In 2026, many SMEs are balancing growth goals with a more demanding operating environment. Across local business surveys, the recurring pressure points have remained consistent: manpower costs, demand uncertainty, and rental expenses, with cybersecurity and data-privacy risks also rising in prominence

At the macro level, inflation remains a consideration rather than a short-term spike, and many businesses continue to operate in a climate shaped by global uncertainty and tighter cost management.

This is why government grants still matter in 2026. Not just as “cost support”, but as a way for SMEs to sequence transformation, build capabilities, and reduce the risk of investing in the wrong initiatives at the wrong time.

In this guide, we’ve refreshed the key SME grants available in Singapore for 2026 and organised them by business intent, so it’s easier to shortlist what’s relevant to your stage and goals.

What are SME grants?

In Singapore, SME grants are government-funded support schemes that help businesses co-fund specific initiatives, such as improving productivity, adopting digital solutions, expanding overseas, and developing workforce capabilities.

Most SME grants do not need to be repaid, provided the business meets eligibility criteria and completes the approved project according to the grant conditions.

These grants are administered through government agencies such as Enterprise Singapore, IMDA, Monetary Authority of Singapore, and Singapore Tourism Board.

What is an SME?

SMEs refer to small and medium-sized enterprises. In Singapore, most businesses fall under this category.

Generally, a company qualifies as an SME if it is registered and operating in Singapore, has at least 30% local shareholding, and meets either the group annual turnover threshold of S$100 million or employs no more than 200 employees.

Different grants may apply additional criteria, so businesses should always check the official grant page before applying.

Why are there grants specifically for SMEs?

SMEs form the backbone of Singapore’s economy, but they often operate with tighter cash buffers and smaller teams compared to larger corporations.

In 2026, many SMEs continue to face persistent manpower and rental costs, pressure to improve productivity without scaling headcount, and the need to invest in technology and skills while managing cash flow carefully.

Government grants are designed to help SMEs move forward with necessary investments that improve resilience and competitiveness, without bearing the full cost upfront.

How does the Singapore government help SMEs?

Most SME grants are administered and applied for through:

These platforms allow businesses to search for relevant grants, check eligibility, submit applications, and track progress.

SME grants by business intent (2026)

Business intent Key grant(s) Best suited for
Strengthening core capabilities Enterprise Development Grant (EDG) SMEs investing in structured transformation
Improving productivity and digitalisation Productivity Solutions Grant (PSG), IMDA programmes SMEs replacing manual processes or scaling operations
Overseas expansion Market Readiness Assistance (MRA) SMEs testing or entering new markets
Workforce and capability development SkillsFuture Enterprise Credit (SFEC), ETSS SMEs upgrading skills and productivity

Grant for firms seeking overall aid

This category covers grants that support SMEs looking to strengthen their business foundations, improve internal capabilities, and prepare for future growth in a more structured way.

In 2026, many SMEs use these grants to professionalise operations, streamline processes, and ensure the business is ready to scale sustainably.

Enterprise Development Grant (EDG)

Agency: Enterprise Singapore
Official link: https://www.enterprisesg.gov.sg/financial-support/enterprise-development-grant

The Enterprise Development Grant (EDG), administered by Enterprise Singapore, supports SMEs that want to grow or transform through structured initiatives such as capability development, innovation, or overseas expansion.

EDG typically benefits SMEs with some operating history that are ready to invest in longer-term improvements rather than ad-hoc fixes. By co-funding qualifying projects, the grant helps businesses move forward with strategic initiatives that might otherwise be delayed due to cost or resource constraints.

Energy Efficiency Grant (EEG)

Agency: GoBusiness Singapore
Official directory: https://grants.gobusiness.gov.sg/support-directory

The Energy Efficiency Grant (EEG) supports SMEs in eligible sectors to adopt energy-efficient equipment and reduce long-term operating costs.

It is particularly relevant for businesses where utilities form a meaningful portion of expenses, such as retail, food-related, and operationally intensive sectors. By lowering recurring overheads, EEG helps SMEs manage costs more sustainably over time.

Grant for firms seeking IT improvements

Digitalisation in 2026 is less about “getting online” and more about using technology to gain better visibility, control, and efficiency across the business.

Grants in this category support SMEs that want to automate processes, improve productivity, and scale without significantly increasing headcount.

Productivity Solutions Grant (PSG)

Agency: Enterprise Singapore
Official link: https://www.enterprisesg.gov.sg/financial-support/productivity-solutions-grant

The Productivity Solutions Grant (PSG) supports SMEs in adopting pre-approved digital solutions and equipment to improve productivity. These typically include systems for accounting, HR, inventory management, customer relationship management, and operational analytics.

 

PSG is most useful for SMEs that have outgrown manual processes and need better systems to manage scale and complexity. By lowering upfront adoption costs, the grant helps businesses implement proven tools more quickly and with less risk.

Grant for firms seeking overseas expansion

While overseas expansion remains a growth opportunity in 2026, many SMEs are taking a more measured approach, testing markets carefully before committing significant resources.

Market Readiness Assistance (MRA) Grant

Agency: Enterprise Singapore
Official link: https://www.enterprisesg.gov.sg/financial-support/market-readiness-assistance-grant

The Market Readiness Assistance (MRA) Grant supports SMEs expanding into new overseas markets by co-funding early-stage market entry costs. This includes activities such as overseas market promotion, business development, and initial market set-up.

MRA is most suitable for SMEs entering overseas markets for the first time or expanding gradually, market by market. It helps reduce the financial risk associated with early expansion efforts.

Grant for firms seeking to develop talent

With manpower constraints remaining a key concern, many SMEs in 2026 are focused on improving productivity per employee and strengthening internal capabilities.

SkillsFuture Enterprise Credit (SFEC)

Agency: Enterprise Singapore
Official link: https://www.enterprisesg.gov.sg/financial-support/skillsfuture-enterprise-credit

The SkillsFuture Enterprise Credit (SFEC) encourages SMEs to invest in both enterprise and workforce transformation by offsetting part of the cost of approved programmes.

Eligible employers receive a one-off credit of S$10,000, which they can use to reduce out-of-pocket expenses for qualifying transformation and training initiatives.

SFEC is most relevant for SMEs that want to strengthen internal capabilities, improve productivity per employee, and build longer-term resilience without absorbing the full cost upfront.

Enhanced Training Support for SMEs (ETSS)

Agency: SkillsFuture Singapore
Official link: https://skillsfuture.gobusiness.gov.sg/support-and-programmes/funding/enhanced-training-subsidies-smes-etss

Enhanced Training Support for SMEs (ETSS) provides higher course fee subsidies for SMEs that sponsor employees for eligible training programmes.

This support benefits businesses that want to upgrade employee skills while keeping training costs manageable, particularly in a tight labour environment.

Grant for firms seeking grants in their own sector

Beyond broad-based SME grants, some government agencies offer sector-specific support tailored to industry needs.

Grants provided by IMDA

Agency: IMDA
Official link: https://www.imda.gov.sg/how-we-can-help/smes-go-digital

IMDA supports SMEs in digital adoption through initiatives such as SMEs Go Digital, Industry Digital Plans, and advisory support like CTO-as-a-Service.

These programmes are most relevant for SMEs that need clearer guidance on digital priorities, solution selection, and implementation planning.

Grants provided by MAS

Agency: Monetary Authority of Singapore
Official link: https://www.mas.gov.sg/development/fintech/grants-for-innovation

MAS offers grants under its Financial Sector Technology and Innovation (FSTI) schemes to support innovation in areas such as FinTech, RegTech, AI, and ESG. These grants mainly benefit technology-driven SMEs operating in or supporting the financial sector.

Grants provided by HPB

Agency: Health Promotion Board
Official link: https://www.hpb.gov.sg/partners/grants

HPB supports initiatives that promote healthier food options and lifestyles through grants such as the Healthier Dining schemes, which are relevant for F&B businesses aligned with healthier menu development.

Grants provided by STB

Agency: Singapore Tourism Board
Official link: https://www.stb.gov.sg/licensing-support/grants/

STB supports tourism-related businesses through the Tourism Development Fund, including schemes such as the Business Improvement Fund and event-related grants.

When SME grants may not be the right starting point

While SME grants can be valuable, they are not always the most suitable first step. Grants typically require defined project scopes, supporting documentation, and longer lead times before funds are disbursed.

SMEs facing immediate cash flow pressure or urgent operational needs may need to consider other funding options alongside grants to ensure business continuity while longer-term initiatives are being planned.

How do SMEs apply for grants in Singapore?

Most SME grants can be applied for online through the Business Grants Portal using the company’s CorpPass account.

For sector-specific grants, businesses may be directed to apply via the portal or contact the relevant agency directly.

How can SMEs increase their chances of a successful application?

SMEs may improve their chances by:

  • Shortlisting grants that align clearly with business objectives
  • Defining a realistic project scope and timeline
  • Preparing supporting documents early
  • Reviewing eligibility criteria carefully before applying

What should SMEs do after reading this guide?

Rather than focusing on a single grant, SMEs may benefit from reviewing the broader grant landscape, shortlisting relevant schemes, and planning how these grants fit into their overall business strategy.

In 2026, grants work best when paired with clear goals, realistic timelines, and a practical understanding of cash-flow needs.

Taking a holistic approach to funding your business

In practice, many SMEs take a more holistic view when it comes to funding their business. Government grants support specific projects such as digitalisation, expansion, or capability building, while business financing helps manage day-to-day cash flow and operational needs as they arise.

Having a clear understanding of both grants and financing options allows SMEs to make more informed decisions based on priorities and timing. At Funding Societies, we support SMEs with flexible digital financing solutions designed to complement different stages of business growth.

Find out more about our business financing options today! 

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Frequently Asked Questions About SME Grants in Singapore

What types of SME grants are available in Singapore?

Singapore offers SME grants that support different business needs, including capability development, digitalisation, overseas expansion, energy efficiency, and workforce training. Each grant targets specific objectives and industries, so eligibility and scope may vary.

Do SMEs need to repay government grants in Singapore?

Most SME grants do not require repayment, as long as the business meets eligibility criteria and completes the approved project according to the grant’s conditions. Failure to comply with requirements may result in clawbacks.

Can SMEs apply for more than one grant at the same time?

Yes, SMEs may apply for multiple grants if the projects are distinct and meet the eligibility criteria of each scheme. However, businesses generally cannot receive funding from different grants for the same project or cost item.

How long does it take to receive grant approval and disbursement?

Approval timelines vary by grant and project complexity. Some grants may take several weeks to approve, while others may take longer. Disbursement typically occurs after milestones or project completion, rather than upfront.

Are startup businesses eligible for SME grants in Singapore?

Some grants are open to younger businesses, but many require SMEs to demonstrate operating history, project readiness, or financial capacity. Startups should review eligibility requirements carefully before applying.

Can SME grants be used together with business financing?

Yes. Many SMEs use grants to support specific projects while relying on business financing to manage operational cash flow and ongoing expenses. The two serve different purposes and can complement each other.

Disclaimer: The information provided to you in this blog post is intended only for general information purposes only and does not constitute legal or other professional advice on any subject matter. The materials and the information provided are not intended to be and do not constitute an advertisement or solicitation. In no event will Funding Societies be liable to any party for any direct, indirect, incidental, special, consequential or punitive damages for use of such information by you or any unauthorised third party.

All third party trademarks product and company names are trademarks or registered trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them. The above article is published on 14 Mar 2023 and accurate as of date of publication.

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