Singapore’s economy has long been driven by its vibrant small and medium-sized enterprise (SME) sector. From tech startups to logistics firms, F&B outlets to accounting practices, SMEs make up more than 99% of all local enterprises. Recognising their crucial role, the Singapore government continues to introduce and refine financial grants to help businesses grow, digitalise, and expand overseas.
As 2025 unfolds, several key government grants remain central to supporting SMEs in areas like productivity, capability development, sustainability, and internationalisation. This article explores the main grants available to Singapore SMEs in 2025, what they cover, and how businesses can use them to stay competitive in an ever-changing economic landscape.
1. Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) continues to be one of the cornerstone support schemes for local businesses. Administered by Enterprise Singapore (ESG), the EDG helps SMEs transform, innovate, and expand internationally.
What the EDG Covers
The grant co-funds qualifying project costs related to:
- Core Capabilities — improving business strategies, brand identity, or financial management.
- Innovation and Productivity — automating processes, redesigning workflows, or developing new products.
- Market Access — expanding into overseas markets through partnerships, franchise models, or market entry studies.
In 2025, the EDG continues to offer up to 50% funding support for SMEs (and more for strategic sectors), making it one of the most flexible and impactful grants available.
Why It Matters
For growing SMEs, the EDG is a gateway to transformation. Whether it’s adopting new technology, hiring consultants for business development, or expanding operations abroad, this grant reduces financial strain while encouraging innovation.
2. Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) remains an essential tool for companies looking to digitalise and improve efficiency. It offers support for pre-approved IT solutions, equipment, and digital tools that help streamline daily operations.
What the PSG Covers
Businesses can claim subsidies for solutions in areas such as:
- Accounting and HR management systems
- Customer Relationship Management (CRM) software
- E-commerce platforms and digital marketing tools
- Inventory, logistics, and point-of-sale systems
- Cybersecurity solutions
The PSG covers up to 50% of the qualifying cost, depending on the solution and sector.
Why It Matters
In today’s competitive digital economy, SMEs can no longer rely on manual workflows. PSG allows them to adopt proven technologies quickly and affordably, driving productivity and competitiveness without needing massive capital outlays.
3. Market Readiness Assistance (MRA) Grant
For SMEs ready to explore new markets, the Market Readiness Assistance (MRA) Grant is a crucial stepping stone. It supports internationalisation efforts, helping Singapore companies reduce the risks of expanding overseas.
What the MRA Covers
The grant covers up to 50% of eligible expenses in areas such as:
- Overseas market promotion and brand establishment
- Business development or market entry consultancy
- Participation in trade fairs or business missions
- Setting up overseas marketing offices or distribution channels
Why It Matters
With regional economies like Vietnam, Indonesia, and Thailand growing rapidly, many Singapore SMEs are looking abroad for new customers. The MRA Grant helps businesses do this strategically, funding market research, overseas campaigns, and partnerships — vital for scaling up.
4. SkillsFuture Enterprise Credit (SFEC)
While many grants focus on technology and market access, the SkillsFuture Enterprise Credit (SFEC) focuses on people — the most valuable asset of any organisation.
What the SFEC Covers
Eligible employers receive an additional $10,000 credit, which can be used to defray:
- Workforce transformation projects
- Training and upskilling programmes under SkillsFuture
- Enterprise transformation initiatives supported by Enterprise Singapore or Workforce Singapore
Why It Matters
With industries rapidly evolving, SMEs need skilled employees who can adapt. The SFEC encourages employers to invest in their workforce, ensuring that teams stay relevant in a digital, automated, and AI-driven economy.
5. Energy Efficiency Grant (EEG)
Sustainability has become a major business priority in 2025, with both consumers and regulators placing greater emphasis on environmental responsibility. The Energy Efficiency Grant (EEG) helps businesses transition to greener operations.
What the EEG Covers
The grant supports SMEs in manufacturing, food services, and retail sectors that adopt energy-efficient equipment and solutions. These can include:
- High-efficiency air-conditioning or refrigeration systems
- LED lighting upgrades
- Smart energy monitoring solutions
Why It Matters
Reducing energy consumption not only lowers operational costs but also positions the business as environmentally responsible. With global supply chains prioritising sustainability, the EEG helps SMEs align with future-ready practices.
6. SkillsFuture Queen Bee Network and Sectoral Initiatives
The SkillsFuture Queen Bee programme continues to empower larger corporations or industry leaders to mentor SMEs in their sectors. This approach helps smaller businesses learn from best practices and adopt relevant solutions faster.
What It Offers
- Hands-on guidance from established “Queen Bee” companies
- Access to training, workshops, and industry-specific transformation projects
- Co-funding for capability development and technology adoption
Why It Matters
This initiative fosters collaboration across industries. Instead of reinventing the wheel, SMEs can leverage shared expertise and proven strategies from industry pioneers, accelerating their own transformation journey.
7. Startup SG Founder and Startup SG Tech Grants
For entrepreneurs and new startups, Singapore continues to provide generous early-stage funding through Startup SG schemes.
Startup SG Founder Grant
This grant encourages aspiring entrepreneurs to launch new businesses by offering:
- A startup capital grant of up to $50,000 (with 30% co-funding by the founder)
- Access to mentorship through accredited Mentor Partners
Startup SG Tech Grant
This supports the development of proprietary technology or innovative products. Funding may cover proof-of-concept, prototype development, and early-stage commercialization.
Why It Matters
These grants ensure Singapore remains a startup hub, fostering innovation and attracting talent. Entrepreneurs can focus on product development and market validation without worrying about prohibitive financial barriers.
8. Enterprise Innovation Scheme (EIS)
The Enterprise Innovation Scheme (EIS), first enhanced in recent years, continues into 2025 as a major incentive for businesses that invest in innovation, R&D, and intellectual property (IP) activities.
What the EIS Offers
Businesses can enjoy tax deductions of up to 400% on qualifying expenses related to:
- Research and development (R&D)
- Innovation projects in collaboration with local institutions
- Registration of IP and patents
- Training in innovation and design
Why It Matters
Innovation fuels competitiveness. By rewarding R&D efforts, the EIS helps businesses create proprietary solutions and unique market advantages — essential for sustaining growth in knowledge-based industries.
9. Agri-Food Cluster Transformation (ACT) Fund
With the push towards food security and sustainable agriculture, the Agri-Food Cluster Transformation Fund supports local agribusinesses to improve productivity and sustainability.
What the ACT Fund Covers
The grant funds automation and resource-efficient technologies, such as:
- Smart farming systems
- Water recycling and waste reduction processes
- Advanced packaging and cold-chain logistics
Why It Matters
The ACT Fund helps agri-food SMEs modernise operations, meet sustainability standards, and enhance local food resilience — key to Singapore’s long-term economic and environmental goals.
10. Temporary Bridging Loan Programme (TBLP) and Enterprise Financing Scheme (EFS)
While grants are vital, financing support remains equally important. The Enterprise Financing Scheme (EFS) and the Temporary Bridging Loan Programme (TBLP) continue to play a crucial role in 2025.
What They Offer
- EFS: Supports SMEs in working capital, trade financing, equipment loans, and project financing.
- TBLP: Offers government-assisted loans with partial risk-sharing to ease cash flow pressures, particularly during uncertain economic cycles.
Why It Matters
Grants and loans complement each other — grants fund development, while financing schemes sustain operations. Together, they give SMEs the confidence to invest in growth even amid rising costs or global uncertainty.
11. Sustainability and Green Grants for SMEs
Beyond the EEG and ACT Fund, Singapore has expanded its Green Economy framework to help SMEs align with sustainability goals.
Key Support Areas
- Energy audits and carbon footprint assessments
- Sustainable packaging development
- Renewable energy adoption (e.g., solar panel systems)
- ESG reporting systems and certification
Why It Matters
Environmental sustainability is no longer optional. With consumers, investors, and multinational clients demanding eco-friendly operations, these grants give SMEs the resources to transition smoothly to green business practices.
12. Digital and Cybersecurity Grants
As digital adoption grows, so do cybersecurity risks. To address this, Singapore continues to provide cybersecurity and digital resilience grants under various frameworks.
What They Cover
- Cybersecurity tools such as firewalls, data encryption, and endpoint protection
- Consultancy for cybersecurity posture assessment
- Cloud migration and secure data management solutions
Why It Matters
SMEs are increasingly targeted by cyber threats. These grants help businesses protect customer data, comply with PDPA regulations, and maintain trust in digital transactions.
13. Trade and Connectivity Grants
To strengthen Singapore’s position as a logistics and trade hub, the government supports SMEs in adopting advanced logistics technologies and smart port solutions.
What the Grants Cover
- Implementation of supply chain visibility platforms
- Automation in warehousing and freight operations
- Integration with global digital trade platforms
Why It Matters
For logistics and transport SMEs, these grants make operations more efficient and globally integrated — critical for sustaining Singapore’s reputation as a connected, agile trading hub.
14. Sector-Specific Grants and Programmes
In addition to broad enterprise schemes, many industries enjoy sector-specific support in 2025. Examples include:
- Tourism Development Fund (STB) for hospitality and attractions businesses
- Marine and Offshore Engineering Transformation Scheme for industrial companies
- Infocomm Media Development Authority (IMDA) Grants for digital and media startups
- HealthTech Grants for medical and wellness innovation
Why It Matters
Each sector faces unique challenges. These specialised grants ensure that every industry — from tourism to technology — receives tailored support to modernise and remain competitive.
Conclusion: Grants as Catalysts for Growth in 2025
Singapore’s government grants are not merely financial handouts; they are strategic investments in the nation’s future economy. From digitalisation and sustainability to internationalisation and workforce upskilling, these grants empower SMEs to take bold steps toward transformation.
In 2025, the opportunities for support are greater than ever. Whether your company aims to innovate, expand overseas, or adopt greener technologies, there’s a scheme designed to ease the financial burden and accelerate progress.
By tapping into the right mix of grants, Singapore SMEs can future-proof their operations, strengthen their competitive edge, and build a resilient foundation for long-term success.