One of the many reasons that entrepreneurs and business owners alike are attracted to Singapore is because of its favorable business environment and conditions. The government bodies, institutions, and foundations in Singapore have been introducing a wide range of policies in an effort to grow and nurture the nation-state’s business landscape, and this support often comes in the form of government grants and various support schemes.
Why Should You Consider SME Grants Singapore?
The Singaporean government is deeply committed to promoting the growth and sustainability of Small and Medium Enterprises (SMEs). Understanding the pivotal role SMEs play in enhancing the country's economic vitality, the government has introduced a wide range of initiatives to support their development.
SME grants are essential in strengthening the business ecosystem in Singapore. Primarily, they offer crucial financial support, providing the necessary capital for SMEs to operate. This funding can be especially important during key stages like expansion, innovation, or entering new markets.
Beyond financial assistance, SME grants open up growth opportunities by offering access to mentorship, consultancy services, and professional networks. These resources equip businesses with the tools and knowledge they need to succeed in competitive environments.
In short, SME grants act as drivers of progress, encouraging innovation, enhancing competition, and contributing to the dynamism of Singapore's business scene.
What Are the Business Grants Available for SMEs and Startups in Singapore?
1. Business Improvement Fund (BIF)
The Business Improvement Fund (BIF) supports up to 70% of qualifying costs for SMEs and up to 50% for non-SMEs. This grant, backed by the Singapore Tourism Board, is intended for businesses registered in Singapore's tourism sector. It supports initiatives aimed at enhancing the capabilities of tourism companies and developing innovative technology products and services for tourism businesses. The BIF aligns with the Enterprise Development Grant (EDG) in focusing on core capabilities, innovation, and productivity.
2. Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) is designed to provide financial support to Singapore-based businesses looking to upgrade their capabilities, foster innovation, and expand internationally. The EDG covers up to 70% of qualifying project costs, which may include consultancy fees, training, equipment purchases, and overseas expansion activities.
Businesses that want to apply for this grant must be registered and operating in Singapore, with at least 30% local ownership. Additionally, they must demonstrate financial stability and a commitment to enhancing productivity and innovation. The EDG is suitable for a wide range of industries, including manufacturing, services, and technology. Whether you're a small family-run business or a medium-sized enterprise with growth aspirations, the EDG offers valuable financial resources to help boost competitiveness and support sustainable growth.
3. Enterprise Financing Scheme (EFS)
The Enterprise Financing Scheme (EFS) is available to businesses registered and based in Singapore, with at least 30% local ownership and an annual group sales turnover of no more than S$500 million. The EFS provides access to financing throughout different growth stages and covers seven areas:
- EFS Green
- SME Working Capital Loan
- SME Fixed Assets Loan
- Venture Debt Loan
- Trade Loan
- Project Loan
- Mergers & Acquisitions Loans
4. Market Readiness Assistance (MRA) Grant
The MRA grant supports businesses in expanding into overseas markets by covering costs related to market promotion, business development, and market setup abroad. MRA grant provides up to S$100,000 in funding which covers:
- Overseas market promotion
- Overseas business development
- Overseas market setup
MRA grants will be eligible for businesses registered and operating in Singapore, have at least 30% local ownership, and are new to the target overseas market. They also have group annual sales not exceeding S$100 million or employ fewer than 200 people.
5. Productivity Solutions Grant (PSG)
The PSG aims to help businesses adopt technologies and solutions that enhance productivity. PSG provides funding of up to 80% of qualifying project costs, covering purchases of pre-approved solutions and equipment. PSG benefits businesses in various sectors, such as retail, food and beverage, manufacturing, and professional services. Whether it’s implementing point-of-sale systems or automating production, the PSG offers crucial financial support for productivity enhancements. Applications can be submitted via the Business Grants Portal (BGP), after obtaining quotations from pre-approved vendors.
6. Start Digital
Start Digital supports newly incorporated businesses from various sectors by providing digital tools that boost productivity and efficiency from the outset. Eligible businesses can access digital solutions worth up to S$2,000 in areas like accounting, HR, digital transactions, and marketing. They can choose digital solutions and sign up through participating banks or associations to gain access.
Start Digital will only be accessible for newly incorporated businesses in Singapore within the past 6 months and meet the requirements of participating banks or industry associations.
7. Grow Digital
Grow Digital supports businesses in their digital transformation, enhancing digital capabilities and competitiveness. The initiative offers funding support of up to S$30,000 for digital transformation projects. It’s aimed at businesses across industries looking to enhance efficiency and competitiveness through digital solutions, such as establishing an online presence or automating operations.
8. Innovation, R&D, and Capability Development Incentives
Supported by the Economic Development Board, these schemes encourage companies to expand their operations and enhance their capabilities in Singapore. Businesses conducting qualified R&D activities in Singapore can claim a tax incentive of 250% of the expenses incurred for R&D projects conducted locally, and 100% for those done abroad. This initiative encourages businesses to invest in R&D, driving the creation of better products and services for the market.
In terms of net savings, businesses can save 42.5% on R&D expenses within Singapore and 17% on R&D conducted overseas. Eligible expenses under this tax incentive include equipment costs (as capital allowances), consumables, wages, compensation, and service provider invoices if the R&D work is outsourced.
9. Startup SG Equity Programme
This program supports Singapore-based private limited companies with core operations in Singapore, incorporated for less than five years, and with at least S$50,000 in paid-up capital. Businesses must demonstrate innovation, and high-growth potential, and have third-party investors.
10. Temporary Bridging Loan Programme (TBLP)
TBLP assists businesses with working capital by providing loans of up to S$1 million, available through 19 financial institutions. The interest rate is capped at 5.5% per annum, with a maximum repayment period of 5 years.
Effortless Incorporation with WealthBridge
These are only some examples of the various grants and support schemes in place to support companies and startups, but most of these are only available to businesses that have been incorporated in Singapore.
The process of registering a company in Singapore involves many stages and steps that can seem confusing, but WealthBridge is here to help you along the way. Our professional team has years of experience incorporating businesses across different industries in Singapore. Let WealthBridge handle all the paperwork so that you can continue focusing on growing your dream. Visit WealthBridge Corporate Services Pte. Ltd. to learn more about our services today!