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.
What is EDG?
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.
Key figure 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.
The three pillars of EDG
EDG is organised around three broad areas of business development. Every project you apply for must fall under one of these pillars:
| Pillar |
What it covers |
| Core Capabilities |
Building foundational business strengths — strategy, financial management, human capital development, service excellence, and brand development. |
| Innovation & Productivity |
Upgrading processes, adopting technology, automating workflows, and implementing AI and digital solutions. This is the pillar most automation projects fall under. |
| Market Access |
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.
Who qualifies for EDG?
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:
EDG Eligibility Criteria
- Registered and operating in Singapore. Your business must be incorporated and physically operating in Singapore — not just registered here as a holding entity.
- At least 30% local shareholding. Singapore Citizens or Permanent Residents must hold at least 30% of the company’s shares. Wholly foreign-owned subsidiaries do not qualify.
- Financially viable. EnterpriseSG will assess your company’s financial health. A business that is loss-making for several consecutive years, or has significant liabilities, may be declined.
- Project must be commercially meaningful. The work must have a clear impact on your business — not a proof-of-concept that you won’t actually deploy.
- Work must be done by a third-party vendor. You cannot claim EDG for internal staff doing the project themselves. The work must be performed by an external company (like Stack AI).
- Project must not have started before approval. This is critical. If you begin work before your EDG application is formally approved, those costs become ineligible. Always apply first.
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.
What costs does EDG actually cover?
Understanding what’s fundable is just as important as knowing whether you qualify. EDG covers three categories of qualifying costs:
1. Professional fees
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.
2. Software and equipment costs
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.
3. Internal manpower costs
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.
What this means in practice 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.
What EDG does NOT cover
Equally important is what you cannot claim. Common exclusions include:
Not Covered by EDG
- Not eligible: Recurring operational costs. Ongoing SaaS subscriptions, monthly hosting fees, or staff salaries after the project is complete are not claimable. EDG funds project-based work, not running costs.
- Not eligible: Work done before approval. Any invoices dated before your Letter of Offer from EnterpriseSG are automatically excluded — even if your approval comes through quickly.
- Not eligible: Hardware not specific to the project. General IT equipment like laptops or office computers don’t qualify unless they are specifically and exclusively required for the funded project.
- Not eligible: Training-only programmes. Sending staff to generic technology training without a tied implementation project is not fundable under EDG’s Innovation & Productivity pillar (though it may qualify under other schemes like SkillsFuture).
- Not eligible: Projects with insufficient scope. Very small projects — or projects that EnterpriseSG deems too narrow to meaningfully improve your business — may be declined. A minimum project investment is typically expected.
How much can you actually get?
The current co-funding levels for EDG are:
- SMEs (up to S$100M turnover or under 200 employees): Up to 50% of qualifying costs
- Non-SME companies: Up to 30% of qualifying costs
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.
Why automation projects are well-suited for EDG
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:
- They have clear, measurable outcomes. A good automation project comes with defined metrics: hours saved per week, reduction in error rate, faster turnaround times. These are exactly what EnterpriseSG assessors want to see.
- They upgrade capability, not just spend. EDG is about building business capability, not purchasing off-the-shelf software. A custom automation system built for your business demonstrates genuine capability uplift.
- They’re commercially deployed. EnterpriseSG wants to fund projects that go live and generate real impact — not R&D experiments. Automation projects that go straight into production score well.
- Singapore’s national AI strategy aligns. The government has made AI and automation a national priority. EDG assessors are primed to view well-scoped AI projects favourably.
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?
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.
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The application process, step by step
The EDG application is submitted through the Business Grants Portal (BGP) at businessgrants.gov.sg. Here’s what the process looks like in practice:
- Scope your project with your vendor — 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.
- Submit your application on the BGP — 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.
- Wait for assessment (typically 4–8 weeks) — 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.
- Receive your Letter of Offer (LOO) — 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).
- Accept the offer and start work — 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.
- Complete the project and submit your claim — 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.
Common mistakes that get applications rejected
After working with multiple Singapore SMEs on grant-funded projects, here’s what we see go wrong most often:
- Starting work before approval. This is the single most common and most avoidable mistake. If any invoice is dated before your Letter of Offer, that cost is ineligible — full stop.
- Vague project scope. “We want to automate our business” is not a project scope. You need to specify: which workflows, which systems, what the current process looks like, what the automated process will look like, and what measurable improvement you expect.
- Not quantifying the business impact. EnterpriseSG wants to fund projects that genuinely improve Singapore’s economic competitiveness. Applications that don’t include concrete projections — hours saved, cost reduction, revenue impact — are much weaker than those that do.
- Using a vendor who can’t provide proper documentation. Your vendor must provide a formal proposal, detailed quote, and be able to produce project completion evidence. Informal arrangements or freelancers without proper invoicing will create problems at the claims stage.
- Applying for costs that won’t be approved. Claiming ineligible items (like existing staff salaries or software you were already paying for) doesn’t just get those items rejected — it can raise questions about the whole application.
How Stack AI works with you on EDG
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.
Not sure if your project qualifies?
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.
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Frequently asked questions
Can I apply for EDG and another grant at the same time?
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.
Is there a minimum or maximum grant amount?
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.
How long does the whole process take from application to receiving funds?
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.
What if I’ve already started my project — can I still apply?
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.
Does my vendor need to be pre-approved by EnterpriseSG?
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.
What happens if my project costs more than the approved amount?
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.
