SME grants Singapore 2025: grant options, eligibility, and amounts

Understanding SME grants in Singapore

What are SME grants?

SME grants refer to funding schemes designed to provide financial support to small and medium enterprises (SMEs) in Singapore.

These grants are given to businesses under the premise that the funds will be spent in a specific way. Unlike loans, grants do not need to be repaid, making them an attractive funding option for SMEs.

While most funding schemes in Singapore are distributed by the government through agencies like Enterprise Singapore, grants are also offered by private corporations, foundations, and trusts. SME grants are designed to support businesses in areas such as productivity improvement, digital transformation, market expansion, talent development, and more.

How are SME grants disbursed to businesses in Singapore?

Singapore's government grants are disbursed through government agencies like Enterprise Singapore, Infocomm Media Development Authority (IMDA), National Research Foundation (NRF), Workforce Singapore (WSG), and Singapore Tourism Board (STB).

Each government agency handles different types of grants based on specific business needs. While the grant disbursement process may vary depending on the agency, it typically involves:

• Submitting a grant application: Apply through the Business Grants Portal (BGP), a one-stop platform for accessing government grants.¹ Certain types of grants, such as industry-specific grants, aren’t available for application through the portal. For these, contact the relevant government agency for application details.

• Grant approval: The relevant government agency will review your grant application. If your application is approved, you’ll receive a Letter of Offer (LOF) outlining the grant amount and conditions.

• Project execution: Implement your project according to the approved plan. Ensure that you follow the grant guidelines and maintain proper documentation for the claims submission.

• Claims submission: After project completion, submit your claims along with supporting documents for reimbursement.

• Funds disbursement: Once your claims have been approved, the funds will be disbursed via PayNow Corporate or GIRO. You’ll be notified of the disbursement status through email.

When should businesses consider applying for Singapore SME grants?

SMEs may consider applying for government business grants when undertaking growth initiatives such as:

Research and development

Investing in research and development (R&D) can be costly, but it's crucial for SMEs. It allows them to experiment with cutting-edge technologies and create innovative technology products and solutions. This can include improving energy efficiency for equipment, integrating blockchain into existing systems, or adopting predictive analytics for demand forecasting.

Productivity improvements

Government grants give SMEs the capital they need to implement business activities that boost efficiency. Measures like digitising customer interactions, providing training programs, and adopting AI automation help streamline operations, allowing businesses to achieve more with the same resources.

Expansion into new consumer segments

Expanding into new consumer segments can unlock fresh opportunities, reach new customers, and diversify your revenue streams. With government grants, you can access funding to conduct consumer research, launch targeted marketing campaigns, and develop products that resonate with your new audience.

Expansion into international markets

Expanding into international markets is a significant and costly investment for SMEs, often requiring a substantial upfront budget that can strain resources. Government grants can ease this financial burden by covering costs for setting up operations, forming strategic partnerships, participating in trade fairs, and establishing a strong overseas marketing presence.

Optimise your global financial operations with Airwallex

Expanding into international markets presents unique financial challenges for SMEs, from managing currency fluctuations to navigating complex international banking systems. Airwallex simplifies these cross-border financial operations, helping you save time and money.

With Airwallex Global Accounts, you can skip the hassle of opening foreign bank accounts. Instantly access local bank details to invoice and receive payments in your customers’ preferred currencies. Hold these funds in your Wallet and pay suppliers and employees in the same currency, reducing unnecessary conversion fees.

By holding multiple currencies, you avoid high conversion costs and maximise your profits.

Saturday Club used Airwallex to seamlessly open Global Accounts in each of its operating markets, enabling them to receive payments like a local without incurring additional fees. They converted overseas sales profits back to SGD at competitive rates, maximising revenue. Overall, this streamlined approach helped them save up to 99% on conversion and telegraphic transfer fees.

Government grants that support overall business development

Enterprise Development Grant (EDG)

Details: The EDG grant aims to help SMEs grow and transform. It is built on three pillars:

• Core Capabilities: business strategy development, financial management, service excellence, and more.

• Innovation and Productivity: driving growth through new technologies and improved systems.

• Market Access: supporting SMEs expanding into global markets.

Grant amount: From 1 April 2023, SMEs can receive up to 50% funding support for eligible costs. Sustainability-related projects may be supported at up to 70% from 1 April 2023 to 31 March 2026.²

Market Readiness Assistance (MRA) Grant

Details: The grant helps SMEs expand overseas by covering three key areas: overseas market promotion (capped at S$20,000), overseas business development (capped at S$50,000), and overseas market set-up (capped at S$30,000).

Grant amount: Up to 50% of eligible costs, capped at S$100,000 per company per new market. The enhanced MRA grant cap of S$100,000 will be extended until 31 March 2026.³

Energy Efficiency Grant

Details: The Energy Efficiency Grant supports businesses in the food services, food manufacturing, and retail sectors. It covers the purchase of pre-approved energy-efficient equipment under the following product categories: LED lighting, air-conditioners, cooking hobs, refrigerators, water heaters, and clothes dryers.

Grant amount: Up to 70% of costs for energy-efficient equipment, capped at S$30,000 per company per year.⁴

Government grants that support the adoption of IT solutions

Productivity Solutions Grant (PSG)

Details: The PSG grant helps your business adopt IT solutions and equipment to improve existing processes and increase productivity. The grant covers sector-specific solutions for industries like retail, food, logistics, precision engineering, wholesale, landscaping, and construction. It's also applicable to non-sector-specific business activities, such as customer management, data analytics, financial management, and inventory tracking.

Grant amount: Up to 50% of qualifying project costs (capped at S$30,000).⁵

Government grants that support partnerships and co-innovation

Enterprise Development Grant (Co-Innovation Programme)

Details: Unlike the EDG grant listed above, this grant is designed specifically for SMEs participating in innovation projects with international partners through Enterprise Singapore. These partners are from markets such as France, Germany, Israel, Jiangsu, Korea, Shanghai, the UK, and Zhejiang.

Grant amount: Up to 50% support for qualifying cost items. Sustainability-related projects may be supported at up to 70% from 1 April 2023 to 31 March 2026.⁶

PACT Programme

Details: The Partnerships for Capability Transformation (PACT) Programme is designed for businesses looking to collaborate with other companies on initiatives that go beyond typical business activities. These collaborations can include co-innovation, knowledge transfer, shared resources, or supplier-partner development.

Grant amount: Under PACT, current support levels for SMEs cover up to 70% of qualifying costs for software, materials, professional services, and manpower. For hardware and equipment costs, the support rate is up to 50% of qualifying costs.⁷

Government grants for talent development

As a business, you can apply for talent development grants through Workforce Singapore (WSG).

Career Trial

Details: Through WSG’s Career Trial, SMEs can assess a jobseeker’s fit for a job by placing them on a short-term trial before offering permanent employment.

For full-time positions, the trial duration is capped at 480 hours, while for part-time positions, it's up to 240 hours (with a monthly cap of 80 hours). Businesses must offer jobs that pay at least S$1,500 for full-time positions or S$750 for part-time positions.

Grant Amount: Firms can receive salary support for jobseekers ranging from S$7.50 to S$15 per hour. Firms may also receive S$500 for retaining a jobseeker for three months or S$1,000 for six months of retention (additional criteria apply).⁸

Career Conversion Programmes (CCPs)

Details: The programme is designed to help businesses meet their workforce needs by reskilling existing employees or mid-career workers. There are three types of CCPs: Place-and-Train, Attach-and-Train, and Job Redesign (JR) Reskilling.

Grant amount: Up to 90% of salary and training course fees.⁹

Enhanced Training Support for SMEs

Details: The grant is designed for SMEs that sponsor training and upskilling courses for their employees. The employee must be a Singapore Citizen or Permanent Resident (PR). The courses must be offered at Continuing Education and Training (CET) Centres, one of the autonomous universities, polytechnics, the Institute of Technical Education (ITE), or the National Institute of Early Childhood Development (NIEC).

Grant amount: Up to 90% of course fees.¹⁰

Government grants for specific sectors

There are various government agencies running SME grant programmes that are specific to their sector. These include:

Singapore Tourism Board (STB)

The Singapore Tourism Board (STB) supports the tourism sector through three main schemes:

• Tourism Capability Development Scheme: The scheme supports productivity and talent development. It provides funding support for tourism companies through the Business Improvement Fund (BIF), Local Enterprise and Association Development Programme (LEAD), and Training Industry Professionals in Tourism (TIP-iT).

• Tourism Event Development Scheme: The scheme supports events that enhance Singapore’s reputation as an international lifestyle and business events hub. It offers funding support for tourism companies through the Business Events in Singapore (BEiS) scheme, Kickstart Fund (KF), and Leisure Events Fund (LEF).

• Tourism Product Development Scheme: The scheme supports the creation and business rejuvenation of tourism products. It provides funding support through the Cruise Development Fund (CDF), Experience Step-Up Fund (ESF), and Tourism Product Development Fund (TPDF).¹¹

Monetary Authority of Singapore (MAS)

The Monetary Authority of Singapore (MAS) provides various grants and support schemes to foster growth and innovation in the financial services industry.

• Sustainable Bond Grant Scheme: The scheme supports companies of all sizes in obtaining green and sustainable financing.¹²

• Artificial Intelligence and Data Analytics (AIDA) Grant: The grant encourages the adoption of AI and data analytics solutions to enhance decision-making and generate business insights. It is open to financial institutions, fintechs, and industry consortiums.¹³

Frequently asked questions (FAQs)

1. How can businesses apply for an SME grant in Singapore?

The launch of the Business Grants Portal (BGP) has streamlined the SME grant application process, making it easier and more convenient for businesses to complete their application.

• Log in to the BGP using your Singapore Corporate Access (CorpPass). CorpPass is a corporate digital identity that enables businesses to transact with government agencies online.

• Fill in your company profile details and provide the required information for your grant application.

• The Business Grants Portal automatically extracts your company’s details from the Accounting and Corporate Regulatory Authority’s (ACRA) database using your company’s Unique Entity Number (UEN). This streamlines the application process and ensures accuracy.

• Once your application has been submitted, it may take four to 10 weeks for it to be processed. Keep track of the status of your application via the BGP, and be prepared to provide additional information if requested.

• If your grant application is approved, your company will receive a Letter of Offer (LOF) outlining the grant amount and conditions. You’ll need to log in to the BGP within the indicated time frame to accept the LOF. Failure to do so may render your application invalid.

2. Are there government business grants catering to startups in Singapore?

Yes, there are government business grants catering to startups in Singapore. Startup SG, a scheme that provides funding and mentorship to businesses, offers a number of grants, such as the Startup SG Founder Grant,¹⁴ Startup SG Tech,¹⁵ and Startup SG Equity Programme.¹⁶ Additionally, the MINT-Startup Grant, offered by the Maritime and Port Authority of Singapore (MPA), supports tech startups in the maritime sector.¹⁷

3. How long does the SME grant application process typically take?

Generally, your SME grant application can take between four to 10 weeks to be processed.18

Keep in mind that the processing time may vary depending on the government agency, type of grant, and the complexity of your project proposal. Processing time may also be extended if there are delays, such as when the government agency requires further clarification about your application or submitted documents.

4. Can I apply for multiple SME business grants at the same time?

Yes, you can apply for multiple SME grants at the same time. However, you need to ensure that there are no overlaps in funding for the same project, or type of costs.

5. How can I successfully secure an SME grant for my small business?

Carefully assess the eligibility criteria

The first step is to find the right SME grant for your business. Begin by assessing the eligibility criteria for the SME grants you’re keen on applying for. In general, businesses are eligible if they meet the following criteria:

• The business owner must be a Singaporean Citizen or a PR.

• Your company must be a registered business entity in Singapore, with at least 30% local shareholding.

• Your business must be primarily operating within Singapore.

• The total sales turnover is typically capped at S$100 million, and the company’s group employment size shouldn't exceed 200.

Tailor your application to the SME grant

In addition to the general criteria, each SME grant has specific requirements related to industry focus, project scope, revenue, and funding stages. Review the guidelines carefully to make sure your business qualifies before starting your application.

Ensure that you tailor your application to align with the grant’s specific objectives, outlining how your project meets these goals. Include relevant data and metrics to show the impact of your project, and highlight the skill sets and expertise of your team.

Incorporating specific phrases and language from grant guidelines can also help. This demonstrates that you understand, and can meet the grant requirements.

Prepare a comprehensive business plan

A comprehensive business plan is key to supporting your SME grant application. Clearly outline your business activities, growth strategies, and financial plans to strengthen your application.

Your business finances and funding requirements should be a focal point in your proposal. Provide detailed insights into your financial standing, including revenue, expenses, profitability, cash flow, and debt.

Clearly link the funding to your projected financial success and business outcomes. Explain why you need the grant and how it'll help your business achieve its goals.

Airwallex: simplifying financial operations for SMEs

Small business owners often wear many hats, and can benefit from utilising financial platforms that simplify financial management.

Airwallex fills this gap with its suite of comprehensive financial tools, including Expense Management, Global Accounts, and FX & Transfers. Take organic baby food brand Little Blossom as an example. As the company expanded into markets abroad, its network of global suppliers grew, increasing the complexity of managing international payments. This meant navigating multiple currencies and dealing with fluctuating exchange rates.

The increase in overseas payments also meant that high transfer fees could significantly impact their bottom line, eating into profit margins. To remain competitive, Little Blossom needed a cost-effective solution that could manage its growing payment needs. ​​

By partnering with Airwallex, Little Blossom instantly opened a USD account, allowing them to receive, hold, and send USD to their suppliers without unnecessary conversion fees. Airwallex’s partnerships with local payment rails and banks in 120+ countries also enabled them to bypass SWIFT and access free international transfers, significantly reducing their transfer costs.

This resulted in substantial cost savings, improved cash flow, and enhanced operational efficiency, empowering Little Blossom to confidently expand into global markets.

Sources:

1. https://www.businessgrants.gov.sg

2. https://www.enterprisesg.gov.sg/financial-support/enterprise-development-grant

3. https://www.enterprisesg.gov.sg/financial-support/market-readiness-assistance-grant

4. https://www.enterprisesg.gov.sg/financial-support/energy-efficiency-grant

5. https://www.enterprisesg.gov.sg/financial-support/productivity-solutions-grant

6. https://www.enterprisesg.gov.sg/grow-your-business/innovate-with-us/market-access-and-networks/global-innovation-alliance/cip-programmes

7. https://www.edb.gov.sg/en/about-edb/media-releases-publications/collaborations-for-enhanced-partnerships-for-capability-transformation.html

8. https://www.wsg.gov.sg/home/employers-industry-partners/workforce-development-job-redesign/career-trial-for-employers

9. https://www.wsg.gov.sg/home/employers-industry-partners/workforce-development-job-redesign/career-conversion-programmes-employers

10. https://www.skillsfuture.gov.sg/initiatives/employers/enhanced-training-support-for-smes

11. https://www.stb.gov.sg/licensing-support/grants/grants-overview

12. https://www.mas.gov.sg/schemes-and-initiatives/sustainable-loan-grant-scheme

13. https://www.mas.gov.sg/schemes-and-initiatives/artificial-intelligence-and-data-analytics-aida-grant

14. https://www.startupsg.gov.sg/programmes/4894/startup-sg-founder

15. https://www.startupsg.gov.sg/programmes/4897/startup-sg-tech

16. https://www.startupsg.gov.sg/programmes/4895/startup-sg-equity

17. https://www.mpa.gov.sg/maritime-singapore/what-maritime-singapore-offers/programmes-to-support-your-maritime-business/mint-fund

18. https://www.gobusiness.gov.sg/business-grants-portal-faq/application-status-and-processes

This publication does not constitute legal, tax, or professional advice from Airwallex, nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.