8 Government Grants for SMEs in Singapore

8 Government Grants for SMEs in Singapore
99% of all businesses in Singapore are SMEs. Employing over 65% of the country’s workforce, SMEs account for almost half of Singapore’s Gross Domestic Product (GDP). Given the vast majority of SMEs, it’s safe to say that they play a significant role in the livelihood of most Singaporeans. With this comes the need for useful government grants for SMEs.

Unfortunately, the economic crisis brought by the COVID-19 pandemic has greatly impacted most SMEs in Singapore. Knowing the value of SMEs to its economy, the Singapore government provides various supporting initiatives to help them improve productivity while adhering to necessary protocols and social distancing measures.

1. Enterprise Development Grant (EDG)

What the grant is all about:

The Enterprise Development Grant (EDG) is an Enterprise Singapore (ESG) programme designed to help SMEs to develop and transform their internal capabilities specifically in 3 different areas:

Enterprise Development Grant (EDG)

Eligibility requirement:

  • SMEs registered and operating in Singapore
  • A minimum of 30% local shareholding
  • Financially capable to start and complete the project

Grant amount:

  • The grant covers qualifying project costs such as third-party consultancy fees, software and equipment as well as internal manpower cost.
  • As announced in the Supplementary Budget 2020, the maximum funding support level will be raised to 80% from 1 April 2020 to 30 September 2021.
  • For SMEs that are severely affected by COVID-19, the maximum support level may be raised to 90% on a case-by-case basis until 31 December 2020.

2. Productivity Solutions Grant (PSG)

What the grant is all about:

The Productivity Solutions Grant (PSG) aims to support SMEs in adopting IT solutions and equipment to improve productivity and enhance business processes.

Eligibility requirement:

  • A business registered and operating in Singapore
  • Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore
  • (For selected solutions only) Have a minimum of 30% local shareholding

Grant amount

Up to 80% of funding support is provided for eligible costs from 1 April 2020 to 31 December 2020.

3. Digital Resilience Bonus (DRB)

What the grant is all about:

The Digital Resilience Bonus (DRB) is designed specifically for the Food Services and Retail Sector. It aims to support SMEs as they improve their digital capabilities, allowing them to adapt and implement safe management practices after the circuit breaker period. 

Eligibility requirement:

  • Food Services and Retail Sector that are incorporated on or before 26 May 2020
  • UEN with active PayNow Corporate account
  • UEN with InvoiceNow
  • Use of pre-defined categories of digital solutions

Grant amount:

Eligible Food Services and Retail enterprises can receive bonus payouts of up to $10,000. 

4. E-Commerce Booster Package

What the grant is all about:

The E-Commerce Booster Package aims to help brick-and-mortar retailers as they take their businesses online. It covers the following areas:

  • E-commerce for domestic market

To help local retailers reach and expand their domestic market, this programme allows businesses to engage with one of the four major e-commerce platforms: Amazon, Lazada Singapore, Qoo10 and Shopee. 

  • E-commerce for overseas market

With the Multi-channel E-commerce Platform (MEP) Programme, retailers with minimal to no experience in exporting products overseas can now expand their international reach through digital channels. 

Eligibility requirement:

  • A local retailer keen to sell products online
  • Must be registered or incorporated as a retail company (SSIC code starting with 47) in Singapore on or before 31 March 2020;
  • A minimum of 30% local shareholding
  • An annual turnover not exceeding S$100 million per year based on the most recent audited report or group employment size not exceeding 200 employees;
  • B2C products ready for sale
  • A physical store

Grant amount:

  • Eligible local retailers will receive one-time funding support to defray 90% of eligible costs. They can receive an amount of up to S$9,000 for up to 6 months.
  • Retailers participating in the Singapore E-Commerce Programme can also apply for additional manpower support for e-commerce efforts. 
  • Retailers will receive one-time funding support of up to 90% of the qualifying manpower costs for three months. 

5. Market Readiness Assistance (MRA) Grant

What the grant is all about:

The Market Readiness Assistance Grant (MRA) aims to help SMEs as they take their businesses overseas.

Eligibility requirement:

  • Registered or incorporated in Singapore
  • With at least 30% local shareholding
  • Company’s group annual sales turnover of not more than S$100 million, or company’s group employment size of not more than 200 workers
  • New to target overseas market

What qualifies as a new overseas market?

Annual overseas sales in the country have not exceeded S$100,000 in each of the previous three years.

Grant amount:

Eligible SMEs will receive:

Up to 70% funding support level for eligible costs, capped at S$100,000 per company per new market from 1 April 2020 to 31 March 2023. It covers:

  • Overseas market promotion (capped at S$20,000)
  • Overseas business development (capped at S$50,000)
  • Overseas market set-up (capped at S$30,000

6. Productivity-Max (P-Max) Programme

What the grant is all about:

The Productivity-Max (P-Max) Programme is a place-and-train programme managed by the Association of Small & Medium Enterprises (ASME) and supported by the Workforce Singapore  (WSG). This programme aims to help job-seeking PMETs to find suitable SME jobs, encourage SMEs to recruit, train, manage and retain newly-hired PMETs and promote a progressive human resource approach within the SME ecosystem. 

Eligibility requirement:

Productivity-Max (P-Max) Programme

Grant amount:

P-Max and P-Max for Older Workers 

Participating SMEs can receive up to 90% course fee subsidy for PMET, SME training workshops and Age Management workshop (applicable for P-Max for Older Worker only) while eligible SMEs will receive a one-time $5,000 Assistance Grant or $10,000 Assistance Grant (P-Max for Older Workers only) upon the Programme completion and six-month retention of the newly hired PMET(s).

P-Max Lite 

Non-hiring SMEs can receive up to 90% course fee subsidy for the SME training workshop under P-Max Lite.

7. SkillsFuture Enterprise Credit (SFEC)

What the grant is all about:

The SkillsFuture Enterprise Credit (SFEC) aims to encourage SMEs to embark on enterprise and workforce transformation. 

Eligibility requirement:

Qualifying Periods

  • 1 April 2019 – 31 March 2020
  • 1 July 2019 – 30 June 2020
  • 1 October 2019 – 30 September 2020
  • 1 January 2020 – 31 December 2020

Eligible employers who meet the following conditions in each of the qualifying periods will be notified in writing.

  • Have contributed a minimum amount of S$750 Skills Development Levy over the period
  • Have employed at least three Singapore Citizens (SCs) or Permanent Residents (PRs) every month over the same period
  • Have not qualified at any of the earlier periods

Grant amount:

With a one-off S$10,000 credit, SFEC offers eligible SMEs with up to 90% of out-of-pocket expenses on qualifying costs for supportable initiatives.

8. Smart Digital Pack

What the grant is all about:

The Smart Digital Pack launched under the initiative of the SMEs Go Digital aim to help startup SMEs as they embark on digitalisation. By providing new businesses with the right digital tools, the Smart Digital Pack can help SMEs achieve growth and improve productivity. 

Eligibility requirement:

  • Must be a newly-incorporated SME
  • Must be new to digital technology

Grant amount:

SMEs can choose any two solutions below at no cost for at least six months with a minimum of 18-month contract period:

  • Accounting
  • HR Management System and Payroll
  • Digital Marketing
  • Digital Transactions
  • Cybersecurity

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