Top Business Grants Singapore SMEs Should Know About in 2025
Running a small or medium-sized enterprise (SME) in Singapore is no easy feat. While the country is renowned for its pro-business ecosystem, access to timely financial support can often make the difference between stagnation and sustainable growth.
Fortunately, the Singapore government continues to invest heavily in helping local businesses scale and adapt. In Budget 2025 alone, over S$1 billion has been allocated to support digitalisation, sustainability, and workforce development initiatives, many of which are packaged as grants specifically targeted at SMEs.
But here’s the catch: navigating these schemes isn’t always straightforward.
This guide explains the most relevant business grants for Singapore SMEs in 2025, what each one covers, who qualifies, and how to apply effectively.
What Counts as an SME in Singapore?
Singapore defines SMEs as businesses with:
- Annual turnover below S$100 million, or
- Fewer than 200 employees, and
- At least 30% local shareholding.
Summary: Grant Comparison Table
| Grant | Covers | Cap & Support Level |
|---|---|---|
| PSG | Pre-approved IT & automation tools | 50%, up to S$30k |
| EDG | Strategy, innovation, overseas expansion | 50% (70% for sustainability) |
| MRA | Overseas marketing & setup | 50%, up to S$100k per market |
| SFEC | Workforce & training | 90%, one-off S$10k |
| EEG / SRG | Energy savings & reporting | 70%, up to S$30k/year (EEG); variable (SRG) |
1. Productivity Solutions Grant (PSG)
PSG covers pre-approved solutions like accounting software, HR systems, and cybersecurity tools. In 2025, it will also support AI tools in analytics and customer service.
Eligibility:
- Registered and operating in Singapore
- At least 30% local shareholding
- Group turnover below S$100 million
2. Enterprise Development Grant (EDG)
EDG supports branding, strategy, process redesign, and internationalisation. It includes:
- Core Capabilities – Strategy, branding, financial governance
- Innovation & Productivity – Automation, workflow revamp
- Market Access – Overseas expansion planning
Eligibility:
- Must be registered and operating in Singapore
- At least 30% local shareholding
- Group annual turnover below S$100 million or group employment size below 200 employees
3. Market Readiness Assistance (MRA)
- Marketing campaigns overseas
- Business matching services
- Incorporation and market setup
Revenue from the new market must be under S$100k over the last 3 years to qualify.
Eligibility:
- Registered and operating in Singapore
- At least 30% local shareholding
- Revenue from the new market must be below S$100,000 over the past 3 years
4. SkillsFuture Enterprise Credit (SFEC)
- Minimum S$750 Skills Development Levy contribution
- No outstanding CPF/tax liabilities
Can be used together with PSG, EDG, etc., to reduce out-of-pocket costs.
Eligibility:
- Registered and operating in Singapore
- Contributed at least S$750 to the Skills Development Levy
- No outstanding Central Provident Fund (CPF) or tax liabilities
5. Energy Efficiency Grant (EEG) & Sustainability Reporting Grant (SRG)
EEG: Covers up to 70% of energy-efficient equipment cost (capped at S$30k/year)
SRG: Supports sustainability reporting aligned with ISSB standards
Eligibility:
- Registered and operating in Singapore
- Have energy-efficient equipment purchases eligible under EEG
- For SRG, must comply with sustainability reporting requirements
How to Maximise Your Grant Use
- Align projects with national goals like digital or green initiatives
- Combine grants (e.g., EDG + SFEC) for greater savings
- Keep documentation for audits
- Use certified consultants for large projects
Final Takeaway
Grants in 2025 can significantly reduce business costs—but only if applied strategically. Choose schemes that complement your goals, and plan applications carefully to ensure long-term ROI.
