9 Best Business Grants in Singapore for SMEs [year]

Did you know that SMEs make up 99% of the enterprises in Singapore, with an overall income contributing nearly half of the gross domestic product (GDP) while employing 7 out of 10 workers in the city-state? SMEs play an extremely important role in Singapore and it is vital for us to support them as much as possible.

The government has put in place various business grants that SMEs can apply for. To find out further, do read our list of the 10 best business grants in Singapore for SMEs here!

1. Enterprise Development Grant

The Enterprise Development Grant (EDG) aims to help Singapore companies grow and transform by supporting them on projects that help you upgrade your business, innovate or venture overseas. The projects will have to fall under these 3 pillars – Core Capabilities, Innovation and Productivity, and Market Access, in order for the company to be eligible for this grant.

To be eligible for this grant, your business will need to be registered and operating in Singapore and have a minimum of 30% local shareholding. You will need to be in a financially viable position to start and complete the project.

As announced at Budget 2021, the enhanced maximum support level of up to 80% will be extended from 30 September 2021 to 31 March 2022.

2. International Co-Innovation Programmes

The International Co-Innovation Programmes will be a great fit for SMEs looking at internationalization and cross-border collaboration. With this grant, SMEs will be able to gain support on projects that catalyze cross-border collaboration on technology development and co-innovation.

As part of the programme’s expanding global network, they have set up partnerships with multiple overseas companies such as the Eureka Network, France, Germany, Israel and Shanghai.

3. Market Readiness Assistance Grant (MRA)

The Market Readiness Assistance (MRA) Grant would be suitable for SMEs that want to take their business overseas as it provides the support needed for market set-up, business development and market promotion. With the MRA Grant, SMEs will be able to enjoy a grant amount of up to 70% of eligible costs, capped at S$100,000 per company per new market.

To be eligible, your business entity needs to be registered/incorporated in Singapore and must not have exceeded S$100,000 in overseas sales in each of the last three preceding years for their target overseas country. There must be at least 30% local shareholding with a group annual sales turnover of not more than S$100 million, or company’s group employment size of not more than 200 employees.

As announced at Budget 2021, the maximum support level of up to 80% will be extended for 6 months, until 31 March 2022. MRA will also be enhanced to include Trade Credit Insurance (TCI) as a supportable area under the overseas market set-up pillar with effect from 1 April 2021.

4. Productivity Solutions Grant

Next on the list is the Productivity Solutions Grant (PSG). The PSG will be suitable for companies that are looking to adopt IT solutions and equipment to enhance business processes. to be eligible for the grant, your company needs to be registered and operating in Singapore.

The purchase, lease or subscription of the IT solutions or equipment must be used in Singapore. Additionally, your company must have a minimum of 30% local shareholding and its group annual sales turnover less than S$100 million or less than 200 employees. This only applies for selected solutions.

As announced at Budget 2021, the enhanced maximum support level of up to 80% will be extended from 30 September 2021 to 31 March 2022.

5. SkillsFuture Enterprise Credit

Companies who are looking to transform their enterprise and develop the capabilities of their employees will benefit significantly with the SkillsFuture Enterprise Credit (SFEC). This grant encourages employers to invest in enterprise transformation and the capabilities of their employees.

As such, all eligible employers will receive a one-off S$10,000 credit to cover up to 90% of out-of-pocket expenses on qualifying costs for supportable initiatives, over and above the support levels of existing schemes.

To learn more, you can check out the list of SFEC-supportable programmes at their website mentioned in the table above.

6. Digital Resilience Bonus

As one of the enhanced digitalization assistance provided under the SMEs Go Digital programme, the Digital Resilience Bonus (DRB) aims to uplift the digital capabilities of a broad base of enterprises in the Food Services and Retail sectors. This is especially important given that the enterprises in the Food Services and Retail sectors but are more affected by the safe distancing requirements in the reopening of the economy.

To qualify for DRB, the enterprise must be incorporated before or on 26 May 2020 with a Food Service or Retail SSIC code. Also, it has to be using the digital solutions between 1 June 2020 and 30 June 2021.

7. P-MAX

Known as the Place-and-Train Programme, P-Max aims to help companies recruit, train, manage and retain newly-hired Professionals, Managers, Executives and Technicians (PMETs). With the grant, participating SMEs can also enjoy up to 90% course fee subsidy for PMET, SME training workshops and Age Management workshop. This will only be applicable for P-Max for Older Worker only.

As for eligible SMEs, you will receive a one-time $5,000 Assistance Grant or $10,000[3] Assistance Grant. This will be applicable for P-Max for Older Workers only as well, upon completion of the Programme and six-month retention of the newly hired PMET(s).

To be eligible, companies need to be registered or incorporated in Singapore with at least 30% local shareholding being held by Singapore Citizen or Singapore Permanent Resident. Group employment size cannot be more than 200 or the Group Annual sales turnover cannot be more than S$100 million. You must also have hired a PMET within the last three months prior to enrolment into programme, offering a gross monthly salary of at least $2,500.

8. Work-Life Grant

The Work-Life Grant is an initiative by the Ministry of Manpower Singapore, which aims to encourage and incentivize companies to sustain the use of flexible work arrangements (FWAs) for all employees. This is to create work-life harmony at the workplace.

There are 2 components to this grant – FWA Incentive and Job Sharing Incentive. The FWA Incentive will incentivize companies to sustain implementation of FWAs for their local employees whereas the Job Sharing Incentive which offers up to S$35,000 per company over 2 years.

To learn more about your eligibility, do check out the website mentioned above.

9. FinTech COVID-19 Support

This $125 Million FinTech COVID-19 support package is announced by MAS on 8 April 2020 for the financial and FinTech sectors to deal with the immediate challenges they faced from COVID-19 and to help them position strongly for the recovery and future growth.

There are a list of initiatives for FinTech companies to support on manpower costs, operational costs, for access to business opportunities and for proof-of-concept. Some examples include training allowance grant, wage support for local employees, salary support for recent graduates, APIX Cares etc. For more information, do check out the website mentioned above.

Conclusion

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We hope that this guide will be useful in helping you to make an informed decision when it comes to finding the best business grants in Singapore for SMEs.

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