EDG vs PSG vs MRA: Which Singapore Government Grant Is Right for You?

Singapore is one of the most generous government-grant ecosystems for SMEs in Asia. The three workhorse schemes — the Enterprise Development Grant (EDG), the Productivity Solutions Grant (PSG), and the Market Readiness Assistance (MRA) Grant — collectively fund tens of thousands of business projects each year across digital transformation, productivity, and overseas expansion.

But each scheme has a distinct purpose, target outcome, and funding level. Picking the wrong one wastes weeks of preparation. This guide is a decision tree for SMEs: by the end, you’ll know which grant fits your project — or whether you should be applying for more than one. We’ll cover the core eligibility for each, the project types funded, the support quantum, and the practical mechanics of applying through the Business Grants Portal.

For broader context, see also our existing piece on compliance requirements for Singapore companies, which sets out the baseline obligations every grant applicant must already be meeting.

Common Eligibility Across All Three Grants

Before zooming into the specifics, three baseline conditions apply to all three grants administered by Enterprise Singapore:

• Singapore-registered entity: The applicant must be a business entity registered and operating in Singapore.
• ≥ 30% local shareholding: Singapore citizens or permanent residents must collectively hold at least 30% of the company’s equity.
• Group annual sales ≤ S$100 million OR group employment ≤ 200: The SME definition that EnterpriseSG uses. Companies above the threshold are not eligible.

If your company fails any of these tests — for example, if it is majority-owned by a foreign parent — none of EDG, PSG, or MRA will be available. Foreign-owned entities should look instead at EDB or sector-specific incentive programmes.

Productivity Solutions Grant (PSG): The Quick Win

PSG is the easiest of the three to apply for. It funds pre-approved IT solutions and equipment from a curated vendor list, covering categories like accounting software, HR/payroll software, customer relationship management (CRM), e-commerce platforms, F&B point-of-sale, and basic cybersecurity tools.

Funding Quantum

PSG covers up to 50% of qualifying costs (some categories temporarily up to 70% during national push periods). Maximum support per company per fiscal year varies by category but typically caps in the low tens of thousands of dollars.

Application Process

The applicant selects a solution from the official PSG list, gets a quote from the pre-approved vendor, and submits via the Business Grants Portal (BGP). Approval is typically within 4–6 weeks. Importantly, you must not pay the vendor or sign the contract before approval — this disqualifies the claim.

Best For

Off-the-shelf digitalisation: switching from spreadsheets to Xero, deploying HR software, setting up an e-commerce store on Shopify, or buying a productivity machine for an F&B business. If your project fits a pre-approved solution, PSG is the right choice.

Enterprise Development Grant (EDG): The Custom Project Grant

EDG funds customised projects in three pillars: Core Capabilities (financial management, business strategy, brand development, human capital), Innovation and Productivity (process redesign, automation, product development), and Market Access (overseas market entry that doesn’t fit MRA criteria).

Funding Quantum

EDG covers up to 50% of qualifying project costs (60% for SMEs through to 31 March 2026 under the Heightened Support window). Qualifying costs include third-party consultancy fees, software licensing, certifications, hardware, and incremental staff costs. Project sizes typically range from S$30,000 to S$500,000+, making EDG materially larger than PSG.

Application Process

EDG is significantly more involved than PSG. The application package includes a project proposal (objectives, deliverables, milestones, KPIs), engagement letter from a third-party consultant, project budget, and the company’s audited financial statements. Processing takes 2–4 months. Project work cannot start before approval.

Best For

Bespoke transformation projects: developing a new product, redesigning operations for a manufacturing line, building a custom ERP, refreshing brand identity through a strategy firm, or making a foundational pivot. EDG is the right choice when no PSG-listed vendor fits and the work needs custom scoping.

Market Readiness Assistance (MRA) Grant: The Overseas Expansion Grant

MRA is purpose-built for SMEs taking their first significant steps into overseas markets. It funds three categories: Overseas Market Promotion (e.g., trade fairs, marketing collateral), Overseas Business Development (e.g., legal/tax advisory, market entry consultancy), and Overseas Market Set-up (e.g., overseas company incorporation, office set-up, IP registration).

Funding Quantum

MRA supports up to 50% of eligible costs, capped at S$100,000 per company per new overseas market (covering all three activity categories). The cap resets per new market, so a company expanding into Vietnam, Indonesia, and the Philippines could potentially access S$100,000 per market.

Application Process

Submitted via BGP, with supporting documents that include the proposed overseas activity plan, vendor quotes, and (for set-up) the proposed overseas entity structure. MRA is more straightforward than EDG but requires a clear overseas focus — the activity must directly support entry into a market where the company has less than S$100,000 in annual sales.

Best For

SMEs ready to internationalise: attending the CES trade fair in Las Vegas, hiring a Vietnam market entry consultant, setting up a Malaysian Sdn Bhd subsidiary, or registering a trade mark in Indonesia.

At-a-Glance Comparison

Decision Tree: Which Grant Should You Apply For?

Use this practical sequence to pick the right grant:

1. Are you doing something overseas (trade fair, market entry, overseas incorporation)? → MRA.
2. Is your project an off-the-shelf solution from the pre-approved PSG list? → PSG.
3. Is your project custom (consulting engagement, bespoke software, brand strategy, R&D)? → EDG.
4. Hybrid project? → Consider stacking grants (see next section).

Can You Stack Grants? Yes — Carefully

Multiple grants can fund the same business outcome as long as they fund different cost components. For example: an SME entering Vietnam might use MRA to fund overseas legal advisory and trade fair attendance, PSG to fund the e-commerce platform that ships to Vietnamese customers, and EDG to fund a product localisation consultancy. The same invoice line cannot be claimed twice.

Smart stacking can lift effective coverage from 50% to 70% or higher across a transformation programme. We’ll cover stacking strategy in a separate guide, but the principle is: identify cost components first, then map each component to the most appropriate grant.

Common Mistakes That Get Applications Rejected

Across all three schemes, the recurring failure modes are:

• Starting work before approval: Any contract signed or invoice paid before the Letter of Offer disqualifies the claim. This is the most common avoidable error.
• Local shareholding not actually 30%: Companies sometimes assume nominee structures count. They don’t. Substantive Singapore ownership is required.
• Inflated quotes: EnterpriseSG benchmarks vendor quotes against industry rates. Inflated quotes lead to a reduced supportable cost base.
• Missing pre-existing capability tests: For EDG, EnterpriseSG often asks how the project goes beyond what the company already does. Generic “we want to digitalise” projects rarely succeed.
• MRA without genuine overseas plan: Travelling to a trade fair without follow-up market activities can lead to clawback at audit.

Post-Approval: Claims, Audits, and KPIs

Once approved, you receive a Letter of Offer (LOO) specifying the supportable amount, milestones, and conditions. Key post-approval rules:

• Claim only after milestones are met: Each LOO has milestones. You cannot claim before completing them.
• Keep all documentation for 7 years: Invoices, payment proof, deliverable evidence — EnterpriseSG can audit at any point.
• Report KPIs accurately: For EDG, post-project KPIs (revenue uplift, productivity gains) must be reported. Underperformance does not generally trigger clawback unless misrepresentation is involved.
• Maintain SME status during the project: A material change in shareholding or company size can affect the grant. Notify EnterpriseSG of major changes.

Other Grants Worth Knowing About

Beyond the big three, SMEs should be aware of:

• SkillsFuture Enterprise Credit (SFEC): Up to S$10,000 cash credit for workforce transformation and capability development. Top-up to 90% of EDG/PSG costs in some cases.
• Startup SG Founder: Up to S$50,000 grant for first-time entrepreneurs.
• Startup SG Tech: For deep-tech startups developing proprietary technology.
• IMDA grants: Sector-specific grants for digital transformation in priority industries.
• Productivity Innovation Project (PIP): Sectoral productivity initiative supported by EnterpriseSG and industry partners.

For the official grant list and application portal, visit EnterpriseSG and businessgrants.gov.sg.

Conclusion

The right Singapore government grant depends entirely on the shape of your project. PSG is the fastest path for off-the-shelf digital tools. EDG is the heavyweight that funds bespoke transformation. MRA is the dedicated overseas-expansion grant. Start with the decision tree above; if your project crosses categories, consider stacking grants for maximum effect.

If you would like guidance on which grant fits your project — or help preparing an EDG proposal that EnterpriseSG will support — our grants advisory team at Raffles Corporate Services regularly handles the full grant lifecycle, from scoping through to claims. We work with consultants on EnterpriseSG’s pre-approved provider list and have a high success rate on first-submission EDGs.

— The Editorial Team, Raffles Corporate Services