Singapore government funding & grants for entrepreneurs
8 minute read The Singapore government has been actively introducing policies to help support and grow the business landscape. From grants, subisidies, to funding and tax deductions, we’ve gathered up a comprehensive list of schemes for you to tap on. Whether you’re seeking funding support, subsidies in local hiring, adoption of digital solutions, tax subsidies or angel fundings, there’s definitely something in store for you! Let’s dive in. Overview:
1. Support for funding and capital
- Business Improvement Fund (BIF)
- Enterprise Development Grant (EDG)
- Enterprise Financing Scheme (EFS)
- Innovation, R&D, and Capability Development Incentives
- Market Readiness Assistance (MRA) Grant
- Startup SG Equity Programme
- Productivity Solutions Grant (PSG)
2. Support for hiring and workforce
- Career Trial Programme
- SkillsFuture Enterprise Credit (SFEC)
3. Support for digital solutions
- Advanced Digital Solutions (ADS)
- Grow Digital
- Startup SG Tech
- Double Tax Deduction for Internationalization (DTDi)
5. Support for equity funding in Singapore
- Angel Organizations
All information is updated as of Mar’23.
1. Support for funding and capital
Scheme Name | Agency | Type | Level of Support | Eligibility Criteria |
Business Improvement Fund (BIF) | Singapore Tourism Board | Funding | Up to 70% (SMEs) or 50% (non-SMEs) of qualifying costs | – Singapore-registered businesses in the tourism sector – Capability development initiatives for tourism companies – Technology companies that create innovative technology products and services for tourism businesses – Aligned to EDG’s core pillars – core capabilities and innovation & productivity |
Enterprise Development Grant (EDG) | Enterprise Singapore | Subsidy | Up to -780% off in subsidies for qualifying project costs | – Business entity registered/incorporated in Singapore – In a financially viable position to start and complete the project – At least 30% local shareholding<br>- Capability development initiatives for businesses in three main areas – Core Capabilities: Strategic Brand & Marketing Development, Business Strategy Development, Human Capital Development, Service Excellence, and Financial Management through 3rd party consultants – Innovation and Productivity: Product Development, Process Redesign, and Automation projects – Market Access: Pilot Project & Test Bedding, Overseas Marketing Presence, Mergers & Acquisitions, and Standards Adoption |
Enterprise Financing Scheme (EFS) | Enterprise Singapore | Funding | Varies by area | – Registered and physically present in Singapore – Have at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s) – Annual Group Sales Turnover of not more than S$500 million – Enables enterprises to better access financing throughout their different growth stages – Covers seven areas of the enterprise’s growth:
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Innovation, R&D and Capability Development Incentives | Economic Development Board (EDG) | Scheme | Varies by scheme | – 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 – Some of the schemes include:
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Market Readiness Assistance (MRA) Grant | Enterprise Singapore | Subsidy | Up to 70% of eligible 3rd party costs | – Business entity |
Startup SG Equity Programme | Enterprise Singapore | Funding | Co-investment ratio of 7:3 (up to S$250k), ratio of 1:1 applies for up to S$2 million | Singapore-based company with core operations carried out in this location, incorporated as a Private Limited company for less than five years, paid-up capital of at least S$50,000, able to prove substantial innovative and intellectual content for its products and/or services and applications, have high-growth potential with clear scalability for the international market, have identified a ready, independent third-party investor(s), business must not be involved in gambling, tobacco-related products, or any other activities which are in violation of the law, or against the public interest |
Temporary Bridging Loan Programme (TBLP) | Enterprise Singapore | Loan | Up to S$1M per borrower at a capped interest rate of 5.5% p.a. | Registered and physically present in Singapore, at least 30% local equity that is held directly or indirectly by locals |
Trade Loan Scheme | Enterprise Singapore | Loan | Up to S$5M per borrower at a risk share of 70% | Registered and physically present in Singapore, at least 30% local equity that is held directly or indirectly by locals, annual group sales turnover of not more than S$500 million |
VentureForGood (VFG) Grant | Singapore Centre for Social Enterprise (raiSE) | Grant | Up to S$300,000 in grants | Social enterprise should be addressing a local social gap/need in one or more of the provided outcome areas to be eligible. |
Enterprise Development Grant (EDG)
The Enterprise Development Grant is designed to help companies in Singapore build internal capabilities in 3 main areas with their corresponding sub-areas.
- Core Capabilities: These include Strategic Brand & Marketing Development, Business Strategy Development, Human Capital Development, Service Excellence, and Financial Management through 3rd party consultants.
- Innovation and Productivity: These include Product Development, Process Redesign, and Automation projects.
- Market Access: These include Pilot Project & Test Bedding, Overseas Marketing Presence, Mergers & Acquisitions, and Standards Adoption.
Enterprise Financing Scheme (EFS)
Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) supports companies keen on adopting IT solutions and equipment to enhance business processes. PSG supports adoption of solutions that cut across industries, such as in areas of customer management, data analytics, financial management and inventory tracking.
From 1 April 2023, SMEs can receive up to 50% support from PSG.
Eligibility Criteria:
- Business entity that is registered/incorporated in Singapore
- At least 30% local shareholding
- Company’s Group Annual Sales Turnover of not more than S$100 million, or Company’s Group Employment Size of not more than 200 workers
- Purchase/lease/subscription of the Equipment or IT Solution must be used in Singapore.
Fnd out how you can digitize your accounting and governance with Sleek using PSG.
2. Support for hiring and workforce
Scheme Name | Agency | Type | Level of Support | Eligibility Criteria |
Career Trial Programme | Workforce Singapore (WSG) | Subsidy | 30% subsidy of monthly salary for up to 6 months, capped at S$5,400 per hire and; S$2,700 per hire for part-time jobs | 1. Legally registered or incorporated in Singapore, with a Unique Entity Number (UEN) registered with ACRA 2. Actively hiring for jobs paying S$1,500 (for full-time or S$750 for a part-time position) or more 3. Offer employment to suitable jobseekers on permanent terms or on contract terms that are no less than one year after completion of Career Trial |
3. Support for digital solutions
Scheme Name | Agency | Type | Level of Support | Eligibility Criteria – Advanced Digital Solutions (ADS) |
Advanced Digital Solutions (ADS) | IMDA | Funding | Up to 870% in funding support that covers a range of costs including hardware and software, infrastructure and connectivity, cybersecurity, integration and development, project management. The deployment of these solutions willwith be covered under the ADS. |
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Grow Digital | IMDA | Funding | Up to 70% funding can be claimed under the Grow Digital programme. |
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Startup SG Tech | Enterprise Singapore | Funding | Early-stage funding for the commercialisation of proprietary technology solutions that are viable. |
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4. Support for taxes
Double Tax Deduction for Internationalization (DTDi)
Agency: Enterprise Singapore
Type: Subsidy
Companies with intentions to expand overseas can benefit from the Double Tax Deduction Scheme for Internationalization (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.
Eligibility Criteria:
- Reside in Singapore with a primary purpose of promoting the trade of goods or provision of services.
- Businesses enjoying discretionary 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.
5. Support for equity funding in Singapore
Angel Organisations
For a more customized complimentary 1-to-1 advisory session, you may contact the SME Centre, where a business advisor would meet you to share with you the relevant schemes and Singapore startup grants that you may be eligible for.
These services are provided free of charge to all aspiring entrepreneurs and business owners in Singapore.
If you’d like to learn more about how to fund your startup, you can read our article on 6 main sources of funding for your startup in Singapore.
Do note that the information provided may be subject to changes. Please refer to the respective websites for the latest updates.
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FAQ
Under this scheme, the government will co-invest with qualified third-party investors into eligible startups. For general tech startups, the government will need to invest 70% of the funding up to the first SGD 250,000 and a ratio of 1:1 up to the investment cap of SGD 2 million
You can get funding for your business idea in Singapore by networking with investors and venture capitalists, researching and applying to government-backed funding schemes like Startup SG Equity and Enterprise Development Grant (EDG), or exploring other options like crowdfunding and angel investors.
Here is a list of grants available to small businesses in Singapore:
- Enterprise Development Grant (EDG)
- Productivity Solutions Grant (PSG)
- Market Readiness Assistance (MRA) Grant
- Capability Development Grant (CDG)
- Tourism Development Fund
- Healthcare Productivity Fund.
Government grants in entrepreneurship are financial support provided by the government to startups and small businesses to help them grow and develop. Here are some examples of government grants in entrepreneurship available in Singapore:
- Startup SG Equity
- Enterprise Development Grant (EDG)
- Productivity Solutions Grant (PSG)
- Market Readiness Assistance (MRA) Grant
- Capability Development Grant (CDG)
- SMEs Go Digital Programme
- Innovation & Capability Voucher (ICV)
