Scale Up Your Business with These Government Grants in 2025

If you're planning to grow your business in 2025, now is the perfect time to explore how government grants can help you scale up. In Singapore, various support schemes are available to assist small and medium-sized enterprises (SMEs) in becoming more productive, innovative, and globally competitive. 

These grants are designed to ease your financial load while enabling you to adopt better systems, build capabilities, and explore new markets. Whether you're looking to digitalise your operations, train your workforce, or enhance your internal processes, there’s likely a grant that fits your needs. In this article, we’ll break it all down in simple terms, so you can make the most of the opportunities ahead.

Read more about: : 5 Powerful Ways Inflation Impacts SMEs and How to Tackle It

What Are Government Grants? 

Government grants are financial assistance programmes provided by the Singapore government to support the growth and development of businesses, particularly SMEs. These grants are designed to help businesses improve productivity, build capabilities, adopt technology, or enter new markets.

Grants can be used for a wide range of purposes, such as purchasing digital tools, funding staff training, redesigning jobs, or developing new products and services.

Unlike loans, government grants do not need to be repaid. This makes them especially valuable for businesses that want to grow steadily and strategically without taking on additional financial risk or debt.

Where Can You Find Government Grants?

You can find updated information about government grants from:

• GoBusiness Gov Assist (gobusiness.gov.sg) – a central portal for all government support schemes
• Enterprise Singapore – for business development and expansion-related grants
• SkillsFuture Singapore – for training and workforce development support

However, understanding which grants suit your business goals can be tricky. That’s where professional advice can help. Engaging a business advisor or grant consultant ensures you make informed decisions and submit complete, accurate applications. At Accounting Superhero, we guide SMEs through the entire process, from identifying suitable grants to managing the paperwork so you can focus on growing your business with confidence.

Are Government Grants Taxable?

Whether a government grant is taxable depends on its nature and purpose. Revenue grants, which are used to support daily business operations—such as paying salaries, rent, or utilities—are usually taxable and must be reported as part of your business income. On the other hand, capital grants, which are used for purchasing fixed assets or long-term investments like equipment or software, are generally not taxable.

Understanding the difference is important to avoid mistakes in your tax reporting. Always refer to the latest IRAS guidelines for clarity. For peace of mind, you can also consult a professional—Accounting Superhero is here to help ensure your grant usage and tax treatment are fully compliant.

Read more about: Corporate Income Tax 2025: Key Facts to Save Thousands

What Can Government Grants Be Used For?

Government grants are designed to support specific business goals and help SMEs grow sustainably. In 2025, Singaporean SMEs can use these grants to fund a variety of business improvement initiatives, including:

• Purchasing productivity-enhancing equipment or software
• Training and upskilling employees to meet new industry demands
• Redesigning jobs to improve employee retention and satisfaction
• Improving internal processes for greater efficiency and output
• Expanding into overseas markets through internationalisation support
• Developing innovative products or services to stay competitive

Each grant scheme has different objectives and funding criteria. To maximise your benefits, it’s crucial to match your business plans with the right grant and follow the application guidelines carefully.

How Do Government Grants Work? 

Most government grants in Singapore operate on a co-funding basis, meaning the government funds a percentage of the approved project cost, while your business pays the remaining portion. This encourages businesses to take ownership of their growth while still receiving meaningful support.

Here’s how it usually works:

1. Identify a grant that suits your business needs
2. Prepare your project proposal and required documents
3. Submit your application via the appropriate portal
4. Wait for approval – this may take a few weeks
5. Once approved, proceed with the project
6. Submit claims after project completion with invoices and reports

Important: Always wait for approval before starting your project to avoid disqualification.

Which Government Grants Can Help You Scale Up in 2025?

Here are three key government grants that SMEs in Singapore can tap into for growth in 2025:-

1. Productivity Solutions Grant (PSG)

The Productivity Solutions Grant (PSG) is ideal for SMEs looking to adopt IT solutions or upgrade their equipment to boost productivity. It offers up to 50% funding for pre-approved solutions, making it one of the most accessible grants for smaller-scale improvements.

Common uses include purchasing accounting software, point-of-sale systems, inventory tracking tools, and HR platforms—tools that streamline operations and reduce manual work.

To apply, businesses must select from the list of approved vendors and submit their application through the GoBusiness portal.

Accounting Superhero is an approved vendor for Xero, and we can support your business in choosing the right solution and navigating the PSG application process smoothly.

Read more about: Is PSG Convenient To Use?

2. SkillsFuture Enterprise Credit (SFEC)

The SkillsFuture Enterprise Credit (SFEC) is designed for companies that are committed to investing in their workforce development and job redesign initiatives. It provides up to $10,000 in credit to eligible employers, helping to offset costs associated with staff training and business transformation projects.

The credit can be used on a wide range of SkillsFuture-approved courses, as well as initiatives that support business and workforce transformation, such as job redesign, process improvement, and talent development.

To qualify, employers must meet specific eligibility criteria, including making regular contributions to the Skills Development Levy. Businesses must also tap on other eligible programme before applying SFEC credits.

3. Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) is aimed at supporting SMEs that are ready to take on larger-scale transformation projects focused on long-term growth and international expansion. It covers up to 50% of qualifying costs, making it a valuable resource for businesses looking to strengthen their foundations or explore new markets.

The grant supports projects in three key areas: core capabilities, innovation and productivity, and market access. Common uses include business strategy development, process innovation, branding, and overseas expansion plans.

To apply, businesses must submit a detailed project proposal and budget plan. The EDG is ideal for SMEs looking to build sustainable growth beyond local operations.

Final Thoughts 

Scaling up a business requires more than just ambition, it needs the right support. With the right government grants, SMEs in Singapore can take bold steps forward while keeping costs under control.

Whether you're going digital, entering new markets, or building a stronger team, these grants can help turn your plans into reality.

Need help applying? Accounting Superhero is here to guide you through the grant process, from selecting the right scheme to handling the paperwork, so you can focus on growing your business.