Startups and SMEs may miss out on valuable government support because it can often feel overwhelming and leave them unsure where to begin. In this guide, we will walk you through the most relevant funding options and government grants available for startups in Singapore, helping you confidently navigate your choices and take the next steps toward growing your business.
What Are Government Grants and How Can They Help?
A government grant is financial assistance provided by government agencies to eligible businesses for specific purposes. Unlike loans, grants do not require repayment, making them a valuable resource for startups that often face cash constraints in their early stages.
Running a startup involves unavoidable costs and risks. Whether it’s adopting new technology, hiring skilled staff, or entering new markets, government grants help ease these financial pressures by providing partial funding, so SMEs can invest in growth opportunities without bearing the full burden upfront.
Funding Options for Startups in Singapore
Grants are an important part of the support ecosystem, but they are not the only source of funding. Depending on your business stage and goals, consider these funding options that provide capital, loans, co-investments, and tax incentives to fuel your growth:
-
Startup SG Equity: A government co-investment scheme that matches private investors’ funds to help startups secure early-stage capital and attract more private funding.
-
Business Loan Schemes: Government-backed loans available through banks or financial institutions, commonly used by businesses for working capital, expansion, or daily operations.
-
SME Working Capital Loan: A loan designed to support SMEs with short-term cash flow needs, helping them cover day-to-day expenses, inventory, and operational costs.
-
Tax Incentives: Government tax breaks or rebates that encourage business growth and innovation by reducing the tax burden on startups and SMEs, often tied to R&D, hiring, or investments.
Which Grant & Funding Is Best for Your Startup’s Needs?
Not sure where to start? We have grouped popular Singapore government grants and funding schemes by business goal, from obtaining your first funding to scaling globally. Use this guide to quickly find the support that fits your startup’s stage and needs.
Quick Overview of Popular Grants & Funding for SMEs (2025)
-
Startup Financing: Grants like Startup SG Founder, EDG, and Startup SG Loan support early-stage businesses with capital, mentorship, and product development.
-
Digital Transformation: PSG and SMEs Go Digital help SMEs adopt digital tools and improve operations.
-
Hiring & Workforce Development: CCPs, WSS, and Job Redesign Support and SFEC help businesses train, retain, and reskill employees.
-
Global Expansion: MRA and GIA lower the cost of entering overseas markets and testing products abroad.
-
Innovation and Research: Enterprise Innovation Scheme, Startup SG Tech, and T-Up drive product development and R&D through funding and partnerships.
1. Startup Financing
| Name | Agency | Support | Eligibility |
|---|---|---|---|
| Startup SG Founder | Enterprise Singapore | Funding of up to $50,000, plus mentorship support | First-time entrepreneurs; Singapore-based; incorporated <6 months; ≥30% applicant equity; 51% Singaporean/PR shareholding; founders must be full-time; at least one core team member must be Singaporean/PR |
| Enterprise Development Grant (EDG) | Enterprise Singapore | Covers up to 50% of qualifying project costs for SMEs (30% for non-SMEs) | Registered and operating in Singapore; ≥30% local shareholding; financially viable |
| Startup SG Loan | Enterprise Singapore | Government-backed financing tailored to businesses' growth stages and needs | Singapore-based SMEs (Group revenue ≤ $100M or ≤ 200 employees); ≥30% local shareholding |
2. Digital Transformation
| Name | Agency | Support | Eligibility |
|---|---|---|---|
| Productivity Solutions Grant (PSG) | Enterprise Singapore | Up to 50% of costs for pre-approved IT solutions and equipment, capped at S$30,000 per solution | Singapore-based SMEs (Group revenue ≤ S$100M or ≤ 200 employees); at least 30% local shareholding; solution must be used locally |
| SMEs Go Digital | Infocomm Media Development Authority (IMDA) | Subsidies to support businesses adopting digital solutions | SMEs registered and operating in Singapore, with at least 30% local shareholding; solution must be used locally |
3. Hiring & Workforce Development
| Name | Agency | Support | Eligibility |
|---|---|---|---|
| Career Conversion Programmes (CCPs) | Workforce Singapore (WSG) | Funding support for reskilling mid-career hires, up to 70-90% salary support | Singapore-based companies hiring or reskilling local employees; criteria vary by occupation and sector. |
| Workforce Skills Support (WSS) | SkillsFuture Singapore (SSG) | Subsidies for course fees and absentee payroll | Employed or self-employed Singapore citizens; age ≥30 (or ≥13 with disabilities); monthly income ≤ S$2,500. |
| Job Redesign Support | Workforce Singapore (WSG) | Up to 80% funding for job redesign initiatives, including consultancy and training costs | SMEs registered and operating in Singapore, focusing on job redesign to improve productivity and job quality; with ≥30% local shareholding |
| SkillsFuture Enterprise Credit (SFEC) | SkillsFuture Singapore | Provides up to $10,000 to cover training and workforce transformation expenses | Employers who have contributed at least S$750 in Skills Development Levy during the qualifying period, with a minimum of 3 Singaporean or PR employees. |
4. Global Expansion
| Name | Agency | Support | Eligibility |
|---|---|---|---|
| Market Readiness Assistance (MRA) | Enterprise Singapore | Up to 50% support (max S$100,000 per new market) for overseas expansion activities | Registered and operating in Singapore; ≥30% local shareholding; group annual turnover under S$100 million |
| Global Innovation Alliance (GIA) | Enterprise Singapore | Co-funding & support for overseas market acceleration and partnership programmes. | Singapore-registered startups exploring global markets; ≥30% local shareholding |
5. Innovation and Research
| Name | Agency | Support | Eligibility |
|---|---|---|---|
| Enterprise Innovation Scheme | Enterprise Singapore | Up to 400% tax deduction or 20% cash payout for qualifying R&D and innovation expenses | Singapore-registered companies incurring qualifying innovation and R&D expenses |
| Startup SG Tech | Enterprise Singapore | Grants for early-stage tech projects: up to S$250,000 (Proof-of-Concept) and S$500,000 (Proof-of-Value) | Less than 10 years old, innovative, registered in Singapore, with turnover under S$100 million and ≥30% local equity |
| Technology for Enterprise Capability Upgrading (T-UP) | A*STAR | Costs are subsidised up to 70% for SMEs and startups | Singapore-registered SMEs (Group turnover ≤S$100 million and employment ≤200); with at least 30% local shareholding, focused on R&D and capability development |
Note: This table provides a high-level overview of grants and funding available in Singapore. Please consult official sources for full eligibility criteria and application details.
How to Apply for Government Grants and Funding in Singapore
Applying for government support involves different channels depending on whether you are applying for grants, loans, equity co-investment, or tax incentives. Here’s a quick overview of the common application methods:
-
Business Grants Portal (BGP)
Most government grants, such as the Enterprise Development Grant (EDG) and Productivity Solutions Grant (PSG), require applications through the BGP portal. This centralised portal streamlines submissions across various agencies and is the main hub for grant applications.
-
Registered Programme Partners
Certain grants, like Startup SG Founder, require applicants to apply through appointed partners, such as Accredited Mentor Partners (AMPs), who assess and endorse applications before submission.
-
Direct Applications to Government Agencies
Some funding schemes, including Market Readiness Assistance (MRA), SME Working Capital Loan, and Enterprise Financing Scheme (EFS) loans, require you to apply directly through the relevant agency’s website or financial institutions.
-
Co-Investment Schemes
For schemes like Startup SG Equity, startups typically apply via private investors or venture capital firms partnered with the government. These investors are responsible for conducting due diligence and making co-investment decisions.
-
Tax Incentives
Tax incentives such as the Enterprise Innovation Scheme are applied through your company’s annual tax filings with IRAS. You may also submit supporting documents as part of your corporate tax return.
Tips for a Smoother Application Process
-
Engage EnterpriseSG-recognised consultants for complex grants like EDG to improve your chances and speed up the process.
-
Keep your IRAS, CPF, and ACRA filings up to date because government evaluators often review these.
-
Prepare quotations, invoices, project proposals, and business plans ahead of time to support your application.
-
For loans, maintain good relationships with participating financial institutions and ensure your business financials are well-organised.
FAQs
Q: What is the easiest government grant to apply for in Singapore?
A: The Productivity Solutions Grant (PSG) is generally considered one of the easiest to apply for, thanks to its straightforward criteria and relatively fast approval process.
Q: Can foreign entrepreneurs apply for government grants in Singapore?
A: Most government grants in Singapore require majority local shareholding (at least 30% by Singaporeans or PRs). However, foreign entrepreneurs may still access support through schemes like EntrePass. Partnering with a local co-founder or building a Singapore-based team can also improve eligibility for certain grants.
Q: How long does it take to receive government grant approval?
A: The approval process typically takes a few weeks, depending on the complexity of the application.
Q: Can I apply for more than one government grant at a time?
A: Yes, businesses can apply for multiple grants if the projects are distinct and not funded under overlapping scopes.
