Top 7 Government Grants for Singapore Companies

The startups & SMEs are the powerhouses of Singapore. They employ almost two-thirds of the Singaporean workforce. To maintain this momentum, the authorities offer a wide range of business grants in Singapore to help companies overcome growth obstacles. The authorities really try to support these entities. There are a number of government grants for Singapore companies to help them overcome obstacles in their growth.

Beyond direct government funding in Singapore, Enterprise Singapore (formerly SPRING and IE Singapore) works through various Trade Association and Chambers (TACs) to implement development programs. The purpose of the Singapore startup grants is to enable the local businesses in capability upgrading and internationalization.

Singapore Government Grants for SME & Startups

If you are planning company incorporation in Singapore or have an existing business on the verge of exploding into a phenomenal growth, it is worth your while to explore the most effective Singapore business grants. Here are the top 7 options:

1. ACE Startups

SPRING Singapore is a government agency. It administers the ACE Startups Scheme for the first-time entrepreneurs having an innovative idea. This is one of the most sought-after singapore startup grants, providing mentorship and capital. The Accredited Mentor Partners (AMPs) select applicants. The AMP supports the startups with advice, learning programs, and networking contacts.

Eligibility: First-time entrepreneurs who are Singaporean or Permanent Residents are qualified for the scheme. The criterion for the selection is the uniqueness of business concept, business model feasibility, management team, and potential market value.

How It Works: This startup business grant operates on a co-matching basis. For your every $3, you will get $7 under ACE. The startup funding amount allowed to Singapore companies under the ACE scheme is capped at $50,000.

2. Capability Development Grant

Replacing the older Capability Development Grant (CDG), the EDG is a comprehensive business grant in Singapore designed to help companies scale up. It covers consultancy, certification, equipment, and training across three pillars: Core Trade, Innovation and Productivity, and Market Access.

Eligibility: Any Small & Medium Enterprise incorporated & operating in Singapore

How It Works: This singapore funding for sme typically covers up to 50%–70% of qualifying costs for project design and manufacturing processes.

Also Read: 5 Things Every Entrepreneur Should Know Before Company Registration Singapore

3. Early-Stage Venture Funding

The ESVF is a major initiative to support Innovation and Enterprise. It is one of the largest equity-based government funding Singapore programs, where the government co-funds startups alongside Venture Capital (VC) firms. The beneficiaries of this startup funding in Singapore are early-stage technology startups based in Singapore.
The National Research Foundation (NRF) invests S$10 million on a matching basis, to seed corporate venture capital (VC) funds. The VCs have the option to buy NRF’s share within five years.

Eligibility: Startups that are operating in the technology sector in Singapore.

How It Works: National Research Foundation (NRF) co-funds startups up to $10 million with approved VCs. Eligible tech firms can qualify for significant startup business grants and equity through this partnership.

4. Productivity and Innovation Credit (PIC)

The Inland Revenue Authority of Singapore has a scheme for the Singaporean companies for investments in innovation and productivity improvements. They can enjoy Cash Payout and/or Tax Deduction and receive a PIC Bonus. The scheme covers research & development, registration, acquisition, & in-licensing of intellectual property, cost of automation equipment, training of staff, & approved design projects. As the PIC scheme has concluded, the PSG has become the go-to singapore business grant for productivity. It encourages businesses to adopt IT solutions and equipment to enhance operations.

Eligibility: Singaporean companies, sole proprietors

How It Works: Under PIC scheme, businesses get 400% tax deductions on up to $400,000. Or they can opt for 40% cash payout of up to $100,000. It provides up to 50%–70% funding for long-term productivity tools, making it essential singapore funding for sme looking to automate.

5. Financial Sector Technology and Innovation (FSTI) Scheme

Momentary Authority of Singapore (MAS) launched FSTI scheme to support innovation. This specialized business grant in Singapore enables financial institutions to establish innovation labs and develop industry-wide technology infrastructure. It has invested S$225 million in the scheme. The aim of this Singapore startup grant is to enable financial institutions to establish their innovation labs in Singapore & support the development of industry-wide technology infrastructure & innovation solutions.

Eligibility: Singaporean Financial Institutions (FIs) & technology or solution providers working with Singaporean FIs.

How It Works: Under FSTI-Proof of Concept (POC), MAS funds up to 50%-70% of qualifying costs, capped at $200,000, for up to 18 months.

6. Technology Enterprise Commercialization Scheme (TECS)

The TECS is a government grants Singapore to help entrepreneurs realize their technology-based ideas into promising businesses. The scheme assists them in growing their business past the seed stage and then, obtain funding from the third-parties to achieve targeted revenues and growth. The proposals for the grant are ranked solely based on the evaluation of technical idea and its commercial merits. The TECS is highly useful to the startups with strong technology Intellectual Property & business model.

Eligibility: Companies registered in Singapore for less than five years and searching for the breakthrough, IP-based, and commercially viable technological solutions.

How It Works: This is a two-tier singapore startup grant: Proof of Concept (up to $250,000) and Proof of Value (up to $500,000).

7. ComCare Enterprise Fund

The ComCare Enterprise Fund (CEF) is relatively new government grants for startups, instituted to provide funding to the social entrepreneurs. It is instituted by the Ministry of Social and Family Development. It is aimed at seeding the Social enterprise startups. If the startup has completed two years, it can seek funds for expanding its activities. The CEF provides specific startup business grants for social entrepreneurs. Administered by the Ministry of Social and Family Development, it aims to seed social enterprises that create jobs for the disadvantaged.

Eligibility: Social enterprise startups that hire and train disadvantages Singaporeans.

How It Works: CEF funds up to of 80% of the capital expenditure and operating costs up to $300,000 for the first two years

Singapore knows the important role that its startups and SMEs plays in its economy. The new Singapore company incorporation implementing the innovative ideas try to reach for the future, whereas the existing SMEs act as its backbone. It is natural for the authorities to support these entities with the government grants Singapore. The Singapore government grants for SME & Startups help these entities a lot at different stages in their life-cycle. The support is available in tax exemptions, rebates, cash payouts, or tax deductions.

Singapore recognizes that SMEs and startups are the backbone of the economy. Whether you are seeking singapore business grants for digital transformation or singapore startup grants for a new tech venture, the support system is robust. By leveraging this government funding in Singapore, your business can gain the financial leverage needed to thrive in a competitive global market.