/month per employee).
- Additional 20% offset if the PWD has been unemployed for at least 6 months.
Why It Matters:
Many front- and back-of-house restaurant tasks can be adapted for persons with disabilities. The EEC encourages inclusive employment while helping restaurants lower labour costs.
9. Senior Employment Credit (SEC)
Purpose:
To encourage continued employment of senior workers (aged 60 and above).
Support Level:
Up to 7% wage offset for eligible employees earning up to S$4,000/month.
Why It Matters:
Many F&B establishments rely on experienced senior staff, especially in customer service and kitchen operations. The SEC helps offset wage costs while retaining valuable institutional knowledge.
10. Part-Time Re-Employment Grant (PTRG)
Purpose:
To encourage restaurants to offer part-time or flexible re-employment to senior workers.
Support Level:
Up to S$2,500 per senior worker, capped at S$125,000 per employer.
Why It Matters:
Flexible scheduling is ideal for seniors who prefer shorter shifts. Restaurants benefit by keeping experienced workers and filling manpower gaps during peak hours.
11. Market Readiness Assistance (MRA) Grant
Purpose:
To support Singapore restaurants planning to expand overseas—for example, opening outlets in Malaysia, Vietnam, Indonesia, or the Philippines.
Administered by:
Enterprise Singapore (ESG)
Support Level:
Up to 50% of eligible costs, capped at S$100,000 per new market.
Covers:
- Market research and feasibility studies.
- Overseas marketing and promotion.
- Franchise or business development consultancy.
- Legal and company incorporation costs abroad.
Why It Matters:
Successful local brands like BreadTalk, Old Chang Kee, and Ya Kun Kaya Toast have used similar grants to expand regionally. The MRA helps F&B owners replicate their Singapore success abroad without over-stretching financially.
12. Energy Efficiency Fund (E2F)
Purpose:
To support restaurants undertaking larger-scale energy efficiency retrofits beyond the scope of the Energy Efficiency Grant.
Administered by:
National Environment Agency (NEA)
Support Level:
Up to 70% funding for energy audits, system upgrades, and consultancy.
Why It Matters:
Restaurants with central kitchens or high energy use (e.g., large-scale air-conditioned dining) can reduce long-term utility costs and meet Singapore’s green targets through E2F support.
13. Workfare Skills Support (WSS) Scheme
Purpose:
To encourage lower-wage workers to undergo training while employers receive course fee and absentee payroll funding.
Administered by:
SkillsFuture Singapore (SSG)
Support Level:
- Up to 95% of course fees subsidised.
- Absentee payroll funding at 95% of hourly basic pay (for training hours).
Why It Matters:
Restaurants can send service crew or kitchen assistants for courses like food hygiene, customer service, and supervisory skills—without losing productivity or incurring high costs.
14. SkillsFuture Work-Study Programme (WSP)
Purpose:
To build a sustainable talent pipeline by hiring fresh graduates or ITE/diploma holders under work-study arrangements.
Support Level:
Employers receive up to S$15,000 per trainee for mentorship and training.
Why It Matters:
Restaurants can attract young talent into the industry and groom them for long-term careers, addressing the manpower crunch.
15. Enterprise Development Grant (EDG)
Purpose:
To help F&B businesses innovate, transform, or expand internationally.
Administered by:
Enterprise Singapore (ESG)
Support Level:
Up to 50% of qualifying costs for projects in:
- Core Capabilities (e.g., business strategy, branding, franchising).
- Innovation & Productivity (e.g., adopting automation, process redesign).
- Market Access (e.g., expansion abroad).
Examples of EDG Projects for Restaurants:
- Developing a franchise model for regional expansion.
- Implementing a central kitchen with AI-driven demand forecasting.
- Rebranding or creating new menu concepts for overseas markets.
Why It Matters:
For ambitious restaurant brands, EDG offers more comprehensive, long-term transformation support beyond the short-term PSG.
16. Inclusive Hiring and Employer Development Grant (EDG-Inclusive)
Purpose:
To promote inclusive employment practices for persons with disabilities.
Administered by:
Ministry of Social and Family Development (MSF)
Support Level:
Up to S$40,000 per company for inclusive workplace design, job coaching, and training.
Why It Matters:
Restaurants can create structured onboarding and accessible workspaces, empowering a more diverse team while benefiting from funding support.
17. Hawkers’ Productivity Grant (HPG)
Purpose:
For hawker and small food stall operators to adopt productivity-enhancing equipment.
Support Level:
Up to 80% funding, capped at S$5,000 per stall.
Examples of Eligible Equipment:
- Automatic noodle boilers.
- Rice cookers with portion control.
- Food warmers and chillers with timers.
- Cleaning or dishwashing equipment.
Why It Matters:
For small F&B setups in hawker centres or coffee shops, the HPG helps lower entry costs to technology adoption.
18. Combining Grants for Maximum Benefit
Restaurants can often stack compatible grants to achieve holistic transformation.
Example 1: Digital & Manpower Efficiency Combo
- Apply for PSG to digitalise ordering and payments.
- Use PSG-JR to redesign staff roles.
- Offset training costs with SFEC.
Example 2: Workforce & Inclusivity Combo
- Hire seniors under SEC and part-timers under PTRG.
- Train them under WSS or CCP (F&B).
- Build an inclusive culture with EEC or Employer Development Grant.
Example 3: Expansion & Branding Combo
- Upgrade brand identity under EDG (Core Capabilities).
- Expand regionally under MRA Grant.
- Train overseas franchise staff using SFEC credits.
With proper planning, restaurants can enjoy multi-layered support covering technology, manpower, energy, and internationalisation.
19. How to Apply for F&B-Related Grants
- Identify your goals: Are you trying to digitalise, expand, or hire?
- Check eligibility: Most require your business to be Singapore-registered and at least 30% locally owned.
- Apply via the Business Grants Portal (BGP):
https://www.businessgrants.gov.sg - Prepare documents: Company profile, project proposal, vendor quotation, and projected outcomes.
- Await approval: Do not start projects before approval (especially for PSG or EDG).
- Submit claims: Upon completion, provide invoices and proof of implementation.
For hiring-related schemes (like CCP, SEC, or PWCS), applications may go through WSG or IRAS directly.
20. Why Restaurants Should Act Now
2025 is a pivotal year for the F&B sector in Singapore. The government continues to promote:
- Digital transformation across all industries.
- Manpower upskilling and job quality improvements under the Progressive Wage Model.
- Sustainability and energy efficiency as national goals.
Grants are generous but time-sensitive—many are subject to periodic review or reduction as industries mature. Acting early ensures restaurants lock in maximum funding levels while competitors are still adapting.
Conclusion: Building the Future of F&B with Government Support
Running a restaurant in Singapore will always demand creativity, efficiency, and adaptability. Fortunately, the wide range of 2025 grants—from Productivity Solutions Grant (PSG) and Career Conversion Programmes (CCP) to Energy Efficiency Grants (EEG) and Market Readiness Assistance (MRA)—empowers F&B owners to transform challenges into opportunities.
Whether you’re looking to digitalise operations, train and retain staff, adopt sustainable practices, or expand abroad, there’s a suitable grant waiting to support your journey.
By strategically combining multiple grants and aligning them with your business goals, you can reduce costs, future-proof your restaurant, and build a brand ready to thrive in Singapore’s next decade of culinary innovation.
Find out more about grant assistance and application support at https://grantconsultant.sg/