EDG Grants | AEDGBIZ | CQI | TR43

Eligibility For Grants

Grant Acceptance Matters

Grant Application Matters

Grant Reimbursement / Claims Matters

Grant Support Level

Service Provider Requirements

Frequently Asked Questions (FAQ)

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.

Eligibility

For EDG and PSG applicants, the following criteria apply:

A business entity that is registered/incorporated in Singapore
At least 30% of local shareholding.
If your enterprise is a subsidiary of a larger corporation, the Group Annual Sales Turnover must be less than S$100 million, or Group Employment Size of not more than 200 workers.
Purchase/lease/subscription of the Equipment or IT Solution must be used in Singapore.

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.

About 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).

Support- Pt. 1

For EDG, the standard grant support is up to 50% of the qualifying project cost. For sustainability-related projects, the support level will be up to 70% from 1 April 2023 to 31 March 2026. The qualifying costs covered are:

Consultancy.
Testing and Certification.
Machinery, Hardware & Software
Training for technology adoption or project implementation.
Staff salary for those involved in the project, excluding Directors.

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- Pt. 2

We have come across applicants who aren't too happy to pay the remaining costs. All government funding is given based on shared risk. If the applicant does not put their money into the game, there is certainly no risk and no interest on their part in completing the project. To further lessen the cash outlay, now you could use your Skills Future Enterprise Credit (SFEC) to offset some of the out-of-pocket expenses. Here is an illustration of how SFEC lowers your cash payment for a project under EDG or PSG valued at SG$50K for an environmental impact energy reduction scope project:

The SFEC is announced every new budget year with different qualifying periods. Look out for it on every budget announcement in February. To qualify for SFEC support, your enterprise must meet the eligibility criteria:

Contributed at least SG$750 Skills Development Levy over the period.
Have employed at least three Singapore Citizens (SCs) or Permanent Residents (PRs) every month over the same period.
Have not been qualified in any of the earlier periods.
Have not used up your SFEC credit balance of SG$7K for Enterprise Transformation and SG$3K for Workforce Transformation.

Service Providers

For EDG, the project consultant must be certified under the Consultant Quality Initiative (CQI) scheme. For hardware, software, and training providers, you are free to choose the appropriate service provider that meets your project requirements.

For PSG, unfortunately, you are restricted to a list of pre-approved service providers. You may have a specific service provider in mind that could offer better value, but if your preferred provider is not listed; you will not be able to apply for PSG with this provider.

To Apply

There is a misconception that EDG and PSG applications can only be made through SME centers, Trade Associations, Institutes of Higher Learning, or Productivity Centers. The fact is, you can make the application yourself via the business grant portal. Here are a few things to prepare before submitting your application:

Notes:

#1: A 3-year audited financial statement is required. If you have been operating for less than three years, audited financial statements will suffice for the last two years in operation. If you have less than one year of operation, you need to supply Projected Income Statement, and to date, unaudited financial statements or management accounts.

#2: ESG takes a severe view of backdating a project for claiming grants. For this reason, you shall not start the project or enter into an agreement with the vendor or service provider. You can do so after you receive the Letter of Offer from ESG.

#3: The project proposal is not to be confused with the Project Consultant's proposal. It is a business case write-up to justify your project scope and outcomes. We provide this service for free when you engage us in grant supportable consultancy services listed on this site. We will also advise you on the projected 3-year impact outcomes from the project.

#4: Staff salaries (excluding Directors) involved in the project are supported. You need to provide objective information to ESG for calculating the supported amount.

Acceptance

For EDG, there will be a waiting period of at least 4-8 weeks for ESG to evaluate your project. For PSG, it is less than 4 weeks. During this time, ESG may contact you for clarification or to submit additional documents. On approval of your project, you will receive a Letter of Offer. You will need to accept or reject the offer in the business grants portal. If you accept the offer, take note of the project qualifying period. This is an important deadline. The project could become unsupportable if you missed the deadline without making amendments to the qualifying date.

Claims

All EDG or PSG claims are on a reimbursement basis. Hence it is necessary to prove you have completed the project and incurred the costs per your Letter of Offer. If you have not had a GIRO account set up with ESG, this is the time to do so. You will need the following documents to be submitted in the business grants portal:

Project report
Project invoices and bank statement
Staff salary statements (for those involved in the project)

Once you submit the claim, you will need to appoint an auditor from a list of financial auditors in the portal. The auditor will verify the documents submitted against your actual project deliverables. Do note that the audit fee is part of the grant Letter of Offer. So make sure you choose one that is within the grant amount. You will receive a GIRO inward bank remittance from ESG to your business account in 6-8 weeks when everything is in order.