SME grants in Singapore are financial aids provided to small and medium-sized enterprises (SMEs) to support their growth. These grants are typically offered by the government, corporations, foundations, or trusts and help businesses with expenses such as purchasing equipment, hiring staff, and developing new products or services.
By understanding the different SME grants available, businesses can leverage financial assistance to scale operations and stay competitive.
SMEs, or small and medium-sized enterprises, are businesses with an annual turnover below S$100 million or a workforce of fewer than 200 employees. In Singapore, they make up 99% of all businesses, employing 71% of the workforce and contributing nearly half of the nation’s GDP. Their vital role significantly impacts the local economy and livelihoods.
The Singapore government supports SMEs with various grants because they play a vital role in the economy. Unlike large corporations, SMEs have unique business needs, such as securing working capital for daily operations or funding growth projects. Some grants help SMEs improve efficiency by automating processes, while others support expansion, such as opening a new branch, conducting market research, or hiring staff.
Grants are especially useful because securing bank loans can be challenging for SMEs due to their smaller size and limited track record. In fact, 40% of SMEs in Singapore struggle to get bank loans, particularly newer businesses operating for less than a year.
Key Criteria for SME Eligibility in Singapore
Before applying for government business grants, it’s essential to understand the key qualifications for being recognized as an SME in Singapore. Generally, a business must meet the following criteria:
1️⃣ Registered and operating in Singapore
2️⃣ At least 30% local shareholding
3️⃣ Either one of the following:
Most SME grants prioritize businesses with local ownership. Foreign-owned companies must have at least one Singapore Citizen or Permanent Resident (PR) as a shareholder to be eligible.
It's also important to note that different grants may have varying requirements, so these criteria serve as a general guideline. Always check the specific eligibility conditions for each grant before applying.
The Singapore government provides SME grants through various agencies, with Enterprise Singapore being the main agency supporting business growth. Besides financial aid, SMEs can also get help with business setup, digital transformation, and partnership programs.
There are many grants available, each designed to support different business needs.
Grant Amount:
For more details, visit the Enterprise Development Grant website.
Funding Support:
Eligible Equipment:
The grant applies only to pre-approved energy-efficient equipment. For more details, visit the Energy Efficiency Grant webpage.
Funding Support:
What the Grant Covers:
For more details, visit the Market Readiness Assistance Grant webpage.
Funding Support:
Purpose:
What the Grant Covers:
For more details, visit the Productivity Solutions Grant webpage.
PACT Programme
The PACT Programme supports businesses that want to collaborate beyond regular business partnerships.
Funding Support:
Purpose:
Types of Collaborations Covered:
A Lead Enterprise will guide the project to ensure all companies involved benefit. For more details, visit the PACT Programme webpage.
Enterprise Development Grant (Co-Innovation Programme)
Purpose:
This grant supports businesses working on innovation projects with Enterprise Singapore’s international partners.
Funding Support:
Who Can Apply?
Businesses collaborating with international partners from countries and networks like Eureka Network, France, Germany, Israel, Jiangsu, Korea, Shanghai, UK, and Zhejiang.
What It Covers:
For more details, visit the Enterprise Development Grant page.
Workforce Singapore (WSG) Grants:
WSG offers different grants to help SMEs in Singapore train and upgrade their employees, making businesses more competitive.
The job must pay at least $1,500/month (full-time) or $750/month (part-time).
Job Redesign (JR) Reskilling – Helps businesses that are restructuring by retraining employees for new roles.
Courses must be offered by CET Centres, Autonomous Universities, Polytechnics, ITE, or the National Institute of Early Childhood Development (NIEC).
Certain government agencies in Singapore offer grants for businesses in their specific industries. Examples include the Infocomm Media Development Authority (IMDA), Monetary Authority of Singapore (MAS), Health Promotion Board (HPB), and Singapore Tourism Board (STB).
| Grants provided by IMDA: Support for SMEs to Go Digital Purpose: IMDA helps SMEs adopt digital solutions easily with various grants and programs. Grant Amount: Varies. Details: SMEs can get subsidized Digital Project Management Services to ensure smooth and timely implementation of digital solutions. For advanced needs like data analytics and cybersecurity, they can access the SME Digital Tech Hub, set up by IMDA and run by the Association of Small and Medium Enterprises (ASME). Additional support is available through programs like GoCloud and GoSecure. |
| Regulatory Technology (RegTech) Grant by MAS Purpose: Part of the FSTI scheme, this grant helps financial institutions improve risk management and regulatory compliance using technology. Grant Amount: Covers up to 30% of eligible costs (except for manpower expenses for non-SCs and PRs, which are funded up to 15%), with a maximum grant of $100,000. The funding period is up to 18 months from the project start date (as of 7 August 2023). Details: There are two tracks: Production Level Project Track – Supports fully developed RegTech solutions, either built from scratch or customized from existing commercial solutions. Covers costs like hardware, software, professional services, manpower, and external auditor certification. Pilot Track – Supports early-stage prototyping of RegTech solutions, covering hardware, software, professional services, and manpower costs. |
| Grants by HPB Purpose: HPB offers grants to help F&B businesses provide healthier, high-quality food, supporting a healthier nation. Grant Amount: Varies. Details: Some key initiatives include the Healthier Dining Grant to encourage healthier food options and the Healthier Ingredient Development Scheme to promote better ingredients in food preparation. |
| Grants provided by STB Purpose: STB launched a 4-year Tourism Development Fund to boost tourism in Singapore. It helps tourism businesses create new and exciting experiences while also supporting staff training and skill development. Grant Amount: Varies. |
SMEs can apply for grants through the Business Grants Portal, a one-stop platform to submit and track applications. To log in, use your company’s CorpPass.
Tips for a Successful Application
Take the time to research and identify the grant that best suits your company’s needs. Always review the eligibility requirements and prepare the necessary documents before applying. For more information or assistance, contact Clooud Consulting — we're here to guide you with expert advice every step of the way.
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