Singapore’s Budget 2026 has brought exciting news for small and medium-sized enterprises (SMEs). The Ministry of Trade and Industry, along with Enterprise Singapore, has announced a major consolidation of enterprise grants that will streamline access to crucial funding support. If you’ve been navigating the landscape of grants like the Enterprise Development Grant (EDG), Productivity Solutions Grant (PSG), and Market Readiness Assistance (MRA), this consolidation could significantly simplify your path to growth. Let’s explore what this means for your business and what you need to do now.
Understanding the Current Grant Landscape
Before diving into what’s changing, it’s worth understanding the three grants that have supported Singapore businesses for years. These programmes have helped thousands of SMEs invest in capabilities, adopt technology, and expand internationally.
The Enterprise Development Grant (EDG)
The Enterprise Development Grant has been a cornerstone of support for businesses looking to strengthen their competitive position. EDG typically supports projects in three key areas: developing core capabilities, driving innovation and productivity, and accessing new markets. The standard support level is up to 50% of qualifying costs, though SMEs pursuing sustainability projects have enjoyed an enhanced rate of up to 70% support—though this enhancement was set to expire on 31 March 2026.
The Productivity Solutions Grant (PSG)
The Productivity Solutions Grant takes a different approach by pre-approving specific technology solutions that can boost operational efficiency. Rather than requiring extensive justification, businesses can select from a catalogue of vetted solutions and receive up to 50% support. This grant has made it easier for SMEs to adopt productivity tools without navigating complex application processes.
Market Readiness Assistance (MRA)
For businesses looking to internationalise, the Market Readiness Assistance grant has provided targeted support. MRA has traditionally offered up to S$100,000 per company per new market, helping businesses with market research, participation in trade missions, and other internationalisation activities.
Introducing the New EDGE Grant
Recognising that navigating multiple grant schemes can be complex, Enterprise Singapore is consolidating these three programmes into a single, unified scheme called EDGE—launching in the second half of 2026.
The goal is straightforward: streamline access to support and reduce the administrative burden on businesses. Rather than researching which grant fits your needs, you’ll be able to apply for EDGE, which encompasses all three areas of support under one application framework.
This consolidation doesn’t mean a reduction in available support—in fact, Budget 2026 has introduced several enhancements that make the new scheme even more attractive for SMEs.
Key Changes Under Budget 2026 and EDGE
Enhanced Support for Internationalisation
One of the most significant changes affects businesses pursuing international growth. From 1 April 2026 through 31 March 2029, MRA support for SMEs has been enhanced to 70%—a notable increase from the previous standard rate. Even more important for larger businesses: non-SMEs will now have access to MRA support under EDGE at up to 50%, something that wasn’t previously available.
Additionally, the requirement that companies be “new to the target overseas market” has been removed under EDGE, allowing greater flexibility in how and where businesses expand internationally. This means you can use grant funding to deepen your presence in a market you’re already in—perhaps opening a second office, developing new product lines for that market, or strengthening local partnerships.
AI as a Strategic Priority
Recognising the transformative potential of artificial intelligence, Budget 2026 introduces dedicated support for AI adoption. Businesses can now use EDG to fund custom AI transformation projects through a dedicated “AI Development Path.” This is particularly valuable if you’re looking to implement bespoke AI solutions tailored to your specific operations rather than off-the-shelf tools.
For tax incentives, AI expenditure has been recognised as a qualifying activity under the Enterprise Innovation Scheme (EIS) for Year of Assessment 2027–2028, offering 400% tax deductions capped at S$50,000 per year. This dual support—grant funding plus tax incentives—makes AI adoption more financially accessible than ever before. For more on the tax landscape, see our article on the key changes to corporate tax rules in 2026.
Moreover, the PSG catalogue continues to expand, with more AI-powered solutions being added to the pre-approved list. This means many businesses will be able to adopt AI tools through PSG without the extended application process required for custom solutions.
What This Consolidation Means for Your Business
The shift to EDGE brings several practical benefits worth understanding.
Simplified Application Process: Rather than determining whether your project is best suited to EDG, PSG, or MRA, you’ll submit one application to EDGE. The assessment team will evaluate your project against the appropriate framework.
Greater Flexibility: The removal of the “new to market” requirement under MRA means you can access support for expanding operations in markets where you already have a presence—perhaps opening a new office, developing a new product line, or deepening market penetration.
Broader Eligibility: The extension of MRA to non-SMEs, whilst maintaining enhanced rates for SMEs, signals that Government support for internationalisation is available to growing businesses at various stages.
Technology and Innovation Focus: The explicit recognition of AI and the expansion of PSG solutions reflects the evolving needs of Singapore businesses. Whether you want a pre-approved AI tool or a custom AI transformation, there’s a pathway available.
What Should Your Business Do Now?
With EDGE launching in the second half of 2026, you have a window of opportunity—and a decision to make.
Apply for Current Grants Before Consolidation
If you have a project you’ve been contemplating, applying for EDG, PSG, or MRA now may be advantageous. The current schemes remain in force until EDGE launches, and getting funding approved now means your project can commence sooner.
Assess Your Eligibility
Before applying, ensure your business meets the eligibility requirements. All grant schemes require that your company be registered and operating in Singapore with a minimum 30% local shareholding. Understanding grant eligibility in Singapore is crucial, and Raffles Corporate Services can help you navigate these requirements. If you’re uncertain about your shareholding structure or corporate status, it’s worth reviewing this now—understanding your small company classification can also affect the support levels available to you.
Plan Your EDGE Application Strategy
Once EDGE launches, think strategically about how your business growth aligns with the three pillars: capability development, productivity and innovation, and market access. Do you need to strengthen internal capabilities? Adopt new technologies? Expand internationally? Your answers will shape how you approach an EDGE application.
Stay Informed About Implementation Details
Enterprise Singapore will release detailed EDGE guidelines, application procedures, and pre-approved solution lists as the launch date approaches. Monitoring their announcements will help you prepare properly.
Special Consideration: AI and Your Business
If you’ve been hesitant about AI adoption due to cost, Budget 2026 has removed a significant barrier. The combination of EDGE support (either through pre-approved PSG solutions or custom EDG projects), plus the EIS tax deduction for AI expenditure, creates a compelling financial case.
Consider conducting an audit of your operations: where could AI deliver the greatest impact? From customer service automation to supply chain optimisation to data analysis, AI applications are increasingly accessible. With the new support structures in place, 2026 could be the year your SME makes the leap.
Getting Started: Professional Guidance
Navigating grant applications and corporate structures can be complex. Whether you need help understanding your eligibility, structuring your application, or preparing your business for EDGE, professional guidance can prove invaluable. If you’re establishing a new venture or reconsidering your current structure, our guide to Singapore company incorporation ensures you’re set up optimally from the start.
For comprehensive support on both grants and corporate services, Raffles Corporate Services—and our partner Singapore Secretary Services—can guide you through every step of the process.
Conclusion: Seizing the Opportunity
The consolidation of EDG, PSG, and MRA into EDGE represents an evolution in how Singapore supports business growth. Enhanced support for internationalisation, explicit backing for AI adoption, and a streamlined application process reflect the Government’s commitment to helping SMEs thrive in an increasingly competitive global landscape.
Your business has a choice: act now to access current schemes with their existing benefits, or prepare strategically for EDGE and the opportunities it will bring. Either way, the key is to move intentionally. Don’t let these opportunities pass by.
If you’d like to discuss your business’s grant strategy or have questions about eligibility, the Raffles Corporate Services team is here to help. Reach out today to explore how these new schemes can accelerate your business growth.
— The Editorial Team, Raffles Corporate Services