The Singaporean government supports small and midsize businesses (SMBs) in developing capabilities, innovations, and transformations to remain globally competitive and relevant in current and future markets. This support comes in the form of grants, support schemes, and programmes covering digital solutions, market expansion, and workforce upscaling. Learn more about these startup grants, schemes and programmes offered in Singapore.
Business Capabilities Development & Transformation
Leverage new and disruptive technologies and automation to increase your productivity and reduce costs. Here are the grant schemes for digital transformation:
PRODUCTIVITY SOLUTIONS GRANT
The Productivity Solutions Grant (PSG) is a government initiative that supports companies looking to embrace IT solutions and equipment to enhance business processes by providing funding support to small and medium-sized enterprises (SMEs).
Basically, if you are an SME in Singapore and looking for ways to improve business efficiency and productivity, you can apply for the PSG to get funding support for adopting productivity solutions pre-approved by the government.
The PSG covers many productivity solutions, including:
- IT solutions, such as
- accounting software
- HR software
- e-commerce platforms
- equipment and machinery to improve production processes
Singapore supports companies up to the annual grant cap of 30,000 SGD per financial year.
To be eligible, the SME should meet the criteria below:
- registered and operating in Singapore
- purchase/lease/subscription of the IT solutions/equipment must be used in Singapore
- have at least 30% local shareholding; with Company’s Group annual sales turnover not greater than 100 million SGD, or not more than 200 employees (for selected solutions only)
The maximum support level from 1 April 2022 to 31 March 2023 was up to 70%. However, from 1 April 2023 onwards, the maximum support level will be up to 50% for all sectors.
ENERGY EFFICIENCY GRANT
The Energy Efficient Grant (EEG) was launched in September 2022 that aims to help businesses in the Food Services, Food Manufacturing, and Retail sectors cope with the increasing energy costs through co-funding investments in more energy-efficient equipment.
This grant will provide up to 70% support for SMEs to adopt pre-approved energy-efficient equipment in the categories below:
- LED lighting
- Air-conditioners
- Cooking hobs
- Refrigerators
- Water heaters
- Clothes dryers
Singapore supports SMEs up to 30,000 SGD per company annually.
An SME can apply for this grant if they meet ALL the following criteria:
- Registered and operating in Singapore in the Food Services, Food Manufacturing or Retails sectors
- Has at least 30% local shareholding
- Company’s Group annual sales turnover should be less than 100 million SGD, or employment size of less than 200 employees
- The equipment purchased must be used in Singapore.
Companies can submit applications to purchase energy-efficient equipment through the Business Grants Portal until 21 March 2024.
ENTERPRISE DEVELOPMENT GRANT
The Enterprise Development Grant (EDG) helps Singaporean companies grow and transform by supporting projects that help you upgrade your business, innovate, or venture overseas under three pillars:
- Core Capabilities (strengthening business foundations)
- Innovation and Productivity (exploring new areas of growth or looking for ways to enhance efficiency)
- Market Access (expanding into overseas markets)
The grant funds qualifying project costs, namely:
- Third-party consultancy fees
- Software & equipment
- Internal manpower cost
To qualify for this grant, you must:
- Be registered and operating in Singapore
- Have at least 30% local shareholding
- Be in a financially capable position to start and complete the project
Enterprise Singapore will assess the applications based on the project scope, project outcomes, and competency of the service provider.
BUSINESS IMPROVEMENT FUND
The Business Improvement Fund (BIF) aims to encourage innovation and adoption of technology, redesign of business models and processes in the tourism sector to enhance productivity and competitiveness.
To be eligible, you must:
- Be a Singapore-registered business or company embarking on projects with a clear focus on tourism. It should be companies that are:
- Tourism companies taking on capability development initiatives
- Technology companies that develop innovative technology products and services for tourism businesses
Aligned to EDG, the BIF supports projects that help tourism companies to upgrade their business or innovate under the first two pillars: Core Capabilities and Innovation & Productivity
Funding support varies for SMEs and non-SMEs. The qualifying costs are subject to the Singapore Tourism Board’s evaluation of the project scope and merits. Grants will be disbursed to successful applicants on a reimbursement basis, subject to the achievement of agreed project deliverables and milestones.
Business Loan & Enterprise Financing Support
TEMPORARY BRIDGING LOAN PROGRAMME
This programme is supported by Enterprise Singapore. You may approach any participating financial institutions (subject to the bank’s credit approval) to apply for it.
- CIMB Bank Berhad
- DBS Bank Ltd
- ETHOZ Capital Ltd
- FS Capital Pte Ltd
- Goldbell Financial Services Pte Ltd
- The Hongkong and Shanghai Banking Corporation
- Hong Leong Finance Ltd
- IFS Capital LTD
- Maybank Singapore Ltd and Malayan Banking Berhad, Singapore Branch
- ORIX Leasing Singapore Ltd
- Oversea-Chinese Banking Corporation Ltd (OCBC Bank)
- Resona Merchant Bank Asia Ltd
- RHB Bank Berhad
- Sing Investments & Finance Ltd
- Singapura Finance Ltd
- Standard Chartered Bank
- United Overseas Bank Ltd
- Validus Investment Holdings Pte Ltd
Workforce and Human Capital Development
SENIOR EMPLOYMENT CREDIT
The Senior Employment Credit (SEC) is administered by the Inland Revenue Authority of Singapore (IRAS) and aims to provide wage offsets to help employers who employ Singaporean workers adjust to the higher retirement age and re-employment age. Meaning, higher support will be given to the older age bands.
This scheme will be extended from 2023 to 2025, and the wage offset applies to Singaporean workers aged 60 and above (compared to those aged 55 and above for 2021 and 2022) and earning up to 4,000 SGD monthly. For wages paid between 1 January 2023 and 31 December 2025, employers will receive up to 8% of the wages, depending on their age and wage.
PROGRESSIVE WAGE CREDIT SCHEME
The Progressive Wage Credit Scheme (PWCS) was introduced to provide transitional wage support for employers to adjust to mandatory wage increases for lower-wage workers and voluntarily raise wages of lower-wage workers. The government will co-fund the increases until 2026. The PWC for 2023 is enhanced by increasing the government’s co-funding share from 50% to 75% for the 1st tier and 30% to 45% for the 2nd tier, maintaining all other parameters.
The PWCS has the following design:
- Citizens and permanent resident employees of Singapore are eligible.
- Support for wage increases up to 2,500 SGD gross monthly wage ceiling runs from 2022 to 2026.
- Support for wage increases above 2,500 SGD gross monthly wage and up to 3,000 SGD ceiling runs from 2022 to 2024.
- The average gross monthly wage increase must be not lower than 100 SGD in every qualifying year to be eligible for PWCS.
- Eligible wage increases in every qualifying year will be co-funded for two (2) years.
Your firm automatically qualifies if you offer wage increases to resident employees who:
- Received CPF contributions from a single employer for a minimum of three calendar months (need not to be consecutive) in the preceding year2
- Have been on your company’s payroll for at least three calendar months in the qualifying year3
- Have an average gross monthly wage increase of at least 100 SGD in the qualifying year
CPF TRANSITION OFFSET
The CPF Transition Offset (CTO) aims to alleviate the increasing business costs due to the increase in CPF contribution rates for senior workers by giving employers a transitionary wage offset equivalent to 50% of every year’s increase in employer CPF contribution rates for every Singaporean citizen and permanent resident employee aged 56 to 70.
The offset will be based on the employees’ gross monthly wages (including employee CPF contributions but excluding employer CPF contributions) paid up to the CPF salary ceiling.
Who qualifies:
- All employers with local employees (Singapore citizens and permanent residents) aged 56 to 70 have made timely mandatory CPF contributions for the employee.
ENABLING EMPLOYMENT CREDIT
The Enabling Employment Credit (EEC) aims to support the employment of persons with disabilities (PwDs). The EEC will be given to employers who hire local employees with disabilities aged 13 and above and earning not greater than 4,000 SGD per month.
This credit provides a wage offset of up to 20% of the employee’s monthly income, capped at 400 SGD per month for every employee. In addition, employers who hire local employees with disabilities who have not been working for at least six months will receive up to 20% additional wage offset, capped at 400 SGD monthly for every employee, for the first nine months of employment.
The EEC will be enhanced to cover a more significant proportion of wages and a longer duration for PwDs who have not been employed for at least six months, encouraging more employers to hire persons with disabilities. The EEC will remain available for five years – from 2021 to 2025. The Ministry of Manpower will review the EEC after two years and make adjustments when needed to ensure that it remains helpful for PwDs to find employment or stay employed.
Conclusion
The Singapore government has unwavering support for startups and growing companies through business grants and support schemes, serving as a testament to its commitment to fostering a thriving business ecosystem.
As a business owner looking to register your company in Singapore, it is important to take advantage of these incentives to give your business a head start. Incorporate your company now to enjoy these government grants and support schemes.
Entrust your business registration with Corporate Services Singapore, a reliable company incorporation firm, to ensure a hassle-free and efficient process.
