Small and medium-sized enterprises (SMEs) form the backbone of Singapore’s economy, making up the vast majority of local businesses and employing a significant portion of the workforce.
With SMEs continually adapting to new growth opportunities and operational challenges, many turn to financial support schemes like grants to enhance capabilities and scale effectively. These grants typically support areas such as digitalisation, capability development, sustainability, productivity enhancement, and market expansion.
This article provides a practical guide to the SME grants available in Singapore in 2025. You will learn about the main types of grants, common eligibility criteria, how to apply, and how SMEs can strategically position themselves for success. We also explore how upskilling and capability building can help strengthen your application and ensure long-term business growth.
Types of SME Grants in Singapore
Government grants for SMEs come in various forms, supporting different business objectives such as innovation, digitalisation, workforce development, sustainability, and overseas expansion. Below is an overview of some of the most commonly used funding schemes categorised by their purpose.
Digitalisation and Technology Adoption
Productivity Solutions Grant (PSG)
The PSG supports SMEs in adopting pre-approved digital solutions and productivity tools across sectors such as retail, logistics, F&B, construction, and more. Eligible companies must be registered and operating in Singapore, with at least 30% local shareholding. Funding typically covers a percentage of the cost of software, equipment, or IT solutions.
Advanced Digital Solutions (ADS)
ADS supports SMEs in adopting integrated, sector-specific digital solutions requiring more advanced technology. Projects often involve technologies such as AI, data analytics, and automation. Companies must demonstrate how the solution enhances productivity or competitiveness.
Capability Development and Business Growth
Enterprise Development Grant (EDG)
The EDG helps businesses upgrade, innovate and venture overseas. It supports three main areas: Core Capabilities, Innovation and Productivity, and Market Access. SMEs must be financially ready to begin the project and be registered in Singapore with a minimum of 30% local shareholding.
SkillsFuture Enterprise Credit (SFEC)
SFEC encourages employers to invest in enterprise transformation and workforce training, by providing additional support for eligible expenses. To qualify, companies must meet specific workforce and CPF contribution criteria.
Sustainability and Green Transformation
Energy Efficiency Grant (EEG)
Aimed at sectors with high energy usage, the EEG supports investments in more energy-efficient equipment. Eligible SMEs must operate within targeted industries such as food services, manufacturing or retail.
Resource Efficiency Grant for Emissions (REG(E))
This grant helps businesses implement resource efficiency projects that reduce greenhouse gas emissions. Companies must undertake an approved project and demonstrate measurable environmental impact.
Market Expansion and Internationalisation
Market Readiness Assistance (MRA)
The MRA grant supports SMEs taking their first steps overseas. Funding covers areas such as overseas marketing, market set-up and in-market business development. Eligible companies must be Singapore-registered with at least 30% local shareholding and group annual sales not exceeding S$100 million.
Global Innovation Alliance (GIA) Programmes
The GIA helps SMEs expand through overseas innovation partnerships, market immersion programmes and collaborations with global partners.
Start-up and Innovation Support
Startup SG Founder Grant
The Startup SG Founder Grant offers startup funding and mentorship support for first-time entrepreneurs with innovative business ideas. Applicants must apply through an Accredited Mentor Partner and meet criteria related to founder shareholding and involvement in the business.
Startup SG Tech
Startup SG Tech provides early-stage funding for the commercialisation of deep tech solutions. It supports Proof-of-Concept and Proof-of-Value projects and is open to Singapore-based companies developing proprietary technology.
Eligibility Criteria for SME Grants in Singapore
Most grants share common baseline requirements. Businesses should consider applying when they are ready to invest in growth, digitalisation or capability building, with clear project goals and financial stability.
General eligibility criteria commonly include:
- Registered and operating in Singapore
- At least 30% local shareholding
- Annual sales turnover or employment size within SME thresholds
- Financial capability to complete the project
- Project outcomes that align with the grant’s objectives
Some grants have more specific criteria. For instance, Startup SG Founder requires first-time entrepreneurs, while MRA has revenue caps for overseas expansion support. Sustainability-related grants like EEG and REG(E) may require evidence of energy or emissions reductions.
It is essential to check the detailed requirements on the Enterprise Singapore or GoBusiness portals, as criteria such as project scope, funding caps and application documents vary across grants.
How to Apply for SME Grants
Applying for an SME grant usually involves several key steps. These ensure that your business needs align with the scheme’s objectives and that your application is well-supported.
Step 1: Identify Business Needs
Determine whether your goals involve digitalisation, business expansion, capability development or sustainability improvements.
Step 2: Shortlist Relevant Grants
Review grant objectives, funding caps and eligibility criteria through Enterprise Singapore, GoBusiness or IMDA.
Step 3: Prepare Documentation
Gather required documents such as financial statements, project proposals, quotations, business plans and ACRA profiles.
Step 4: Submit Your Application Online
Applications are typically submitted via the Business Grants Portal (BGP). Ensure that all information is accurate and complete.
Step 5: Await Assessment and Clarifications
Agencies may request further details or supporting documents. Respond promptly to avoid delays.
Step 6: Receive Outcome and Begin Project
Once approved, follow the project timeline, track expenses and ensure compliance with reporting requirements.
Aligning Business Strategy with Grant Objectives
To maximise your chances of approval, it is important to align your business strategy with broader national priorities and the specific aims of the grant. This demonstrates purpose, readiness and long-term commitment, all of which are qualities funding bodies look for. Here is how to align your business strategy with grant objectives:
- Conduct a Strategic Business Review: Assess your current capabilities, challenges and long-term plans to determine where grants can provide the most value.
- Map Grant Objectives to Business Goals: Ensure the grant supports measurable outcomes such as improved productivity, enhanced sustainability or expanded market presence. For instance, an SME planning to grow its online business can align its strategy with grants that support e-commerce development, digital marketing or customer engagement technologies.
- Develop Clear Project Plans: Outline milestones, resources, timelines and implementation steps to show preparedness.
- Build Organisational Readiness: Strengthen internal processes, assign project owners and ensure your team can execute the funded initiative.
- Demonstrate Financial Responsibility: Show that the business has adequate financial health and can complete the project even with partial funding.
- Establish Measurable KPIs: Track quantifiable results such as productivity gains, cost savings or revenue growth to support post-project reporting.
- Document Long-Term Impact: Explain how the project contributes to sustained capability development beyond the funding period.
Building Long-Term Capabilities Through Training
Training and upskilling are key components of enterprise transformation and often enhance the success rate of grant applications. Below are some SMU Academy programmes designed to strengthen strategic planning, innovation and business development for SMEs.
Advanced Certificate in Business Innovation for Small and Medium-Sized Enterprises (SMEs)
This Advanced Certificate in Business Innovation for SMEs equips leaders with practical tools to drive innovation and develop sustainable business models.
What the programme covers:
- Business model innovation
- Opportunity identification and validation
- Operations enhancement and resource planning
- Innovation leadership and change management
Why it matters:
It helps SMEs build stronger innovation capabilities, making them more competitive and better aligned with grant objectives focused on upgrading and transformation.
Advanced Certificate in Online Reputation Management for Business
This Advanced Certificate in Online Reputation Management for Business trains business leaders to shape, manage and protect their brand’s digital reputation.
What the programme covers:
- Digital branding fundamentals
- Social media monitoring and engagement
- Crisis communication strategies
- Data-driven online reputation analysis
Why it matters:
A strong online presence enhances credibility, customer trust and competitiveness—factors that complement digitalisation and capability development grant projects.
Transforming Small and Medium Enterprises: Strategic Sustainable Development
The Transforming Small and Medium Enterprises: Strategic Sustainable Development course helps SMEs integrate sustainability strategies into their operations.
What the programme covers:
- Sustainability frameworks and reporting
- Green transformation strategies
- Resource efficiency and sustainable operations
- Stakeholder engagement and long-term planning
Why it matters:
With sustainability becoming a national priority, this programme equips SMEs to meet the expectations of green-focused grants and build long-term resilience.
Enterprise Leadership for Transformation (ELT)
Enterprise Leadership for Transformation supports business leaders in strengthening their strategic thinking and accelerating enterprise growth.
What the programme covers:
- Business strategy development
- Leadership capability building
- Innovation and growth frameworks
- Mentorship and networking opportunities
Why it matters:
Leadership capability is central to transformation projects supported by grants such as EDG or SFEC, making this programme highly valuable for long-term development.
Executive Certificate in Driving Business Growth through Linking Theory and Practice
This Executive Certificate in Driving Business Growth through Linking Theory and Practice bridges theory and real-world application to help leaders drive effective business growth.
What the programme covers:
- Strategic analysis and decision-making
- Customer value creation
- Performance measurement
- Business model execution
Why it matters:
It enables SME owners to apply structured, research-backed strategies to real business challenges, improving their readiness for grant-supported transformation projects.
Strengthening Business Growth Through SME Grants in Singapore
SME grants in Singapore provide valuable support for digitalisation, capability development, sustainability and market expansion. By understanding the available schemes, ensuring eligibility and aligning projects with grant objectives, businesses can accelerate transformation and strengthen long-term competitiveness. Training and upskilling further reinforce these efforts by equipping SME leaders with the knowledge and capabilities required to execute successful projects.
SMU Academy provides a selection of programmes designed to support SMEs in building capabilities, driving transformation and strengthening readiness for grant applications.
