A guide to Singapore government grants

Important update: From 30 September 2026, Singapore’s PSG, EDG and MRA grants transition to the new EDGE Grant, marking a new phase in the way businesses access government support for digitalisation and growth. As a pre-approved solution, we will continue to keep businesses informed about these changes and what they mean for CRM adoption. For the latest updates and a detailed guide to the new scheme, read our [comprehensive guide to the EDGE Grant in Singapore].

"Starting small is the foundation of big business," said Richard Branson, highlighting the importance of nurturing and supporting a growing business over time.

Small and Medium Enterprises (SMEs) often struggle to cope with the rising costs of conducting business and the limited availability of skilled manpower. To help SMEs overcome these obstacles, Singapore, through its various agencies such as IMDA, Enterprise Singapore provides an array of government grants for SMEs.

However, SMEs often have many questions regarding these grants. Some of these are as follows:

• What is an SME grant?
• What is an SME business?
• Why are there grants specifically for SMEs in Singapore?
• What are the different government grants for Singapore SMEs?

Read on to discover how your SME can benefit from Singapore grants!

What is an SME grant?

An SME grant refers to a specific amount of money that is provided to a business to support its growth and development. The sources of SME grants could be governments, corporations, foundations or trusts, among others. Typically, SME grants are not meant to be repaid. However, it is important to note that a grant is not a donation. The SME grant is usually awarded to a company based on specific criteria, such as its profit or growth potential. In essence, when an SME receives a grant, the grant provider is usually interested in some aspect of the company and is invested in its growth and development.

What is an SME business?

SMEs refer to Small and Medium-sized enterprises. As per Investopedia, SMEs are typically characterised as businesses that have revenue, assets, or a number of employees below a certain threshold.

What is SME Singapore?

A business in Singapore is considered an SME only if the following criteria are satisfied:

• The company is registered and operating in Singapore.
• The company has a minimum of 30 per cent local shareholding.
• The company’s group annual sales turnover is not exceeding $100 million, Or the employment size of the company is equal to or less than 200 workers.

It's important to note that the eligibility criteria for different SME grants may vary. As a result, the above-mentioned criteria should be used as a general guideline only. SMEs must pay close attention to the specific eligibility requirements for each grant they are considering and how they define “SME companies in Singapore”.

Why are there grants specifically for SMEs in Singapore?

As per Singapore company registration experts, Rikvin, SMEs contribute nearly half of the country's GDP and employ approximately 70% of the local workforce. Furthermore, the number of enterprises in Singapore has increased from 273,100 in 2019 to 291,600 in 2021, with SMEs comprising 99% of these businesses.

SMEs play a vital role in Singapore's economy. For Singapore to thrive in the booming world economy, it has to support in growth and development of the SMEs. Hence, the SMEs are offered Singapore government grants. These grants are specifically tailored to address the unique business needs of Singaporean SMEs, which differ from those of larger Multi-National Corporations (MNCs) due to their smaller size.

The Singapore government grants for SMEs are particularly useful since SMEs often face challenges in securing bank loans to finance their business activities, given their small size and limited track record. In such cases, SME grants can be of great help.

SME grants offered by Singapore government

The major change in 2026 is that EDG, PSG and MRA have transitioned to the EDGE Grant for new applications. These three former grants should therefore be understood as part of the previous funding framework, while EDGE is the current route for eligible new activities.

1. EDGE Grant: Support for digitalisation, business growth and internationalisation

The EDGE Grant is Singapore's consolidated grant framework that brings together the former EDG, PSG and MRA schemes. It is designed to help eligible businesses access support based on their intended activities, including digitalisation, business efficiency, innovation and internationalisation.

Rather than selecting one of the three former grants for a new project, businesses should identify the relevant supportable activity under EDGE.

Examples of activity areas include:

• Automation and digitalisation: Eligible digital solutions, integrated enterprise systems and selected automation activities.
• Business strategy: Activities that help businesses develop strategies, improve processes and strengthen business development.
• Innovation: Eligible projects involving product development and technological innovation.
• Internationalisation: Activities that help businesses enter and develop overseas markets.
• Financial management and other capabilities: Eligible initiatives that strengthen business practices and operations.
• Sustainability and standards: Selected activities that support relevant business needs.

The support available depends on the specific activity. Not every expense, software product or consultancy engagement qualifies.

How much funding can businesses receive under EDGE?

Eligible businesses can receive up to S$100,000 in total grant support per financial year across all eligible EDGE activities. Within this overall annual cap, up to S$30,000 can be used for specified single-function digital solutions, integrated enterprise systems and pre-scoped equipment.

The general funding support levels are:

• Up to 50% for SMEs and up to 30% for non-SMEs for many activities.

The applicable rate, cost limits, vendor requirements and project deliverables vary by activity.

Who is eligible for EDGE?

The general eligibility requirements include:

• The business must be registered and operating in Singapore.
• It must have at least 30% direct or indirect ownership by Singapore citizens and/or Singapore permanent residents.
• It must meet any additional criteria associated with the selected activity.
• The proposed project must meet the activity's requirements and must not have started before application submission.

EDGE does not support retrospective applications. Businesses should not start work or make payments or deposits to suppliers before submitting their applications.

Official resource: Enterprise Singapore – EDGE Grant

Enterprise Development Grant (EDG): Singapore government grant for SMEs who are seeking overall aid

SMEs that aim to innovate or expand their operations can utilise this Enterprise Development Grant, an SME grant, as long as their project aligns with the three key pillars: Core Capabilities, Innovation and Productivity, and Market Access.

• Core capabilities: SME that is preparing to grow and transform by strengthening the foundation of business.
• Innovation and productivity: SMEs who are exploring new areas to grow and increase their efficiency.
• Market access: SMEs that are ready to venture overseas.

According to Enterprise Singapore, SMEs can receive up to 50% support for EDG (support period for sustainability-related projects has been extended, and will be supported at up to 70%) (as of April, 2023).

Read our comprehensive guide about EDG grants to know the EDG application checklist, how to apply for the grant, and how to avail it.

Productivity Solutions Grant (PSG): A Singapore government grant for SMEs seeking IT improvements

The purpose of this SME grant is to encourage companies to incorporate Information Technology (IT) solutions and equipment to improve their existing processes.

According to Enterprise Singapore, the local SMEs can receive up to 50% of eligible costs (As of June 2026). Some examples of supported solutions include HR systems, accounting software, and inventory management systems.

Market Readiness Assistance (MRA) Grant: Singapore government grant for SMEs seeking to expand their business overseas

The MRA Grant supports businesses in their efforts to internationalise and expand their businesses overseas. Eligible businesses can receive funding for up to 70% of the costs of activities such as market research and participation in trade fairs and missions.

Energy Efficiency Grant: Singapore government grant for SMEs to cope with energy costs

The Energy Efficiency Grant (EEG) is designed to assist businesses in the Food Services, Food Manufacturing, and Retail sectors to manage increasing energy expenses by co-funding the purchase of more energy-efficient equipment. The EEG provides up to 70% of the cost of adopting pre-approved energy-efficient equipment in categories such as air-conditioners, LED lighting, cooking hobs, refrigerators, water heaters, and clothes dryers.

Empowering Singapore’s digital shift| Pepper Cloud Blog

Discover how Singapore’s government grants and support empower SMEs to overcome challenges and fuel growth. Through initiatives like the EDG, PSG, CTO-as-a-Service, and more, SMEs can digitalise and enhance their capabilities and thrive in a competitive business landscape.

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Tips to consider while applying for an SME grant

Each Singapore grant has its own application process and there will be competition among the SMEs to get the funding. To help you beat the competition, here are a few highly effective tips. These can help maximise the success of your grant application.

1. Find out which grants pertain to your company. Confirm if your business meets the eligibility criteria.
2. Check the grant application list and ensure to provide all the required documents. Follow the exact template, if available.
3. Verify and ensure the information you have submitted is factually correct.
4. Do not sign any contract, make any advance payment or start work before you have filed the grant application.
5. Please remember that the Software/IT solution purchased under the grant must be used in Singapore only.
6. SME grant is not applicable if you are just replacing one software solution with another. There must be some value addition or new capabilities must be added.
7. In case there are any changes to the project, be proactive and inform the grant agency and seek their assistance.
8. Be patient. Do not follow up with agencies if the time indicated for grant application processing has not been exceeded.
9. All grants are typically on a reimbursable basis. So, plan your cash flow accordingly as there will be a time gap between you paying the vendor (cash outflow) and the grant amount being disbursed to you (cash inflow).
10. If you are unsure of any aspect of the grant process, please ask for help and seek clarification. You can speak to business advisers at the SME centre.

How can Pepper Cloud help you?

We, at Pepper Cloud CRM, help our customers to avail all applicable grants and assist in transforming their sales process by implementing CRM. You can mould and digitise your business operations while we take care of all the grant-related paperwork. Get in touch with us for a free one-on-one consultation.

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