Medtech and biotech companies have distinct grant needs based on development stage and business model. Use this guide to quickly pick the right Singapore grant for your life sciences company.
Read This First
- EIS is for tax benefits on R&D: you get 400% tax deduction on qualifying R&D expenses, or convert up to S$100K to cash payout (20% = S$20K).
- EDG is for project-based funding: up to 70% co-funding for clinical trials, regulatory submissions, and product development.
- Startup SG Tech is for early-stage deep tech: up to S$500K for proof-of-concept or proof-of-value projects.
- Medtech vs Biotech: Medtech (devices, diagnostics, digital health) typically has faster regulatory paths; biotech (drugs, biologics, therapeutics) has longer R&D cycles.
- Don’t start work before approval: For EDG and Startup SG Tech, starting project activities before approval disqualifies your application.
- Acronyms:
- EIS = Enterprise Innovation Scheme (tax incentive)
- EDG = Enterprise Development Grant (project funding)
- HSA = Health Sciences Authority (Singapore regulator)
What are the key differences?
The three grants serve different purposes in the medtech/biotech journey:
- EIS reduces your tax burden on ongoing R&D—claim annually during tax filing, no pre-approval needed
- EDG co-funds specific transformation projects—requires project proposal and 8-12 week approval
- Startup SG Tech provides early-stage capital for technology validation—milestone-based funding with potential equity involvement
- Key gate: EIS is tax-based (claim at filing), while EDG and Startup SG Tech require pre-approval before starting work
Which grant should you choose?
| EIS | EDG | Startup SG Tech | |
|---|---|---|---|
| Ongoing R&D expenditure (salaries, materials) | ✓ | — | — |
| Clinical trials and validation studies | — | ✓ | — |
| HSA/CE/FDA regulatory submission costs | — | ✓ | — |
| Early-stage PoC for novel technology | — | — | ✓ |
| IP registration (patents, trademarks) | ✓ | — | — |
| Manufacturing process development | ✓ | ✓ | — |
| Startup with no taxable income yet | ✓ (cash payout) | ✓ | ✓ |
| Established company with tax liability | ✓ | ✓ | — |
Legend: ✓ = Use this grant | — = Not the primary fit
How do they compare at a glance?
| EIS | EDG | Startup SG Tech | |
|---|---|---|---|
| Benefit type | Tax deduction/cash | Project funding | Project funding |
| Maximum benefit | 400% deduction on S$400K | No cap (up to 70%) | Up to S$500K |
| Processing time | At tax filing | 8-12 weeks | 8-12 weeks |
| Pre-approval required | No | Yes | Yes |
| Local shareholding | Any (SG company) | 30% minimum | 30% minimum |
| Company stage | Any | Any | Early-stage startup |
| Eligible period | YA 2024-2028 | Ongoing | Ongoing |
How do you decide?
Step 1: What's your company stage?
Are you an early-stage startup validating novel technology, or an established company with ongoing R&D operations?
Step 2: Pick based on your primary need
- Ongoing device development salaries
- Drug discovery research costs
- Patent registration fees
- R&D equipment and materials
- Clinical trial design and execution
- HSA regulatory submission
- CE/FDA compliance projects
- Product validation studies
- Novel biomarker proof-of-concept
- Medical device prototype development
- AI diagnostic algorithm validation
- Therapeutic compound screening
- Use EIS for ongoing R&D tax benefits
- Use EDG for specific project milestones
- Different expense categories, same company
What are common scenarios?
- “I’m developing a diagnostic device and need to cover ongoing R&D costs” → EIS (400% tax deduction on salaries, materials, IP)
- “I need funding for my HSA Class B/C medical device registration” → EDG (regulatory compliance under Innovation & Productivity)
- “I’m a biotech startup validating a novel drug target” → Startup SG Tech (early-stage PoC funding)
- “I want to conduct clinical trials for my therapeutic” → EDG (clinical validation under Innovation & Productivity)
- “I have ongoing R&D spend but no taxable income yet” → EIS cash payout option (convert up to S$100K to S$20K cash)
- “I’m scaling manufacturing for my medical device” → EDG (process improvement) + EIS (ongoing R&D tax benefits)
- “I’m a digital health startup with AI diagnostics” → Startup SG Tech (if early-stage) or EDG (if scaling)
What should you know before applying?
Medtech Companies (Devices, Diagnostics, Digital Health)
-
Regulatory costs are eligible under EDG:
- HSA registration fees and consultant costs
- CE marking preparation
- FDA 510(k) or PMA submissions
- Quality management system development
-
EIS covers ongoing device R&D:
- Engineering salaries for product development
- Prototype materials and testing
- Patent applications for device innovations
-
Faster path to market typically means:
- Use EDG for specific milestones (clinical validation, regulatory)
- Use EIS for sustained R&D tax benefits
- Combine both strategically
Biotech Companies (Drug Development, Therapeutics, Biologics)
-
Longer R&D cycles require sustained support:
- EIS provides annual tax benefits through multi-year development
- Startup SG Tech for early validation before major investment
-
High upfront costs with uncertain outcomes:
- EIS cash payout helps loss-making early-stage companies
- Startup SG Tech provides non-dilutive early funding
-
Clinical trial funding under EDG:
- Trial design and protocol development
- CRO engagement for regulatory trials
- Bioequivalence and efficacy studies
Is this comparison right for you?
This guide is for Singapore-registered medtech and biotech companies deciding between tax benefits (EIS) and project funding (EDG, Startup SG Tech).
Use this guide if you are:
- A medical device company with ongoing R&D and regulatory needs
- A diagnostics company developing novel assays or platforms
- A biotech startup validating drug targets or therapeutics
- A digital health company with AI/ML healthcare applications
Skip this guide if you are:
- Looking for general business grants (see PSG vs EDG)
- Focused on overseas market expansion (see MRA Decision Matrix)
- A non-tech company without R&D activities
Can I combine grants?
Yes, for different expense categories.
You can strategically combine EIS and EDG:
- Use EIS for ongoing R&D expenses (salaries, materials, IP) — claim at tax filing
- Use EDG for specific project milestones (clinical trials, regulatory) — apply before starting
Important: Do not claim the same expenses under multiple grants. Double-claiming is not allowed.
Frequently Asked Questions
What’s the main difference between EIS and EDG for life sciences?
EIS provides 400% tax deduction on qualifying R&D expenses, claimed during annual tax filing with no pre-approval needed. EDG provides up to 70% co-funding for specific projects like clinical trials, requiring pre-approval and 8-12 week processing. Use EIS for ongoing R&D costs; use EDG for defined milestones like regulatory submissions.
Which grant is better for a medtech startup?
If you’re early-stage with a novel technology, start with Startup SG Tech for PoC funding (up to S$500K). As you mature, use EIS for ongoing R&D tax benefits and EDG for clinical validation and HSA registration projects.
Can biotech companies with no revenue use EIS?
Yes. EIS offers a cash payout option where loss-making companies can convert up to S$100,000 of qualifying expenses into a 20% cash payout (S$20,000 per year). This is particularly useful for pre-revenue biotech startups.
Does EDG cover clinical trial costs?
Yes. EDG’s Innovation & Productivity pillar covers clinical trial design, execution, and regulatory submission costs. You’ll need a qualified project proposal and may require TR 43/SS 680 certified consultants for certain advisory services.
What’s the approval timeline for each grant?
- EIS: No pre-approval; claim during annual tax filing (YA 2024-2028)
- EDG: 8-12 weeks from complete application submission
- Startup SG Tech: 8-12 weeks; complex deep tech projects may take longer
Can I apply for Startup SG Tech if I’ve already raised funding?
Yes, as long as your company is less than 10 years old and meets the 30% local shareholding requirement. Prior funding (angel, seed, Series A) does not disqualify you, though the program targets earlier-stage companies.
Related Guides
- Enterprise Innovation Scheme (EIS) — full eligibility, qualifying activities, and tax benefits
- Enterprise Development Grant (EDG) — full eligibility and project categories
- Startup SG Tech — PoC/PoV funding details and application process
- Startup SG Decision Matrix — compare Startup SG Founder vs Tech
- Grant Pitfalls Guide — common mistakes to avoid
- Corppass Setup Guide — set up BGP access for applications
- Singapore Grants Glossary — key terms and definitions
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