Running a business in Singapore isn’t easy. From digital transformation to workforce development, SMEs are expected to do more with less—fast. Fortunately, the Singapore government continues to support local enterprises through a wide range of grants. If you’re looking to grow, digitise, train your people, or even expand overseas, there’s likely a grant just for you.
Top 5 Government Grants for Singapore SMEs in 2025
Let’s break down the top 5 government grants for SMEs in Singapore in 2025, how they work, and what you need to know to get started.
Productivity Solutions Grant (PSG)
Need help automating your HR, streamlining inventory, or improving customer service? The Productivity Solutions Grant (PSG) is your go-to.
What it does: Subsidises up to 50% of costs for pre-approved IT solutions and equipment, including payroll software, HR systems, accounting tools, and more.
Why it matters: It’s a great way to reduce manual work, increase efficiency, and start your digitalisation journey.
Eligibility:
- Registered and operating in Singapore
- Minimum 30% local shareholding
- Group annual sales turnover ≤ S$100 million or ≤ 200 employees
Tip: You can apply via GoBusiness and choose vendors that are PSG-approved to speed up the process.
Enterprise Development Grant (EDG)
Thinking of expanding overseas or enhancing your internal operations? The Enterprise Development Grant (EDG) helps businesses build core capabilities, innovate, and access international markets.
What it covers:
- Business strategy development
- Process redesign and productivity improvements
- Overseas market expansion
Funding: Covers up to 50% of project costs, with additional support for sustainability-related initiatives.
Eligibility: Similar to PSG but often requires more detailed proposals.
Best for: Companies serious about scaling up or innovating beyond their current scope.
SkillsFuture Enterprise Credit (SFEC)
Want to invest in your team? The SkillsFuture Enterprise Credit (SFEC) provides a one-off S$10,000 credit for enterprises to upskill employees and transform operations.
What it supports: Courses, consultancy projects, and solutions approved under the SFEC framework.
Subsidy: Up to 90% of qualifying costs
Eligibility:
- Paid at least S$750 in Skills Development Levy in the last qualifying period
- No outstanding CPF contributions or government arrears
Why it’s valuable: It encourages long-term workforce development—a key need in today’s knowledge economy.
Market Readiness Assistance (MRA)
Ready to go regional? The Market Readiness Assistance (MRA) grant is ideal for companies planning to enter new international markets.
What it covers:
- Overseas business development
- Market set-up support
- Marketing and PR activities abroad
Funding: Up to 70% of eligible costs, capped at S$100,000 per new market.
Ideal for: SMEs looking to break into markets like Indonesia, Malaysia, or the Philippines.
Pro tip: Pair this with digital tools that can support cross-border HR and payroll needs to ensure smooth operations.
Emerging/Niche Grants (AI, Green Tech, etc.)
In 2025, new grants have emerged focusing on green transformation, automation, and AI adoption.
Examples:
- Energy Efficiency Grants for upgrading to greener equipment
- AI/Automation support to adopt robotics or AI solutions
Why it matters: Singapore is doubling down on sustainability and digital competitiveness—and these grants help your business keep up.
Stay informed: Follow updates from ESG (Enterprise Singapore) or IMDA for niche schemes that apply to your sector.
5 Things to Do Before You Apply
Securing a government grant isn’t just about filling out a form—it’s about being prepared. Here are five smart steps to take before you apply, so you can maximize your chances of success and get the most value from your funding.
- Align projects with your business goals – Don’t chase the grant; focus on business value.
- Prepare your documentation early – Think: ACRA BizFile, project plans, vendor quotations.
- Choose the right vendor – Preferably pre-approved and with local implementation support.
- Understand each scheme’s requirements – Some have caps, co-funding limits, or training conditions.
- Track your grant usage – Especially if combining multiple schemes like PSG + SFEC.
Final Thoughts: Government Grants Can Power Your Next Move
Whether you’re a startup exploring digital tools or a mature SME expanding into ASEAN, Singapore’s grant ecosystem in 2025 offers significant help. But to fully benefit, you’ll need clarity, planning, and the right tools.
Looking for a pre-approved HR and Payroll solution?
HRMLabs is a PSG-approved, flexible HR software designed for growing businesses. From payroll automation and CPF compliance to leave management and training tracking, HRMLabs takes care of the tedious tasks—so you can focus on what matters most: growing your business.
HRMLabs is available in Singapore, Malaysia, Indonesia, and the Philippines, making it ideal for SMEs with regional ambitions. Contact HRMLabs now!
