Subsidies & Loans

 

Subsidies and loans guaranteed by the Singapore government mainly apply the established companies in Singapore.

 

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In Singapore, many dynamic sectors are applicable: Construction, Agribusiness, IT, Logistics, Production, Maritime, Media, Commerce, Services, Tourism

 

Funded projects are highly diverse: internationalisation, productivity, innovation, automation, professional training, digital, energy optimisation…

 

The Singapore government delegates the management of financial grants to governmental agencies such as Enterprise Singapore.

 

The actions of Enterprise Singapore are firstly directed to SMEs (Small-to-Medium Enterprises) and start-ups established in Singapore. The agency manages many services of which the most well-known are:

  • Productivity Solutions Grants (PSG): provides funding of up to 70% for purchase of equipment in specific sectors: Food Manufacturing, Food Services, Logistics, Precision, Engineering and Landscape industries. Other than sector-specific solutions, PSG also supports adoptions of IT solutions that cut across industries, such as in areas customer management, data analytics, financial management and inventory tracking.
  • The CDG (Capability Development Grant): reinforce the companies’ skills and contribute to the sustainability of their activities. The subsidy covers up to 70% of the eligible project costs such as the consulting, training, certification and material costs. The eligible costs are: the marketing strategy, products development, intellectual property, human capital development…
  • SMEs can also benefit from loans guaranteed by the Singapore government such as the micro-loan to fund the working capital in order to support daily operations. These micro loans can reach up to 100 000 SGD with a 5,5% interest rate repayable over 4 years. The agency Enterprise Singapore co-guarantees the loans with participating financial institutions.
  • In order to access to these services, a company must:
  • Be registered and operate in Singapore
  • Have at least 30% of local shareholders (Singaporeans/Singapore Permanent Resident – PRs)
  • Have an annual turnover, for the group, below 1 million SGD OR a group’s staff below 10 employees
  • The past years, Singapore has strongly reinforced its position as a reference of an Asian hub for start-ups. There are many supports brought to local start-ups for their setting-up and their development. The Start-up programme provides to entrepreneurs a launching platform to connect them to the global stage, and a platform to access to the local support initiatives. StartupSG acts in 8 directions with the StartupSG Founder, StartupSG Tech, StartupSG Equity, StartupSG Accelerator, StartupSG Loan, StartupSG Infrastructure, StartupSG Investor and StartupSG Talent programmes.

 

The Corporate Income Tax (CIT) Rebate:

 

In 2018, a tax relief of 40% of the payable taxes, capped at 15 000 SGD per year, is granted to companies.

 

In 2019, the rebate will be renewed at 20% and capped at 10 000 SGD per year.

 

Tax deductions on the license fees, IP (Intellectual Property) and R&D (Research and Development):

 

Tax deductions up to 200% (capped at 100 000 SGD per year) on license fees and intellectual property are provided, it can even go to 250% on the R&D fees.

 

 

ADVICE

It exists more than 30 solutions of transverse or sectoral financial grants (tech, media, robotics, construction, tourism…) for a company already established in Singapore. We advise you to contact a company specialised in obtaining financial assistance, among the French Chamber of Commerce in Singapore’s members.

 

 

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