Not all government grants work the same way. Some deposit cash automatically, others reimburse after you spend, and some reduce your tax bill. This guide sorts every major SME grant by how the money actually reaches your business.
Start Here: Quick Pick
Need cash now without spending first? PWCS and CIT Rebate Cash Grant are auto-disbursed based on CPF data and tax filings. No application required.
Have S$10,000 to spend on training? SFEC gives you a pre-loaded credit to offset eligible programme fees. Auto-applied for eligible companies.
Want funding for projects but can pay upfront? PSG, EDG, MRA, and EEG all reimburse 50-70% after project completion. You must cover costs first, then claim.
Prefer tax savings over cash? EIS and DTDi give enhanced tax deductions that lower your annual tax bill. EIS also offers optional cash conversion.
How Each Grant Pays Out
| Grant | Type | Maximum Amount | How You Get It | Application Needed? |
|---|---|---|---|---|
| PWCS | Direct cash | Varies by wage increases | Auto-disbursed based on CPF data | No |
| CIT Rebate + Cash Grant | Direct cash | S$30,000 combined (40% rebate + S$1,500 cash) | Auto for eligible companies from 2Q CY 2026 | No |
| Wage Credit Scheme | Direct cash | Varies by wage increases | Auto-disbursed | No |
| SFEC | Credit | S$10,000 one-off | Auto-applied against eligible fees | No |
| PSG | Reimbursement | S$30,000/year | 50% reimbursement after project completion | Yes |
| EDG | Reimbursement | 70% of qualifying costs | 50-70% reimbursement after completion | Yes |
| MRA | Reimbursement | S$100,000/market (70% from Apr 2026) | 50% reimbursement (70% from Apr 2026) | Yes |
| EEG | Reimbursement | S$30,000/system | 70% reimbursement after installation | Yes |
| EIS | Tax deduction | 400% deduction + optional 20% cash | 400% tax deduction; convert S$100K to 20% cash | Yes |
| DTDi | Tax deduction | 200% deduction | 200% tax deduction on qualifying expenses | Automatic (claim in tax filing) |
Direct Cash Grants
1. Progressive Wage Credit Scheme (PWCS)
PWCS co-funds wage increases for low-to-mid-wage Singaporean employees. IRAS calculates your payout automatically based on CPF contribution data.
How it works: If you raise wages for employees earning up to S$2,500/month, the government tops up a percentage of the increase. The payout lands in your bank account without any application.
Who qualifies: All Singapore-registered employers who increase local employee wages and make CPF contributions. Sole proprietors and partnerships are excluded.
Learn more: PWCS full guide
2. Corporate Income Tax Rebate + Cash Grant (Budget 2026)
Budget 2026 introduced a 40% CIT rebate capped at S$28,500 plus a S$1,500 cash grant for all qualifying companies. Combined ceiling is S$30,000.
How it works: IRAS auto-credits the rebate and cash grant when you file your tax return. Qualifying companies receive the benefit from the second quarter of CY 2026 onwards.
Who qualifies: All companies that file corporate income tax in Singapore. The cash grant portion is particularly valuable for loss-making or low-profit SMEs.
Learn more: CIT Rebate + Cash Grant details
3. Wage Credit Scheme (WCS)
WCS co-funds wage increases for Singaporean employees earning up to S$5,000/month. Like PWCS, it is auto-disbursed based on CPF data.
How it works: The government tops up 15-20% of gross monthly wage increases. Payouts are calculated and deposited automatically by IRAS.
Who qualifies: All employers who raise wages for local employees and make CPF contributions. Coverage extends to employees earning up to S$5,000/month.
Learn more: WCS full guide
Credit-Based Support
SkillsFuture Enterprise Credit (SFEC)
SFEC is a one-off S$10,000 credit for eligible employers to invest in employee training and business transformation. The credit is pre-loaded and offsets fees for approved programmes.
How it works: Check your SFEC balance on the SkillsFuture Singapore portal. When you enrol in an eligible programme, the credit is automatically deducted from your fees.
Who qualifies: Singapore-registered employers with at least three local employees on CPF. SFEC must be used by 31 December 2028 and cannot be transferred or refunded.
Learn more: SFEC full guide
Reimbursement Grants
1. Productivity Solutions Grant (PSG)
PSG supports the adoption of pre-scoped IT solutions and equipment. You pay the vendor first, then claim 50% reimbursement after project completion.
How it works: Select a solution from the PSG catalogue, get approval, complete the project, then submit your claim. Reimbursement is capped at S$30,000 per company per financial year.
Typical timeline: 4-6 weeks for approval, reimbursement within 4 weeks after claim submission. Plan your cash flow accordingly.
Learn more: PSG full guide
2. Enterprise Development Grant (EDG)
EDG funds projects that drive business transformation, innovation, or internationalisation. Funding is 50-70% of qualifying costs, disbursed after you submit proof of payment and deliverables.
How it works: Submit a project proposal, get approval, execute the project, pay vendors, then claim reimbursement. You must demonstrate project outcomes to receive final payment.
Typical timeline: 6-8 weeks for approval, reimbursement in tranches tied to project milestones. Larger projects may span 12-24 months.
Learn more: EDG full guide
3. Market Readiness Assistance (MRA)
MRA reimburses 50% of eligible costs for overseas market entry activities. From April 2026, the funding level increases to 70% for SMEs.
How it works: Apply before starting your overseas activity, get approval, execute the project, pay vendors, then submit claims. Maximum support is S$100,000 per overseas market, capped at S$300,000 across all markets.
Typical timeline: 4-6 weeks for approval, reimbursement within 4-6 weeks after claim submission. Budget for full upfront payment to vendors.
Learn more: MRA full guide
4. Energy Efficiency Grant (EEG)
EEG reimburses 70% of costs for approved energy-efficient equipment. You must install the equipment and pay the vendor before claiming.
How it works: Apply with quotations, get approval, purchase and install equipment, then submit invoice and proof of installation. Reimbursement is capped at S$30,000 per system.
Typical timeline: 4-6 weeks for approval, reimbursement within 4 weeks after claim approval. Plan for full upfront vendor payment.
Learn more: EEG full guide
Tax Deductions
1. Enterprise Innovation Scheme (EIS)
EIS provides a 400% tax deduction on qualifying R&D expenses. Companies can also convert up to S$100,000 of qualifying expenditure into a 20% cash payout.
How it works: Incur eligible R&D costs, claim the 400% deduction in your tax return to reduce taxable income. To access the cash payout option, apply separately to convert S$100,000 into S$20,000 cash.
Who benefits most: Profitable companies reduce their tax bill significantly. Loss-making companies can use the cash payout option for immediate liquidity.
Learn more: EIS full guide
2. Double Tax Deduction for Internationalisation (DTDi)
DTDi allows companies to claim 200% tax deduction on approved internationalisation expenses. This includes overseas marketing, trade fairs, and business development trips.
How it works: Incur eligible expenses, keep proper documentation, then claim the 200% deduction when filing your annual tax return. No pre-approval required.
Who benefits most: Profitable companies expanding overseas. The deduction lowers taxable income but does not provide immediate cash.
Learn more: DTDi full guide
Application Checklist
For auto-disbursed grants (PWCS, CIT Rebate, WCS):
- Ensure CPF contributions are up to date.
- File corporate income tax returns on time.
- Verify your IRAS-registered bank account is correct.
For credit-based support (SFEC):
- Check your SFEC balance on the SkillsFuture Singapore portal.
- Enrol in SSG-approved programmes to auto-deduct credit.
For reimbursement grants (PSG, EDG, MRA, EEG):
- Prepare project proposal and cost breakdown.
- Apply before starting work (critical for MRA).
- Keep all invoices, receipts, and proof of payment.
- Submit claims within the grant deadline after project completion.
- Budget for full upfront vendor payment.
For tax deductions (EIS, DTDi):
- Keep detailed records of qualifying expenses.
- Claim deductions in your annual tax return.
- For EIS cash payout, apply separately to convert up to S$100K into 20% cash.
Official Links
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