Enterprise Development Grant (EDG) Singapore: SME Guide 2026

The Enterprise Development Grant (EDG) is one of Singapore’s most valuable funding programs for local businesses. Administered by Enterprise Singapore, the EDG grant supports up to 50% of qualifying project costs. This covers everything from custom software development and process automation to market expansion strategies.

Whether you’re planning to build a new enterprise system, digitize your workflows, or take your products to regional markets, this guide breaks down everything you need to know about the EDG Singapore program. You’ll learn who’s eligible, what it covers, how to apply, and how to maximize your chances of approval.

What Is the Enterprise Development Grant (EDG)?

The Enterprise Development Grant (EDG) is a government funding program by Enterprise Singapore that supports local businesses in upgrading, innovating, and growing. It funds individual projects tailored to your company’s specific needs. The goal is to help Singapore companies transform their operations, improve productivity, and expand into new markets.

Unlike off-the-shelf grant programs, EDG Singapore is designed for custom projects. You submit your own project proposal with details on your business plans and expected outcomes. If approved, the grant reimburses a portion of your qualifying project costs.

EDG covers three main types of qualifying costs:

1. Third-party consultancy fees: This includes payments to certified consultants or solution vendors who support your project.
2. Software and equipment: Costs for technology tools, platforms, or hardware needed to complete the work.
3. Internal manpower costs: Salaries for your in-house team members who are directly involved in the project.

How Much EDG Funding Can You Get?

The EDG grant covers up to 50% of eligible project costs for local SMEs. This applies to all three cost categories: consultancy fees, software and equipment, and internal manpower.

There is no fixed cap on the enterprise grant Singapore amount. The EDG funding you receive depends on the scope and scale of your project. A small process improvement project might receive a modest grant, while a large-scale digital transformation initiative could receive significantly more.

It’s worth noting that during the COVID-19 pandemic, the government temporarily raised support levels above 50% to help businesses recover faster. Those enhanced rates have since expired. The current standard support level is 50% for eligible SMEs.

Enterprise Development Grant Singapore works on a reimbursement basis. You will need to fund the project upfront and submit claims after completing the project’s deliverables. The grant amount is then disbursed to your bank account. So, make sure your business has enough cash flow to cover the initial costs before applying.

EDG vs PSG: What’s the Difference?

If you’ve been exploring Singapore enterprise grants, you’ve probably come across both the Enterprise Development Grant (EDG) and the Productivity Solutions Grant (PSG). They’re both administered by Enterprise Singapore, but they serve very different purposes.

Here’s a quick comparison:

Which one should you choose? If your business needs a standard software tool that’s already on the PSG list, PSG is the faster and easier route. But if you need something built specifically for your operations, like a custom ERP, a workflow automation platform, or an AI-powered system, EDG Singapore is the better fit.

In some cases, you may even be able to tap both grants for different projects. PSG for your day-to-day tools, and EDG for a larger transformation initiative.

Who Is Eligible for the Singapore Enterprise Development Grant?

Before you start planning your project, it’s important to check whether your company qualifies. The Enterprise Development Grant eligibility requirements are set by Enterprise Singapore and apply to all applicants regardless of industry or project type.

To apply for the EDG grant Singapore program, your company must meet the following requirements:

1. Registered and operating in Singapore. Your business entity must be incorporated and actively operating in Singapore. Foreign-registered companies are not eligible.
2. At least 30% local shareholding. Your company must have a minimum of 30% equity held directly or indirectly by Singaporeans or Singapore Permanent Residents. This is determined by ultimate individual ownership.
3. Financially ready to start and complete the project. Enterprise Singapore will assess your company’s financial health using common indicators such as the current ratio. Your business needs to demonstrate that it has the resources to fund the project upfront, since EDG works on a reimbursement basis.

Beyond these three core requirements, Enterprise Singapore also evaluates each application based on the project scope, expected project outcomes, and the competency of the service provider you plan to work with.

If your company is eligible for the SkillsFuture Enterprise Credit (SFEC), you may also qualify for additional subsidies on top of the standard EDG Singapore support.

What Does the Enterprise Development Grant Singapore Support?

The Enterprise Development Grant is structured around three project categories. Each category targets a different area of business growth. Understanding which pillar your project falls under will help you frame your application and align it with what Enterprise Singapore is looking for.

1. Core Capabilities

This pillar focuses on strengthening your business foundations. It supports projects that improve areas like business strategy, financial management, human resources, and service excellence.

For example, if your company needs to restructure its operations, develop a new business model, or build a stronger HR framework, this is the category to apply under. It’s especially relevant for SMEs that are scaling up and need to professionalize their internal processes.

2. Innovation and Productivity

This is the most relevant pillar to technology-driven projects. It supports initiatives that help businesses transform through automation, process redesign, and product development.

If you’re looking to build a custom software system, automate manual workflows, integrate AI into your operations, or develop a new digital product, your initiative likely falls under this category. It’s designed for businesses that want to use technology to work smarter, reduce costs, and improve performance.

For SMEs in Singapore, this pillar opens significant funding opportunities for projects like:

• Custom enterprise systems: Building tailored ERP, CRM, or inventory management platforms that fit your specific business workflows. If your business needs a solution built from scratch, working with a custom software development company in Singapore can help you scope and deliver the project.
• Process automation: Replacing repetitive manual tasks with automated digital workflows to save time and reduce errors. This is a common use case for enterprise software development in Singapore, where businesses need systems tailored to complex internal processes.
• AI and machine learning: Implementing intelligent systems for demand forecasting, customer analytics, or operational optimization. Many SMEs are now using artificial intelligence to automate decision-making, personalize customer experiences, and uncover insights from data that would be impossible to process manually.
• Digital transformation: Overhauling legacy systems and migrating to cloud-based infrastructure for better scalability and efficiency. This often involves rethinking how your entire business operates, from internal workflows and data management to how you interact with customers.

This is where the EDG enterprise Singapore grant stands out from simpler programs like PSG. Instead of choosing from a fixed list of tools, you can propose a fully custom project designed around your business needs.

3. Market Access

This pillar supports projects that help your business expand overseas. It covers activities like market research, market entry strategies, business development, and setting up overseas operations.

If your company is ready to enter new markets in Southeast Asia or beyond, EDG can help fund the planning and execution of that expansion. This could include developing a localized e-commerce platform for a new region or building a digital sales channel to reach international customers.

For businesses with existing products or services, this pillar can also support branding and marketing efforts tied to overseas market entry. The key is that your project must have a clear international growth objective.

How to Apply for Enterprise Development Grant (EDG): Step-by-Step

The EDG grant application process is more involved than simpler grants like PSG. But if you prepare the right documents and follow the correct steps, it’s very manageable. Here’s a complete walkthrough of what to expect.

Step 1: Identify Your Project Category

Start by determining which of the three EDG pillars your project falls under: Core Capabilities, Innovation and Productivity, or Market Access. This will shape how you write your proposal and what outcomes Enterprise Singapore expects.

If your project spans multiple areas, choose the category that best reflects the primary objective.

For example, if you’re building a custom software system to improve internal productivity, Innovation and Productivity is the right fit. If you’re developing an e-commerce platform to sell in a new overseas market, Market Access is more appropriate.

Step 2: Engage the Right Vendor or Consultant

Once you’ve defined your project, you’ll need to find the right partner to help you execute it. This could be a management consultant, a technology vendor, or both.

There are no pre-approved vendors for EDG Singapore. You are free to choose any vendor that fits your project needs. However, there is one important rule to keep in mind.

If your project involves management consultancy services, the consultant must hold a TR 43 or SS 680 certification accredited by the Singapore Accreditation Council. These certifications ensure that consultants meet professional and ethical standards for providing advisory services.

There are exceptions to this rule. The following professionals do not need TR 43 or SS 680 certification:

• Team members performing dedicated functions such as market research, audit, fieldwork, design, equipment installation, or drafting legal agreements.
• Consultants offering technical advice and expertise in the development of new technology.
• Solutions vendors.

This is an important distinction for technology projects. If you’re engaging a software development company to build a custom system, they fall under the solutions vendor category and do not need the certification. The certification requirement only applies to management consultants providing advisory services.

You can find certified enterprise development grant consultants through the Institute of Management Consultants (Singapore), the Singapore Business Advisors and Consultants Council, or TÜV SÜD PSB.

Step 3: Prepare Your Project Proposal

This is the most critical step. Your project proposal is what Enterprise Singapore uses to evaluate your application. A strong proposal clearly explains what you’re doing, why it matters, and what outcomes you expect.

Your proposal should include:

• A clear description of the project’s scope and objectives.
• How the project aligns with your overall business strategy.
• Expected outcomes and measurable business impact.
• A detailed breakdown of project costs across the three qualifying categories.
• Information about the vendor or consultant you plan to work with.

Enterprise Singapore provides project proposal templates on the Business Grants Portal. Use them as a starting point to make sure you cover all required fields.

Step 4: Submit on the Business Grants Portal (BGP)

All EDG grant applications are submitted through the Enterprise Singapore grant portal, also known as the Business Grants Portal (BGP). You will need a Corppass account to log in and transact on the portal.

A few important things to note before you submit:

• Third parties cannot apply on your behalf. Your company must submit the application directly. Vendors and consultants are not allowed to apply for or manage the grant on behalf of applicant companies.
• Your project must not have started. The project must be new, must not have commenced, and must not be generating any revenue at the time of application. Even signing a contract or making a payment to your vendor before submitting the application can disqualify your project.
• Prepare all supporting documents. Incomplete applications will be rejected. You can resubmit complete documents, but this will delay the process.

Once submitted, a complete application typically takes 8 to 12 weeks to process. Enterprise Singapore may contact you through the BGP for clarifications during this period.

Step 5: Project Implementation and Claims

After your application is approved, you’ll receive a Letter of Offer that outlines the project’s qualifying period, deliverables, and grant conditions. This is your roadmap for execution.

Complete your project within the specified qualifying period and make sure all deliverables outlined in the Letter of Offer are achieved. Keep thorough documentation throughout the process, as you’ll need it for the claims stage.

Once the work is complete, submit your claim through the BGP. Here’s what happens next:

1. Prepare your claim documents: This includes a project summary report, documentation of project deliverables, and cost items like invoices, bank statements, and employment contracts.
2. Select an auditor: During claim submission, you’ll need to choose an auditor from Enterprise Singapore’s Pre-Qualified Panel. The auditor will verify your claim documents and issue an Audit Report.
3. Set up your payment method: Grant disbursement is made through PayNow Corporate (recommended, 14 working days after claim approval) or GIRO (up to 8 weeks). Make sure your preferred payment method is set up before submitting.
4. Submit and wait for verification: An Enterprise Singapore officer will verify that your project deliverables have been met. A site visit or presentation may be arranged. Once both the deliverables and expenses are verified, the approved claim amount will be disbursed to your bank account.

Your claim must reach Enterprise Singapore no later than six months from the end of the project qualifying period. Missing this deadline means forfeiting your grant, so mark it on your calendar.

How SMEs Use EDG for Software Development and Digital Transformation

Most of the information available online about the EDG grant Singapore focuses on eligibility and application steps. But what does an EDG-funded project actually look like in practice? This section walks through common ways SMEs in Singapore use the grant to fund technology initiatives.

Custom Software Development Projects

Many SMEs reach a point where generic software tools no longer meet their needs. Processes get more complex; teams grow, and off-the-shelf solutions start creating more workarounds than efficiency. That’s where EDG comes in.

Under the Innovation and Productivity pillar, businesses can apply for EDG funding to build custom software tailored to their specific operations. Common examples include:

• ERP systems: A manufacturing SME might need an ERP platform that integrates production scheduling, inventory tracking, and supplier management into a single system. Off-the-shelf ERPs often require heavy customization anyway, so building a purpose-built solution can be more cost-effective in the long run.
• CRM platforms: A growing B2B services company might need a CRM that aligns with its unique sales process, lead scoring model, and client onboarding workflow. A custom-built CRM eliminates the need to pay for features you don’t use while adding the ones you actually need.
• Mobile applications: If your business needs a customer-facing app or an internal operations app, EDG can fund the full development cycle. This makes EDG one of the most practical mobile app development grant Singapore options available for SMEs.
• Inventory and order management systems: Retail and F&B businesses often struggle with managing stock across multiple locations. A custom system that connects your POS, warehouse, and supplier data in real time can significantly reduce waste and fulfillment errors.
• Internal workflow platforms: If your team still relies on spreadsheets, email chains, or manual approvals to get things done, a custom workflow automation platform can save hours of work every week.

These are exactly the types of projects that Enterprise Singapore looks for under EDG. They have clear business objectives, measurable outcomes, and a direct impact on productivity.

Digital Transformation Initiatives

Digital transformation is a broad term, but in the context of the enterprise development grant (EDG), it typically means replacing outdated systems and manual processes with modern, integrated technology.

Here are a few scenarios where SMEs commonly use the EDG grant Singapore for digital transformation:

• Legacy system migration: Your business might be running on software that was built 10 or 15 years ago. It still works, but it’s slow, difficult to maintain, and can’t integrate with newer tools. EDG can fund the development of a modern replacement and cover the cost of migrating your systems to the cloud.
• End-to-end process digitization: Some businesses still handle key processes on paper or through disconnected tools. EDG can support a project that digitizes these workflows from start to finish, connecting everything into a single platform.
• Data infrastructure and analytics: As your business grows, so does your data. EDG can fund the development of a centralized data platform that gives you real-time visibility into operations, sales, and customer behavior. This often involves AI and machine learning capabilities for forecasting and automated decision-making.

The key to a successful EDG application for digital transformation is showing a clear before-and-after. Enterprise Singapore wants to see how your project will move your business from its current state to a measurably better one.

How to Write a Strong Project Proposal

Your project proposal is the most important part of your enterprise Singapore grant application. It’s what Enterprise Singapore uses to decide whether your project deserves funding. A well-written proposal does three things: it clearly defines the problem, explains the solution, and quantifies the expected outcomes.

Here’s what a strong proposal typically includes:

• A clear problem statement: What specific business challenge are you trying to solve? Be specific. Instead of “our operations are inefficient,” try “our order fulfillment process requires 12 manual steps across three disconnected systems, leading to an average of 15% order errors per month.”
• A well-defined project scope: What exactly will be built or implemented? Break it down into phases or modules if the project is complex. Include timelines for each phase.
• Measurable business outcomes: Enterprise Singapore wants to see numbers. How much time will be saved? What’s the expected reduction in errors? How will revenue or productivity improve? Use realistic projections backed by your current data.
• A detailed cost breakdown: Map every cost to one of the three qualifying categories: consultancy fees, software and equipment, or internal manpower. Be transparent and realistic with your budget. Inflated costs raise red flags.
• Vendor credentials: Include your vendor’s track record, relevant project experience, and team qualifications. Enterprise Singapore assesses the competency of your service provider as part of the evaluation. A vendor with proven experience in similar engagements strengthens your application.

If your project involves software development, include details like the technology stack, system architecture overview, and integration requirements. The more specific you are, the easier it is for the evaluator to understand and approve your project.

Choosing the Right Technology Partner for Your EDG Project

Your choice of vendor directly impacts both your application outcome and your project success. Enterprise Singapore evaluates the competency of your service provider as part of every enterprise development grant (EDG) application, so picking the right partner matters from day one.

Here’s what to look for when choosing a technology partner for an EDG-funded project:

Relevant Project Experience

Has the vendor built similar systems before? A software company that has delivered ERP, CRM, or automation platforms for other SMEs will be more credible in your application than one with no track record in your project type.

Understanding of the EDG Process

A vendor who has worked on EDG-funded projects before understands what Enterprise Singapore expects in terms of documentation, milestones, and deliverables. This saves you time and reduces the risk of issues during the claims stage.

End-to-end Capabilities

Look for a partner that can handle the full project lifecycle, from requirements gathering and UI/UX design to development, testing, and deployment. Working with a single vendor simplifies project management and makes the claims process smoother.

Post-launch Support

Your project doesn’t end when the software goes live. Ongoing maintenance, bug fixes, and feature updates are part of long-term success. Make sure your vendor offers ongoing support or managed IT services beyond the initial build.

Clear Communication and Documentation

EDG projects require proper documentation for both the application and the claims process. A vendor that communicates clearly and keeps thorough records will make the entire experience significantly easier.

At TechTIQ Solutions, we’ve helped Singapore SMEs plan, develop, and deliver technology projects across custom software, enterprise systems, and digital transformation. Our team understands the EDG process and works closely with clients to make sure the project scope, documentation, and deliverables align with what Enterprise Singapore expects.

Is the Singapore Enterprise Development Grant Taxable?

Yes. The Inland Revenue Authority of Singapore (IRAS) treats government grants as taxable income. This means the EDG grant amount you receive will be included in your company’s assessable income for the relevant Year of Assessment.

However, the project costs funded by the grant are typically deductible as business expenses. So the net tax impact may be smaller than you expect. Every company’s situation is different, so we recommend consulting a qualified tax advisor for specific guidance.

Start Your EDG-Funded Project with TechTIQ Solutions

TechTIQ Solutions helps Singapore SMEs and startups plan, build, and deliver EDG-funded software and digital transformation projects. If you have a project in mind, talk to our team to explore your options.

FAQs About EDG

How long does EDG approval take?

A complete application typically takes 8 to 12 weeks from the date of submission. Enterprise Singapore may contact you for clarifications during this period. Incomplete applications will be rejected and must be resubmitted.

Can startups apply for the enterprise development grant (EDG)?

Yes, as long as your startup is registered in Singapore, has at least 30% local shareholding, and is financially ready to complete the project. Since EDG is reimbursement-based, make sure you have enough cash flow to fund the project upfront.

Can I apply for EDG and PSG at the same time?

Yes, but they must be for different projects. You cannot use both grants to fund the same project or the same cost items.

What happens if my EDG application is rejected?

You can resubmit after addressing the reasons for rejection. Review Enterprise Singapore’s feedback, strengthen the flagged areas, and reapply. There is no limit on the number of resubmissions.

Do I need a consultant to apply for the Singapore enterprise grant?

No. You can apply directly through the Business Grants Portal. However, if your project includes management consultancy costs, the enterprise development grant consultant must hold TR 43 or SS 680 certification. This does not apply to solutions vendors or technical consultants.

What is EDGE and how will it affect EDG?

EDGE is a new consolidated grant launching in the second half of 2026. It will eventually replace EDG, PSG, and MRA. Until then, the current Singapore enterprise grant program remains open for applications.