Singapore SMEs: A Powerhouse of Innovation

Small and Medium Enterprises (SMEs) are the backbone of Singapore’s economy, playing a significant role in driving innovation. According to a 2020 national survey by A*STAR, 58% of companies engaged in R&D in Singapore are local SMEs.

However, these businesses account for only 25% of private R&D spending annually. To help bridge this gap, the Singaporean government offers a range of public funding programs and tax incentives aimed at encouraging SME innovation and growth. At FI Group, we specialize in guiding SMEs through this complex landscape, ensuring they secure the best funding opportunities. Let’s explore how local SMEs are leveraging government support to elevate their innovation.

Top 5 Public Funding Options for Singapore SMEs

1. Global Innovation Alliance (GIA)

Benefits: Supports international collaboration, helping SMEs co-create innovative solutions with global partners. Provides financial assistance for exploring foreign markets and identifying business opportunities.
Ideal for: SMEs looking to expand globally and collaborate with international partners on innovative projects.

2. Enterprise Innovation Scheme (EIS) and R&D Tax Measures

Benefits: Up to 68% net savings for the first $400,000 of expenditure yearly, and 42.5% after that. Qualifying costs include manpower, consumable and outsourced costs. SMEs can claim expenses through a self assessment scheme that would provide annual tax savings.
Ideal for: Tax paying SMEs focused on technological advancement and operational efficiency.

3. Enterprise Development Grant (EDG)

Benefits: Provides up to 50% co-funding for projects that drive transformation in Core Capabilities, Innovation & Productivity, and Market Access. EDG supports SMEs in product development, testing, and commercialization, especially for sustainable products and services, helping reduce financial risks tied to innovation.
Eligible activities: Includes market viability assessment, product roadmap, market validation, commercialization plan, IP strategy, and prototype development. Sustainable projects should focus on durability, efficiency, recyclability, or using recycled materials.
Exclusions: Does not cover first product development or projects with low technological innovation.
Ideal for: SMEs seeking to transform operations and achieve sustainable growth.

4. Technology for Enterprise Capability Upgrading (T-Up)

Benefits: Provides up to 70% funding to SMEs for contracting R&D talent, including scientist and engineers from A*Star, to accelerate product and technology development. The program supports innovative projects by embedding specialized talent for up to two years, and includes funding for local and overseas R&D costs.
Ideal for: SMEs aiming to enhance their R&D capabilities by accessing high-level expertise and developing advanced products or technologies for market readiness.

5. Partnerships for Capability Transformation (PACT)

Benefits: Encourages collaboration between Singapore-based SMEs and larger companies, including multinational corporations, to develop innovative solutions and share expertise. This program helps SMEs access resources from established companies, accelerating growth and building strong industry relationships.
Ideal for: SMEs seeking collaborative innovation and faster scaling through partnerships with larger companies and local enterprises.

Partner with FI Group for Funding Success

Navigating the complex public funding landscape can be challenging. FI Group offers expert guidance to help SMEs:

Assess eligibility for various funding programs
Prepare compelling funding applications
Ensure compliance with funding regulations
Full support during and after application

Contact FI Group today to unlock the potential of public funding for your SME.

Get a free Assessment

Empower Your SME: Top 5 Public Funding Options in Singapore

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