Supporting local Enterprises, Assisting upscaling and capability development.
Complete Guide to Singapore Government Grants for SMEs & Entrepreneurs for 2022
1. Productivity Solutions Grant (PSG)
What it is: The PSG is ideal for companies looking to kickstart their technology journey by adopting IT solutions to improve and automate existing processes.
PSG covers sector-specific solutions including the retail, food, logistics, precision engineering, construction and landscaping industries. It also encourages the adoption of solutions in areas of customer management, data analytics, financial management and inventory tracking.
Grant amount: The PSG’s subsidies will be raised to 80% for SMEs from 1 April 2020 to 30 September 2021.
2. Enterprise Development Grant (EDG)
What it is: The EDG’s purpose is to support projects that can help businesses to upgrade, innovate or venture overseas. Do note that these projects have to be beyond the basic functions of sales and accounting.
Besides that, projects should explore new areas of growth or look to enhance efficiency. These include reviewing and redesigning workflow and processes.
Grant amount: The EDG’s maximum support level will be raised from 70% to 80% from 1 April 2020 to 30 September 2021.
3. Market Readiness Assistance Grant (MRA)
What it is: The Market Readiness Assistance (MRA) Grant is meant for companies that want to take their business overseas. It provides the support needed for market set-up, business development and market promotion.
Grant amount: Eligible SMEs will receive up to 70% of eligible costs, capped at S$100,000 per company per new market from 1 April 2020 to 31 March 2023.
This is broken down into 3 areas, which are overseas market promotion (capped at S$20,000), overseas business development (capped at S$50,000) and overseas market set-up (capped at S$30,000).
Covid – 2019 Related
4. Job Support Scheme (JSS)
What it is: The JSS offers wage support to employers so that they can retain their local employees amid economic uncertainty.
JSS payouts protect employees’ jobs as their goal is to offset their wages.
Grant amount: The government co-funds 10% to 50% of the first S$4,600 of gross monthly wages paid to each local employee during a 7-month period, from September 2020 to March 2021.
JSS was extended by up to 6 months from April 2021 to September 2021 with co-funding at 10% to 30%.
5. Job Growth Incentive (JGI)
The Jobs Growth Incentive (JGI) supports employers to expand local hiring from September 2020 to March 2022 (inclusive), so as to create good and long-term jobs for locals.
The JGI provides up to 12 months of salary support for each non-mature local hire and 18 months of salary support for each mature hire, person with disability or ex-offender hired by employers that managed to increase their local workforce within the qualifying window for Phase 1 of the scheme from September 2020 to February 2021 and Phase 2 from March 2021 to September 2021. For Phase 3 from October 2021 to March 2022, the salary support for each non-mature local hire will be for up to 6 months for non-mature local hires and 12 months for mature, PwD or ex-offender local hires.
Fund / Financing Related
6. Zero Increase In Govt Charges & Fees
What it is: Fees and charges for government-provided services will not be increased for a year, from 1 April 2020 to 31 March 2021.
This includes LTA and STB license fees, SFA food import permits, ACRA company registration fees, NEA inspection fees and fees for certification of government documents.
Grant amount: All businesses will enjoy no increase in government-provided services fees.
7. Enterprise Financing Scheme – SME Working Capital Loan (EFS WCL)
What it is: The EFS WCL helps companies to finance operational cashflow needs.
It is under Enterprise Singapore’s Enterprise Financing Scheme (EFS), which enables companies to have easier access to funding throughout the different stages of growth.
Grant amount: Eligible enterprises may borrow up to S$1 million
8. Enterprise Financing Scheme – Trade Loan (EFS TL)
What it is: The EFS TL addresses companies’ finance trade needs such as inventory or stock financing, factoring (with recourse) and structured pre-delivery working capital.
It also complements the current Loan Insurance Scheme (LIS) by insuring loans that are above the capacity of existing LIS insurers.
Grant amount: Eligible enterprises may borrow up to S$10 million.
9.Loan Insurance Scheme (LIS) – EXPIRED
What it is: Through the LIS, companies can secure short-term trade financing loans from Participating Financial Institutions (PFIs).
Loans are insured by commercial insurers that co-share loan default with the PFI in case of enterprise insolvency. The insurance premium is partially supported by the government.
Grant amount: Support for the LIS insurance premium will be increased from 50% to 80% until 31 March 2021.
10. FinTech COVID-19 Support
What it is: The FinTech COVID-19 Support package seeks to help companies in the financial and FinTech sectors to recover from the challenges COVID-19 brought about and also for future growth.
This will help support workers, enhance operational readiness, accelerate digitalisation and boost capabilities across sectors.
Grant amount: Companies can receive a support package worth S$125 million.
11. Temporary Bridging Loan Programme (TBLP)
What it is: The TBLP gives access to working capital for business needs.
Grant amount: Eligible enterprises may borrow up to S$5 million, with the interest rate capped at 5% p.a. from PFIs.
Types of equity funding in Singapore (Angel Organisations)
- 1- Bansea
- 2- AngelVest Group
- 3- Angel Central
For seed or series A investments, you may refer here. This sets out most of the active VC investors in Singapore. Refer here for a map of the funding terms.
For a more customized complimentary 1-to-1 advisory session, you may contact the SME Centre here, where a business advisor would meet you to share with you the relevant schemes and Singapore startup grants that you may be eligible for.
HR – Staff Related
What it is: The P-Max is a Place-and-Train Programme that aims to help companies recruit, train, manage and retain newly-hired Professionals, Managers, Executives and Technicians (PMETs).
Besides that, it promotes the adoption of progressive human resources practices in SMEs. It also places PMETs who are seeking jobs in suitable roles.
Grant amount: Workforce Singapore (WSG) offers up to 90% funding support on course fees.
Also, there’s a one-time Assistance Grant worth S$5,000 upon successful retention of newly-hired PMETs for at least six months upon completion of SME and PMET workshops under the programme.
13. SGUnited Traineeships Programme
What it is: The SGUnited Traineeships Programme encourages companies to come on board as host organisations to take in fresh graduates as trainees to support their business needs.
It aims to provide up to 21,000 traineeship opportunities to recent graduates or those who are about to graduate. Upon completion of the traineeship, organisations can consider hiring suitable trainees for permanent job roles.
Grant amount: The government will co-fund 80% of the training allowance. However, this monthly training allowance varies based on the traineeship scope.
14. Work-Life Grant – EXPIRED
What it is: The Work-Life Grant enables companies to implement and sustain flexible work arrangements (FWAs) by offering funding support. Hence, employees will have more control over their work schedule and as a result, enjoy greater job satisfaction.
Grant amount: There are 2 components of the Work-Life Grant. Firstly, the FWA Incentive offers up to S$70,000 per company over 2 years for those that implement and sustain FWAs for employees.
Also, there is the Job Sharing Incentive which offers up to S$35,000 per company over 2 years.
It incentivises companies to implement job-sharing arrangements for employees who request it. These employees must have a gross monthly salary of at least S$3,600 before the job-sharing arrangement.
15. Career Trial
What it is: Job seekers can take on a short-term trial and employers can assess their fit for up to 6 months before employment paying at least S$1,500 for a full-time position and $750 for a part-time position.
Grant amount: Firms may receive up to 30% of each Singaporean hire’s monthly salary for up to 6 months.
16. SkillsFuture Enterprise Credit (SFEC)
What it is: The SkillsFuture Enterprise Credit (SFEC) is meant to encourage employers to invest in enterprise transformation and the capabilities of their employees.
Grant amount: Eligible employers will get a one-off $10,000 credit which can cover up to 90% of out-of-pocket expenses on qualifying costs for supportable initiatives, over and above the support levels of existing schemes
17. Enhanced Training Support Package and Enhanced Absentee Payroll
What it is: The Enhanced Training Support Package and Enhanced Absentee Payroll encourages employers to send their employees for training during downtime by subsidising course fees and offering absentee payroll funding.
Grant amount: For eligible employers in selected sectors more affected by COVID-19, there will be an enhanced course fee subsidy of up to 90%.
The enhanced Absentee Payroll funding rate will be revised to 80% of hourly basic salary capped at $7.50/hour from 1 Jan 2021, for employers across all sectors. This applies to all courses that are eligible for absentee payroll funding today.
18. Senior Worker Early Adopter Grant (SWEAG)
To support progressive employers that are willing and able to implement a higher internal retirement age and re-employment age ahead of time, MOM has introduced the Senior Worker Early Adopter Grant from 1 July 2020 onwards.
SWEAG provides funding support of $125,000 for employers to raise both their internal retirement and re-employment ages by 3 years* above the minimum statutory requirements.
* The increase in the internal RA and REA of a minimum of 3 years (from existing statutory RA and REA of 62 and 67 respectively) to qualify for the SWEAG would be applicable only if companies apply for the grant before 5 July 2021.
Grants For Startups
19. Startup SG Founder
What it is: The Startup SG Founder plan comprises of two tracks:
The Startup SG Founder “Train” track and the Startup SG Founder “Begin” track.
The “Train” track offers 3-month programs with Venture Builder and Accredited Mentor Partners with experience in adventure building. These projects will give support for obtaining advancement, commercializing thoughts into adaptable organizations and that’s only the tip of the iceberg.
Groups of business people with business thoughts can move toward any Enterprise Singapore-designated Accredited Mentor Partners (AMP) in the “Begin” track. The AMPs will then, at that point, select candidates for financing support.
Grant amount: Upon successful application, the AMP will support the startups by providing advice, networking contacts and learning programs. There will also be a startup capital grant of S$50,000 from Enterprise Singapore.
Startups will have to raise and commit S$10,000 as a co-matching fund to the grant.
20. Startup SG Tech
What it is: The Startup SG Tech grant speeds up the development of proprietary technology solutions and supports the growth of startups based on proprietary technology and a scalable business model.
Grant amount: Companies may get early-stage funding for the commercialisation of proprietary technology.
Grants will be awarded upon the completion of each milestone. There is also an equity component where Enterprise Singapore will have the rights to exercise a share subscription.
21. Startup SG Accelerator
What it is: Startup SG Accelerator encourages startup enablers, such as accelerators and incubators, to cultivate the development of Singapore-based startups that have good potential.
It may also support the in-market programmes developed by startup enablers and global foreign startup enablers looking to set up in Singapore.
Through funding and non-financial support, Startup SG Accelerator aims to empower partners to further enhance their programs and expertise in nurturing successful local startups.
Grant amount: The funding support covers the cost of developing programmes to nurture startups, hiring mentors and experts to offer guidance to starts and partially for operating expenses.
Economic Development Board (EDB)
Innovation, R&D and Capability Development Incentives
EDB Singapore offers several incentives and schemes to companies that wish to expand the scope of their business operations in Singapore.
Entrepreneurs are encouraged to upgrade their business’ capabilities using the incentives and schemes that are offered. Here are some of the schemes:
- Special Situation Fund for Startups (SSFS) – administered by EDBI, aims to support early stage to late stage promising startups that can contribute to Singapore’s national priorities via a convertible note.
- Pioneer Certificate Incentive (PC) and Development and Expansion Incentive (DEI) – aims to stimulate companies that carry out global or regional headquarters (HQ) operations to grow capabilities and conduct new or expanded economic activities in Singapore.
- Aircraft Leasing Scheme (ALS) – encourage companies to develop aircraft leasing capabilities and grow the aircraft leasing industry in Singapore.
- Finance & Treasury Centre (FTC) – encourages companies to grow treasury management capabilities and use Singapore as a base for conducting strategic finance and treasury management operations through a reduced corporate tax rate of 8%.
- Intellectual Property (IP) Development Incentive – promotes the use and commercialization of intellectual property (IP) rights arising from research & development operations through a reduced corporate tax rate of either 5% or 10%.
Social Enterprises: VentureForGood (VFG) Grant
The VFG Grant is available to new and existing social enterprises who need funds either to start up or expand their operations. It is provided by the Singapore Centre for Social Enterprise (raiSE) and supported by the Ministry of Social and Family Development. Interested applicants can apply for up to $300,000 in grants.
Here are the steps to apply for the VFG Grant:
- To apply, email your pitch deck to email@example.com.
- Within 3 weeks, raiSE will arrange a 1-on-1 consultation with you to learn more about your application.
- You will then be notified of whether your application has been shortlisted within 3 weeks of the consultation.
- If your application has been shortlisted, you will be required to submit a detailed proposal with financial projections for the final evaluation. You will also have to undergo interviews and presentations. Your application will be assessed based on whether your social enterprise has a compelling social objective, a viable business proposition, and a committed team. This final evaluation can take between 3 – 4 months.
- If your application is approved, your company must be incorporated as well as registered as a raiSE member in order to receive the grant disbursement.
Your social enterprise should be addressing a local social gap/need in one or more of the provided outcome areas to be eligible. Some of these areas include the provision of employment opportunities, or bridging a social gap in the areas of mental health, and caregiving. The full list of outcome areas can be found at the raiSE Singapore website along with the link to apply for the grant.
Land Productivity Grant (LPG) – EXPIRED
What it is: The LPG is for companies that intend to optimise land use via domestic or overseas relocation. It helps to fund part of the costs that come about from the relocation, including relocation cost, manpower costs and third party consultancy fees.
To qualify, companies must generate a minimum of 0.1 hectare of land savings. For overseas relocation, the company has to demonstrate strong linkages from the relocated activities to the activities carried out in Singapore.
Grant amount: Funding support ranges from 10% to 70% of the qualifying costs, depending on the amount of land freed up and the remaining lease term.
Double Tax Deduction for Internationalisation (DTDi)
Companies with intentions to expand overseas can benefit from the Double Tax Deduction Scheme for Internationalisation (DTDi).
The DTDi provides eligible companies with a 200% tax deduction on eligible expenses for international market expansion and investment development activities such as market preparation, market exploration, market promotion, and market presence.
- Reside in Singapore with a primary purpose of promoting the trade of goods or provision of services.
- Businesses enjoying discretionary use may also be allowed to qualify for the DTDi scheme on a case-by-case basis, subject to approval by Enterprise Singapore or Singapore Tourism Board.
- Incentivized businesses must have their global headquarters in Singapore, with the primary purpose of trading in goods or providing services, and have an intention to internationalize.
International Co-Innovation Programmes
What it is: The International Co-Innovation Programmes strive to help companies with growth and internationalisation by supporting projects that catalyse cross-border collaboration on technology and co-innovation.
Singapore has programmes with the EUREKA network, France, Germany, Israel and Shanghai. These programmes are suitable for companies that are keen to work on joint innovation projects with companies in the respective countries.
Grant amount: Eligibility criteria and grant amount vary based on the programme.
Agri-food Cluster Transformation (ACT) Fund
SFA has launched the Agri-food Cluster Transformation (ACT) Fund to support local farmers in their efforts to expand production capability, boost yield, raise productivity, sustainability and improve circularity of resource use. The ACT Fund is available until 31 December 2025 for local farms.
- The Productivity Solutions Grant (PSG) for Capability Upgrading supports the purchase of pre-scoped farming equipment, systems and small-scale pilot trials to increase farm productivity, sustainability and improve circularity of resource use. Farmers could also tap on PSG to implement the new Clean & Green (C&G) Standard.
- Innovation & Test-bedding (I&T) component
- The TU component supports commercial-scale, automated and advanced farming technology solutions that may be integrated with agri-input production, post-harvest and waste treatment technologies.
- Cash advancement: To help our farms ease cash flow, all ACT Fund projects under the ‘Innovation & Test-bedding’ and ‘Technology Upscaling’ components may be eligible for up to 30% cash advancement.
Grants & Funding and Incentives for the Environment
- Energy Efficiency Fund (E2F)
- Energy Efficiency Financing Programme
- Singapore Certified Energy Manager (SCEM) Training Grant
- Resource Efficiency Grant for Energy
- 3P Partnership Fund
- Call for Ideas Fund (CIF)
- Agriculture Productivity Fund (APF)
- Singapore Food Story R&D Grant Call
- Building Retrofit Energy Efficiency Financing (BREEF) Scheme
- Green Buildings Innovation Cluster (GBIC) Building Energy Efficient Demonstrations Scheme (GBIC-Demo)
- Built Environment Accelerate to Market Programme (BEAMP)
- Skyrise Greenery Incentive Scheme (SGIS)
- Landscaping for Urban Spaces and High-Rises (LUSH)
- Quieter Construction Innovation Fund
- Sustainable Bond Grant Scheme
- Land Transport Innovation Fund (LTIF)
- Active Commute Grant (ACG)
- Vehicular Emissions Scheme (VES)
- Green Port Programme (GPP)
- Cities of Tomorrow R&D Programme (CoT)
- Cool Ideas Enterprise
- 3R Fund
- Waste-to-Energy (WTE) Test-bedding and Demonstration Funding Initiative
- Closing the Waste Loop initiative
- Living Lab (Water)
- Competitive Research Programme (Water)
- Industrial Water Solutions Demonstration Fund (IWSDF)
Workforce and Business Development
- Productivity Solutions Grant (SkillsFuture Training Subsidy)
- Professional Conversion Programmes
- Enterprise Development Grant (EDG)
Grants for Smaller Financial Institutions
Tap on grants for different stages of your companies’  growth and development – from digitalisation and hiring to overseas expansion and innovation.
Depending on your needs, you can tap on the following grants and services:
- Adopt Digital Solutions
- Get Business Development Support
- Hire and train talent
- Expand overseas
Besides grants, smaller financial institutions can also tap on IRAS’ tax exemption schemes and other tax reliefs that can help reduce their tax bills in a particular Year of Assessment (YA).
Tax Schemes to Lower Tax Payable
Start-up companies are given tax exemption for the first three consecutive YAs which includes:
- 75% exemption for the first $100,000 of normal chargeable income
- A further 50% exemption on the next $100,000 of normal chargeable income
All companies  are given partial tax exemption for subsequent YAs which includes:
- 75% exemption for first $10,000 of normal chargeable income
- A further 50% exemption on the next $190,000 of normal chargeable income
For more information on the tax schemes and the qualifying conditions, please refer to IRAS’ website .
All companies are also given corporate income tax rebate which includes 25% corporate income tax rebate on final tax payable for YA 2020 (capped at $15,000).
For more information on the corporate income tax rebate, please refer to IRAS’ website .
Carry Forward Losses to Reduce Tax Payable
Unutilised trade losses can be carried forward indefinitely for set-off against future years’ taxable income which reduces tax payable.
For more information on the qualifying conditions, please refer to IRAS’ website .
Financial Sector Tax Incentive Schemes
Additional tax incentives are available for financial institutions with plans to establish or expand their operations in Singapore.
For more information on the qualifying conditions, please refer to the scheme webpage.
Singapore Fund For Digital Readiness
Our Singapore Fund for Digital Readiness aims to empower more passionate Singaporeans to play a part in spearheading community projects to prepare fellow Singaporeans to seize the benefits of the digital future by having the digital tools, skills and good online habits.
Have an idea on how to further strengthen Digital Readiness in the community? Our Singapore Fund for Digital Readiness provides funding of up to 80% of supported costs for your idea, subject to a maximum of $20,000 per project. Projects that merit higher funding will be assessed on a case-by-case basis.
Who can apply
- Group of individuals
- A group of at least two individuals (Singaporeans / Permanent Residents) who are 18 years and above, with the main applicant being a Singaporean who resides in Singapore
- A Not-for-Profit organisation that is a Public Company Limited by Guarantee with the Accounting and Corporate Regulatory Authority (ACRA), or Society registered with Registry of Societies (ROS), or Charitable Trust registered with the Commissioner of Charities (COC), or Co-Operative registered with the Registry of Co-operative Societies, or Trade Union registered with Registry of Trade Unions, or Social Enterprise with raiSE
- A Company that is registered with Accounting and Corporate Regulatory Authority (ACRA)
- A group of at least two individuals (Singaporeans / Permanent Residents) who are 18 years and above, with the main applicant being a Singaporean who resides in Singapore
Digital Resilience Bonus (DRB) – EXPIRED
What it is: The Digital Resilience Bonus (DRB) is targeted at the Food Services and Retail sectors as they were more affected by safe distancing measures during the reopening of the economy.
To qualify for DRB, the enterprise must be incorporated before or on 26 May 2020 with a Food Service or Retail SSIC code. Also, it has to be using the digital solutions between 1 June 2020 and 30 June 2021.
Grant amount: Food Services and Retail enterprises can receive bonus payouts of up to S$10,000 if they have PayNow Corporate, e-invoicing and pre-defined categories of digital solutions for Business Processes, Digital Presence and Data Mining and Analytics.
For Tourism-Related Businesses: Business Improvement Fund (BIF)
For Singapore-registered businesses in the tourism sector, the BIF is targeted at encouraging technology innovation and adoption, and the redesign of business models and processes in order to improve productivity and competitiveness. The BIF is offered by the Singapore Tourism Board.
Depending on the size of your business, the level of support provided by the BIF will vary. Successful Small-to-Medium Enterprise (SME) applicants will receive funding support of up to 70% of qualifying costs, which include:
- Training costs
- Hardware and software costs
- Travel costs
- Internal manpower costs
- Third-party project-related costs
Successful non-SME applicants will receive funding support of up to 50% of qualifying costs.
There are two steps to the application process:
- Pre-application: Interested applicants have to send an executive summary of the proposed project to STB_Incentives@stb.gov.sg to be advised on whether the proposed project is eligible for the BIF.
- Application: If your proposed project is eligible, the second step is to submit your application on the Business Grants Portal using your CorpPass account along with your project proposal and the relevant quotations for the qualifying costs.
Proposed projects will be assessed on how they improve productivity and competitiveness of tourism companies. More information can be found at the Singapore Tourism Board website.
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