Singapore Government Grants for SME Growth and Innovation
The landscape for small and medium-sized enterprises (SMEs) in Singapore is supported by various government initiatives aimed at enhancing growth and sustainability. These grants are designed to aid businesses in covering costs and implementing new strategies for development. Singapore offers numerous government grants that provide essential financial support for SMEs, helping them thrive in a competitive market.

Understanding the different types of grants available can be overwhelming for many entrepreneurs. The grants range from funding for research and development to support for international expansion. By utilising these resources, SMEs can leverage opportunities that lead to long-term success and innovation.
Capability Development Grant

The Capability Development Grant (CDG) assists small and medium-sized enterprises (SMEs) in Singapore. This grant supports businesses in enhancing their capabilities through various initiatives.
SMEs can receive funding for projects focusing on consultancy services, skills upgrading, and process improvements. Engaging a management consultant with recognised certification is essential for funding related to consultancy costs.
The CDG encourages businesses to invest in internal training and development. By improving skills, SMEs can remain competitive in the market and better meet customer needs.
Funds can cover significant portions of eligible project costs. This allows businesses to pursue important changes without bearing the entire financial burden.
There is also support for adopting technology and upgrading processes. This aids in innovation and efficiency, enabling SMEs to operate more effectively and serve their clients better.
Moreover, the grant is part of a broader initiative to help companies grow and transform. Businesses can explore opportunities to venture overseas and expand their market reach through the experiences gained under this programme.
Productivity Solutions Grant

The Productivity Solutions Grant (PSG) is designed to support small and medium-sized enterprises (SMEs) in Singapore. This grant helps businesses enhance their productivity and automate processes using technology.
Launched in April 2018, the PSG provides financial assistance for the adoption of pre-approved IT solutions, equipment, and consultancy services. Eligible SMEs can receive up to 50% support for qualifying costs.
The PSG focuses on helping businesses implement effective digital solutions. This includes assistance in sectors like construction and facilities management, where tailored solutions are available.
To qualify, SMEs must use pre-scoped IT solutions that align with their needs. This enables a smoother transition to digital capabilities and improved efficiency in operations.
Companies interested in applying for the PSG can find more details and guidelines on official government websites. They can access information on eligible solutions and the application process easily, ensuring a straightforward journey towards enhancing their productivity.
Market Readiness Assistance Grant

The Market Readiness Assistance (MRA) Grant is designed to help small and medium-sized enterprises (SMEs) in Singapore expand into international markets. This grant supports eligible costs related to overseas market promotion and business development.
Eligible businesses can receive up to 70% funding for approved expenses, which can reach a maximum of S$100,000 for each new market entered. This assistance can significantly reduce the financial burden when exploring global opportunities.
To qualify for the MRA Grant, a business must be registered in Singapore and primarily aim to generate revenue from overseas. Non-profit organisations and certain entity types are not eligible for support.
The MRA Grant is part of the Singapore government’s efforts to empower local SMEs. By aiding in market expansion, it fosters growth and enhances competitiveness in the global arena.
For more information about the application process and eligibility, one can visit the official page on the Market Readiness Assistance Grant.
4) Enterprise Development Grant

The Enterprise Development Grant (EDG) is a key funding option for small and medium-sized enterprises (SMEs) in Singapore. It helps businesses upgrade their operations, innovate, and expand into new markets.
This grant is designed to cover up to 50% of qualifying costs for SMEs and up to 30% for non-SMEs. Eligible projects include those that enhance business capabilities and drive transformation.
Businesses must submit individual project proposals outlining their plans and expected outcomes. The applications are assessed based on group revenue and group employment size.
Since its launch in 2018, the EDG has combined features from previous grants to better support SMEs. The application process is straightforward, making it accessible for businesses seeking financial assistance.
For more details, interested parties can visit the official page for the Enterprise Development Grant.
5) Startup SG Founder

Startup SG Founder is a government grant designed to support first-time entrepreneurs in Singapore. It provides a capital grant of up to S$50,000 for innovative business ideas.
To access this funding, the entrepreneur must match the grant with their own funds. For every dollar raised by the entrepreneur, the government will contribute an additional dollar, up to the maximum grant amount. This means that an entrepreneur must commit S$10,000 to qualify for the full grant.
The programme also offers mentorship for participants. This guidance helps entrepreneurs navigate the challenges of starting a new business and developing their ideas further.
Entrepreneurs applying to Startup SG Founder should have a strong business plan. The initiative aims to encourage innovation and foster a vibrant startup ecosystem in Singapore. It is part of a broader effort by the government to support small and medium enterprises (SMEs) and boost economic growth.
For more information on the application process and eligibility requirements, visit the Startup SG page.
6) Business Improvement Fund

The Business Improvement Fund (BIF) is designed to support small and medium-sized enterprises (SMEs) in Singapore. This grant focuses on enhancing business processes and improving operational efficiency.
SMEs can receive financial assistance for innovative projects aimed at boosting productivity. The BIF encourages the adoption of new technologies and modernisation of business models. By doing so, it helps businesses stay competitive in a rapidly changing market.
Eligible companies can apply for funding to invest in technology, training, and process improvements. This support can be crucial for businesses seeking to refine their operations and drive growth.
For those in the tourism sector, the BIF is particularly important. It aims to enhance productivity and competitiveness within this industry.
For more detailed information on the eligibility criteria and application process, interested parties can visit the 2025 Singapore Government Grants & Support Schemes for Business.
7) COVID-19 Recovery Grant

The COVID-19 Recovery Grant (CRG) is part of the Singapore government’s efforts to support small and medium-sized enterprises (SMEs) affected by the pandemic. This grant aims to help businesses recover and sustain their operations during challenging times.
Eligible businesses may receive financial support based on the number of Singapore Citizen or Permanent Resident employees they have. The grant provides up to $1,000 for each eligible employee, with a cap of $10,000 per firm.
This initiative has assisted many businesses in managing their costs and maintaining employment levels. By providing targeted support, the CRG helps to ensure that businesses can adapt and thrive as the economy recovers.
Applications for the COVID-19 Recovery Grant were open from January 2022 through March 2022. The government encouraged SMEs to apply promptly to benefit from this financial aid.
Businesses can find more information on criteria and application procedures through official government websites like the GoBusiness platform. This resource provides details on various grants and assistance available to support their recovery efforts.
8) SkillsFuture Enterprise Credits

SkillsFuture Enterprise Credits (SFEC) support small and medium-sized enterprises (SMEs) in Singapore. Eligible employers can receive a one-off credit of S$10,000. This credit helps cover up to 90% of out-of-pocket expenses for approved initiatives.
The SFEC is designed to encourage businesses to pursue both enterprise and workforce transformation. Companies can use the credit for programmes like the Productivity Solutions Grant and Enterprise Development Grant.
In recent updates, the expiry date for the SFEC has been extended to 30 June 2025. This extension allows more employers to take advantage of the funding.
With SFEC, organisations can focus on enhancing skills and improving productivity. It aims to help employers invest in future-ready capabilities and talent development. The initiative demonstrates the government’s commitment to enabling business growth in a competitive landscape.
Trade Credit Insurance Scheme

The Trade Credit Insurance Scheme (TCIS) is designed to support small and medium-sized enterprises (SMEs) in Singapore. It helps businesses protect themselves against buyer defaults when trading internationally.
Under the scheme, companies can secure insurance coverage to mitigate the risk of non-payment from overseas buyers. This is particularly important for SMEs looking to expand into new markets where buyer behaviour may be uncertain.
The government supports the TCIS by covering a portion of the insurance premiums. This reduces the financial burden on businesses and makes it more feasible for them to engage in international trade.
By encouraging the use of trade credit insurance, the TCIS aims to enhance SMEs’ confidence in pursuing export opportunities. This support is crucial in a competitive global market, where financial risks can be significant.
The TCIS is part of Singapore’s broader strategy to bolster SME growth and internationalisation. It complements other grants and assistance schemes available to businesses aiming for expansion and sustainability. For more detailed information, SMEs can refer to official resources related to the scheme.
Digital Resilience Bonus
The Digital Resilience Bonus (DRB) is a government initiative in Singapore aimed at supporting small and medium-sized enterprises (SMEs). It helps them enhance their digital capabilities, especially during the recovery from the pandemic.
Eligible companies can receive up to $10,000. This bonus is available to businesses that adopt certain digital solutions. These include options for improving business processes, digital presence, and data analytics.
To qualify for the DRB, enterprises must use pre-defined categories of digital solutions. This means that companies need to ensure their chosen technologies are approved under the programme.
Additionally, any digital solutions not covered by existing grants from the SMEs Go Digital programme may still qualify for the DRB. The solutions must be pre-qualified by the Infocomm Media Development Authority (IMDA).
For more details on how the DRB supports SMEs, interested parties can refer to the related SMEs Go Digital initiative. This initiative provides a range of resources to help businesses modernise and thrive in the digital economy.
Understanding Singapore Government Grants
Singapore offers various grants to support small and medium-sized enterprises (SMEs). These grants can help businesses improve capabilities, increase productivity, and expand into overseas markets. Understanding eligibility and the application process is key for SMEs looking to take advantage of these funding opportunities.
Eligibility Criteria for SMEs
To qualify for most grants, SMEs typically need to meet certain criteria. First, they must be registered and operating in Singapore. Companies may also need to meet a minimum annual turnover threshold, which varies by grant. For instance, some grants focus on businesses with annual revenue under S$100 million.
SMEs should also check if they fall under specific industry categories, as some grants target particular sectors, such as technology or manufacturing. Additionally, businesses may be required to have a certain number of employees, which can be outlined in grant guidelines. Providing necessary documentation, such as financial statements, may also be part of the eligibility process.
Application Process
The application process for government grants in Singapore typically involves several key steps. First, SMEs should identify the specific grants they are eligible for by reviewing their criteria. This can often be done through resources like the GoBusiness website.
Once a suitable grant is found, businesses need to prepare the required documents, including business plans or financial reports. Applications are usually submitted online through official government platforms.
After submission, SMEs may need to wait for assessment. The review period varies depending on the grant. If the application is approved, businesses will be notified along with instructions on how to receive funding. Regular follow-ups may be necessary to ensure all criteria are met throughout the grant period.
Benefits of Government Grants for SMEs
Government grants provide small and medium enterprises (SMEs) with vital support. These grants help boost financial stability and encourage innovation, which are crucial for business growth and sustainability.
Financial Support
Government grants significantly ease the financial burden on SMEs. These grants can cover various costs such as equipment purchases, employee training, or operational expenses. For instance, the Enterprise Development Grant (EDG) can provide up to 50% support for projects that enhance business capabilities.
This type of financial assistance can be a lifeline for SMEs, especially during challenging economic times. With available cash flow, companies can invest in their growth without taking on excessive debt. Additionally, initiatives like the SkillsFuture Enterprise Credit provide credits to support employee development costs, fostering a skilled workforce and enhancing productivity.
Encouragement for Innovation
Government grants encourage SMEs to engage in innovative projects. Many grants are specifically aimed at promoting research and development (R&D). This allows businesses to explore new technologies or improve their existing products and services.
For example, the Innovation and Capability Voucher offers financial assistance to SMEs looking to improve their operational processes. By reducing the risk associated with innovation, grants enable businesses to experiment and grow. This culture of innovation can lead to new products that meet consumer needs and contribute to economic growth. Embracing innovation can set an SME apart from its competitors, making it a vital strategy for long-term success.
Frequently Asked Questions
This section addresses common queries regarding government SME grants in Singapore. It provides specific insights into eligibility, application processes, types of support available, and considerations in light of recent economic challenges.
What are the eligibility criteria for startups to receive government SME grants in Singapore?
Startups must meet certain criteria to qualify for government grants. Generally, they should be registered in Singapore and have a minimum shareholding of 30% by Singaporeans or Permanent Residents. Additional criteria may depend on the specific grant.
How can small and medium enterprises apply for the Productivity Solutions Grant (PSG) in Singapore?
To apply for the Productivity Solutions Grant, SMEs need to visit the Business Grants Portal. They must submit relevant documents, including a proposal detailing how the solution will enhance productivity. Approval usually requires that the solution is pre-approved by approved vendors.
What types of support can businesses expect from the Enterprise Development Grant (EDG)?
The Enterprise Development Grant provides various forms of support, including funding for capability development projects, market access, and innovation. Grants can cover up to 70% of eligible project costs, depending on the nature and objectives of the project.
In the context of COVID-19, what specific grants are available to Singaporean SMEs for business continuity?
In response to COVID-19, Singapore has introduced several grants to help SMEs maintain operations. These include the COVID-19 Support Grant and other initiatives designed to support businesses during periods of economic uncertainty and to facilitate workforce retention.
How does the Enterprise Singapore Grant support small and medium-sized businesses?
The Enterprise Singapore Grant assists SMEs in enhancing capabilities and pursuing growth opportunities. It focuses on areas like technology adoption, market expansion, and innovation development, allowing businesses to thrive amid competitive challenges.
What are the qualifications required for receiving the SME salary grant in Singapore?
To qualify for the SME salary grant, companies must employ local employees and meet specific salary criteria. Businesses typically need to demonstrate that they are engaged in meaningful activities that help retain local employment during economic fluctuations.