Top Government Grants and Incentives for SMEs in Singapore (2025 Guide)
Grants for SMEs in Singapore remain a powerful tool to drive business growth, transformation, and competitiveness in today’s economy. In 2025, the government continues to provide robust support for small and medium-sized enterprises (SMEs) across sectors — focusing on innovation, digitalisation, sustainability, and upskilling.
This guide outlines the top government grants and incentives for SMEs in Singapore in 2025, including who is eligible, what costs are covered, and how your business can apply. With proper planning and compliance, these schemes can significantly reduce operational costs and accelerate growth.
1. Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) remains the most comprehensive and strategic grant for SMEs in Singapore. It supports projects that help businesses innovate, transform, and internationalise.
What EDG Covers:
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Strengthening core capabilities such as internal controls, audit readiness, governance, and branding
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Process improvement through automation, digital transformation, and operational review
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Overseas market expansion and setup advisory
Support Level:
Up to 50% of qualifying project costs for SMEs, subject to Enterprise Singapore’s assessment
EDG Eligibility Criteria:
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Company is registered and operating in Singapore
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Has at least 30% local shareholding
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Financially capable of undertaking the project
How USAFE Adds Value:
We assist SMEs in developing grant-supported scopes such as internal control enhancements, enterprise risk management, and overseas compliance readiness.
2. Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) is ideal for companies seeking to adopt pre-approved IT tools and productivity-enhancing equipment.
What PSG Supports:
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Cloud-based accounting and finance systems
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HR and payroll platforms
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CRM, POS, and inventory systems
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Digital collaboration tools and basic cybersecurity
Support Level:
Up to 50% of eligible costs
Where to Apply:
Through the Business Grants Portal (BGP)
Practical Tip:
Refer to the latest list of PSG-approved vendors and solutions on BGP before submitting your application. PSG is one of the easiest grants for SMEs in Singapore to access.
3. Market Readiness Assistance (MRA) Grant
SMEs looking to venture overseas can benefit from the MRA grant, which helps fund initial market entry efforts.
What MRA Covers:
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Overseas marketing (e.g. ads, trade fairs)
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Market entry advisory (e.g. tax, regulatory, or foreign audit requirements)
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In-market business development
Funding Cap:
Up to 50% support, capped at SGD 100,000 per new overseas market per financial year
Common Scenarios:
Singapore companies expanding into Malaysia, Vietnam, or Indonesia often engage USAFE for local statutory audit, tax registration, and compliance services — all eligible under MRA.
4. SkillsFuture Enterprise Credit (SFEC)
The SkillsFuture Enterprise Credit (SFEC) aims to encourage transformation through employee development and digital investment.
How SFEC Works:
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Eligible employers receive a one-time credit of SGD 10,000
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It covers up to 90% of out-of-pocket costs when used with approved grants such as PSG or EDG
SFEC Eligibility:
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At least three local employees with CPF contributions during the qualifying period
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No outstanding tax or CPF liabilities
Why It’s Useful:
When combined with other grants for SMEs in Singapore, SFEC reduces the actual cost to business owners dramatically, especially when investing in training or digital systems.
5. Energy Efficiency Grant (EEG)
As Singapore accelerates its green agenda, the Energy Efficiency Grant (EEG) supports SMEs in adopting energy-saving equipment.
What EEG Covers:
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Pre-approved energy-efficient equipment used in food services, retail, and food manufacturing
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Refrigeration units, water heaters, ovens, chillers, and LED lighting systems
Support Level:
Up to 70% of qualifying costs, depending on equipment and sector
Who Can Apply:
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SMEs registered and operating in Singapore
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Must fall within the eligible SSIC codes and industry scope
6. Other Support Schemes Worth Exploring
While the top 5 grants for SMEs in Singapore provide broad and strategic support, there are additional incentives for specific industries or innovation-driven businesses, such as:
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Startup SG Founder Grant – supports first-time entrepreneurs with mentorship and capital
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Digital Leaders Programme – for larger SMEs or mid-sized companies investing heavily in digital transformation
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SkillsFuture Work-Study Programmes – offering wage support for upskilling employees via structured development programmes
Important Considerations Before Applying for Grants
To maximise the chances of approval, SMEs must ensure their internal readiness. Here’s how to prepare:
Maintain Clear Financial Records:
Grant applications often require up-to-date unaudited or audited financial statements. Conducting voluntary audits can give your business greater credibility and improve application success.
Demonstrate Good Governance:
Agencies like Enterprise Singapore assess a company’s ability to manage funds and deliver outcomes. A business with clean governance, proper documentation, and compliance history stands out.
Use the Business Grants Portal:
The majority of grants for SMEs in Singapore — including EDG, PSG, and SFEC — are applied for via www.businessgrants.gov.sg. Ensure all UEN and ACRA information is accurate before submitting.
Work with Qualified Consultants:
Grants like EDG require support from recognised consultants. USAFE has deep experience advising SMEs on audit and financial governance projects eligible under EDG and MRA.
Final Thoughts: Using Grants Strategically
Government grants for SMEs in Singapore are not just financial perks — they are strategic tools. Whether you’re digitising operations, building internal controls, entering new markets, or upgrading staff capabilities, the right grant can significantly reduce risk and cost.
At USAFE, we help SMEs unlock the full value of these schemes through audit-readiness reviews, advisory support, and project documentation that align with grant criteria. Our clients rely on us to guide them through the application process — while staying compliant and future-ready.
Need help applying for a government grant?
Speak to our team today and let USAFE support your next phase of growth — efficiently, strategically, and with confidence.
Disclaimer: This article is for informational purposes only and does not constitute any professional advice. Feel free to contact us to consult with our professional advisors team for personalized advice and guidance.
Sources: https://www.apply.gov.sg/grants/business
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