Introduction
The Singapore government has been actively nurturing a pro-business friendly atmosphere in recent years by providing a range of business grants, funding and subsidies for local and fully foreign owned businesses. Not just companies in the digital era, but also conventional brick and mortar businesses can take advantage of the grants and other funding options to transform their ventures.
Understanding each type of funding option available is crucial in the long term for your business. You have to differentiate between grants, subsidies and other sorts of funding options before seeking one. Eligibility criteria has to be understood to apply for the right funding.
Grants offered by governmental institutions are great ways to forge ahead in business without the burden-piling debts. Those looking out to expand to overseas markets or grow within Singapore are advised to check out the below grants.
Startup SG Tech
Enterprise Singapore is the nodal agency for Startup SG Tech Grant. This grant targets startup businesses based on ‘Proprietary Technology’ and has a scalable business model. The grant intends to accelerate the growth of startups harnessing proprietary technology solutions. Early funding is available for startups in the commercialization of proprietary technology provided they have viable qualifying solutions.
Eligibility Criteria:
- Startup should be registered for a minimum of 5 years at the time of application
- A minimum of 30 percent shares should be held by locals
- Group annual sales turnover of the company should not exceed 100 million US Dollars or the group employment size should not exceed 200 employees
- Core activities of the business should be carried out in Singapore
Clarity should be demonstrated on the application of science and technology. The solutions should be a breakthrough in terms of innovation and should eventually lead to the development of a proprietary know-how. Apart from all of these, the startup should be commercially viable too.
Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) is also facilitated by Enterprise Singapore. The EDG grant is designed for helping companies in Singapore to build their internal capabilities in three major areas.
- Core Capabilities: This includes strategic branding, marketing development, human capital development, financial management, business strategy development and service excellence.
- Innovation and Productivity: This includes product development, process redesign and automation. Companies are encouraged to innovate and transform for growth and efficiency.
- Market Access: This includes pilot project, testing, foreign marketing presence, standards adoption and mergers and acquisitions.
Qualifying project-related costs can avail up to 70 percent in subsidies under Enterprise Development Grant.
Eligibility Criteria:
- Business should be registered or incorporated in Singapore
- Entity should be in a financially viable to initiate and complete project
- A minimum of 30 percent shares should be held by locals
Productivity & Solutions Grant (PSG)
The Productivity and Solutions Grant (PSG) is available for those companies keen on improving productivity by implementing technological solutions in areas of customer management, financial management, data analytics and inventory tracking. Companies operating in retail, construction, landscaping, food and beverage, logistics and precision engineering can avail up to 70 percent in subsidy.
Eligibility Criteria:
- Enterprise should be incorporated or registered in Singapore
- There should be a minimum of 30 percentage local shareholding
- Group annual sales turnover of the company should not exceed 100 million US Dollars or the group employment size should not exceed 200 employees
- Lease of equipment or information technology solution must be utilized in Singapore
Market Readiness Assistance (MRA)
Businesses venturing overseas from Singapore can avail the benefits of the Market Readiness Assistance (MRA) grant. Up to 70 percent of eligible third party costs can be covered under the scheme. The cost incurred in association with overseas market setup, identifying feasible partners and market promotions will be covered by the grant.
Eligibility Criteria:
- The business should be registered or incorporated in Singapore
- Group annual turnover should not exceed 100 million US Dollars or the group employment should not exceed 200 employees
- A minimum of 30 percent shares should be held by locals
VentureForGood (VFG) Grant
The Singapore Centre for Social Enterprise facilitates VFG grants. Existing and startup social enterprises can avail the benefits of this grant. Up to $300,000 can be availed in terms of operations and expansion. Social enterprises coping up with community support solutions post-pandemic period can receive up to $100,000 in funding.
Eligibility Criteria:
- The social enterprise should address critical local requirements
- Weightage is given to companies providing employment opportunities
- Enterprises in caregiving and mental health support services are given priority
Conclusion
Whether you’re an MNC or a Startup, if you are looking to avail the benefits of Singapore Government’s numerous grants, subsidies and fundings, it’s a great idea to get professional consulting from certified management consultants. Businesses incorporated and operating in Singapore can excel in their growth inside the country and outside by utilizing government grants. Existing business owners and aspiring entrepreneurs are encouraged to consult before applying directly to the nodal agencies. Get in touch to know all about how to apply for business grants in Singapore.
