Are you thinking about establishing a business in Singapore? Grants can be extremely beneficial. In Singapore, 99% of businesses are Small and Medium-sized Enterprises (SMEs), accounting for 47% of the GDP (source: DOS | SingStat Website – Singapore Economy). Singapore’s government recognizes its importance in the economy and offers extensive assistance to entrepreneurs and small enterprises in the country. If you are considering about starting a business or already have one, you can take advantage of over 20 different grant programs. Here’s all you need to know about obtaining a government grant for a Singapore SME.
What types of activities can be funded by a grant?
As an established businessman/businesswoman, you can apply for grants to fund projects that will enable your company to develop or become more efficient. You can seek help creating a new idea or improving your workflow. If you want to expand your business internationally, you can apply for a grant to fund a market study or participation in an international trade exhibition. Small businesses can also fund employee training and development activities, such as classes to master new software or improve presentation abilities.
Meanwhile, as a startup entrepreneur, you may be able to obtain startup financing or finance your proof-of-concept (POC) and proof-of-value (POV). For example, you may have a brilliant concept for a new digital service that provides nutrition guidance based on real-time measures of your fitness and health. A startup grant can fund a technical feasibility study of your idea (POC) to determine whether there is existing technology that would benefit your service and what features it could incorporate. If you have previously established the project’s viability, you can apply for a grant to fund a functional prototype to assess its POV by comparing the cost of production to the price consumers are willing to pay for it.
What is the procedure for applying for a grant?
Enterprise Singapore is Singapore’s major agency in charge of small business and startup incentives. In addition to grants, Enterprise Singapore provides various sorts of assistance, such as assistance with business formation, financing assistance, and tax rebates. Enterprise Singapore operates the SG Startup Portal for tech startups and the SME Portal for Small and Medium-sized Enterprises to assist entrepreneurs. Many SME grants can be applied through the Business Grants Portal.
Many grants and awards are only available to Small and Medium-sized Enterprises (SMEs). To be considered an SME in Singapore, your entity must be registered and operating in Singapore, have a minimum of 30% local shareholding, and the company group’s annual sales turnover should not exceed S$100 million or the employment size should not exceed 200 people.
What are the chances of being accepted?
You can improve your chances of receiving a grant by demonstrating how your idea or firm would benefit Singapore’s economic development. Never make false statements or leave out facts because state funds are being distributed, hence the serious view and stance the agencies take on the matter. If they discover you overstated your successes or withheld critical information, there is a high chance your grant application would be denied, and your business reputation will inevitably suffer as a result.
What are the government grants for enterprises in Singapore?
Financial assistance is essential for company founders. Grants for established small enterprises in Singapore typically cover a portion (normally up to 70%) of particular project expenditures. The project should help your company grow or enhance its efficiency, such as by employing an IT solution to automate mundane and repetitive work or hiring a consultant to examine new markets for your product.
Furthermore, the National Environment Agency (NEA) is Singapore’s principal public organization in charge of preserving a clean and sustainable environment. NEA established a huge number of grants to encourage Singapore firms and organizations to develop and sustain an environmentally friendly environment.
Every year, the Singapore government launches new grant programs, therefore we encourage you to monitor the SME Portal for updates. Here is a collection of small business grants that address the most frequent business needs.
A. Government grants for technology and development advances:
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- Startup SG Tech grants are available for Proof-of-Concept (POC) or Proof-of-Value (POV), with funds ranging from S$250,000 for POC to S$500,000 for POV. It is appropriate for early-stage startups in specific industries. This program has three application stages: registration of interest, application, and evaluation, and panel evaluation.
- The Enterprise Development Grant (EDG) is a grant for business development, such as introducing new ideas or expanding into international markets. Singapore-registered enterprises with at least 30% local shareholding are eligible for this incentive. According to Budget 2022, support levels for the Food Services and Retail sectors will be up to 80% from 1 April 2022 to 31 March 2023. Because of the high volume of grant applications received in the first quarter of 2022, you may face a longer processing period than usual. You may apply through the Business Grants Portal.
- Singapore 5G’s Grant is suitable for owners of tech and media businesses. This is your chance if you are a Singapore-registered firm or part of a partnership consortium with an effective 5G-enabled solution ready-to-go commercial. Interested candidates can submit the completed proposal form to 5GSG@imda.gov.sg with the email subject header “5G Innovation <Tech Domain> – <Company/Consortium Name>”. Infocomm Media Development Authority (IMDA) will support up to 70% of qualifying costs for approved projects.
- Productivity Solutions Grant (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.
- The Kickstart Fund encourages the development and testing of novel consumer-focused concepts and events that have high tourist potential and scalability. This is done to supplement the existing excellent tourism software and to boost the diversity of Singapore as a tourist destination. It is open to all legal entities with qualifying projects like customer-focused events, virtual events, B2B2C events, etc. Successful applications will be compensated for qualified costs up to a maximum grant of $250,000 per edition (multi-edition supported, up to 3 editions over maximum 3 years).
B. Government Grants for Green Projects through NEA:
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- The 3R Fund is a co-funding scheme designed to encourage organizations to minimize garbage disposed of at NEA’s incineration plants and disposal sites through waste minimization and recycling projects. Projects involving new and creative techniques and concepts, as well as waste streams with low recycling rates, such as food, plastic, and glass, will be prioritized. Applications can be submitted at any time of the year.
- The Energy Efficiency Fund (E2F) is a multi-grant program that helps enterprises with industrial facilities increase their energy efficiency (EE).
a. Energy Efficient Technology Fund: It provides up to 70% funding for investments in energy-efficient equipment or technologies.
b. Energy Assessment Fund: It supports up to 50% to carry out detailed energy audits in existing facilities
c. Resource Efficient Design: It supports up to 50% to conduct design workshops to improve efficiency for new facilities or major expansion
d. Energy Management Information System: It supports up to 50% to install Energy Management Information System to monitor energy consumption.
e. The Hawkers’ Productivity Grant (HPG) is a financial incentive designed to encourage individual stallholders to be more productive by utilizing automation equipment. The HPG will co-fund stallholders’ purchases of appropriate automation equipment to assist them in achieving improved productivity in preparing and serving sale items to clients using technology. Eligible stallholders can claim up to $5,000 in compensation for 80% of the equipment unit cost (excluding GST). Equipment that has been financed by other government funding programs will not be supported in this programme.
If you want to start a business in Singapore, make sure you hire an expert company incorporation service provider. Please do not hesitate to contact us at +65 8940 3532 (Kelly)! We will guide you on all the beneficial grants and programs to which you are most suited.
