What Is the Enterprise Development Grant?

The Enterprise Development Grant (EDG) is one of Singapore’s most significant government grants for local businesses. Administered by Enterprise Singapore, the EDG provides funding support of up to 50% of qualifying project costs for small and medium enterprises (SMEs), and up to 70% for sustainability-related projects.

Whether you are looking to develop a new business strategy, automate your operations, improve your branding, or expand into overseas markets, the EDG can help offset the costs of engaging consultants, purchasing software and equipment, and deploying internal manpower for these projects.

For many Singapore business owners, navigating the grant application process can seem daunting. This guide breaks down everything you need to know about the EDG — from eligibility criteria and supported project categories to the application process and important deadlines.

EDG Eligibility Criteria

Before applying for the EDG, your company must meet the following requirements set by Enterprise Singapore:

  • Local equity — Your company must have at least 30% local equity held directly or indirectly by Singaporean citizens and/or Singapore Permanent Residents.
  • Registered and operating in Singapore — The company must be registered with the Accounting and Corporate Regulatory Authority (ACRA) and have active business operations in Singapore.
  • Financial readiness — The company must be financially ready to start and complete the project. Enterprise Singapore will assess this using standard financial indicators such as the current ratio. If your company’s finances are not in order, it is worth getting your accounting and tax matters in good shape before applying.
  • Commitment to worker outcomes — All companies applying for the EDG must commit to worker outcomes as part of the qualifying requirements. These include wage increments for existing employees, job creation, job redesign, or training for existing staff.

It is important to note that the EDG is available to both SMEs and non-SMEs, though the funding support level differs. SMEs can receive up to 50% of qualifying costs, while non-SMEs can receive up to 30%.

What Does the EDG Support? The Three Pillars

The EDG supports projects under three broad pillars. Understanding which pillar your project falls under will help you structure your application effectively.

Pillar 1: Core Capabilities

Projects under this pillar help businesses strengthen their foundations and prepare for growth and transformation. The five supported areas are:

  • Business Strategy Development — Developing or refining your company’s strategic direction, including market analysis, competitive positioning, and growth planning.
  • Financial Management — Improving financial systems, processes, and controls to support business growth. This can include implementing accounting software or upgrading financial reporting capabilities.
  • Human Capital Development — Strengthening your workforce through organisational restructuring, talent management strategies, or leadership development programmes.
  • Service Excellence — Enhancing customer service capabilities, including service delivery frameworks, customer experience mapping, and service innovation.
  • Strategic Brand and Marketing Development — Developing brand strategies, marketing plans, and digital marketing capabilities to strengthen your market presence.

Pillar 2: Innovation and Productivity

This pillar supports companies that are exploring new areas of growth or seeking to enhance operational efficiency. The three supported areas are:

  • Automation — Implementing automated systems and processes to reduce manual work and improve productivity.
  • Process Redesign — Reviewing and redesigning business processes to eliminate inefficiencies and improve workflow.
  • Product Development — Developing new products or services, or improving existing ones to meet market needs.

Pillar 3: Market Access

This pillar supports Singapore companies that are ready to venture overseas. The supported areas include:

  • Pilot Projects and Test-Bedding — Testing your products or services in overseas markets before committing to a full-scale launch.
  • Standards Adoption — Obtaining international certifications or standards that will help you access new markets.

For companies considering overseas expansion, having your compliance requirements in order is essential, as Enterprise Singapore will review your company’s overall governance as part of the assessment.

Qualifying Costs Under the EDG

The EDG funds three categories of qualifying project costs:

Third-party consultancy fees: This is often the largest component of EDG-funded projects. If your project involves engaging management consultants, those consultants must hold the Singapore Accreditation Council-accredited TR 43 or SS 680 certification. However, specialists performing dedicated functions such as market research, audit, fieldwork, design, equipment installation, or legal drafting are exempt from this certification requirement.

Software and equipment: The grant can cover the cost of purchasing or subscribing to software solutions, as well as acquiring equipment needed for the project. This is particularly relevant for automation and process redesign projects.

Internal manpower costs: The EDG can also cover a portion of the salary costs of your employees who are directly involved in the project. This recognises that successful transformation projects require significant internal commitment and resources.

Funding Support Levels

The level of funding support depends on your company’s size and the nature of the project:

  • SMEs — Up to 50% of qualifying project costs for standard projects.
  • Non-SMEs — Up to 30% of qualifying project costs.
  • Sustainability-related projects — Enhanced support of up to 70% of qualifying costs. This enhanced rate has been available since 1 April 2023 and runs until 31 March 2026.

To be classified as an SME for EDG purposes, your company must have an annual turnover of not more than S$100 million or employ no more than 200 workers.

How to Apply for the EDG

Step 1: Identify Your Project Scope

Before applying, clearly define what you want to achieve. Identify which of the three pillars your project falls under and outline the specific outcomes you expect. Enterprise Singapore will assess your application based on the project scope, expected outcomes, and the competency of your service provider.

Step 2: Engage a Qualified Service Provider

For most EDG projects, you will need to engage an external consultant or service provider. As noted above, management consultants must hold the TR 43 or SS 680 certification accredited by the Singapore Accreditation Council. When selecting a service provider, ensure they can provide:

  • A detailed scope of work and project proposal.
  • A man-day rate breakdown of their services.
  • CVs and certification copies of the consulting team members.

Step 3: Prepare Your Application

You will need the following documents for your application:

  • A detailed project proposal outlining the scope, objectives, timeline, and expected outcomes.
  • Quotations from your service provider(s).
  • Your company’s latest financial statements — having your annual filings up to date is important here.
  • Details of your commitment to worker outcomes.

Step 4: Submit via the Business Grants Portal

All EDG applications must be submitted through the Business Grants Portal (BGP). You will need your company’s CorpPass to log in and submit the application.

The approval process typically takes between 4 to 12 weeks, depending on the complexity of the project, the industry, and the workload of Enterprise Singapore’s assessment officers.

Step 5: Project Implementation and Claims

Once your application is approved, you can begin implementing the project. Important points to note:

  • EDG projects are supported on a reimbursement basis — you must pay for the costs first and then claim reimbursement from Enterprise Singapore.
  • Claims can be submitted when all project deliverables have been achieved.
  • Claims must reach Enterprise Singapore no later than six months from the end of the project qualifying period.
  • Ensure you keep proper documentation and records of all project expenses, as these will be required for your claim submission.

The Future: EDGE — A Consolidated Grant from H2 2026

Business owners should be aware that the Singapore government has announced plans to consolidate the EDG, Productivity Solutions Grant (PSG), and Market Readiness Assistance (MRA) grant into a single unified programme called EDGE, expected to launch in the second half of 2026.

The EDGE programme aims to simplify the application process — businesses will no longer need to determine which grant their activities fall under. Instead, they will apply based on their intended activities, such as digitalisation, overseas expansion, or enterprise efficiency improvements.

Until EDGE is launched, the current EDG, PSG, and MRA grant programmes remain open for applications. If you have a project that qualifies for EDG support, it is advisable to submit your application soon rather than waiting for the EDGE transition, as processing times can take several weeks.

Tips for a Successful EDG Application

Demonstrate Clear Business Outcomes

Enterprise Singapore prioritises projects with clear, measurable outcomes. Your application should clearly articulate how the project will benefit your business — whether through increased revenue, improved productivity, cost savings, or new market penetration.

Ensure Your Company Is in Good Standing

Your company should be in good standing with all regulatory authorities. This means your annual returns should be filed on time, your Register of Registrable Controllers should be up to date, and your company should have a properly appointed company secretary. Companies with outstanding compliance issues may find their applications delayed or rejected.

Choose the Right Service Provider

The quality of your service provider can make or break your application. Choose consultants with a proven track record in your industry and ensure they hold the necessary certifications. A good service provider will also help you structure your project proposal in a way that aligns with Enterprise Singapore’s assessment criteria.

Start Early

Do not wait until you urgently need the grant to begin the application process. Factor in the 4 to 12 weeks needed for assessment, plus the time required to prepare your proposal and gather supporting documents. Planning ahead ensures you can start your project on schedule.

Conclusion

The Enterprise Development Grant is a valuable resource for Singapore businesses looking to upgrade their capabilities, improve productivity, or expand into overseas markets. With funding support of up to 50% (or 70% for sustainability projects), the EDG can significantly reduce the financial burden of business transformation projects.

However, a successful application requires careful planning, proper documentation, and compliance with all regulatory requirements. Ensuring your company’s corporate governance is in order — from compliance requirements to annual filings — will strengthen your application and demonstrate to Enterprise Singapore that your company is ready to undertake the project.

If you need help getting your company’s corporate housekeeping in order before applying for the EDG, or if you require assistance with any corporate secretarial matter, Raffles Corporate Services is here to help.

— The Editorial Team, Raffles Corporate Services