ABOUT - GOVT GRANTS
In Singapore, 99% of businesses are Small, Medium Enterprises (SME), employing 70% of the labor force. Also, Singapore being an open economy, SMEs are susceptible to external trade competition. Hence, there are social and economic implications if the SMEs cannot rise to competition. This is where government grants come in. The primary focus of grants is to assist SMEs in building up a competitive edge and new capabilities. Enterprise Singapore (ESG), a statutory board under the Ministry of Trade and Industry, is the lead administrator of grants. There is a mind-boggling array of grants out there, and it can be very confusing to SMEs.
This section provides insight into the most common grant, the Enterprise Development Grant (EDG) and the Productivity Solutions Grant (PSG).
For EDG and PSG applicants, the following criteria apply:
ELIGIBILITY:
Did you know that subsidiaries of public listed corporations or multinationals are eligible so long the above criteria are met? The applicant is expected to provide company registration details in the Accounting and Corporate Regulatory Authority (ACRA) business profile printout and financial statements.
Contact
- ISO Consultants Pte. Ltd. 30 Petain Rd, Singapore 208099.
- +6585993818
- info@isoconsultant.sg
Brochures
View our 2020 Government Grant brochure for an easy to read guide on all of the services offer.
PRIMARY OBJECTIVE
EDG and PSG have very different assistance objectives. EDG is broad-based, the whole of organization assistance primarily to build new capabilities, i.e., your enterprise would provide a new value proposition to your customers as the outcome. Many applicants have got the wrong impression that implementing business software qualifies as a new capability. The business software is merely changing the operational method, but the capability of the enterprise often remains. To be eligible for software and hardware support, the key operative for the new value proposition must be addressed. In short, putting old wine in a new bottle mentality will not cut it.
PSG, on the other hand, is narrow focus assistance intended to fill a gap. It was initially for micro-SMEs but later expanded to larger SMEs. For example, if your enterprise has trouble managing inventory, you could apply for an inventory management system under the PSG. Notice that the assistance is only in one specific area. Integration of the system to other areas, e.g., accounting is considered out of scope and will not be supported. So, you have to think carefully when adopting PSG solutions because you may end up with piecemeal disparate systems. This situation is not a problem for micro-SMEs but certainly for larger SMEs, where integration is critical for smooth operations.
SUPPORT GRANT - PART 1
The grant quantum varies for every applicant. ESG will assess applicants individually. Some may get the full support, and others may be lower percentages. Past experiences indicate that applicants with higher-value add outcomes or promising sectors will enjoy better support. Unsupportable costs are set-up costs, operational costs, and costs associated with regulatory licenses.
PSG is straightforward. The standard grant level is 50% capped at SG$30K per financial year, whichever is lower. From 1 April 2023, the PSG Energy Efficiency Grant will support up to 70% capped at SG$30K per financial year, whichever is lower. The support is for pre-scoped solutions from a list of pre-approved service providers maintained by various government agencies such as the National Environmental Agency (NEA), Infocomm Media Authority (IMDA), Workforce Singapore (WSG), and Singapore Tourism Board (STB).
SUPPORT GRANT - PART 2
HOW TO APPLY
Here are a few things to prepare before submitting your application: