Securing financial support is vital for startups to transform innovative ideas into successful businesses. Recognizing this, the Singapore government offers a variety of grants, incentives, and schemes to support startups. This guide outlines the Singapore government grants for SME, whether you are starting out or looking to expand.
Defining SME
SMEs, or small and medium-sized enterprises, are defined in Singapore as companies with an annual turnover of under S$100 million or fewer than 200 employees. They constitute 99% of all businesses, employ the majority of the workforce, and contribute nearly half of the GDP, playing a crucial role in the economy and impacting many locals’ livelihoods.
Singapore Government Grants for SME
In Singapore, SME grants are financial aids provided by governments, corporations, foundations, or trusts to support the growth of small and medium-sized enterprises. These grants, which typically do not require repayment, can be used for various business operations such as purchasing equipment, hiring staff, and developing new products or services. While some grants have specific purposes, others offer more general support. Recipients may need to meet certain criteria, such as job creation or specific usage of funds, and may be required to submit progress reports to receive additional funding. Therefore, it is crucial for SMEs to carefully review the terms and conditions before applying.
Meeting SME Qualification Criteria
To qualify as a small and medium-sized enterprise (SME) in Singapore, a company must be registered and operate locally, have at least 30% local shareholding, and either have an annual sales turnover of no more than S$100 million or employ no more than 200 workers. It is important to note that most SME grants favor locally owned companies, and foreign-owned companies must have at least one Singapore citizen or Permanent Resident (PR) as a shareholder to be eligible for these grants.
Different SME grants may have varying definitions of eligibility, so the criteria mentioned should be taken as a general guideline. SMEs should review specific grant requirements to ensure they meet all necessary conditions.
Activities Financed by Singapore Business Grants 2023
Start-Up Grants
Start-up grants provide essential financial support to early-stage startups, offering capital for activities such as Proof of Value (POV) and Proof of Concept (POC). These grants can fund technical viability studies for POCs, helping to determine the alignment of existing market technology with your concept or potential for expansion. Additionally, if you have a working concept or prototype, start-up grants can be utilized to assess the commercial value or Proof of Value of your product.
SME grants
SME grants play a crucial role in financing projects that foster growth and enhance operational efficiency for established businesses. These grants can be used to improve or develop products, acquire new business software and hardware, and support global expansion efforts, including participation in international trade fairs and conducting market studies. By leveraging SME grants, businesses can stay technologically up-to-date and explore new markets, ultimately driving their growth and competitiveness.
Agencies Handling Singapore Government Grants for SME
Enterprise Singapore
Enterprise Singapore is the primary government agency administering most Singapore government grants for SMEs and startups in Singapore. They provide support through company setup assistance, loan programs, and tax rebates.
Monetary Authority of Singapore (MAS)
The Monetary Authority of Singapore (MAS) prioritizes Singapore government grants and initiatives within the financial sector, aiming to foster innovation and drive technological advancements in finance.
Singapore Health Promotion Board (HPB)
The Health Promotion Board (HPB) supports Singapore government grants that promote healthy lifestyles, wellness initiatives, and healthcare innovation.
Singapore Centre for Social Enterprise, raiSE
raiSE is dedicated to providing Singapore government grants and support for social enterprises in Singapore. Their mission is to empower businesses that address social needs while ensuring sustainable revenue generation.
SkillsFuture Singapore (SSG)
SkillsFuture Singapore (SSG) provides government grants and support for workforce development and upskilling initiatives. These programs are designed to help businesses enhance their employees’ skills and capabilities, fostering a more competent and competitive workforce.
Singapore Tourism Board (STB)
The Singapore Tourism Board (STB) offers grants and incentives to businesses within the tourism sector, fostering innovation, enhancing visitor experiences, and supporting tourism-related projects.
Eligibility Criteria for Singapore Government Grants for SME
Enterprise Singapore and other government agencies have set clear eligibility criteria for the Singapore Government Grants for SME. To qualify as an SME in Singapore, your company must meet the following conditions: an annual sales turnover not exceeding S$100 million, registration and operation within Singapore, and a total group employment size of no more than 200 workers.
Additionally, your company must have at least 30% local shareholding to be eligible. This local shareholding requirement ensures that companies benefit from enhanced opportunities and government financial support, which are more favorable compared to those available to foreign-owned companies.
Going Over Startup SG
Startup SG is a comprehensive initiative in Singapore that provides funding, mentorship, and a platform for startups and SMEs. It centralizes various support schemes and grants, simplifying access to essential resources for entrepreneurs to launch and expand their businesses.
Top 5 Singapore Government Grants for SMEs: Boosting Funding and Capital
Enterprise Development Grant (EDG)
Starting from April 1, 2023, companies can receive up to 50% support for their EDG projects, enhancing SMEs’ growth and development. Sustainability-related projects may receive up to 70% support from April 1, 2023, to March 31, 2026.
To qualify, businesses must be registered in Singapore, have at least 30% local shareholding, and be in a financially sound position to start and complete the project. The grant supports initiatives in three key areas: core capabilities, which include brand development and financial management; innovation and productivity, focusing on product development and automation; and market access, which covers overseas marketing and mergers and acquisitions.
Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) supports Singapore companies in enhancing productivity and streamlining operations through IT solutions and equipment. Local SMEs can receive up to 50% financial support for eligible costs, with funding up to $30,000, significantly boosting business operations.
To qualify for the Productivity Solutions Grant, businesses must be registered and operating in Singapore with at least 30% local shareholding. They must also demonstrate a genuine need and commitment to enhancing productivity through technology solutions.
Energy Efficiency Grant (EEG)
The Energy Efficiency Grant (EEG) supports SMEs in the Food Manufacturing, Food Services, and Retail sectors by providing financial assistance to manage rising energy costs. Eligible businesses can receive funding to adopt pre-approved energy-efficient equipment, including air conditioners, LED lighting, refrigerators, and more.
To qualify for the Energy Efficiency Fund, businesses must be registered and operating in Singapore. They should focus on improving energy efficiency and reducing carbon emissions, with a clear plan for implementing measurable energy-saving measures.
Market Readiness Assistance Grant (MRA)
The MRA grant assists local SMEs in entering new international markets by covering up to 50% of eligible costs for overseas market promotion, business development, and set-up, with a cap of S$100,000 per company per new market. This financial support facilitates substantial investments in global business expansion. The applicant must be a business entity.
Business Improvement Fund (BIF)
The Business Improvement Fund (BIF) by the Singapore Tourism Board supports technology innovation and adoption in the tourism sector, enhancing competitiveness and productivity. It provides funding for eligible project-related costs such as training, travel, hardware, software, and consultancy fees.
Eligible applicants include Singapore-registered tourism businesses, those undertaking capability development initiatives, and technology companies creating innovative products and services for the tourism sector. All projects must align with the EDG’s core pillars of core capabilities and innovation and productivity.
Singapore Government Grants to Kickstart Your SME Business
Startup SG Founder
The Startup SG Founder (SSGF) program empowers first-time entrepreneurs with funding through a startup grant and mentorship from Accredited Mentor Partners (AMPs).
Startup SG Tech
The highly competitive Startup SG Tech grant program accelerates the commercialization of groundbreaking technologies by supporting Proof-of-Value (POV) and Proof-of-Concept (POC) initiatives, allowing companies to select the appropriate grant based on their technology’s maturity.
Maximizing Benefits from Singapore Government Grants for SME
The Singapore government grants for SMEs aim to empower local enterprises by supporting technology adoption, market access, capability building, R&D, and more. These grants help fund business transformation initiatives, reduce risks in overseas expansion, develop novel solutions with R&D and IP protection, drive technology integration and process improvements, enhance talent and organizational capabilities, and provide expert advisory services.
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Frequently Asked Questions
1. What types of Singapore government grants for SMEs are available?
In 2023, common government grants include Startup SG, Market Readiness Assistance (MRA), and Enterprise Development Grant (EDG), among others.
2. Who is eligible to apply for Singapore government grants for SMEs?
Eligibility criteria for grants typically include being a local SME registered and operating in Singapore, with specific requirements like company size, annual turnover, and local shareholding.
3. How do I apply for Singapore government grants for SMEs?
To apply for government grants, submit a detailed proposal with your project objectives, expected outcomes, and budget. Follow the grant agency’s guidelines and consider hiring consultants for assistance.
