Government Grants Supported in Singapore

Singapore continues to remain committed to economic progress by creating a supportive environment for small and medium-sized enterprises (SMEs). Singapore’s government recognizes that young entrepreneurs seem in need of proper mentorship and financial support. One of the important factors attracting international entrepreneurs to Singapore is the abundance of financing options for startups.

A grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs listed on the GoBusiness government’s website. Business Grants Portal (BGP) is also made to bring government grants for businesses into one place, so it’s easier to find and apply for the grants you need. The Portal is brought to you by the Ministry Of Finance, the Ministry Of Trade And Industry, and the Government Technology Agency.

The government assists businesses in creating talents, innovations, and business transformation to stay competitive and relevant in the present or even future markets. Grants, assistance schemes, and funding programs are provided to support businesses. The aids range from digital solutions to market development and manpower upscaling. Let’s get started to know more about what grants the government has provided.

First, if you need help during this COVID-19, you might have to look at these grants.

1. 1. Career Trial grant – allows firms to examine applicants’ work fit through a short-term trial prior to official hiring during Covid-19. For the trial term, the government would pay a training allowance to job applicants (up to 3 months).
   2. The Jobs Growth Incentive (JGI) – launched on August 17, 2020, to encourage firms to hire local workers faster by giving pay assistance, in order to develop good, long-term jobs for locals.
   3. Enabling Employment Credit (EEC) – The EEC will be offered to firms that engage Singaporean employees with disabilities aged 13 and above and earning less than $4,000 per month to support the employment of people with disabilities. From 2021 through 2025, EEC will be available for five years. It offers a pay offset of up to 20% of the employees’ monthly revenue, with a monthly ceiling of $400 for each employee. Furthermore, firms that hire Singaporean individuals with disabilities who have not worked for at least six months would get an additional 10% salary offset, up to $200 per month per employee, for the first six months of employment.
   4. The SkillsFuture Work-Study Programmes (WSPs) – A program established by Institutes of Higher Learning (IHLs) and SSG’s appointed private training providers to enable fresh graduates from polytechnics, Institute of Technical Education (ITE), and mid-career individuals with a head start in careers related to their discipline of study through work-study arrangements within organizations. Receive a grant of up to $15,000 per trainee placed in the programme to defray the costs of developing and providing structured on-job-training.

Second, the government has Startup SG Founder suitable for newly built businesses.

The Startup SG Founder grant is designed for first-time entrepreneurs. This initiative offers budding entrepreneurs mentoring as well as an SGD 30,000 initial capital grant, which matches SGD 3.00 for every SGD 1.00 raised by the business. In other words, the firm must invest SGD 10,000 in order to obtain a maximum reward of SGD 30,000. Singapore nationals and permanent residents who are first-time entrepreneurs who apply through an Accredited Mentorship Partner are eligible for the SG Founder award (AMP).

To receive this grant, entrepreneurs must follow these conditions:

1. 1. Must hold or propose to at least 30% of the company
   2. Not a full-time employee of another company since entrepreneurs required full dedication
   3. Shouldn’t receive funding from another government organization
   4. The first-time entrepreneur must incorporate a private limited company in Singapore after approval.
   5. If the first-time entrepreneur already owns a firm in Singapore, it must be less than six months old and have at least 51% of its shares in Singapore.

If you are a tech SME, this Startup SG Tech grant is an ideal offer.

This grant is for helping tech startups and offering support for the commercialization of new technology. These small enterprises may be awarded a Proof-of-Concept (POC) or a Proof-of-Viability (POV) grant. The POC project will get up to SGD 250,000 in funding to demonstrate the technical and scientific feasibility of innovative technology. A POV project, which can get financing of up to SGD 500,000, investigates the technical/scientific viability of lab-proven technology. The SG Tech scheme offers cash grants to the following industries:

1. 1. Advanced manufacturing and robotics
   2. Biomedical sciences and healthcare
   3. Clean technology, such as waste management solutions and sustainable energy generation
   4. Information and communications technology
   5. Precision engineering
   6. Transportation technology
   7. Food science and technology

To be eligible for this grant, the firm must meet the following requirements:

1. 1. Operating in Singapore for less than five years and registered for less than five years
   2. Have at least 30% local ownership.
   3. The yearly income must be less than SGD 100 million, or fewer than 200 employees must be employed.

Other than SG Tech, the government also provides grants for you to adopt technology and digitize your business.

• • Operation & Technology Roadmap (OTR)

Technology roadmaps are created to lay out goals that are aligned with corporate strategy and growth plans. Eligible SMEs may obtain financing help of up to 70% and LLEs may obtain up to 30%.

• • Productivity Solutions Grant (PSG) which was mentioned in the 2022 Budget

The PSG assists businesses in implementing productivity initiatives. From April 1, 2022, the highest amount of assistance will be 70%. From 1 April 2022 to 31 March 2023, the expanded assistance level is up to 80% for qualified solution sub-categories in the Food Services and Retail sectors.

• • Start Digital

SMEs that are new to adopting digital technology can use any two solutions, such as digital marketing, digital collaboration, accounting, human resources/payroll, cybersecurity, and so on, for free for at least six months (min. 18 months contract). SMEs may sign up for Start Digital Packs via any of the Start Digital partners, including DBS, Maybank, OCBC, UOB, and Singtel, or utilize Chief Technology Officer-as-a-Service (CTO-as-a-Service).

• • Technology for Enterprise Capability Upgrading (T-Up)

Gain access to A*STAR’s Research Institutes’ talent and develop in-house R&D skills. Eligible SMEs can apply for a 70% grant from Enterprise Singapore to cover qualifying costs.

Up next, we have Startup SG Equity suitable for firms with qualified third-party investors under this program.

The government would be required to spend 70% of the funds up to the first SGD 250,000 and a ratio of 1:1 up to the investment maximum of SGD 2 million in general tech businesses. The Singapore government would grant 70% up to the first SGD 500,000 and 1:1 up to SGD 4 million for deep tech businesses. Startups must comply with these requirements to apply for Startup SG Equity:

1. 1. Be a Singapore-based firm with primary activities in Singapore.
   2. Be a private limited corporation for fewer than five years.
   3. Have a minimum paid-up capital of SGD 500,000
   4. Be able to demonstrate significant original innovation and intellectual property for its products and/or services
   5. In the worldwide market, have significant development potential with evident scalability.
   6. Have found an impartial third-party investor (s)
   7. The company must not be involved in gambling, tobacco-related products, or other illegal or anti-public-interest activities.
   8. The business cannot be a subsidiary or joint venture.

Furthermore, if you are interested to bring your business go international, the government will offer grants, such as;

• • Market Readiness Assistance (MRA): The MRA grant covers up to 70% of qualified third-party expenses, with a cap of SDG$100,000 per firm per new market. The costs with the MRA grant from 1 April 2020 – 31 March 2023. It includes the following activities:

1. 1. Set up an overseas market (capped at SDG$30,000)
   2. Overseas market promotion (SDG $20,000 maximum)
   3. Overseas business development (SDG $50,000 maximum)

• • Grow Digital: When SMEs join pre-approved Business-to-Business (B2B) and Business-to-Consumer (B2C) e-commerce platforms with a global or regional reach, they can obtain cash support. Eligible SMEs may obtain up to 70% financing to participate in the Grow Digital platforms. Adoption of these systems does not contribute toward Productivity Solutions Grant funding, which is restricted to S$30,000 per SME per year.
  • The Enterprise Development Grant (EDG): It assists Singapore businesses in growing and transforming. Under three prongs, this award supports programs that assist you to enhance your firm, innovate, or move worldwide.
  • Local Enterprise and Association Development (LEAD) Programme: TACs interested in driving capability development and internationalization initiatives can use the LEAD program. For qualifying projects, LEAD will help up to 70% of applicable expenditures.

If you intend to establish your company in Singapore, be sure you use an experienced company incorporation service provider. Thus, don’t hesitate to contact us at +65 8940 3532 (Kelly)! We will not only assist you but will also be able to advise you on all the valuable grants and programs to which you’re entitled.