Running a logistics business in Singapore means managing fleet costs, warehouse efficiency, real-time tracking, and delivery timelines across unpredictable demand. The Singapore government grants that usually make sense for logistics SMEs are the ones that reduce operational friction: route optimization software, warehouse automation, fleet telematics, digital tracking systems, and energy-efficient vehicles.
This guide is written for logistics operators who want clarity fast:
- Which grant matches your problem (fleet efficiency, warehouse labour, tracking, automation)
- What it can fund (and what it won’t)
- The simple steps to apply without getting rejected for timing/eligibility reasons
Best-Fit Grants for Logistics Businesses
Start Here (Quick Pick)
- You want a pre-approved system (route optimization, WMS, TMS, telematics, CRM, accounting, fleet management) → PSG
- You’re automating your warehouse (conveyor systems, sorting, inventory management, picking systems) → EDG
- You’re replacing aging vehicles with fuel-efficient models (electric vehicles, modern engines) → EEG
- You’re doing a larger transformation (warehouse automation + software + fleet overhaul) → EDG
Eligibility & Timing Rules
- Apply before you pay or sign. Deposits, invoices, or signed contracts before submission can make you ineligible.
- Use pre-approved solutions/vendors where required. PSG typically requires catalogue solutions.
- One application at a time. Each UEN can only have one PSG application in progress.
- Annual cap applies. PSG has a S$30,000 annual cap per company (1 Apr–31 Mar grant year).
Top Grants for Logistics
1) Productivity Solutions Grant (PSG)
Use PSG when: you’re adopting pre-approved software/solutions to improve operational efficiency.
Good fit examples
- Route optimization software (reduce fuel consumption, delivery time, vehicle utilization)
- Warehouse Management System (WMS) (automate inventory, reduce picking errors, faster fulfillment)
- Transportation Management System (TMS) (track vehicles, optimize routes, manage costs)
- Fleet telematics/GPS tracking (real-time visibility, driver behaviour monitoring, fuel efficiency)
- Last-mile delivery software (proof of delivery, customer notifications, route tracking)
- Accounting + payroll/HR tools (manage fuel cards, driver payroll, vehicle maintenance tracking)
- Cyber-security solutions (protect customer data and logistics information)
How much
- Up to 50% of eligible costs for SMEs
- S$30,000 cap per application and S$30,000 annual cap per company (1 Apr–31 Mar, annual grant year)
When
- Apply before any payment or contract signing
- Processing time is typically ~6 weeks
How (fast path)
- Pick a pre-approved solution in the PSG catalogue (search for: WMS, TMS, route optimization, fleet management, telematics, CRM, accounting).
- Get a vendor quote addressed to your ACRA entity name.
- Submit via BGP (Business Grants Portal) with financials and the quote.
Where
- See more: Productivity Solutions Grant (PSG)
2) Enterprise Development Grant (EDG)
Use EDG when: you’re implementing a larger, strategic transformation (warehouse automation, fleet modernization, supply chain digitalization, or multi-system integration).
Good fit examples
- Warehouse automation (automated storage/retrieval systems, conveyor systems, robotic picking)
- Supply chain digitalization (integrated WMS + TMS + inventory forecasting + supplier ordering)
- Fleet modernization (electric vehicles, vehicle-to-cloud integration, autonomous features)
- Last-mile network expansion (new hub, new routes, new delivery modes—e.g., drone/autonomous delivery pilots)
- Sustainability initiatives (electric fleet, renewable energy in warehouses, carbon tracking)
- Regional expansion (new warehouse locations, new distribution channels, new markets)
How much
- Up to S$500,000 funding support
- Typically 50–70% co-funding for SMEs depending on sector
- Processing time: 8–12 weeks
When
- Apply before starting the project
- Requires a project plan and timeline
How
- Define your transformation project and timeline (6–18 months typical for major warehouse/fleet projects).
- Get vendor quotes for all equipment, software, and professional services (e.g., system integrators, consultants).
- Prepare a project plan showing how the changes improve efficiency, reduce costs, or expand capacity.
- Submit via BGP with business case and supporting documents.
Where
- See more: Enterprise Development Grant (EDG)
3) Energy Efficiency Grant (EEG)
Use EEG when: you’re upgrading to fuel-efficient or electric vehicles or improving warehouse energy consumption.
Good fit examples
- Electric or hybrid vehicles (reduce fuel costs and emissions)
- Fuel-efficient modern engines (compared to aging fleet, 20+ years old)
- Warehouse HVAC upgrades (LED lighting, energy management systems, insulation)
- Cold storage efficiency (for temperature-controlled logistics)
How much
- Base tier: Up to S$30,000, with 70% support for SMEs and 30% for non-SMEs (valid until 31 Mar 2026)
- Advanced tier: Up to S$350,000 (for larger fleet modernization or warehouse transformation)
When
- Apply before purchase or installation
How
- Choose pre-approved equipment (electric vehicles, modern engines, warehouse equipment on the EEG list).
- Get quotes showing model, efficiency improvements, and cost.
- For Advanced Tier: provide carbon savings assessment (typically 350+ tonnes CO₂ for a fleet upgrade).
- Apply via BGP.
Where
- See more: Energy Efficiency Grant (EEG)
4) Advanced Digital Solutions (ADS)
Use ADS when: you’re implementing advanced digital technologies beyond standard software (AI, IoT, robotics, data analytics).
Good fit examples
- AI-powered route optimization (predicts demand, optimizes routes, reduces fuel)
- IoT sensors on vehicles/packages (real-time condition monitoring, theft prevention)
- Warehouse robotics (automated sorting, picking, palletizing)
- Predictive maintenance systems (reduces vehicle downtime, extends fleet life)
- Autonomous/drone delivery pilots (innovative last-mile solutions)
How much
- Up to S$500,000 funding support
- Typically 50–70% co-funding for SMEs
- Processing time: 8–12 weeks
When
- Apply before starting the project
- Requires proof of innovation (technology is new to Singapore market or to the company)
How
- Identify the advanced technology gap in your business (what the current market doesn’t offer).
- Propose a pilot or proof-of-concept project with clear success metrics.
- Partner with technology vendors, system integrators, or consultants.
- Submit via BGP with clear innovation narrative.
Where
- See more: Advanced Digital Solutions (ADS)
Logistics Business Scenarios & Which Grant to Use
| Business Scenario | Grant | Funding | Timeline |
|---|---|---|---|
| Logistics company adding WMS + route optimization software | PSG | Up to S$30k (50%) | 6 weeks |
| Warehouse operator automating with conveyor + picking systems | EDG | Up to S$500k (50–70%) | 8–12 weeks |
| Fleet company modernizing 50 vehicles to electric | EEG + EDG | S$30k–S$500k (50–70%) | 6–12 weeks |
| Last-mile startup implementing drone delivery pilot | ADS | Up to S$500k (50–70%) | 8–12 weeks |
| Logistics hub expanding with new warehouse + automation | EDG | Up to S$500k (50–70%) | 8–12 weeks |
| Small courier company adding telematics and fleet tracking | PSG | Up to S$30k (50%) | 6 weeks |
Logistics-Specific Pitfalls to Avoid
1. Starting before approval
- Do not sign vehicle purchase orders, software contracts, or construction agreements before receiving Letter of Offer (LOO)
- Pre-purchased equipment/software is typically not eligible for reimbursement
2. Mixing incompatible grants
- PSG + ADS cannot be combined for the same solution (choose one)
- PSG is fine with EEG or EDG if they cover different aspects (e.g., PSG for software, EEG for vehicles)
- Clarify with the grant administrator if unsure
3. Underestimating project scope for EDG/ADS
- EDG/ADS require a detailed project plan with clear milestones
- Vague applications (“upgrade fleet efficiency”) get rejected
- Be specific: number of vehicles, which systems, which vendors, which timeline?
4. Wrong vehicle classification for EEG
- EEG covers fuel-efficient vehicles, not all vehicles
- Electric vehicles and modern engines qualify; older models with minor upgrades don’t
- Always verify the vehicle model is on the pre-approved list
5. Missing critical documents
- ACRA BizFile+ extract (current, must show your exact entity name)
- 3 years of financial statements (or audited financials for larger amounts)
- Proof of local shareholding (30% minimum)
- For fleet/warehouse projects: photos of current equipment, vendor quotes, project timeline
6. Timing mistakes
- PSG annual cap resets 1 Apr–31 Mar (Singapore financial year, not calendar year)
- EDG/ADS applications take 8–12 weeks, so apply 3+ months before you want to start
- Claims submitted after the deadline (typically 6 months after project completion) are not eligible
7. Vehicle ownership & eligibility
- Vehicles must be registered in Singapore
- Leased vehicles may have restrictions—confirm with grant administrator
- Foreign-registered vehicles are not eligible
Related Guides & Resources
Other Industry Guides
- Grants for Manufacturing Businesses - Relevant for supply chain and production optimization
- Grants for Construction Businesses - Relevant for materials logistics and last-mile delivery
- Grants for F&B Businesses - Relevant for food distribution and cold chain logistics
Scheme Details
- Productivity Solutions Grant (PSG) - Full Details
- Enterprise Development Grant (EDG) - Full Details
- Energy Efficiency Grant (EEG) - Full Details
- Advanced Digital Solutions (ADS) - Full Details
- Hiring & Training Grants Guide - Grants for staff development and training
- SFEC Quick-Start Checklist — S$10K credit for workforce upskilling on new logistics systems
Decision & Application Guides
-
How to Choose? PSG vs EDG vs ADS — comprehensive 3-way comparison to pick the right grant
-
Singapore Grants Glossary — key terms and definitions
-
Corppass Setup Guide — how to set up BGP access
Need help with your application?
Check if you're eligible and get your document checklist in 30 minutes.
Check Eligibility