Singapore SMEs have their pick of government grants. The three most heavily used are the Enterprise Development Grant (EDG) from Enterprise Singapore, the Productivity Solutions Grant (PSG) from Enterprise Singapore, and the Market Readiness Assistance (MRA) grant from Enterprise Singapore. Each covers a different type of project, each has different eligibility criteria, and each has a different reimbursement rate. If you pick the wrong grant for the project, you either get rejected or you leave money on the table. This 2026 guide compares the three, sets out who qualifies for what, and explains how to stack them for maximum benefit.
All three grants are administered under the broader Enterprise Singapore umbrella, but they serve very different purposes. PSG is for buying pre-approved off-the-shelf productivity solutions. EDG is for larger custom transformation projects. MRA is specifically for overseas expansion.
Quick Comparison Table
| PSG | EDG | MRA | |
|---|---|---|---|
| Purpose | Buy pre-approved IT / equipment solutions | Custom transformation, innovation, internationalisation projects | Overseas market entry activities |
| Support level | Up to 50% of qualifying cost | Up to 50% of qualifying cost (up to 70% for SMEs meeting specific criteria) | Up to 50% of qualifying cost, capped at S$100,000 per new market |
| Typical project size | S$1,000 – S$50,000 | S$50,000 – S$500,000+ | S$5,000 – S$200,000 |
| Approval time | 2-4 weeks | 3-6 months | 4-8 weeks |
| Complexity | Low | High – detailed proposal required | Medium |
Productivity Solutions Grant (PSG): The Off-the-Shelf Grant
PSG is the fastest and simplest grant. It reimburses up to 50% of the cost of buying pre-approved IT and equipment solutions from a curated list of vendors. The list covers accounting software, HR systems, inventory management, retail POS, customer management systems, and industry-specific solutions across F&B, retail, logistics, construction, and other sectors.
PSG Eligibility
- Registered and operating in Singapore.
- Purchase and use of the solution must be in Singapore.
- Minimum 30% local shareholding (Singaporean or PR).
- Group annual sales turnover under S$100 million, or group employment size under 200.
How to Apply for PSG
- Browse the pre-approved solutions on the GoBusiness portal.
- Get a quotation from your chosen pre-approved vendor.
- Apply via the Business Grants Portal (BGP) at gobusiness.gov.sg/gems.
- Wait 2-4 weeks for approval.
- Purchase the solution, install/deploy, and submit for reimbursement.
Because the vendor list is pre-approved, PSG is much faster than the alternatives. Most SMEs use PSG for accounting software, HR platforms, or POS systems where the vendor already sits on the list.
Enterprise Development Grant (EDG): The Custom Transformation Grant
EDG is the workhorse grant for meaningful company transformation projects. Unlike PSG, EDG supports custom-built projects that do not fit neatly into an off-the-shelf category. It has three project categories:
1. Core Capabilities
Projects that strengthen internal business foundations: business strategy development, financial management, human capital development, service excellence, strategic brand and marketing development.
2. Innovation and Productivity
Projects that develop new products, services, or business models. Includes process redesign, automation, and product development.
3. Market Access
Projects that help SMEs enter new markets. This includes standards adoption (for exports), mergers and acquisitions, and pilot projects in overseas markets.
EDG Eligibility
- Registered and operating in Singapore.
- Minimum 30% local shareholding.
- In a financial position to start and complete the project.
- Project must show clear business outcomes.
EDG support level defaults to up to 50% of qualifying costs, and can rise to up to 70% for SMEs meeting specific criteria (e.g. Overseas Market Access projects). The application involves a detailed proposal, project milestones, budget breakdown, and consultant engagement letters. Expect 3-6 months from submission to approval.
Market Readiness Assistance (MRA): The Export Grant
MRA is specifically for SMEs entering an overseas market for the first time (or entering a new overseas market). It reimburses up to 50% of qualifying expenses, capped at S$100,000 per new market entry, over a fixed grant period. Qualifying activities include:
- Overseas market set-up: business registration, IP registration, tax registration, market entry advisory.
- Overseas business matching: participation in trade fairs (funded portion), local business development.
- Overseas marketing promotion: digital marketing campaigns targeting the new market.
MRA Eligibility
- Registered and operating in Singapore.
- Overseas sales must be less than S$100,000 in the target market in the past three financial years.
- Group annual sales turnover under S$100 million, or group employment size under 200.
How to Choose: Decision Framework
Ask yourself these three questions:
- Are you buying an off-the-shelf solution from a pre-approved vendor? Use PSG.
- Are you undertaking a bespoke project that will transform how you operate or the products you make? Use EDG.
- Are you entering a new overseas market for the first time? Use MRA.
The three grants can be used together (see stacking below), so many SMEs end up using more than one over a year or two.
Can You Stack These Grants?
Yes, but not for the same expense. The rule is that any single dollar of qualifying expense can only be reimbursed once. Practical stacking strategies:
- PSG + EDG: Use PSG to buy accounting software; use EDG to fund a business strategy project that references your new financial visibility.
- EDG + MRA: Use EDG to develop your export-ready product; use MRA to fund the trade fair in Vietnam where you launch it.
- PSG + MRA: Use PSG to buy a CRM; use MRA to fund the overseas digital marketing campaign fed by that CRM.
Common Reasons Grants Get Rejected
- Weak project rationale. “We want new software” is not a project. “We are moving from paper-based invoicing to Xero to enable us to onboard our tenth client without adding accounts headcount” is.
- Poor local shareholding structure. Foreign-owned Singapore subsidiaries do not qualify.
- Vendor not pre-approved (for PSG). Ensure your vendor is on the current PSG pre-approved list before quoting them.
- Project already started or purchased. All three grants require the application to be submitted BEFORE you commit to the vendor.
- Overseas sales too high (for MRA). If you have already been selling into the target market at scale, MRA is not the right grant.
The Claims Process (What Happens After Approval)
All three grants operate on a reimbursement basis. You pay the vendor first, then claim back the supported portion. Typical claim documentation includes:
- Signed vendor invoice.
- Proof of payment (bank transfer, cheque cleared).
- Proof of delivery (software installation logs, training completion certificates, deliverable acceptance letter).
- Project completion report (for EDG).
Claims are typically processed within 4-8 weeks. Reimbursement is paid direct to the applicant’s Singapore corporate bank account.
Related Reading
- Singapore Corporate Tax 2026 Complete Guide
- Singapore Company Compliance Calendar 2026
- Corporate Secretarial Health Checks
- How to File Your Annual Return With ACRA
Conclusion
PSG, EDG, and MRA form a coherent toolkit for Singapore SMEs. Use PSG for simple productivity upgrades, EDG for meaningful transformation, and MRA for overseas expansion. Stack them thoughtfully across projects, keep your documentation clean, and apply before you commit. Done well, the three grants can materially reduce the cost of running a growing Singapore business without turning the process into a full-time job.
— The Editorial Team, Raffles Corporate Services