precision-engineering

Short Answer: If your business is registered in Singapore, has at least 30% local equity, and is financially ready to start and complete a project that drives growth or transformation, you likely qualify. 

But let’s break it down clearly. 

 

What Is the EDG? 

The Enterprise Development Grant (EDG) supports Singapore-based companies in upgrading, innovating, and expanding overseas. It covers costs related to: 

• Consultancy 

• Equipment and software 

• Internal manpower 

It’s administered by Enterprise Singapore and is one of the most versatile grants available. 

 

EDG Eligibility Checklist 

Here’s a quick way to know if your company qualifies: 

REQUIREMENT	DETAILS
Business Entity	Registered and operating in Singapore
Local Equity	At least 30% held by Singaporean(s) or PR(s)
Financial Health	Able to start and complete the project
Project Status	Must not have started before application
Project Type	Must fall under one of the 3 supported categories (see below)

 

What Types of Projects Are Supported? 

Your project must fall under one of these three strategic categories: 

1. Core Capabilities 

• Business strategy development 

• Financial management 

• Human capital development 

• Strategic branding and marketing 

2. Innovation & Productivity

• Process redesign 

• Automation 

• Product development 

3. Market Access

• Overseas market expansion 

• International branding 

• Market entry strategies 

 

How Much Funding Can You Get? 

• Up to 50% of eligible costs for most projects 

• Up to 70% for sustainability-related projects (until 31 March 2026) 

Funding is reimbursed after project completion and audit. 

Learn more about the EDG here 

 

Not Sure If You Qualify? 

FI Group Singapore offers free eligibility assessments. We’ll help you: 

• Identify the right grant 

• Prepare your application 

• Maximise your funding 

Contact us for a free consultation 

 

Singapore’s semiconductor industry is at a pivotal moment, rapidly evolving to meet the world’s insatiable demand for chips while aligning with ambitious national goals for sustainability and digital transformation. As the sector expands, it is not only driving economic growth but also setting new benchmarks for green manufacturing and smart, connected production. Here’s how Singapore’s semiconductor ecosystem is powering a future that is both sustainable and digitally advanced.

Sustainability: Greener Chips for a Net-Zero Future

Singapore is firmly on track to achieve net zero emissions by 2050, with the government setting progressive emissions targets and investing in cutting-edge climate solutions. The semiconductor industry, historically energy-intensive, is now at the forefront of this green transition. Key Sustainability Initiatives:

• Energy Efficiency and Green Manufacturing:
  Semiconductor companies in Singapore are actively adopting energy-efficient technologies, retrofitting systems, and integrating smart solutions to reduce their carbon footprint. The government is supporting these efforts with a S$300 million investment over five years to fund energy efficiency projects and innovative retrofits in industrial facilities.

• Carbon Capture and Circular Economy:
  Singapore is piloting carbon capture and storage technologies at waste-to-energy plants by 2026 and encouraging circular economy practices in semiconductor manufacturing, such as water and waste recovery, and material reuse across the value chain. The upcoming Sustainability Forum at SEMICON Southeast Asia 2025 will spotlight these advances, highlighting how the industry is working towards a net-zero value chain.

• Green Energy and Emissions Offsets:
  The sector is also increasing its use of renewable energy and participating in Singapore’s carbon credit initiatives, which are aligned with international standards under the Paris Agreement.

• Collaboration and Global Leadership:
  Singapore’s semiconductor players are partnering with regional and global peers to share best practices and drive sustainability standards across ASEAN, reinforcing the city-state’s role as a green manufacturing leader.

Digital Transformation: Embracing Industry 4.0

Digitalization is revolutionizing Singapore’s semiconductor industry, making it smarter, more resilient, and globally competitive. Key Digital Transformation Drivers:

• Smart Manufacturing & Automation:
  The sector is a trailblazer in adopting Industry 4.0 technologies, including robotics, AI, IoT, and advanced analytics, to optimize production and supply chains. Factory automation systems, powered by protocols like SECS/GEM, enable real-time equipment monitoring, predictive maintenance, and seamless process integration, boosting both efficiency and product quality.

• AI and Advanced Computing:
  The 2025 Budget’s S$150 million Enterprise Compute Initiative is helping semiconductor firms access advanced AI tools and computing power, accelerating innovation and digital transformation. Grants like the Productivity Solutions Grant and SMEs Go Digital further support companies in adopting AI-driven solutions and digital tools.

• Workforce Upskilling:
  Closing the digital skills gap is essential for maximizing these investments. Singapore is investing in workforce development, with training programs and partnerships to ensure both SMEs and large enterprises can fully leverage new technologies.

• R&D and Prototyping:
  The establishment of a national semiconductor R&D fabrication facility, is giving companies access to industry-grade tools for prototyping and testing, accelerating digital innovation in the sector.

 

The Road Ahead: Resilience, Opportunity, and Global Impact

Singapore’s semiconductor industry is not only meeting the demands of next-generation technologies like AI and electric vehicles but is also setting global standards for sustainable and digital manufacturing. As the sector continues to grow, companies that embrace both sustainability and digital transformation will be best positioned to thrive.

For businesses navigating this landscape, expert partners like FI Group Singapore can help identify and secure grants, tax incentives, and support for both green and digital innovation-maximizing your impact in this dynamic ecosystem.
Related Reading:

Discover more about Singapore’s strategic investments in semiconductor infrastructure: Singapore’s New Semiconductor Facilities: A Strategic Leap in Innovation and Industry Growth. 

As sustainability becomes a central pillar of Singapore’s economic strategy, the precision engineering sector is stepping up to the challenge. Here’s how innovation and green thinking are reshaping the industry.

 

 The Sustainability Imperative

Singapore’s Green Plan 2030 and global ESG standards are driving manufacturers to rethink how they design, produce, and deliver products. Precision engineering, known for its focus on accuracy and efficiency, is now applying those same principles to environmental stewardship.

At FI Group, we specialize in helping businesses access R&D tax incentives, innovation grants, and government funding. Talk to our experts and discover how we can support your green initiatives. Contact us today.

Key Trends in Sustainable Precision Engineering

• Circular Manufacturing: Companies are adopting remanufacturing and refurbishment practices, extending the life cycle of components and reducing waste.
• Eco-Friendly Materials: There’s a growing shift toward biodegradable polymers, recycled metals, and lightweight composites that lower carbon emissions.
• Resource Optimization: Smart sensors and analytics are helping firms monitor and minimize energy and water consumption across production lines.
• Low-Emission Processes: The adoption of energy-efficient machinery and automation is reducing factory emissions and supporting Singapore’s climate goals.
  Industry Examples

Local firms are partnering with research institutes to develop closed-loop systems for electronics and aerospace components, turning waste into valuable resources.

Precision engineering companies are investing in green R&D, such as additive manufacturing techniques that minimize material usage and scrap.

As Singapore’s precision engineering sector embraces sustainability, it’s also worth exploring how smart factories are driving the next wave of innovation in the industry. Learn more about this exciting development here.

Business Benefits

• Cost Savings: Efficient use of resources translates to lower operating costs.
• Market Differentiation: Meeting sustainability standards opens doors to new markets and customers.
• Regulatory Compliance: Staying ahead of environmental regulations reduces risk and future-proofs operations.

Government Funding Empowering Sustainability 

Singapore’s commitment to sustainability is matched by a robust suite of government funding schemes designed to help precision engineering innovate and reduce their environmental impact. Some examples of available funding are:

• Enterprise Development Grant (EDG): Supports projects that drive sustainability, innovation, and productivity, funding up to 50% of qualifying costs for SMEs in areas such as process redesign, resource optimization, and adoption of green technologies.
• Innovation Tax Deductions: Singapore offer Tax Incentives that include R&D Tax Measures and Enterprise Innovation Scheme (EIS) that provide 400% tax deductions on eligible Research and Development (R&D) activities, helping businesses in Singapore reduce their tax liabilities and support innovation.

At FI Group we specialize in helping businesses leverage all this public funding available at every step of the process, ensuring you capture the full value of available incentives.

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Imagine a city with almost no farmland, yet striving to feed millions with fresh, locally grown produce. This is Singapore’s reality. With less than 1% of its land available for agriculture, the nation’s “30 by 30” goal, to produce 30% of its nutritional needs locally by 2030, seemed ambitious. But Singapore’s response has been to turn constraint into opportunity, using technology and R&D to pioneer a new era of urban farming.

 

The Smart Farming Transformation: Inside Singapore’s High-Tech Farms

Step into one of Singapore’s vertical farms or high-tech greenhouses and you’ll see a landscape transformed by innovation: 

• IoT Sensors: Crops are monitored around the clock for moisture, nutrients, and climate, enabling precision irrigation and fertilization. 

• Drones & Robotics: Automated drones scan for crop health and apply treatments, while robots handle planting and harvesting, boosting consistency and reducing labor. 

• AI & Data Analytics: Farms use AI-driven platforms to predict yields, optimize resources, and detect disease before it spreads. 

• Automated Systems: Aquaculture tanks and climate-controlled greenhouses run on smart systems that maintain optimal growth conditions year-round. 

These technologies are operational today, turning rooftops and warehouses into productive, sustainable farms. 

For more on Singapore’s innovation in food production, read Agritech in Singapore 2025: Pioneering Sustainable Food Solutions.

 

Collaboration: The Heart of Singapore’s Agritech Ecosystem

What sets Singapore apart is its collaborative approach to agritech R&D: 

• Innovation Hubs: Facilities like the Agri-Food Innovation Park and SAIL bring startups, corporates, and researchers together to pilot new technologies. 

• Academic Partnerships: Universities and research centers work with industry to commercialize breakthroughs, from climate-resilient crops to digital twins for urban farms. 

• Industry Testbeds: Companies can trial and refine solutions in real-world settings before scaling up. 

 

Impact: Resilience, Sustainability, and New Business Frontiers 

The results are clear: 

• Resilience: Urban farms are less vulnerable to global supply disruptions. 

• Sustainability: Smart farming slashes water and fertilizer use, aligning with Singapore’s green ambitions. 

• Productivity: High-tech methods deliver more food per square meter—essential for land-scarce cities. 

• Opportunity: SMEs and startups gain access to labs, pilot programs, and a thriving market for agritech solutions. 
    

Looking to grow your agritech innovation?
At FI Group, we help businesses access R&D tax incentives, innovation grants, and government funding.
Talk to our experts and discover how we can support your growth.

 

Unlocking Growth: Government Support for Smart Farming R&D 

Singapore’s government is a key enabler of this transformation, offering: 

• Singapore Food Story 2.0 R&D Programme: Initiative that aims to aims to enhance Singapore’s food security, sustainability, and food safety through focused research in aquaculture, urban agriculture, future foods, and food safety, supporting both emerging ideas and translation of existing research results.   

• Startup SG Tech: A popular grant supports Proof-of-Concept (POC) and Proof-of-Value (POV) projects for innovative technologies. Startups in Agritech can use this grant to validate and commercialize new solutions.  

• R&D Tax Measures & Enterprise Innovation Scheme (EIS): Companies engaged in R&F and innovation can benefit from enhanced tax deductions and allowances, significantly reducing the effective cost of their research activities.  

These programs lower the barriers for innovators, making it easier to turn ideas into impact. 
  

Ready to Grow? How FI Group Can Help 

Singapore’s Agritech landscape is rich with opportunity, but navigating the funding ecosystem can be complex. FI Group Singapore helps businesses: 

• Identify the most relevant grants and incentives for smart farming and precision agriculture 

• Streamline applications and compliance 

• Optimize funding strategies for maximum innovation and growth 

Are you ready to turn urban farming challenges into business opportunities? Contact FI Group Singapore to unlock public funding and drive your smart agriculture journey forward.   

Singapore’s Precision Engineering sector is undergoing a digital transformation, with smart factories at the forefront of this new industrial revolution. But what exactly makes a factory ¨smart¨, and why does it matter for Singapore’s future a global manufacturing hub? 

 

What Are Smart Factories? 

Smart factories integrate advanced technologies, such as the Industrial Internet of Things (IIoT), artificial intelligence (AI), robotics, and big data analytics, into every stage of production. Unlike traditional factories, smart factories are highly connected, automated, and able to self-optimize their operations in real time. 

 

Key Features of Smart Factories 

• Real-Time Data Monitoring: Machines, sensors, and systems communicate seamlessly, providing live data on production efficiency, equipment health, and quality control. 

• Predictive Maintenance: AI-powered analytics anticipate equipment failures before they happen, minimizing downtime and reducing maintenance costs. 

• Flexible Manufacturing: Automated systems and robotics allow for rapid reconfiguration of production lines, making it easier to switch between products or customize orders. 

• Enhanced Quality Control: Vision systems and machine learning algorithms detect defects instantly, ensuring higher product quality and consistency. 

For a deeper look at how Singapore is advancing this sector, read Precision Engineering Innovations: How Singapore is Shaping the Future.

 

Singapore’s Smart Factory Initiatives 

Singapore is investing heavily in smart manufacturing. The Advanced Remanufacturing and Technology Centre (ARTC) and the Smart Industry Readiness Index (SIRI) are just two examples of national initiatives helping companies assess and accelerate their digital transformation. Local firms are piloting projects in digital twins, autonomous robotics, and cloud-based manufacturing platforms. 

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Looking to transform your factory into a smart manufacturing powerhouse?
At FI Group, we help businesses access R&D tax incentives, innovation grants, and government funding.
Talk to our experts and discover how we can support your growth.

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Business Impact 

• Increased Productivity: Automation and data-driven decision-making lead to faster throughput and reduced waste. 

• Greater Agility: Companies can respond quickly to market changes or supply chain disruptions. 

• Workforce Transformation: New roles are emerging in data analysis, robotics maintenance, and digital operations—creating opportunities for upskilling and talent development. 

 

Government Funding: Powering Singapore’s Smart Factory Transformation  

Singapore’s commitment to digital transformation is matched by a robust suite of government funding schemes designed to help precision engineering companies embrace smart factory solutions. One example is the Enterprise Innovation Scheme (EIS) that offers tax deductions of up to 400% to companies conducting R&D.  

Learn more about Are R&D Expenses Tax Deductible in Singapore? and how your business can benefit from innovation incentives.

 

Explore a Real-World Success Story 

Curious about how precision engineering companies in Singapore are leveraging innovation and R&D incentives to stay ahead? Download our free case study, where we showcase how a leading manufacturer secured government funding to drive business growth with FI Group’s help. 

Download the Case Study Here and discover actionable insights that can help your business innovate and scale in Singapore’s thriving precision engineering sector. 

Singapore’s robotics industry is experiencing a remarkable surge, firmly rooted in the country’s commitment to research and development (R&D) and innovation. As of 2024, Singapore ranks second globally in robot density, boasting an impressive 770 robots per 10,000 workers, a significant leap from 488 in 2016. This growth is largely attributed to initiatives like the National Robotics Programme (NRP), which catalyzes robotics capabilities and fosters cross-industry collaboration. 

RoboNexus

The NRP recently launched RoboNexus, an accelerator program designed to propel promising Singapore-based robotics startups and SMEs onto the global stage. This initiative offers tailored mentorships, business development support, and global market access. Since its pilot in September 2024, six companies have already benefited from RoboNexus, including LionsBot, KABAM Robotics, and dConstruct Robotics, accelerating their product development and expanding industry partnerships. 
 

Government Commitment to R&D

Singapore’s dedication to robotics R&D is evident in its substantial investments. In April 2024, the government announced a $60 million investment in the NRP. This kind of investments aim to keep Singapore at the forefront of cutting-edge research and innovation in robotics and related fields. 

RoboSG! 2025: Showcasing Innovation 

RoboSG! 2025, Singapore’s largest robotics showcase, featured over 75 cutting-edge robots across 65 booths. This event highlighted real-world applications of robotics in various sectors, including security, facility management, last-mile delivery, and healthcare. The showcase also facilitated valuable industry collaborations through research agreements and memorandums of understanding, further driving innovation in the field. 

FI Group: Empowering R&D and Innovation in Singapore 

FI Group Singapore plays a crucial role in supporting businesses at all stages of growth to leverage additional funding for their innovation initiatives. As a leading consulting firm specializing in R&D public funding, we provide comprehensive support in securing grants and tax incentives.  

Download our Precision Engineering Case Study to learn how leading companies are leveraging cutting-edge technology to drive innovation and efficiency in their operations.  

Singapore continues to solidify its position as a global semiconductor powerhouse with significant investments in research and development (R&D) infrastructure. The latest development is the establishment for National Semiconductor Translation and Innovation Centre (NSTIC), along with its new R&D Fab facility, which promises to transform the semiconductor ecosystem in the country.  

A Strategic Investment in Semiconductor Innovation 

The government has committed S$500 million to establish the NSTIC (R&D Fab), which will be located at JTC nanoSpace @ Tampines. This facility complements the existing NSTIC at Fusionopolis, an initiative by A*STAR that has been fostering collaborations between researchers and industry players since its launch last year.  

The new R&D Fab facility will focus on advanced packaging technologies, a key area in semiconductor innovation that integrates multiple chips into a single unit to enhance performance and efficiency. By providing shared access to cutting-edge tools and infrastructure, this initiative aims to empower startups, SMEs, and major global players alike, enabling them to scale their innovations from research labs to market-ready solutions. 

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Looking to enhance your semiconductor innovation?
At FI Group, we help businesses access R&D tax incentives, innovation grants, and government funding.
👉 Talk to our experts and discover how we can support your growth.
 

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Driving Collaboration Across Public and Private Sectors 

One of the defining features of the NSTIC (R&D Fab) is its emphasis on collaboration. The facility will serve as a hub where public research institutes, private companies, and educational institutions can work together to accelerate technology development. This shared model reduces barriers for smaller enterprises by eliminating the need for substantial upfront investments in expensive semiconductor tools and cleanroom facilities. 

By bridging the gap between lab-scale research and large-scale manufacturing, known as “lab-to-fab translation”, the R&D Fab will help bring groundbreaking semiconductor technologies to market faster. This collaborative ecosystem is expected to foster new partnerships, enhance knowledge transfer, and drive innovation across Singapore’s semiconductor landscape.

For more insights into Singapore’s innovation landscape, read Collaboration as the Key to Innovation: Lessons from Singapore’s R&D Ecosystem. 

Strengthening Singapore’s Global Role 

Singapore already contributes significantly to the global semiconductor supply chain, accounting for over 10% of worldwide chip output and 20% of semiconductor equipment production. The NSTIC (R&D Fab) further cements Singapore’s role as a hub for advanced semiconductor R&D, ensuring it stays ahead in emerging industries such as artificial intelligence (AI), electric vehicles (EVs), and renewable energy technologies. 

Economic and Workforce Impact 

The semiconductor sector is a cornerstone of Singapore’s economy, generating over S$133 billion in output in 2023 alone and accounting for approximately 7% of GDP. The investments in NSTIC (R&D Fab) are expected to create high-value jobs, attract global investments, and support local businesses by providing access to world-class infrastructure. 
Additionally, these initiatives will contribute to workforce development by training skilled professionals in advanced semiconductor technologies, a critical factor in maintaining Singapore’s competitiveness on the global stage. 
 

A Vision for the Future 

As Deputy Prime Minister Gan Kim Yong highlighted during the Ministry of Trade and Industry’s Committee of Supply debate, investments like NSTIC (R&D Fab) are vital for sharpening Singapore’s technological edge while creating better opportunities for businesses and citizens alike. These efforts ensure that Singapore remains resilient amid global challenges and continues to thrive as an innovation-driven economy. 
At FI Group, we recognize the transformative potential of these advancements and are dedicated to helping businesses harness them effectively. With our expertise in securing R&D grants and tax incentives, we empower companies to capitalize on Singapore’s world-class infrastructure and partnerships.  

Download our latest case study featuring a precision engineering company that successfully leveraged FI Group’s support to navigate the semiconductor ecosystem and drive innovation.  

Singapore has long been a global hub for precision engineering, supporting industries like semiconductors, aerospace, medical technology, and electronics. But what really sets Singapore apart is its commitment to innovation and advanced manufacturing.

With a strong push towards automation, digital transformation, and Industry 4.0, the country is at the forefront of high-precision manufacturing and engineering breakthroughs. In this article, we’ll explore how Singapore is driving change in the precision engineering sector and what it means for businesses looking to stay ahead.

1. Embracing Smart Manufacturing and Industry 4.0

Gone are the days of traditional factories relying purely on manpower. Today, precision engineering in Singapore is all about smart factories, AI-driven automation, and real-time data analytics.

• Automated production lines powered by robotics and CNC machining are reducing errors and speeding up production.
• IoT-enabled monitoring systems help manufacturers predict equipment failures before they happen, minimizing costly downtime.
• Digital twin technology allows engineers to create virtual simulations of production processes, optimizing efficiency before anything is built.

By integrating these technologies, businesses in Singapore are achieving higher precision, lower costs, and greater sustainability—all while staying competitive on a global scale.

2. The Rise of Additive Manufacturing (3D Printing)

Singapore has been a strong advocate of additive manufacturing (AM), also known as 3D printing, which is changing the way precision components are designed and produced.

• Faster Prototyping: Engineers can now create complex, customized components in a fraction of the time compared to traditional manufacturing.
• Lighter, Stronger Materials: With advancements in metal 3D printing, industries like aerospace and medical tech can produce high-performance, lightweight parts.
• Eco-friendly Manufacturing: Additive manufacturing uses only the necessary materials, significantly reducing waste and energy consumption.

With government-backed initiatives like the National Additive Manufacturing Innovation Cluster (NAMIC), Singapore is actively investing in research and development to push 3D printing to new heights.

3. Advancements in Materials and Nanotechnology

A key driver of innovation in precision engineering is the development of high-performance materials. In Singapore, research institutions and companies are working on:

• Next-gen alloys for aircraft, automotive, and industrial machinery.
• Biocompatible materials for medical implants and surgical tools.
• Nanocoatings that improve durability, heat resistance, and anti-corrosion properties.

These breakthroughs are helping manufacturers create more efficient, durable, and sustainable products, reinforcing Singapore’s position as a leader in advanced manufacturing.

4. Semiconductor and Electronics Precision Engineering

Singapore is a global powerhouse in semiconductor and electronics manufacturing, and precision engineering plays a crucial role in this sector.

With increasing demand for AI-driven chips, 5G components, and electric vehicle (EV) technology, the need for ultra-precise manufacturing is greater than ever. Singapore is at the forefront of:

• Micro-electromechanical systems (MEMS) used in sensors, smartphones, and medical devices.
• Precision semiconductor fabrication for high-performance computing and AI applications.
• Miniaturization of components, allowing for more compact and efficient electronic devices.

Given the rapid advancements in this space, Singapore’s investment in R&D, automation, and high-precision machining is helping the country stay ahead in the global tech race.

5. Aerospace and Medical Technology: Pushing the Limits of Precision

Precision engineering is critical in two high-stakes industries: aerospace and medical technology (MedTech).

• Aerospace: Singapore-based manufacturers supply high-precision engine components, landing gear systems, and avionics to major players like Boeing and Airbus.
• MedTech: From surgical instruments to prosthetics and implantable medical devices, Singapore’s expertise in ultra-precise manufacturing is driving innovation in healthcare.

With strong government backing, including funding from the Singapore Economic Development Board (EDB), these industries are set for continued growth and technological breakthroughs.

6. Government Support and Industry Collaboration

Singapore’s success in precision engineering isn’t just about cutting-edge technology—it’s also about collaboration and government support.

• Funding for R&D: Agencies like Enterprise Singapore, EDB or National Research FoundationA*STAR (Agency for Science, Technology and Research) provide grants to companies investing in new technologies.
• Tax Incentives: Programs like the R&D Tax Incentives offer significant financial relief for R&D investments.
• Skills Development: Programs like SkillsFuture ensure that engineers and technicians are upskilled in the latest advancements.
• Innovation Hubs: Singapore’s Jurong Innovation District (JID) and Advanced Remanufacturing and Technology Centre (ARTC) bring together researchers, manufacturers, and startups to drive innovation. (comment: make this point about public / private collaboration, saying that ARTC and SIMtech which are A-star laboratories are pushing a lot collaboration with SMEs and MNCs

These initiatives make Singapore an ideal place for companies looking to invest in precision engineering, scale their operations, and develop cutting-edge products.

Explore a Real-World Success Story

Curious about how precision engineering companies in Singapore are leveraging innovation and R&D incentives to stay ahead? Download our free case study, where we showcase how a leading manufacturer secured government funding to drive business growth with FI Group’s help.

Download the Case Study Here and discover actionable insights that can help your business innovate and scale in Singapore’s thriving precision engineering sector.