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:
- 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)
- Trade Loan Scheme
- VentureForGood (VFG) Grant
- Career Trial Programme
- Job Growth Incentive (JGI)
- Job Support Scheme (JSS)
- P-Max Scheme
- SkillsFuture Enterprise Credit (SFEC)
- Advanced Digital Solutions (ADS)
- Grow Digital
- Startup SG Tech
- Double Tax Deduction for Internationalization (DTDi)
- Angel Organizations
All information is updated as of Mar’23.
Support for funding and capital
Business Improvement Fund (BIF)
Agency: Singapore Tourism Board
Type: Funding
The BIF targets Singapore-registered businesses in the tourism sector to encourage technology innovation and adoption, and the redesign of business models and processes.
Based on the size of your business, the level of support provided by the BIF will vary. Small-to-medium enterprise applicants (SMEs) will receive funding support of up to 70% of qualifying costs; non-SME applicants will receive funding support of up to 50%.
Eligibility Criteria:
- Tourism companies taking on capability development initiatives.
- Technology companies that create innovative technology products and services for tourism businesses.
- Aligned to EDG’s core pillars – core capabilities and innovation & productivity.
Click here for more details.
Enterprise Development Grant (EDG)
Agency: Enterprise Singapore
Type: Subsidy
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.
EDG provides eligible companies with up to 80% off in subsidies for qualifying project costs. From 1 April 2023, SMEs can only receive up to 50% support for EDG, although sustainability-related projects may still be supported at up to 70% until 31 March 2026.
Eligibility Criteria:
- Business entity registered/incorporated in Singapore.
- In a financially viable position to start and complete the project.
- At least 30% local shareholding.
Click here for more details.
Enterprise Financing Scheme (EFS)
Agency: Enterprise Singapore
Type: Funding
The EFS is Enterprise Singapore’s umbrella scheme that enables enterprises to better access financing throughout their different growth stages.
The scheme covers seven areas of the enterpises’ growth and includes:
- EFS Green
- SME Working Capital Loan
- SME Fixed Assets Loan
- Venture Debt Loan
- Trade Loan
- Project Loan
- Mergers & Acquisitions Loans
During the Singapore Budget 2023, the following updates were announced:
- Extension of the Enterprise Financing Scheme to 31 March 2024.
- Extension of the Energy Efficient Grant to 31 March 2024.
- Merger and Acquisition (M&A) loan expanded to include domestic activities from 1st April 2022 to 31st March 2026.
Eligibility Criteria:
- 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.
Click here for more details.
Innovation, R&D and Capability Development Incentives
Agency: Economic Development Board (EDG)
Type: Scheme
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%.
Click here for more details.
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Market Readiness Assistance (MRA) Grant
Agency: Enterprise Singapore
Type: Subsidy
The MRA grant supports Singapore companies taking their business overseas for the first time. Until 31 March 2023, get up to 70% of eligible 3rd party costs which covers steps such as overseas market set-up, identification of business partners, and overseas market promotion.
From 1 April 2023, SMEs can only receive up to 50% support for the MRA grant.
Eligibility Criteria:
- The business entity is registered/incorporated in Singapore.
- Annual group turnover not exceeding S$100million per annum, based on the most recent audited report, or group employment not exceeding 200 employees.
- At least 30% local shareholding.
Click here for more details.
Startup SG Equity Programme
Agency: Enterprise Singapore
Type: Funding
As part of the Startup SG Equity scheme, the government will co-invest with independent, qualified 3rd party investors into eligible startups.
This program offers a co-investment ratio of 7:3 (up to S$250k). For up to S$2 million, a ratio of 1:1 applies. These are the numbers for general tech investments.
For deep tech investments, there is a co-investment ratio of 7:3 (up to S$500k) while the ratio of 1:1 applies for investments of up to S$4 million.
This scheme aims to stimulate private-sector investments into innovative, Singapore-based technology startups with intellectual property and global market potential.
Eligibility Criteria:
- Singapore-based company with core operations carried out in this location
- Incorporated as a Private Limited company for less than five years
- Company cannot be a subsidiary or joint-venture
- 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, such as Proof of Concept (POC)
- 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
Click here for more details.
Productivity Solutions Grant (PSG)
Agency: Enterprise Singapore
Type: Subsidy
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.
Click here for more details, or find out how you can digitize your accounting and governance with Sleek using PSG.
Trade Loan Scheme
Agency: Enterprise Singapore
Type: Loan
The Trade Loan is targeted towards young enterprises and those trading in challenging markets. It provides a loan of up to S$5M per borrower at a risk share of 70%.
Eligibility Criteria:
- 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.
Click here for more details.
VentureForGood (VFG) Grant
Agency: Singapore Centre for Social Enterprise (raiSE)
Type: Grant
The VFG Grant is available to new and existing social enterprises who need funding to either start up or expand their operations. Applicants can receive up to $S300,000 in grants.
In light of COVID-19, dedicated grant funding to support solutions that solve community issues that will become prevalent in Singapore during the post COVID-19 recovery phase can receive up to S$100,000 in grants.
Eligibility Criteria:
- 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.
Click here for more details.
Support for hiring and workforce
Career Trial Programme
Agency: Workforce Singapore (WSG)
Type: Subsidy
This program aims to offer your company a trial period to assess the job fit of a Singaporean jobseeker. During the trial period, the salary of the jobseeker may be covered by the government.
As an employer, you may assess the jobseeker’s fit through a short-term work trial before offering employment to suitable Singapore Citizens.
Salary support for employers include:
- 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, for employers who hire unemployed Singapore Citizens who have been actively looking for jobs for 6 months or more
Eligibility Criteria:
- All employers must be legally registered or incorporated in Singapore, with a Unique Entity Number (UEN) registered with ACRA
- Actively hiring for jobs paying S$1,500 (for full-time or S$750 for a part-time position) or more
- Offer employment to suitable jobseekers on permanent terms or on contract terms that are no less than one year after completion of Career Trial
Click here for more details.
Job Growth Incentive (JGI)
Agency: IRAS
Type: Salary subsidy
The Job Growth Incentive (JGI) encourages the hiring of local workers (i.e. Singapore citizens and PR) through substantial salary support in phased payout. The phases of the JGI are:
- Phase 1: Sep 2020 – Feb 2021 → 25% of first S$5,000
- Phase 2: March 2021 – Sep 2021 → 25% of first S$5,000
- Phase 3: Oct 2021 – March 2022 → 15% of first S$5,000
- Phase 4: Apr 2022 – Sep 2022 (recently extended during the Singapore Budget 2022)
Do note that the level of support will also depend on the maturity of your local workforce, with more mature workers receiving a higher subsidy.
Eligibility Criteria:
- Increase in the overall local workforce of the company.
- Increase in gross wages of local employees of at least S$1,400 per month.
Click here for more details.
*Scheme ending March 2023.
Job Support Scheme (JSS)
Agency: Inland Revenue Authority of Singapore (IRAS)
Type: Scheme
The Jobs Support Scheme (JSS) provides wage support for employers to retain their local employees (Singapore Citizens and Permanent Residents) during this period of economic uncertainty.
The level and duration of support each employer receives depends on the sector in which the employer operates.The government will subsidize 50% of each employee’s monthly wage, applied to the first S$4600 earned per employee.
Click here for more details.
Read our comprehensive guide to the JSS here.
*Scheme ended September 2022.
P-Max Scheme
Agency: Workforce Singapore (WSG)
Type: Subsidy
P-Max will assist SMEs to better recruit, train, manage, and retain their newly-hired executives/professional staff.
Companies will receive a one-time S$5,000 grant upon successful retention of their newly hired staff for at least 6 months upon completion of the workshops under the program as well as show evidence of in-house training.
Eligibility Criteria:
- The business entity is registered/incorporated in Singapore.
- Annual Sales turnover of not more than S$100million, or employment size not exceeding 200 employees.
- Offer newly-hired staff a gross salary of at least S$2,500 per month
- At least 30% local shareholding.
Click here for more details.
*Scheme ended in 2022.
SkillsFuture Enterprise Credit (SFEC)
Agency: Enterprise Singapore
Type: Subsidy
The SFEC is a S$10,000 credit subsidy that reduces out-of-pocket expenses on enterprise and workforce transformation by up to 90%. This is to encourage employers to upskill their team through supportable initiaitves.
Eligibility Criteria:
- Employed at least three Singapore Citizens (SCs) or Permanent Residents (PRs) every month over the qualifying period.
- First-time qualifiers for SFEC.
- Are not in default of their Skills Development Levy (SDL) contributions during the qualifying period.
- Do not have an inactive ACRA status during qualification.
Waiver of the Skills Development Levy requirement will be granted for the qualifying period of 1 January 2021 to December 31 2021.
Click here for more details.
Support for digital solutions
Advanced Digital Solutions (ADS)
Agency: IMDA
Type: Funding
Businesses can receive up to 70% 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 with be covered under the ADS.
Eligibility Criteria:
- Registered and physically operating in Singapore.
- Minimum local shareholding of 30%
- Annual group sales turnover not more than S$100 million per annum, or group employment less than 200 employees.
Click here for more details.
Grow Digital
Agency: IMDA
Type: Funding
Grow Digital encourages SMEs to access overseas markets readily by adopting eCommerce platforms into their operations.
Up to 70% funding can be claimed under the Grow Digital programme.
Eligibility Criteria:
- Registered and physically operating in Singapore.
- Minimum local shareholding of 30%
- Annual group sales turnover not more than S$100 million per annum, or group employment less than 200 employees.
Click here for more details.
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Startup SG Tech
Agency: Enterprise Singapore
Type: Funding
The Startup SG Tech grant accelerates the development of proprietary technology solutions, and speeds up the growth of startups based on proprietary technology and a scalable business model.
Companies may receive early-stage funding for the commercialisation of proprietary technology if their qualifying solutions are viable.
Eligibility Criteria:
- Registered for less than 5 years at time of grant application.
- At least 30% local shareholdings.
- Company’s group annual sales turnover is not more than S$100 million or group employment size is not more than 200 workers.
- Core activities to be carried out in Singapore.
- Solutions must also
- Clearly demonstrate how science/technology is applied
- Be of a breakthrough level of innovation
- Lead to or build on proprietary know-how/IP
- Be commercially viable.
Click here for more details.
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.
Click here for more details.
Support for equity funding in Singapore
Angel Organisations
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.
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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