Top Grants for Singaporean SMEs looking to implement digitalisation or sustainability initiatives

Sustainability and digitalisation are and will continue to be key priorities for all SMEs in Singapore. On the sustainability front, a 2023 Randstad report unveiled increasing demand for environmental, social and governance (ESG) talent with a 257 per cent increase in ESG related jobs between 2021 and 2023. The digitalisation adoption rate for SMEs is also on the rise with the Singapore’s Digital Enterprise Blueprint report showing a 95 per cent adoption rate in 2023 – up from 74 per cent in 2018.

These trends highlight the importance SMEs are placing on sustainability and digitalisation to remain competitive in an ever-evolving business climate.

However, there are core challenges that continue to hinder SMEs from successfully implementing sustainable practices and digitalisation technologies. One key factor that persists are financial constraints to kick start or maintain their digitalisation and/or sustainability initiatives. According to a report by UOB Business Outlook Study 2024, one third of Singaporean SMEs require financial support in areas relating to business transformation and training programmes to reskill or upskill employees.

The good news for SMEs is that various grants are available by government agencies to ease the strain for Singaporean firms looking to implement business transformation initiatives through digitalisation and sustainability.

UOB FinLab has put together a list of grants Singaporean SMEs can leverage to kick start digitalisation or sustainability activities.

Digitalisation and Sustainability Related Grants for Singaporean SMEs

1) Energy Efficiency Grant (EEG)

Established in 2022 by Enterprise Singapore. This grant aims to help businesses improve their energy efficiency by co-funding investment in energy-efficient equipment. It currently provides two tiers of support: a base tier for pre-approved energy-efficient equipment up to a $30,000 cap, and an advanced tier to support companies that wish to make larger investments to drive energy efficiency. In April 2024, the grant was enhanced and is now extended to more sectors, including manufacturing, construction, maritime, and data centres.

2) Sustainable Loan Grant Scheme

Established by The Monetary Authority of Singapore (MAS) in 2020. The grant offsets up to $125,000 of expenses incurred for external reviews of eligible green, social, sustainability, sustainability-linked as well as transition loans. It aims to support corporates of all sizes to obtain sustainable and transition financing by defraying the expenses of engaging independent service providers to validate the sustainability credentials of the loan. In 2023, the MAS made a commitment of $15 million to lengthen the window of the grant till December 2028.

3) Enterprise Development Grant (EDG)

Established by Enterprise Singapore in 2018. This grant aims to help established local SMEs grow and transform their businesses. The grant will provide up to 50 per cent funding for projects that improve business capabilities, foster innovation, and boost global competitiveness. Examples of these projects are the incorporation of technology to boost the efficiency of internal processes or the implementation of automation to increase productivity and foster innovation.

4) Productivity Solutions Grant (PSG)

Established by Enterprise Singapore in 2018. The grant aims to support local SMEs by improving their productivity and automating existing processes through IT solutions and equipment. It strives to support the digital transformation journeys that these SMEs will undertake by making technology adoption more affordable. The grant can subsidise up to 50 per cent of the qualifying costs of adopting these solutions. This can include costs for purchasing or subscribing to technology tools, as well as related consultancy services.

Ensuring Long-Term Business Success

While grants serve as a stepping stone for SMEs to adapt to the changing business landscape, this is only the first step. It takes even more effort for SMEs to stay up-to-date with the best practices when adopting digitalisation and sustainability initiatives amidst an ever-changing business landscape.

UOB FinLab understands that collaboration and access to a strong network is key to ensure SMEs have access to the latest knowledge to achieve long-term business success. This is why we have established a vast ecosystem of over 27,000 professionals that include industry experts and leaders in the private and public sector to share the best practices and catalyse business opportunities.

We bring the ecosystem together through various activities including networking sessions with experts and like-minded companies, arranging practical, in-depth workshops and providing access to a wide range of online resources.

One example is the “UOB FinLab Start Smart Programme” – a practical and comprehensive online programme designed to help new and existing business owners strengthen their digital capabilities, expand their professional networks and take their business to the next level.

The programme consists of four key pillars:

Start Right – Building a sustainable business, establishing a digital foundation and analysing your business model
Start Digital – Leverage digital tools to enhance operations, financial management and e-commerce capabilities
Start Growth – Understand digital marketing skills to acquire new leads and learning the best practices to pitch your business to raise funds

UOB FinLab remains committed to helping SMEs across ASEAN unlock business growth through our collaborative programmes and initiatives. Such an enhanced collaborative approach will continue to accelerate innovation and problem-solving to help SMEs get started and thrive in their digitalisation and sustainability journeys.

To find out more about UOB FinLab’s programmes, click here.