Singapore Wants to Help Your Business Adopt AI
The Singapore government has made AI adoption a national priority. Through various grants and funding programmes, they are actively subsidising the cost of AI tools, implementation, and training for businesses of all sizes. If you are a Singapore SME considering AI adoption, there is a good chance you can get the government to fund a significant portion of your investment.
But navigating the grant landscape can be confusing. There are multiple agencies, different eligibility criteria, and various application processes. This guide breaks down every major grant available for AI adoption in Singapore, so you know exactly what you can apply for and how to maximise your funding.
Productivity Solutions Grant (PSG)
The PSG is the most accessible grant for SMEs adopting AI and digital tools. Here is what you need to know:
- What it covers: Pre-approved IT solutions and equipment, including AI-powered software for accounting, CRM, digital marketing, inventory management, and e-commerce.
- Funding level: Up to 50% of the qualifying cost of the solution. This means if an AI tool costs S$10,000, the government covers S$5,000.
- Eligibility: Your business must be registered and operating in Singapore, have a minimum of 30% local shareholding, and have group annual sales turnover of not more than S$100 million or group employment of not more than 200 workers.
- How to apply: Browse pre-approved solutions on the GoBusiness Grants Portal, select your solution, and submit your application online. Processing typically takes four to six weeks.
- Pro tip: Check the list of pre-approved solutions regularly as new AI tools are added frequently. Popular approved solutions include Xero (accounting), HubSpot (CRM), and various e-commerce platforms.
Enterprise Development Grant (EDG)
The EDG supports larger, more strategic AI adoption projects. It is more generous but also more involved:
- What it covers: Three pillars — core capabilities (including AI capability building), innovation and productivity (including AI automation projects), and market access. Unlike PSG, EDG covers custom AI solutions, not just pre-approved ones.
- Funding level: Up to 50% of qualifying project costs. For particularly impactful projects, the support can be higher. Costs covered include consultancy fees, software, equipment, and internal manpower.
- Eligibility: Your business must be registered and operating in Singapore. There is no size restriction, though the focus is on SMEs and mid-sized companies.
- How to apply: Submit your project proposal through the GoBusiness Grants Portal. You will need a detailed project plan, expected outcomes, and cost breakdown. Processing takes six to eight weeks.
- Best for: Businesses implementing custom AI solutions, hiring AI consultants to develop bespoke automation, or undertaking significant process transformation with AI.
SMEs Go Digital Programme
Run by IMDA, this programme provides a structured digital upgrade pathway that includes AI tools:
- Industry Digital Plans (IDPs): IMDA has created step-by-step digital roadmaps for 36 industries. Each plan identifies the right digital solutions (including AI) for businesses at different stages of growth.
- Digital Solutions supported by PSG: The programme curates pre-approved solutions for each industry, making it easier to find AI tools relevant to your sector.
- Chief Technology Officer as a Service (CTO-as-a-Service): Free consultations with technology advisors who can help you identify the right AI solutions for your business. This is particularly valuable for businesses that are not sure where to start.
- How to access: Visit the IMDA SMEs Go Digital portal and find your industry's digital plan.
SkillsFuture, AI Singapore, and Other Programmes
Adopting AI tools is only half the equation. Your team needs to know how to use them, and several specialised programmes can help with both training and advanced AI development:
- SkillsFuture Credit: Every Singaporean aged 25 and above has S$500 in SkillsFuture credits (with additional top-ups). These can be used for AI-related courses including prompt engineering, AI for business, and data analytics.
- SkillsFuture Enterprise Credit (SFEC): Eligible employers receive a one-off S$10,000 credit to support workforce transformation, including AI training for employees.
- AI Singapore (AISG) — 100 Experiments: This programme matches SMEs with AI solution providers to co-develop AI solutions. AISG covers a significant portion of the development cost.
- Startup SG Tech: For startups developing AI products, this provides early-stage funding of up to S$500,000 for proof-of-concept and proof-of-value projects.
- Market Readiness Assistance (MRA): If you are using AI to expand into overseas markets, MRA provides up to 50% funding for international market setup activities.
- NTUC UTAP: NTUC members can claim up to S$500 per year for approved AI and digital skills courses.
Maximising Your Grant Success
Having helped many Singapore businesses apply for grants, here are our tips for maximising your chances:
- Apply before purchasing: Most grants require you to apply and receive approval before purchasing the solution. Buying first and applying later will result in rejection.
- Get multiple quotes: For EDG applications, getting quotes from at least two to three vendors strengthens your application and demonstrates due diligence.
- Focus on business outcomes: Grant applications are more successful when they clearly articulate expected business outcomes (productivity improvement, cost reduction, revenue growth) rather than just listing technology features.
- Keep detailed records: Maintain receipts, invoices, contracts, and implementation documentation. Grants require proper documentation for claim submission.
- Consider stacking grants: Some grants can be combined. For example, you might use PSG for the AI software license and SFEC for training your team on the tool. Ask your grant advisor about stacking options.
- Use a grant consultant: For larger EDG applications, consider engaging a grant consultant. They typically charge a success fee and their expertise significantly improves approval rates.
Let Us Help You Access AI Grants
Navigating Singapore's grant landscape can be overwhelming, but the funding is real and accessible. We help businesses identify eligible grants, prepare applications, and implement AI solutions that deliver results.
Book a free consultation or WhatsApp us to discuss which grants your business qualifies for and how to maximise your AI investment with government support.
