​Standard Support Schemes by EDB (As of Feb 2022)

The Economic Development Board (EDB) is an agency under the Ministry of Trade and Industry of Singapore. Its mandate is to position Singapore as a global centre for business, innovation, and talent. For decades, it has been helping businesses in Singapore achieve continued growth and development, thus, yielding massive employment opportunities in the state.
 
As a leading institution in Singapore, they are responsible for investment promotion and industry development, helping businesses transform their operations and enhance their productivity, providing support to various companies' needs, and improving the pro-business environment in Singapore. It has also tied up with EDBI, the investment arm of EDB that focuses on high growth technology sectors including Information & Communication Technology (ICT), Emerging Technology (ET), Healthcare (HC), and other strategic industries.
 
To continue thriving amidst the competitive businesses environment in Singapore, companies are provided with assistance privileges in the form of incentives or schemes. Check to see if your company qualifies for any of these benefits:
 
1. Special Situation Fund
 
The S$285 million SSFS was introduced in June 2020 to catalyze investments into high-potential startups facing cash-flow or fund-raising difficulties due to the pandemic.
 
Type of Support:

• Convertible Note (Debt + Equity investment)

 
Support level:

• EDBI/SEEDS will co-invest with private-sector investors on a 1:1 basis
• $2.5-5mil per company by EDBI

 
Eligibility:

• Company is a private company incorporated in Singapore for not more than 10 years.
• Company is developing/ producing/ and commercializing innovative technologies or services designed for scale and high growth.
• Company has secured paying customers and partners and demonstrated a commercially scalable business model of at least 20% annual revenue growth pre-COVID-19. For pre revenue companies, Company possesses either strong pre-clinical data (biotech companies), intellectual property, or technological know-how that cannot be replicated.
• Investors (existing/new) are committed and prepared to fund 50% of the convertible note.

To know more, visit this website.
 
2. Pioneer Certificate Incentive (PC) & Development and Expansion Incentive (DEI)
 
To keep up with the fast-paced economic landscape in Singapore, companies are empowered to grow capabilities and conduct new or expanded economic activities in the state. Specifically, companies that cater the following services such as carrying out global or regional headquarters (HQ) activities of managing, coordinating and controlling business activities for a group of companies may also apply for the PC or DEI for the HQ activities.  
 
Type of Support:

• Tax Incentive

 
Support Level:

• Corporate tax exemption of 5%, or a concessionary tax rate of 10%, on income derived from qualifying activities.

 
Eligibility:

• Companies that are prepared to make significant investments in contribution to the economy or in advancement of capabilities towards globally leading industries.
• Must meet quantitative and qualitative criteria. These include:

1. the employment created (including skills, expertise and seniority),
2. total business expenditure which generates spin-off to the economy,
3. commitment to growing the capabilities (e.g. technology, skillsets, knowhow) in Singapore, & 
4. manufacturing projects are also required to commit to fixed asset investment in plant, building or equipment.  

3. Finance & Treasury Centre (FTC) Incentive
 
This scheme challenges companies to grow treasury management capabilities and use Singapore as a base for conducting strategic finance and treasury management activities.
 
Essentially, an FTC is part of a larger presence of a company in Singapore, which may include manufacturing, R&D or a range of headquarters activities. The FTC set-up generally has about 10 staff and incurs total business spending of about $3.5 million.
 
Type of Support:

• Tax Incentive

 
Support level:

• An approved finance and treasury centre (FTC) company is eligible for a reduced corporate tax rate of 8% on income derived from qualifying FTC services to approved network companies (ANCs) as well as qualifying FTC activities carried out on its account with funds obtained from qualifying sources.
• Eligible for withholding tax exemption on interest payments, such as interest on loans.
• Tax incentive may be enjoyed for a maximum. Extension of incentive period will be subjected for further review.

Eligibility:

• Companies must establish substantive activities in Singapore and perform strategic functions. Key activities should include control over the management of cash and liquidity position, provision of corporate finance advisory services, management of interest rate, foreign exchange, liquidity and credit risks, as well as overall business planning, investment research and analysis.
• Applicant companies will be assessed on the quantitative and qualitative aspects of the proposed FTC operations. These include the employment created (including skills, expertise and seniority in the FTC team), total business expenditure which generates spin-offs to the economy, as well as the scale of the FTC operations in the depth and breadth of the services and activities. Companies are also encouraged to grow capabilities through working with potential partners, such as in the professional services and financial sectors.

 
4. Aircraft Leasing Scheme (ALS)
 
This scheme supports companies to develop aircraft leasing capabilities and grow the aircraft leasing industry in Singapore.
 
Type of Support:

• Tax Incentive

Support level:

• Concessionary tax rate of 8% on income derived from the leasing of aircraft or aircraft engine and qualifying ancillary activities.

 
Eligibility:

• Must establish substantive activities and perform strategic functions in Singapore. Key activities include identifying and acquiring aircraft/aircraft engines to be leased, negotiating the leasing terms, management of leases of aircraft/aircraft engines, services relating to the management of such leases (e.g. arranging for the operation and maintenance of aircraft/aircraft engines/facilities) and financing the acquisition of aircraft/aircraft engines.

 
5. R&D Schemes
 
5.1 Tech@SG Programme
 
This scheme helps companies pool talent to catapult their growth in Singapore and the region.
 
They also help facilitate the entry of global technology talent for eligible companies and provide company-level endorsement to the Ministry of Manpower (MOM), reducing the risks of rejections for their Employment Pass (EP) applications to MOM.
 
Supported programs include up to 10 new EPs over two years for foreign employees who will be hired as part of your company’s core team in Singapore; and coverage for the first renewal of each new EP obtained under the program (each renewal will be valid for up to three years).

Interested companies must satisfy the following requirements:

• Incorporated a business entity in Singapore with the Accounting and Corporate Regulatory Authority (ACRA)
• Have a digital or technology offering as your core business product or service
• Secured more than US$10 million (cumulative) in investment funding in the past 36 months
• Received funding (no minimum amount) from a programme-recognised investment firm in the past 36 months

Interested individual companies must satisfy the following requirements:

• Applicant’s fixed monthly salary meets MOM’s minimum prevailing EP salary criteria (i.e. S$4,500*, effective 1 September 2020).
• Applicant passes MOM’s background and due diligence checks#.
• Applicant is considered a core team member whose functional role and seniority are in line with the conditions outlined.

 
Visit this website to know more.
 
5.2 Tech.Pass
 
For hassle-free visits to Singapore, Tech.Pass allows established tech entrepreneurs, leaders or technical experts from around the world to perform frontier and disruptive innovations. Individuals may also apply for a pass directly from the Singapore Economic Development Board.
 
To qualify for the pass, satisfy two of the following:

1. Have a last drawn fixed monthly salary (in the last 1 year) of at least S$20,0002.
2. Have at least five cumulative years of experience in a leading role in a tech company with a valuation/market cap of at least US$500mil or at least US$30mil funding raised.
3. Have at least five cumulative years of experience in a leading role in the development of a tech product that has at least 100,000 monthly active users or at least US$100mil annual revenue.

Visit this website to know more.

5.3 RISC (Research and Innovation Scheme for Companies)
 
Supports companies’ technology development and innovation activities, to bring about the development of product and processes from Singapore.
 
The RISC is a grant scheme aimed at encouraging companies in Singapore to conduct or expand their Research & Development (R&D) activities in science and technology. 

• A company awarded with a RISC grant is eligible for co-funding support of up to 30% qualifying project costs such as manpower, training, consultancy, equipment, software, intellectual property and materials costs. Local manpower may be accorded support of up to 50%. 
• The incentive period is up to 3 years for an approved R&D project.

For detailed information about the scheme, visit this website.
 
5.4 Training Grant for Company (TGC)
 
Encourages manpower capability development in applying new technologies, industrial skills and professional know-how through the support of training programmes for companies’ employees.
 
For detailed information about the scheme, visit this website.
 
5.5 Intellectual Property (IP) Development Incentive (IDI)
 
Encourage the use and commercialization of intellectual property rights arising from research and development (R&D) activities.
 
Type of Support:

• Tax Incentive

 
Support level:

• Reduced corporate tax rate of either 5% or 10% on a percentage of qualifying IP income derived
• Qualifying IP income refers to royalties or other income receivable by the approved IDI company as consideration for the commercial exploitation of qualifying IP rights 

 
For detailed information about the scheme, visit this website.
 
6. Productivity-Related
 
6.1 Resource Efficiency Grant for Energy (REG(E))
 
Supports manufacturing facilities and data centres to be more energy efficient and improve competitiveness. 
 
Type of Support:

• Grant

 
Support level:

•  50% of qualifying costs  for the following:

1. Equipment
2. Materials, Consumables and Technical Software
3. Professional Services
4. Intellectual Property Rights(IPR)

• Calculated based on carbon abatement achieved

 
Eligibility:

• Be registered or incorporated in Singapore
• Be the owner or operator of an industrial facility that is located in Singapore
• Have a group annual sales turnover of more than S$500 million (Companies with a group annual sales turnover of up to S$500 million are encouraged to consider NEA’s Energy Efficiency Fund (E2F) for grant support
• Be registered under ACRA with the prevailing Singapore Standard Industrial Classification (SSIC) as undertaking manufacturing activities OR be undertaking data centre activities in Singapore

 
For detailed information about the scheme, visit this website.
 
6.2 Land Intensification Allowance (LIA)
 
LIA helps promote the intensification of industrial land use towards more land-efficient and higher value-added activities. Available to businesses in manufacturing and logistics sectors, and also integrated construction and prefabrication hubs, which have large land takes and low Gross Plot Ratios (GPR).
 
Type of Support:

• Tax allowances (serves to decrease taxable income)

 
Support level:

• Initial allowance of 25% and annual allowances of 5% on qualifying capital expenditure incurred for the construction or renovation/extension of a qualifying building or structure.
• Annual allowances of 5% are granted until total allowance amounts to 100% of qualifying capital expenditure.

Examples of Qualifying Expenditure:
    (a) cost of feasibility study on the layout of the building or structure;
    (b) design fees of the building or structure;
    (c) cost of preparing plans for obtaining approval for the building or structure;
    (d) piling, construction and renovation/extension costs;
    (e) demolition costs of an existing building or structure;
  (f) legal and other professional fees in relation to the approved construction or approved renovation/extension; and
    (g) stamp duties payable in respect of title of the building or structure.
 
Qualifying criteria:

• Zoning
• Trade or business
• Minimum GPR
• User(s) and use(s) occupying at least 80% of building’s gross floor area (GFA)
• Relationship between user(s) and owner1 of the building
• Expression of interest to apply for the LIA

 
For detailed information about the scheme, visit this website.

The Government of Singapore through the Ministry of Trade and Industry offers a wide range of assistance to interested and qualified local enterprises. Local enterprises in Singapore are highly encouraged to send their applications to respective schemes, depending on their company's line of business and needs that will support their continued growth and future endeavors.

We hope that reading this blog gave you some useful information regarding the EDB program and inspired you to submit your grant application. On the other hand, this blog from Propel X might be quite helpful if you are an investor searching for informational blog about funding alternatives for start-up firms.