Top SME Grants Singapore: Your Essential Guide for 2024

Small Medium Enterprises (SMEs) in Singapore who are looking for financial support to grow their business and expand overseas should take the help of SME grants which provide a range of benefits. This article on SME grants Singapore will give you detailed insights into various types of grants, their eligibility criteria and how to apply for them.

Key Takeaways

• Through SME grants in Singapore, the local government strategically supports small and medium enterprises, helping them to enhance their business operations capabilities and explore new emerging markets which ultimately lets them adapt to economic changes in the country.
• The Singapore government offers a variety of grants to SMEs, including the Enterprise Development Grant (EDG), Productivity Solutions Grant (PSG), Market Readiness Assistance (MRA) Grant, and Energy Efficiency Grant. Each of these SME grants is tailored to address the specific business needs of Singapore companies.
• The government has simplified the SME grants application process by introducing the Business Grants Portal (BGP) which streamlines the procedure and ensures accurate and timely processing of the applications, ultimately giving quick access to funds for businesses in Singapore.

Understanding SME Grants in Singapore

SME grants in Singapore are not just financial handouts but strategic government investments to propagate growth and innovation within the business sector of the country. These grants provide non-repayable financial support to eligible businesses, addressing the unique challenges faced by smaller enterprises in their growth journey. These grants aim to help Singapore SMEs enhance their business capabilities and explore new markets which ultimately makes them adaptable to the changing economic landscape of the country and the world.

SME grants act as catalysts for transforming businesses in Singapore, giving small and medium enterprises the power to undertake critical projects which they might have passed due to lack of financial support. These government grants support a wide range of business needs like measures to encourage technology innovation, improve productivity, enhance market access and enable digital transformation. All these SME grants are administered by government agencies and are designed to address the specific business development needs of Singapore companies, ensuring support to the vibrant SME ecosystem of the country.

Defining SMEs in Singapore

In Singapore, an SME is a multi-faceted concept which is defined and categorised based on different criteria that meet the specific thresholds related to:

• Annual sales turnover: Less than S$100 million
• Company’s group employment size: Fewer than 200 individuals
• Local shareholding: At least 30% of the company’s shares are owned by local residents or permanent residents of the country or Singapore Citizens.

The Singapore government delineates the exact definition of SMEs to tailor different support mechanisms that can channel resources to businesses that are truly in need of funds. Through this targeted approach the government tries to foster a competitive business environment which enables Singapore companies to significantly contribute to the country’s economic growth. SMEs, as defined by these criteria, form the backbone of Singapore’s economy, driving innovation, creating employment opportunities, and contributing substantially to the nation’s GDP.

Key Government Grants for SMEs

The Singapore government has recognised the vital role of SMEs in the economy by setting up a comprehensive suite of grants to support these enterprises at various stages of their growth journey. At the forefront of this support system is Enterprise Singapore (ESG), a government agency that chiefly works for business strategy development. Enterprise Singapore offers a diverse range of grants tailored to address different aspects of business growth including technological innovation, capability development and internationalisation efforts.

A business improvement fund given to Singapore companies can be either of the following main types:

• Enterprise Development Grant (EDG)
• Productivity Solutions Grant (PSG)
• Market Readiness Assistance (MRA) Grant
• Energy Efficiency Grant (EEG)

Each of these grants is designed to address specific challenges and opportunities faced by SMEs, providing targeted support to fuel their growth and competitiveness in both local and global markets.

Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) is the hallmark of Singapore’s SME support framework as it propels businesses towards higher levels of growth and transformation. This grant is specifically tailored to support projects that help Singapore companies upgrade, innovate, and transform their business operations.

However, the SMEs have to fulfil certain criteria to get the grant. They have to be registered and operating in Singapore and have at least 30% local equity along with financial readiness to start and complete proposed projects. EDG is focused on helping new initiatives that couldn’t generate revenue when the application was filed as they want to foster innovation and forward-thinking business strategies.

Eligible projects can get up to 50% financial support to cover their costs including software and equipment expenses, third-party consultancy fees, and internal manpower expenses through the enterprise development grant.

Projects eligible for EDG funding fall under three main pillars: Core Capabilities, Innovation and Productivity, and Market Access. With this business improvement fund, you can get assistance to enhance your business operations, explore new markets or optimise your resource usage. They are usually dispersed within 6-8 weeks of project completion, ensuring a timely boost to SMEs in their business transformation journeys.

Productivity Solutions Grant (PSG)

The Productivity Solutions Grant (PSG) is specially designed to help those SMEs looking to enhance their operational efficiency in the era of digital transformation as it supports the adoption of IT solutions and equipment which can boost business operations.

The PSG helps in financial management by covering 50% of the technology adoption expenses of businesses which can be a potential barrier for Singapore companies. This S$30,000 capped funding accelerates the adoption of pre-approved IT solutions, equipment and consultancy services for SMEs.

The beauty of the PSG lies in its pre-approved solutions, which are tailored to address various business needs across different industries. This approach not only simplifies the selection process for SMEs but also ensures that the adopted solutions are proven and effective. The PSG aids SMEs in integrating technology into their daily business operations, thereby streamlining processes, boosting productivity, and enhancing competitiveness in a digital-focused marketplace.

Market Readiness Assistance (MRA) Grant

The Market Readiness Assistance (MRA) is crucial for those businesses that want to expand beyond the borders of Singapore as this grant is specially designed to support companies looking to venture overseas. They help Singapore companies establish business overseas by providing financial assistance for key internationalisation activities including up to S$20,000 grant for overseas market promotion, S$50,000 for overseas business development, and S$30,000 for overseas market set-up. In total, eligible companies can receive up to S$100,000 per new market, with the grant co-funding up to 50% of eligible expenses.

To qualify for the MRA grant, businesses must be registered in Singapore, and have at least 30% local equity. The Singapore companies applying for this grant also should be new entrants in the target overseas market and have annual sales of not more than S$100,000 in the last three years. This targeted support is particularly valuable for SMEs taking their first steps into international markets, providing them with the financial backing to explore and establish their presence in new territories. The enhanced MRA grant cap of S$100,000 has been extended until 31 March 2025, offering an extended window of opportunity for SMEs to leverage this support for their global expansion plans.

Energy Efficiency Grant

The Energy Efficiency Grant has become important in this age of sustainability as this fund tries to help food businesses harness the benefits of improved energy efficiency and lower their energy consumption. The energy efficiency fund can cover up to 70% of the eligible costs of making these food-related businesses adopt energy-efficient equipment. It aims to reduce the primary barrier (investment) to switch to sustainable practices.

The S$30,000 per year capped grant incentivises businesses to reduce their carbon footprint and contribute to their long-term cost savings by making business operations more environmentally friendly. The grant specifically targets food-related businesses as energy-efficiency improvements can substantially impact this sector, both in terms of operational costs and environmental sustainability, helping foster a sustainable business ecosystem.

Sector-Specific Grants

Apart from the four government grants, Singapore also has other specialised funding opportunities for SMEs across sectors These sector-specific grants are administered by various government agencies, each focusing on the unique needs and challenges of their respective industries. The grants in this segment include:

• Infocomm Media Development Authority (IMDA)
• Monetary Authority of Singapore (MAS)
• Health Promotion Board (HPB)
• Singapore Tourism Board (STB)

These specialised grants not only provide financial support but also offer industry-specific expertise and resources, ensuring that businesses in niche sectors receive targeted assistance aligned with their unique operational needs and growth trajectories.

Infocomm Media Development Authority (IMDA) Grants

The Infocomm Media Development Authority (IMDA) supports SMEs’ digital transformation journeys in this digital age by helping them adopt technology which is necessary for business growth and survival. One of IMDA’s flagship initiatives is the SMEs Go Digital programme, which helps businesses adopt digital solutions and build capabilities to thrive in the digital economy as it offers Advanced Digital Solutions Additionally, IMDA provides up to 70% funding for the deployment of advanced digital solutions, covering costs of the following:

• Hardware
• Software
• Infrastructure
• Connectivity
• Cybersecurity
• Integration
• Development
• Project management

The agency has also introduced the following innovative tools and platforms to assist SMEs in their digital transformation.

• CTO-as-a-Service platform: Allows businesses to identify their digitisation needs, access digital solutions, and engage consultants for customised advice.
• Industry Digital Plans (IDPs): Provide step-by-step guides for SMEs to adopt digital technology at various stages of growth.
• Specialised assistance programs: SMEs can seek specialised assistance for more advanced needs such as data analytics and cybersecurity.

Monetary Authority of Singapore (MAS) Grants

The Monetary Authority of Singapore (MAS), acts as the central bank and financial regulatory authority of Singapore and offers specialised grants to enhance the financial sector’s capabilities and innovation. This includes the RegTech grant designed to address the unique risk management and regulatory compliance challenges faced by financial institutions. Capped at S$100,000, the RegTech grant focuses on the usage of technology to simplify and improve regulatory processes across the country by supporting the implementation of innovative regulatory technology solutions

Health Promotion Board (HPB) Grants

The Health Promotion Board (HPB) in Singapore provides a variety of grants to propagate healthy eating and lifestyle habits. The grant recognises the role of food-related businesses in shaping public health outcomes and hence it provides financial incentives to companies to:

• Increase the availability and accessibility of healthier food options for Singaporeans
• Encourage food businesses to adopt healthier cooking methods and ingredients
• Support initiatives that promote healthier eating habits and lifestyles

Two key initiatives under the HPB’s grant program are

1. The Healthier Dining Grant Schemes which supports F&B partners in promoting healthy dining options like choosing restaurants and outlets with nutritious items on their menu
2. The Healthier Ingredient Promotion Scheme (HIPS) which covers 80% of eligible costs of food ingredient manufacturers that adopt healthier ingredients in their products.

Singapore Tourism Board (STB) Grants

The Singapore Tourism Board (STB) plays an integral role in the development of the tourism sector of the country, which is a major pillar of Singapore’s economy. Through its Tourism Development Fund, STB offers a range of grants designed to enhance the attractiveness of Singapore as a tourist destination and boost the capabilities of tourism-related businesses. This includes:

1. The Kickstart Fund supports the development and testing of innovative concepts that can drive tourism in Singapore
2. The Experience Step-Up Fund focuses on developing and enhancing existing tourism experiences.

Application Process for SME Grants

Since its launch in January 2017, the Business Grants Portal (BGP) has streamlined the SME grants Singapore application process as it serves as a one-stop platform for businesses to apply for various government grants. This centralised approach has simplified the grant application process, making it more accessible and less time-consuming for SMEs.

Singapore companies can apply for any government grants by using the following steps:

• Log into the BGP with your CorpPass, a corporate digital identity for online government transactions.
• Fill in the company profile and provide details about the specific grant application.

The BGP extracts relevant company information from the Accounting and Corporate Regulatory Authority’s (ACRA) database based on the company’s Unique Entity Number (UEN), saving time and ensuring accuracy.

Once the application is submitted, it will be routed to the relevant government agency which will take 8-12 weeks to process, based on the complexity of the application and the specific grant program. Throughout this period, businesses can monitor the status of their application on the “My Grants” page of the BGP which ensures transparency in the process and helps the applicants to plan accordingly.

Tips for Successful Grant Applications

While securing a Singapore government grant provides mileage to SMEs, it isn’t an easy task as it requires meticulous document preparation in editable formats with many saved backups to avoid last-minute issues. This level of organisation not only streamlines the application process but also demonstrates your commitment and seriousness to the reviewing agency.

Here are some essential tips to ensure that your application is precise and accurate.

• Prepare a detailed and realistic budget plan supported by accurate cost breakdowns as it will demonstrate your financial management acumen, making it easier for the reviewing agency to understand how you will utilise the funds.
• Follow application procedures diligently and provide clear and concise answers. Make sure to address all the requirements and provide all the necessary information.
• Submit your application well before the deadline to avoid any delays as it will give you time to double-check your application details, ensuring accuracy.
• Double-check that your application details are correct and that the grant priorities align with your business goals.

Special Grants for Startups

The Singapore government has recognised the challenges faced by early-stage businesses and startups and hence they have come up with grants that provide both financial assistance and resources or mentorships.

Startup SG Founder

The Startup SG Founder grant forms a critical support system for early-stage entrepreneurs in Singapore as it encourages and supports first-time founders with up to S$50,000 in financial assistance and mentorship. First-time entrepreneurs who don’t have any experience in setting up a Private Limited entity are eligible for this grant which is structured into two tracks

• ‘Train’ for beginners needing guidance, and
• ‘Start’ for startups seeking to refine their business models.

However, startups getting this grant have to invest S$10,000 as a co-matching fund to ensure that they have a personal stake in the company’s success.

Startup SG Tech

The Startup SG Tech grant is specifically tailored to speed up the development of proprietary technology solutions and stimulate the growth of startups based on innovative technology and scalable business models. This grant plays a crucial role in Singapore’s tech ecosystem as it helps startups bridge the gap between innovative ideas and marketable products or services.

This grant provides up to 70% funding to early-stage technology development at the Proof-of-Concept (POC) and Proof-of-Value (POV) stages of projects. This level of support is particularly valuable for tech startups, as it helps mitigate the high costs and risks associated with early-stage technology development. By supporting these critical stages, the grant enables startups to validate their technologies, refine their products, and prepare for market entry.

Navigating Workforce Support

Besides grants focused on business development and technology adoption, Singapore provides a variety of programs to support workforce development and employment which is crucial for SMEs to build and maintain a skilled workforce in an increasingly competitive labour market. This includes

• The Skillsfuture Enterprise Credit (SFEC) program, encourages SMEs to invest in enterprise and workforce transformation
• The Career Conversion Programmes (CCPs) program provides significant support for employee training and development.

Career Trial Program

Administered by Workforce Singapore (WSG), the Career Trial Program is an innovative initiative that connects job seekers with employers as it helps both parties assess job fit through a short-term work trial before committing to formal employment. This is beneficial for SMEs struggling to cope with risks associated with new hires as it ensures a good match between the candidate and the job role.

The program is structured to provide flexibility and support for both employers and job seekers as there are trial options like

• Full-time positions having 480 trial hours
• Part-time positions have 240 trial hours, with a monthly cap of 80 hours.

Additionally, businesses joining the trial should have job openings with at least a S$1500 salary for full-time positions and S$750 for part-time positions. The program also offers attractive incentives like a S$7.5-15 per hour salary support rate and retention bonuses of $500 for 3 months or $1,000 for 6 months for continued employment.

Employers can also get a 30% subsidy of the monthly salary for up to 6 months, with a cap of S$5,400 per hire for full-time jobs and S$2,700 for part-time jobs. This subsidy aims to support businesses in hiring new employees. These financial incentives make the Career Trial Program an attractive option for SMEs looking to expand their workforce while managing recruitment costs and risks.

Enhanced Training Support for SMEs

The Enhanced Training Support for SMEs (ETSS) is a major initiative to enhance the capabilities of Singapore’s SME workforce as it emphasises continuous learning and skill development to remain competitive in the business landscape of the country. ETSS provides up to 90% subsidy on course fees for training programs in centres like Continuing Education and Training (CET) Centres, Autonomous Universities, Polytechnics, the Institute of Technical Education (ITE), and the National Institute of Early Childhood Development (NIEC).

SMEs can also get a subsidy rate of S$15 per hour for in-house certifiable training. This comprehensive coverage ensures that SMEs get a training option that fulfils their specific business needs, ultimately reducing the financial burden of employee training which enables them to continuously upskill the workforce and improve productivity.

How InCorp can Help

From the broad-based Enterprise Development Grant (EDG) and Productivity Solutions Grant (PSG) to sector-specific initiatives offered by agencies like IMDA, MAS, HPB, and STB, the Singapore government’s commitment to fostering a vibrant SME ecosystem is evident. As a reliable corporate services provider in the region, InCorp has a full suite of end-to-end services to aid your company. Our advisory team offers grant assistance to help you secure the funding your business needs.

About the Author

InCorp Content Team

InCorp's content team includes talented copywriters from our regional group and globally. We contribute informative, thought leadership, and market-trending articles to guide aspiring business entrepreneurs to a higher level across the Asia-Pacific region.

More on Business Blogs