To facilitate a pro-business environment in Singapore, the government has introduced several business grants. They include:
- Enterprise Development Grant (EDG)
- Productivity Solutions Grant (PSG)
- Market Readiness Assistance (MRA) Grant
We provide more details of these grants below:
Enterprise Development Grant (EDG)
The EDG is a scheme to provide financial support for companies in their growth and transformation. It replaced the Capability Development Grant (CDG) and the Global Company Partnership (GCP) with effect from 25 October 2018.
The EDG is a single grant that supports projects under the below three pillars:
Core Capabilities are targeted to help businesses prepare for growth and transformation. The grant should not be spent on basic business functions such as sales and accounting. Instead, the companies should utilize the grant to enhance their business foundations specifically in areas including Business Strategy Development, Financial Management, Human Capital Development, Service Excellence, and Strategic Brand and Marketing Development.
Innovation and Productivity
Under the Innovation and Productivity pillar, the Singapore government is encouraging companies to upgrade their competencies towards higher efficiency and innovation. These could include improving workflow and processes. Automation is also encouraged to make routine tasks simpler and more efficient. Lastly, the grant can be utilized by companies exploring new business models or innovative product development.
Singapore companies are encouraged to venture overseas as Singapore has a limited domestic market. However, businesses are deterred from doing so because of the uncertainty and costs associated with venturing overseas. Under the Market Access, Singapore companies are supported by the defrayment of some overseas costs. These include areas such as Mergers and Acquisitions, Overseas Marketing Presence, Pilot Project and Test Bedding and Standards Adoption.
The grant applies only to SMEs incorporated & operating in Singapore. A minimum of 30% local shareholding is required. Furthermore, the company must be in a financially viable position to start and complete the project.
Interested businesses can apply for the grant via the Business Grants Portal (BGP).
The EDG grant funds up to 70% of qualifying project costs namely third-party consultancy fees, software and equipment, cost of certification, training and internal manpower cost. The grant is capped at $30,000.
Productivity Solutions Grant (PSG)
Started in 2018, the PSG was introduced to support productivity solutions across industries including retail, food, logistics, precision engineering, wholesale and landscaping industries. Other than industry-specific solutions, PSG also supports the adoption of solutions that is multi-industry which include areas in customer management, data analytics, financial management, and inventory tracking.
These solutions have been pre-scoped by various government agencies that are in charge of each Industry Transformation Maps. For example, they include solutions and equipment such as a digital ordering and payment system for the food industry. The list of these solutions can be found on Tech Depot.
The grant applies only to SME incorporated & operating in Singapore. A minimum of 30% local shareholding is required for selected solutions. Lastly, the purchase or lease of the IT solutions or equipment must be used in Singapore
Interested businesses can apply for the grant via the BGP. The applicant is required to submit the relevant solutions (found on Tech Depot) that best suit its business needs. For IT solutions, a quotation is required from the pre-approved vendor. As for the equipment, the company has to source for the equipment and get a quotation from the vendor.
For pre-scoped productivity solutions, eligible companies can obtain grants up to 70% of the productivity solution and equipment. In addition, they can claim up to 70% of out-of-pocket SkillsFuture training expenses, capped at $10,000. This is on top of existing government course fee subsidies.
Market Readiness Assistance (MRA) Grant
The Singapore government is encouraging SMEs to go global. The MRA Grant is for SMEs seeking to expand their business overseas. The Grant supports pre-determined activities to help eligible companies set up overseas, identify business partners, and promote their products overseas.
The grant applies only to SME incorporated & operating in Singapore. A minimum of 30% local shareholding is required for selected solutions. The Group annual turnover or group employment should not exceed S$100 million per annum or 200 employees respectively.
Any retrospective application will not be accepted except for activities related to Trade Fairs.
For all claims, it is mandatory for companies to engage an Enterprise Singapore-appointed auditor to verify the expenses. An audit grant fee will be given and is capped at S$500 or 70% of the audit fee. All claims will be disbursed strictly on a reimbursement basis.
Eligible companies can obtain grants up to 70% of the eligible costs associated with expanding overseas. This is capped at $20,000 per fiscal year. A maximum of only two applications is allowed each fiscal year, starting from the 1st of April. Each application is limited to one activity such as market entry or participation in a trade fair.