EDG is Singapore’s most powerful grant for SMEs investing in AI, automation, and capability upgrades. But the eligibility rules trip up most business owners before they even apply. This is the plain-English guide to what’s covered, who qualifies, and what the process actually looks like.
If you run an SME in Singapore and you’ve started looking into government grants for technology or automation projects, you’ve almost certainly come across the Enterprise Development Grant (EDG). It’s the government’s flagship scheme for helping local businesses invest in upgrading their capabilities — and for automation and AI projects specifically, it’s often the most relevant grant available.
But most business owners either don’t know if they qualify, aren’t sure what costs it actually covers, or find the application process opaque enough that they give up before starting. This guide changes that.
The Enterprise Development Grant is administered by Enterprise Singapore (EnterpriseSG) — the government agency responsible for helping Singapore SMEs grow and upgrade. EDG is designed to support companies that want to invest in building stronger core capabilities, improve their operations, or expand into new markets.
It’s a co-funding scheme: EnterpriseSG pays a portion of your qualifying project costs, and you cover the rest. The grant doesn’t go directly to you — it offsets the fees you pay to an approved vendor or consultant who delivers the project.
Qualifying Singapore SMEs can receive up to 50% co-funding on eligible project costs under EDG. This means for every $10,000 you spend on a qualifying automation project, the government co-funds $5,000.
EDG was introduced in 2018 by merging several older grant schemes into a single, more flexible programme. It has since become the primary tool Singapore companies use to fund digitalisation, automation, AI adoption, process improvement, and market expansion initiatives.
EDG is organised around three broad areas of business development. Every project you apply for must fall under one of these pillars:
Building foundational business strengths — strategy, financial management, human capital development, service excellence, and brand development.
Upgrading processes, adopting technology, automating workflows, and implementing AI and digital solutions. This is the pillar most automation projects fall under.
Expanding into overseas markets — business development, market entry activities, and international partnerships.
For the vast majority of AI automation and workflow projects, you’ll be applying under Innovation & Productivity. This pillar covers technology adoption, process redesign, and productivity improvements — which is exactly what a well-scoped automation project delivers.
This is where most business owners get tripped up, because the criteria are specific and non-negotiable. You need to meet all of the following:
There is no official “SME only” rule written into EDG’s base criteria, but the 50% co-funding rate applies to SMEs — defined as companies with annual sales turnover not exceeding S$100 million, or fewer than 200 employees. Larger enterprises may still apply but typically receive a lower support percentage.
Understanding what’s fundable is just as important as knowing whether you qualify. EDG covers three categories of qualifying costs:
This is the main cost category for automation and technology projects. It covers the fees charged by your implementation partner — in this case, the fees Stack AI charges for scoping, building, testing, and deploying your automation system.
Costs for new software licences, subscriptions, or equipment directly required for the project may be included. For example, if your automation project requires a new Make.com subscription or a specific AI platform licence, that may be claimable.
If your own staff are significantly involved in the project — attending workshops, doing data preparation, project management — a portion of their time can sometimes be included as a qualifying cost. This is the most complex category and requires good documentation.
For a typical Stack AI automation project costing S$15,000, an eligible SME could receive up to S$7,500 back via EDG co-funding — reducing the net cost to S$7,500. For larger enterprise-grade projects, the absolute savings are proportionally higher.
Equally important is what you cannot claim. Common exclusions include:
The current co-funding levels for EDG are:
Note that EnterpriseSG assesses each project independently and may approve a lower percentage based on factors like the strength of your application, how clearly you’ve articulated the business impact, and your company’s financial position. The 50% figure is the ceiling, not a guarantee.
There is also a maximum qualifying cost per project — EnterpriseSG sets internal caps and may not fund the full cost of very large projects at the maximum rate. For most SME automation projects in the S$10,000–S$80,000 range, the 50% rate is achievable with a well-prepared application.
Automation and AI implementation projects score well with EnterpriseSG assessors because they align perfectly with what EDG’s Innovation & Productivity pillar is designed to fund. Specifically:
The key is how the project is scoped and presented. A poorly framed application — even for a genuinely impactful project — can result in a lower approval rate or a rejection. The way you describe the business problem, the expected productivity gains, and the implementation approach all affect the outcome.
Not sure if your project qualifies? We scope automation projects in grant-eligible terms from day one — and we’ll tell you honestly if EDG is the right fit before you invest any time in the application.
The EDG application is submitted through the Business Grants Portal (BGP) at businessgrants.gov.sg. Here’s what the process looks like in practice:
Before applying, work with your implementation partner to define the project scope, timeline, and cost. You’ll need a formal quote and a clear statement of the business problem being solved. This is where most of the work happens — a vague scope produces a weak application.
Log into the Business Grants Portal using your CorpPass credentials. Select “Enterprise Development Grant” and complete the application form. You’ll describe your business, the project, expected outcomes, and attach your vendor’s proposal and quote. Allow 1–2 hours to complete carefully.
EnterpriseSG reviews your application. They may come back with clarifying questions — respond promptly and clearly. Assessment timelines vary based on application volume and project complexity. Do not start work during this period.
If approved, you’ll receive a Letter of Offer specifying the approved funding amount and conditions. Read this carefully — it defines exactly what’s covered and the timeline you must complete the project within (typically 12–18 months).
Once you formally accept the LOO via the BGP, you can begin the project. All work from this point forward is eligible for co-funding. Keep all invoices, timesheets, and project documentation — you’ll need them for the claims process.
After the project is delivered, you submit a claims package via the BGP. This includes invoices, proof of payment, and evidence that the project was completed as scoped (reports, screenshots, outcome documentation). EnterpriseSG reviews and disburses the co-funding — typically within 2–3 months of a complete claim submission.
After working with multiple Singapore SMEs on grant-funded projects, here’s what we see go wrong most often:
We’ve scoped and delivered automation projects with EDG co-funding for clients across F&B, professional services, healthcare, and retail. Here’s how we approach it:
We scope projects in grant-eligible terms from day one. This means defining clear business problems, mapping current workflows, specifying deliverables, and projecting measurable outcomes — all in language that holds up under EnterpriseSG scrutiny.
We provide everything you need for the application. Our proposals include the technical scope, timeline, cost breakdown, and expected business impact in a format that works directly as your BGP submission attachment. You don’t need to translate our work into grant language — we do that as part of how we scope every project.
We only take on projects we believe will be approved. We’re not a grant consultancy and we don’t guarantee approval — EnterpriseSG makes that decision. But we won’t encourage you to apply if we think the project isn’t a strong fit for EDG. A rejected application wastes everyone’s time.
We stay involved through the claims process. After project delivery, we help you compile the claims documentation — usage evidence, outcome reports, and completion certification — so the final disbursement goes smoothly.
Book a free 30-minute call. We’ll confirm which grants you qualify for, scope your project in grant-eligible terms, and give you a realistic picture of what you can claim — before you commit to anything.
Yes, in some cases. EDG cannot be stacked with other EnterpriseSG grants for the same cost items — you can’t double-claim the same invoice. However, if you have separate projects, you can have multiple concurrent applications. EDG can also sometimes complement schemes like the Productivity Solutions Grant (PSG) if the projects are genuinely distinct. Speak to an EnterpriseSG advisor or your vendor before stacking.
There’s no hard published minimum, but EnterpriseSG expects projects of meaningful scale — very small projects (under ~S$5,000 in qualifying costs) are unlikely to be approved as they don’t demonstrate genuine capability uplift. For the maximum, there are internal caps per project and per company within a certain period, but these are not publicly specified and vary by industry and project type. For typical SME automation projects, the practical range is S$5,000–S$40,000 in co-funding per project.
Plan for 6–12 months from initial application to final disbursement. Assessment typically takes 4–8 weeks. The project itself then needs to be delivered (usually 2–4 months for most automation projects). After project completion, you submit your claim, and disbursement typically follows within 2–3 months. You pay your vendor in full first — the grant reimbursement comes after the project is done and the claim is processed.
Unfortunately, no — at least not for costs already incurred. If you’ve already paid invoices or started work, those costs are ineligible. However, if the project is ongoing, you may still be able to apply for remaining costs that haven’t been incurred yet, as long as those future phases are clearly delineated in your application. Speak to EnterpriseSG directly or contact us — we can help you assess what’s still salvageable.
Not necessarily. Unlike PSG (which requires vendors to be on an approved vendor list), EDG does not require your implementation partner to be pre-approved. However, EnterpriseSG will assess the vendor’s credibility, experience, and whether their proposal is credible. A vendor with a track record of delivering similar projects and proper documentation will always strengthen your application.
You cover any costs above the approved amount. If your project ends up costing more than originally scoped, EnterpriseSG only funds up to the approved quantum. If there are legitimate scope increases, you can sometimes submit a variation request — but this must be approved before those additional costs are incurred. This is another reason to work with a vendor who scopes projects carefully upfront.
The Enterprise Development Grant is one of the most accessible and generous co-funding schemes available to Singapore SMEs — but only if you approach it correctly. The business owners who benefit most are those who plan the project before applying, work with a vendor who understands grant requirements, and take the application seriously as a business document rather than a form to fill in.
If you’re considering an automation project and want to understand whether EDG makes sense for your situation, the best next step is a conversation — not more reading.
Book a free 30-minute call. We’ll confirm which grants you qualify for, scope your automation project in grant-eligible terms, and show you exactly what EDG can cover.