The Singapore government has always been supportive of SMEs by providing numerous avenues for financial support from tax incentives to grants. As such, this is one of the many reasons why the Lion City has become such a popular spot for global businesses to site. That's why it's key to know what types of grants and schemes are available out there that businesses can leverage on.
In Singapore, inflation is on the rise. In fact, according to the Straits Times, it is the highest it’s ever been in 14 years. Business expenses such as utilities, renting of office spaces and hiring are found to be rising fast. As a business owner, you may want to consider Singapore’s plethora of government grants to protect your bottom line. It may also ensure that your business’s cash flow remains healthy as you continue to navigate Singapore’s current economic conditions.
To get you started, we’ve compiled a list of the top 5 government grants for SMEs 2022 geared towards small businesses and entrepreneurs based on their different needs.
The Singapore government has consistently recognized the importance of small and medium-sized enterprises (SMEs) in driving the country's economic growth, which is why they offer several Government grants for SMEs in Singapore. The government has implemented various policies and programs to support the growth and development of SMEs in Singapore.
The government's emphasis on innovation and technology has resulted in a range of grants and subsidies aimed at helping SMEs adopt new technologies and stay competitive in their respective industries. The Productivity Solutions Grant (PSG) provides funding support for up to 80% of the cost of adopting pre-scoped productivity solutions. The grant covers solutions in areas such as financial management, customer management, and inventory tracking.
Similarly, the Enterprise Development Grant (EDG) provides SMEs with the funding support of up to 70% of the cost of qualifying projects, including adopting technology and innovation. The EDG is available to companies across all sectors and aims to help SMEs upgrade their business capabilities and expand into overseas markets, making it a popular SME grant in Singapore.
Given Singapore's status as a global business hub, the government has also implemented programs to support SMEs looking to expand overseas. The Market Readiness Assistance (MRA) grant provides funding support of up to 70% of eligible costs to help SMEs enter new markets. This includes market assessment, market entry, and business matching services, which is a highly beneficial SME grant in Singapore.
The Global Company Partnership (GCP) grant is another program aimed at helping SMEs expand overseas. The GCP provides SMEs with funding support of up to 70% of eligible costs for overseas business development and investment initiatives, making it a top SME grant in Singapore.
The government also recognizes the importance of a skilled workforce in driving business growth and development. The SkillsFuture Enterprise Credit (SFEC) is a grant aimed at encouraging SMEs to invest in the development of their employees' skills. The grant provides funding support of up to $10,000 for SMEs to invest in approved courses and programs for their employees.
Additionally, the Enhanced Training Support Package (ETSP) provides SMEs with funding support of up to 90% of the cost of eligible courses to upgrade the skills of their employees. This SME grant in Singapore is beneficial for companies that want to upskill their employees.
The Singapore government's commitment to supporting SMEs is evident in the range of grants and programs available to these businesses. With a long list of excellent SME grants in Singapore, the government is active in promoting the growth of such businesses in the country. By taking advantage of these programs, SMEs can better position themselves for long-term success and contribute to the growth of a broader and more successful economy.
If you're a small or medium-sized enterprise (SME) in Singapore, securing grants can be a game-changer for your business growth. In Singapore, the government recognizes the significant role that small and medium-sized enterprises (SMEs) play in the country's economic growth. To help support their growth and development, the government offers various SME grants in Singapore.
In this section, we'll provide you with everything you need to know about SME grants in Singapore. Read on to know more.
If you are an SME in Singapore, it is always wise to explore the various SME grants available to help grow your business. Here are some situations where considering a grant may be beneficial for your business:
SME grants can cover a wide range of activities, from business process improvement to R&D and internationalization. Here are some examples of activities that can be financed by SME grants in Singapore:
The Singapore government offers a variety of grants and assistance schemes for SMEs through several agencies. Here are some of the key agencies that handle SME grants in Singapore:
Enterprise Singapore is the main government agency supporting the growth and development of SMEs. It provides a range of grants and assistance schemes for SMEs in various areas, such as productivity, innovation, and internationalization.
IMDA provides grants and support for SMEs in the infocomm and media sector, including areas such as digitalization, cybersecurity, and talent development.
NRF provides grants and funding support for R&D and innovation projects in various sectors, such as biotechnology, advanced manufacturing, and urban solutions.
WSG provides funding support for workforce development and training initiatives, including schemes such as Enterprise Training Support (ETS) and Workfare Training Support (WTS).
SMEs in Singapore have access to a variety of grants and assistance schemes that can help them grow and thrive in the competitive business landscape. By leveraging these grants, SMEs can gain a competitive edge, improve their capabilities, and tap into new markets and opportunities.
To get you started, we’ve compiled a list of the top six government grants for SMEs geared towards small businesses and entrepreneurs based on their different needs.
The Enterprise Development Grant (EDG) is a relatively new grant launched by Enterprise Singapore (ESG) on 25th October 2018. Essentially, this SME grant is a combination of the former Capability Development Grant (CDG) and Global Company Partnership (GCP) Grant.
The EDG aims to help SMEs in Singapore by building internal capabilities within 3 main areas: Core Capabilities, Innovation and Productivity, and Market Access.
This grant is suitable for local companies who are looking to upgrade the business, innovate or expand overseas. It funds up to 80% of qualified project costs including consultancy fees, purchase of software and equipment and internal labour costs. For enterprises that have been severely impacted by COVID-19, the maximum support level may even be raised to 90% on a case-by-case basis.
Application of the EDG grant will be assessed based on the project scope, project outcomes and competency of the service provider.
The focus of the Market Readiness Assistance (MRA) grant is to help Singapore SMEs to expand and gain access to overseas opportunities; from market set-up, identification of overseas partners to promotions.
This grant funds up to 70% of eligible costs capped at S$100,000 per company per new market* from 1 April 2020 to 31 March 2023 and covers:
SMEs must submit applications no earlier than 6 months before the project start date. Applications filed after 10 March will be treated as an application for the new fiscal year.
*A new market refers to a target overseas country where the applicant company has yet to exceed S$100,000 in overseas sales in each of the last three preceding years.
The StartupSG Founder scheme provides first-time entrepreneurs with mentorship, funding support and comprehensive access to business networks. This scheme is relatively unique as it matches mentors to start-ups by co-matching S$5 to every S$1 raised by the entrepreneur, which can go up to S$50,000 in funding capital.
Since the grant is only available for first-time entrepreneurs, there must not be more than one business entity registered under the applicant's name. The business should also not have been registered or incorporated for more than 6 months at the point of application for the grant.
P-Max is a Workforce Singapore (WSG) Grant. The main purpose of the P-Max program is to support SMEs in recruiting, training, managing and retaining newly-hired PMETs (Professionals, Managers, Executives, and Technicians). This scheme is best suited for local SMEs looking to hire PMETs and/or looking to improve their HR practices within the company.
Participating SMEs can also reimburse up to 90% course fee subsidy for PMET, SME training workshops and Age Management workshop (applicable for P-Max for Older Worker only).
On top of that, eligible SMEs will receive a one-time $5,000 Assistance Grant or $10,000 Assistance Grant (P-Max for Older Workers only) upon completion of the Programme and six-month retention of the newly hired PMETs.
Eligible companies can nominate up to two existing employees to participate in the P-Max program, which includes a 6-month Place-and-Train program and a follow-up SME consultancy project. The grant covers up to 90% of program fees and 70% of the participants' salary support, capped at S$2,000 per month for the duration of the program.
If your SME is looking to expand your local headcount from September 2020 to March 2023, you may be qualified to receive Government support via the JGI. The payout quantum will depend on your hires such as whether they are vulnerable hires, mature hires or non-mature hires.
To check out the quantum you may receive through JGI, check out the summary below:
Eligible employers will receive wage subsidies for all new local hires from September 2020 to February 2021, with higher subsidies for those aged 40 and above. The wage subsidies will be disbursed over a period of 12 months and will be capped at S$15,000 per new hire for the first year of employment.
The Capability Development Grant (CDG) is a financial assistance program that supports businesses in their development journey. It helps enterprises upgrade their capabilities and grow through the adoption of new technologies, innovation, and productivity improvements. The grant is available to all local companies in Singapore, including small and medium-sized enterprises (SMEs). The CDG provides funding support for qualifying project costs such as consultancy, training, certification, upgrading of equipment and software, and other investments that can help businesses develop their capabilities.
Overall, the Capability Development Grant is an excellent opportunity for local businesses in Singapore to upgrade their capabilities and remain competitive in the marketplace. With its wide eligibility criteria and easy application process, it is an accessible grant that companies can take advantage of to achieve their growth objectives.
Before deciding which SME grant schemes to apply for, it is best to understand the needs of your business to maximize the use of the facilities and supports. Below are the key takeaways from each scheme:
💡 Tips: Apart from government grants, corporate credit lines can give business owners access to flexible cash flow while building business credit at the same time. Learn more about Aspire Credit Line.
While government grants are an excellent way for small and medium-sized enterprises (SMEs) to access financial support, there are other options. In this section, we will explore some alternative financing options for SMEs.
SMEs can apply for bank loans to finance their business operations or expansion plans. With a bank loan, the business owner can borrow money and pay it back over time with interest. This type of financing is widely available, and the terms and interest rates are generally more favorable than other financing options. Here are some of the top SME bank loans to apply for.
Crowdfunding is a popular option for SMEs that are just starting and need to raise money to get their business off the ground. This method involves raising funds from a large number of people through an online platform. In exchange for their contribution, the donors receive rewards, such as products or services.
Angel investors are wealthy individuals who invest their own money in SMEs. In exchange for their investment, they typically receive equity in the business. These investors are often experienced entrepreneurs or business people who can guide and advise the SME.
Venture capital (VC) is another alternative to government grants that SMEs can consider. This type of financing involves investing in a business in exchange for equity. Venture capitalists often provide more than just capital; they also offer mentorship, networking opportunities, and guidance to help the business succeed.
P2P lending is a type of financing that connect