The government of Singapore has introduced business grants and funding for companies in Singapore. The Singapore government offers a lot of grants as financial support not only to the locals but also to foreign-owned businesses with 30% local Singaporean ownership.
In this article, you can find the list of business grants for local and foreign companies and the guides to applying for business grants and funding from the Singaporean government.
VIABLE GRANTS AND FUNDING FOR COMPANIES IN SINGAPORE
Currently, there are nine types of grants for companies in Singapore. These financial grants cover a wide area of targeted business sectors. Below, we provide you with a table to help you overlook all the suitable grants and their functions for your companies in Singapore.
| Business Grants | Explanation |
| Market Readiness Assistance (MRA) | Small and medium enterprises (SMEs) can receive Market Readiness Assistance (MRA). This grant is granted to local companies who wish to expand their business overseas. The amount of funding given is: Promotion for the foreign market (limited to S$20,000) Development of foreign businesses (limited to S$50,000) Setting up an overseas market (limited to S$30,000) |
| Enterprise Development Grant (EDG) | Aid the growth and expansion of Singapore businesses.This grant supports the building of projects that help you modernize your firm, develop, or expand internationally through three fundamentals:core capabilities innovation and productivitymarket accessEligible companies will receive up to 70% subsidies for the cost of the project authorized under the three fundamentals above. |
| Business Improvement Fund (BIF) | Open for local Singapore-registered companies that focus on tourism-related business.This grant is aligned with BIF which also supports innovation, or development under the core capabilities and innovations and productivity to help tourism companies only.Those who are selected will receive financing support for eligible expenses on the project cost.The funding for the grant will differ between SMEs and non-SMEs.SMEs will receive funds up to 70% Non-SMEs will receive funds up to 50% |
| Productivity Solutions Grant (PSG) | Provide companies with financial support to increase productivity by utilizing the pre-scoped IT system, tools, and consulting services. There are two types of PSG grants Sector specific solutions - food services, healthcare, constructions, etc.Generic solutions - human resources, digital marketing, e-commerce, etc.Visit the official GoBusiness Singapore site to learn more about all the viable solutions that can apply for PSG. |
| Agri-Food Cluster Transformation Fund (ACT) | This grant aims to foster the development of a highly productive, climate-resilient, and resource-efficient agri-food industry.The ACT Fund consists of three co-funding elements that can be built to help local farms increase their production capacity and capabilities:Capability Upgrading (CU)Innovation and Test-bedding (I&T)Technology Upscaling (TU)The application is available until the 31st of December 2025 |
| Enterprise Financing Scheme (EFS) | Supporting easier funding access for Singaporean businesses at all phases of development.Focuses on seven areas to meet the business financing needs.GreenSME Working Capital LoanSME Fixed Assets LoanVenture Debt LoanTrade LoanProject LoanMergers & Acquisitions Loans |
| Innovation, R&D, and Capability Development Incentives | This funding incentive covers several schemes for different business activities in Singapore. Companies can utilize this grant to upgrade their business development under the specified scheme. The schemes are:Research and Innovation Scheme for Companies (RSIC)Training Grant for Company (TGC)Intellectual Property (IP) Development Incentive (IDI) |
| Startup SG Equity Programme | This program aims to encourage the private sector investment into more cutting-edge, Singapore-based technology businesses with the potential for a large worldwide market.The program has two investment modalities:co-investment modalityfund-of-funds modality |
| Startup SG Founder (SSGF) Programme | This program seeks to provide coaching and financial support to prospective first-time entrepreneurs in helping them to launch new and innovative enterprises.A capital grant of SGD 50,000 will be granted for eligible companies. |
HOW CAN COMPANIES APPLY FOR GOVERNMENT GRANTS IN SINGAPORE?
Companies can apply for the grants they want online through the Business Grants Portal (BGP). Businesses can easily apply for funding using the platform based on their needs and industry.
The grants that are open for applications on the BGP are as follows:
- SG
- Energy Efficiency Grant (EEG)
- EDG
- MRA
- Business Improvement Fund
- Aviation Development Fund
- Agri-Food Cluster Transformation Fund
- Electric Vehicle Common Charger Grant
- Experience Step-Up Fund
WHAT ARE OTHER WAYS TO FUND THE BUSINESS IN SINGAPORE?
Bank Loans
Most banks in Singapore, including DBS Bank, UOB, and OCBC Bank, offer bank loans.
For example, OCBC Business First Loan, DBS Business Term Loan, DBS SME Micro Loan, UOB BizMoney Loan, etc.
A loan not secured by any kind of collateral is called an unsecured loan. This means the lender cannot seize any of the borrower’s assets to satisfy the debt if the borrower defaults.
A secured loan is supported by property. This implies that the lender may seize the collateral to satisfy the debt if the borrower defaults.
Unsecured loans are typically available from banks with some restrictions or requirements.
Crowdfunding
A project or business venture can be funded through crowdfunding by collecting contributions from a large number of people. The procedure is often carried out through internet platforms, and startups or expanding businesses frequently use it to acquire alternative funding.
Four categories of crowdfunding are:
- Donation-based crowdfunding
- Equity-based crowdfunding
- Rewards-based crowdfunding
- Debt-based crowdfunding
Angel Investors
Wealthy individuals known as “angels” invest in startups with their own money in exchange for stock. They also go by the name of seed investors.
Venture Capital
A type of private equity funding known as venture capital is given by investors to businesses with the potential for long-term growth. It usually happens following initial startup funding.
Government-Assisted Business Loans
The Singaporean government also provides subsidized loans in addition to grants. The government of Singapore created this financing program in 2022 during the pandemic as a way to assist Singaporean businesses.
Enterprise Singapore and the collaborating financial institutions are in charge of managing the loans. At the moment, it has two main credit facilities:
- Enterprise Financing Scheme: SME Working Capital Loan
Maximum loan of S$500,000
Government risk share of 50-70%
Only for SMEs
- Enterprise Financing Scheme: Trade Loan
Maximum loan of S$5 million
Government risk share of 70%
Eligibility
SMEs should fulfill the following requirements to acquire the business grant:
- a business entity must be registered and operating in Singapore
- possesses a minimum 30% local shareholding
- being able to start and finish the project with sufficient funds
Employers who qualify for the SkillsFuture Enterprise Credit (SFEC) program may also be eligible for additional financial aid.
Enterprise Singapore will evaluate applications based on the project scope, project results, and service provider’s competency.
STEPS TO APPLY FOR BUSINESS GRANTS IN SINGAPORE
Interested business investors willing to go through the process of applying for grants may apply through the official Business Grants Portal (BGP) site. The online application is very easy and accessible for all business owner who wishes to register for viable grants. Despite that, we provide you with the following brief seven steps guides that you will need to go through in applying for business grants.
STEP 1: Choose the most suitable grant for your business
As aforementioned in the list of viable business grants in Singapore, there are various options to choose from. Ensure you have ascertained which grants will be the most functional and applicable for your company’s development. All eligibility criteria also must be fulfilled to ensure smoother applications and a higher chance of success.
STEP 2: Register your Corppass account
To apply for business grants on the official BGP site, you must register under the Corppass account. Register and sign up for the Corppass account at the official Corppass site if you do not have the account. Create your Corpass account and fill in all the required information. Then, you must log in to BGP via Singpass as a business user.
STEP 3: Fill in your company profile
After the successful log-in process, fill out and complete your company profile. Your company profile will be automatically populated by the registered information in Accounting and Corporate Regulatory Authority (ACRA) Singapore. Make sure that all the profile information is accurate and valid.
STEP 4: Fill in your application
Complete and submit your grant application form. Filled in all the information mandated in the form. The form will be submitted to the responsible party.
STEP 5: Monitor your application
Once the submission is made, wait for the approval of your application. Due to the high traffics of the applicant, different grants may require different approval wait time. It is advisable to keep track of your application during the waiting time. You can do so on the My Grants page through your logged-in Business Grand Portal Account.
STEP 6: Accept the offer
A notification will be sent once your application is approved. You must accept the offer for your respective registered grant. Log into your Business Grand Portal account to click ‘accept’.
STEP 7: Submit your claim
Once the offer is accepted, a claim due date will be issued in the Business Grand Portal. Hence, your grants will be credited to your company accounts.
For assistance and inquiries about the ins and outs of the procedure to apply for Business Grants in Singapore, reach out to us at Relin Consultants and email our experts at enquiry@relinconsultants.com.
CONCLUSIONS
Briefly put, as an intelligent business owner of a Singaporean company, you must not miss out on the business grants offered by the Singapore government. This is because having access to capital funds is always at the top of many business owners’ priorities.
A capital fund is very crucial and significant for the business owner who either wishes to try expanding their businesses outside or inside of Singapore.
Notably, sustaining and accelerating corporate growth required a lot of adequate cash flow. The guide that we have provided above is aimed at assisting you in looking at some of the available options to obtain capital for companies, either with local or foreign ownership.
FAQS
What grants are available to small businesses in Singapore?
There are several grants available to small businesses in Singapore. Here are some of the most popular ones:
- Enterprise Development Grant (EDG): The EDG supports local small and medium-sized enterprises (SMEs) in their efforts to upgrade capabilities, innovate, and expand overseas. It covers up to 80% of qualifying project costs, such as consultancy, training, and equipment costs.
- Productivity Solutions Grant (PSG): The PSG aims to help SMEs adopt technology and improve productivity. It covers up to 80% of qualifying project costs, such as equipment and software purchases.
- SkillsFuture Enterprise Credit (SFEC): The SFEC encourages SMEs to invest in their employees’ training and development. Eligible SMEs can receive a one-time credit of $10,000 to offset up to 90% of out-of-pocket expenses for eligible courses.
- Market Readiness Assistance (MRA) Grant: The MRA Grant helps SMEs venture into overseas markets by covering up to 80% of qualifying costs such as overseas market promotion and market assessment.
- Capability Transfer Programme (CTP): The CTP supports SMEs in the manufacturing and engineering sectors to acquire advanced manufacturing technologies and capabilities from foreign technology partners. The grant covers up to 50% of the technology acquisition costs.
How can I get funding for my business idea in Singapore?
There are several ways to get funding for your business idea in Singapore. Here are some options:
- Venture capital: You can pitch your business idea to venture capitalists (VCs) looking to invest in promising startups. Singapore has a growing pool of VC firms, many of which focus on specific industries or stages of development. Research and network to find VCs that may be a good fit for your business.
- Angel investors: Angel investors are high-net-worth individuals who provide early-stage funding to startups in exchange for equity. They may also offer mentorship and industry connections. You can find angel investors through personal networks, industry associations, or online platforms.
- Government grants: As mentioned earlier, the Singapore government offers various grants to support business growth and innovation. SMEs can apply for the Enterprise Development Grant or the Productivity Solutions Grant. However, these grants usually require a track record of business operations or specific qualifying criteria, so check the eligibility requirements.
- Crowdfunding: Crowdfunding is a way to raise funds from many individuals, usually through an online platform. You can create a campaign to showcase your business idea and offer rewards or equity to backers. This can help validate your idea and generate early traction.
- Bank loans: You can also consider taking a bank loan to fund your business. This may be an option if you have a strong credit score and collateral, but it may not be ideal for startups that are not yet generating revenue.
What is the easiest way to get a business grant?
- Research and identify the most suitable grants for your business: Different grants have different eligibility criteria and application processes, so it’s essential to find the ones that best match your business needs and goals.
- Ensure that you meet the eligibility criteria: Before applying for a grant, review the eligibility criteria carefully to ensure that your business and project proposal meets the requirements. You may need to provide supporting documents, such as financial statements or business plans.
- Prepare a strong project proposal: Your project proposal should clearly outline your business goals, project objectives, timeline, and expected outcomes. It should also demonstrate how the grant funding will be used and how it aligns with the grant’s objectives.
- Seek professional advice: Consider seeking professional advice from consultants or advisors with experience in grant applications. They can help you identify suitable grants, review your application, and provide guidance on how to improve your chances of success.
- Submit your application early and follow up: Submit your grant application as early as possible and ensure that you follow up with the grant agency or organization to check on the status of your application. You may also need to provide additional information or clarify any questions during the review process.
Are grants taxable in Singapore?
In general, business grants in Singapore are not taxable. The Inland Revenue Authority of Singapore (IRAS) considers most grants to be capital receipts, which means they are not considered income and are not subject to tax. However, there are some exceptions where the grant may be taxable, such as if it is received due to a business activity that is considered a taxable trade.
It’s important to note that grants may be subject to certain conditions or restrictions, such as how they can be used or when they need to be repaid. These conditions should be carefully reviewed before accepting the grant.
