Singapore’s grant landscape is one of the most generous in the region for SMEs and startups. The Enterprise Development Grant (EDG), Productivity Solutions Grant (PSG), Market Readiness Assistance (MRA), SkillsFuture Enterprise Credit (SFEC), and a long tail of sector and capability-specific grants together can defray 50% to 80% of qualifying costs across digitalisation, internationalisation, productivity and innovation projects.
What many directors miss is that several grants are designed to stack with each other. A single transformation project — say, an ERP implementation that includes new export marketing — can legitimately draw from PSG, EDG, MRA and SFEC in the same financial year. The trick is structuring the project, the vendors and the invoices so that each grant funds a distinct, allowable cost.
The Grants That Stack — Quick Tour
Five mainstream grants form the core of most stacking strategies:
- PSG (Productivity Solutions Grant) — pre-approved IT solutions, up to 50% support, administered by Enterprise Singapore on the Business Grants Portal. See our PSG guide.
- EDG (Enterprise Development Grant) — up to 50% support for core capability, innovation, productivity, internationalisation projects with consultants, IT, software, automation.
- MRA (Market Readiness Assistance) — up to 50% support, capped at S$100,000 per new overseas market, for overseas market promotion, business development and set-up.
- SFEC (SkillsFuture Enterprise Credit) — S$10,000 credit defraying 90% of employer’s out-of-pocket on supportable training and business transformation programmes (including EDG, MRA). See our SFEC guide.
- EIS (Enterprise Innovation Scheme) — 400% tax deduction on qualifying innovation expenses, or a cash payout option. See our EIS guide.
The headline grants for grant-on-grant stacking are PSG + EDG + MRA + SFEC. EIS is a tax measure that runs in parallel and stacks at the tax-return stage.
Two Rules That Govern All Stacking
Two principles do most of the work:
- No double-funding. The same dollar of expense can only be supported once across all grants. If PSG funds 50% of a vendor invoice, the remaining 50% cannot also be funded by EDG. You can structure two separate scopes within one project, but not double-claim a single cost.
- SFEC layers on top. SFEC is unique because it explicitly defrays the employer’s portion of supportable Enterprise Singapore grants (including EDG and MRA). So if EDG covers 50% of your S$200,000 consulting cost (S$100,000 from EDG; S$100,000 employer share), SFEC can defray 90% of your S$100,000 employer share (S$90,000 from SFEC, capped at the S$10,000 SFEC pot).
Stacking with SFEC is therefore the easiest source of compounding because SFEC funds your portion of another grant — not the same dollar.
Worked Example: The Digital Internationalisation Project
A Singapore food and beverage importer planning to launch in Indonesia. Total project cost: S$320,000. Components:
| Component | Cost (S$) | Grant | Support % | Grant Amount (S$) |
|---|---|---|---|---|
| Inventory Management System (pre-approved) | 40,000 | PSG | 50% | 20,000 |
| ERP & process redesign consultancy | 120,000 | EDG | 50% | 60,000 |
| Indonesia market study, partner search, FDA registration | 120,000 | MRA | 50% | 60,000 |
| Local Indonesian distributor onboarding cost | 40,000 | MRA | 50% | 20,000 |
| Subtotal grants | 320,000 | 160,000 | ||
| SFEC on employer share of EDG + MRA | — | SFEC | 90% of cap | 10,000 |
| Total grant support | 170,000 |
Net employer outlay: S$150,000 instead of S$320,000.
How to Sequence Applications
Sequencing matters because Enterprise Singapore (the administrator of EDG and MRA) and IMDA / ESG (administrators of PSG) review projects independently, but they cross-reference where projects overlap. The recommended sequence:
- Apply PSG first for any pre-approved IT solution. PSG decisions are usually quick (weeks).
- Apply EDG for the consulting and transformation scope. EDG requires a project proposal, vendor quotation, and outcomes-based KPIs. Allow 8 to 12 weeks for evaluation.
- Apply MRA for the international expansion scope — separately from EDG. MRA can run concurrently.
- SFEC redemption happens at claim stage, after the supported grant project is complete and reimbursement claims have been processed.
- EIS is claimed via the tax return after year-end.
Each application requires a separate quotation from the vendor — never one quotation split across grants. This is the single most common reason applications are rejected or paused.
Eligibility Snapshot
The mainstream grants share most eligibility criteria. To qualify for PSG / EDG / MRA / SFEC, the company must:
- Be registered and operating in Singapore.
- Have at least 30% local shareholding (Singapore Citizens + PRs).
- Have group annual sales of not more than S$100 million OR group employment of not more than 200.
- For MRA: have annual sales of less than S$100 million per year (or based on latest financial year).
- Not be in receivership or under any winding up notice.
For EDG, additional bars apply: the project must have measurable outcomes (revenue, productivity, internationalisation metrics) and the vendor must be pre-qualified or assessed by Enterprise Singapore.
Mistakes That Kill Stacking
The five we see most often:
- One vendor, one invoice. Bundling all work into one invoice means only one grant can take that invoice. Split into 2 to 3 scopes with separate quotations.
- Starting work before approval. Costs incurred before the grant application date are not claimable. Wait for the Letter of Offer.
- Mismatched outcomes. EDG grading depends on outcomes (productivity, internationalisation impact). Soft outcomes — “improved morale” — don’t score.
- Local shareholding falls below 30%. If a foreign investor takes a controlling stake mid-project, the local-shareholding requirement fails and claims become risky.
- Late claim filing. Most grants require claims within a defined window after project completion. Missing the window forfeits the support.
For post-grant compliance and claim hygiene, see our post-grant compliance guide.
Stacking With EIS at Tax Time
EIS — the 400% tax deduction or 20% cash payout on qualifying innovation expenses — sits on top of grant funding because it is a tax measure, not a grant. Subject to the rules on double-funding, qualifying innovation expenditure (R&D, IP registration, training, innovation partnerships) that has been part-funded by a grant can still attract EIS on the employer’s portion of the cost.
EIS planning works backwards from your tax return. Map your innovation activities at year-end and slot in the right qualifying category. See our corporate tax guide for the tax-side workflow.
How RCS Can Help
Raffles Corporate Services helps SMEs build coherent grant strategies. We do the upfront diagnostic — which grants fit, what to apply for first, how to structure vendors and invoices — and then handle the actual application and claims. We work with you and your vendors directly on grant write-ups, so what’s submitted matches what Enterprise Singapore looks for.
📧 Email: [email protected]
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— The Editorial Team, Raffles Corporate Services