Singapore government has introduced several schemes to defray key insurance costs associated with operating a business. These insurance schemes act as a form of risk mitigation measure for the companies.

These schemes include:

  1. Loan Insurance Scheme (LIS)
  2. Political Risk Insurance Scheme (PRIS)
  3. Trade Credit Insurance Scheme (TCIS)

Loan Insurance Scheme (LIS)

The LIS supports companies via short-term trade loans. The loans are underwritten by commercial insurers, while a portion of the insurance premium is supported by the Government. This insures the creditors against the insolvency risks of the borrowers. The short-term trade loans could be made in the following categories:

  • Inventory/stock financing facility
  • Structured pre-delivery working capital
  • Factoring/bill or invoice or accounts receivable discounting with recourse


Companies should meet the following criteria:

  • Registered and operating in Singapore
  • At least 30% local shareholding
  • Group annual sales of up to S$100 million or group employment size of not more than 200


Political Risk Insurance Scheme (PRIS)

The PRIS support companies venturing overseas with a 50% subsidy on political risk insurance premiums. The subsidy is up to S$500,000 per company. With PRIS, it reduces the credit risk and uncertainty over the outcome of the overseas project.

A typical PRI policy covers risks such as:

  • Expropriation
  • Currency inconvertibility and transfer restrictions
  • Political violence
  • Breach of contract by the host government
  • Non-honouring of sovereign financial obligations


Companies should meet the following criteria:

  • Global HQ anchored in Singapore
  • At least three strategic business functions in Singapore
  • Annual sales turnover not exceeding S$500 million
  • Annual total business spending of at least S$250,000 in Singapore for each of the past three years
  • A minimum paid-up capital of S$50,000


Trade Credit Insurance Scheme (TCIS)

The TCIS insures the eligible company against counterparty risk such as non-payment by your buyers. The cost of insurance is defrayed with Enterprise Singapore supporting up to 50% of the minimum insurance premium for TCI policies provided commercially by Singapore-registered credit insurers. The lifetime support for each company is capped S$100,000.


Companies should meet the following criteria:

  • Global headquarters anchored in Singapore
  • Turnover of Applicant Company and its subsidiaries should not exceed S$100 million
  • A minimum paid-up capital of S$50,000

Interested businesses can approach a Singapore-registered TCIS insurer to structure and purchase their TCI policy. The insurer will assist the company in the submission of your application for TCIS premium support to Enterprise Singapore.