Funding and Grant Opportunities for Australian Businesses in Singapore

Expanding into Singapore can be a strategic move for Australian companies looking to access Asian markets, lower corporate tax rates, and operate in one of the world’s most business-friendly environments. While Singapore offers a favourable climate for foreign investors, expansion still requires significant capital. The good news? Singapore’s government and business ecosystem provide a range of funding and grant opportunities that Australian businesses can tap into.

This article explores the key funding avenues and government schemes available to help Australian companies set up and grow in Singapore.

1. Enterprise Singapore – Your Main Government Partner

Enterprise Singapore (ESG) is the government agency dedicated to supporting business growth and internationalisation. For Australian companies setting up in Singapore, ESG is often the first stop for funding and guidance.

Key ways ESG can help include:

• Advisory Services – Guidance on market entry, regulations, and partnerships.

• Financial Assistance – Administers many of Singapore’s major grant schemes.

• Networking Support – Introductions to local partners, distributors, and potential clients.

By working closely with ESG, Australian businesses can accelerate their integration into Singapore’s business ecosystem.

2. Market Readiness Assistance (MRA) Grant

The MRA Grant is designed to help companies expand into overseas markets—including Australian companies expanding into Singapore, if they set up a Singapore-incorporated entity.

Funding Support:

• Covers up to 70% of eligible costs, capped at SGD 100,000 per company per new market.

• Eligible activities include market entry research, business matching, marketing, and overseas trade shows.

Why It’s Relevant for Australians:If you set up your base in Singapore and then use it to enter ASEAN markets, you can claim MRA funding for those regional expansion efforts.

3. Enterprise Development Grant (EDG)

The EDG supports projects that help businesses grow and transform. It’s particularly relevant for Australian businesses establishing a Singapore entity and investing in innovation or market expansion.

Funding Support:

• Covers up to 50%–70% of qualifying project costs (higher support for SMEs).

• Three main categories:

  1. Core Capabilities – Business strategy, branding, and HR development.

  2. Innovation & Productivity – Process redesign, automation, and product development.

  3. Market Access – Overseas market setup, mergers, and acquisitions.

Australian companies can use EDG funds to adapt products or services for the Singapore and ASEAN markets.

4. Startup SG Programmes

If your expansion into Singapore involves a new venture, the Startup SG umbrella offers multiple funding schemes:

• Startup SG Founder – Grants up to SGD 50,000 for first-time entrepreneurs with innovative ideas, matched by co-investment from an accredited mentor partner.

• Startup SG Tech – Early-stage funding for the commercialisation of proprietary technology.

• Startup SG Equity – Government co-invests with private investors in innovative startups.

These programmes can be especially useful for Australian tech, fintech, and innovation-driven businesses entering Singapore.

5. Productivity Solutions Grant (PSG)

The PSG co-funds the adoption of IT solutions, equipment, and consultancy services to improve productivity.

Funding Support:

• Covers up to 50% of qualifying costs.

• Applicable to sectors like retail, food services, logistics, and manufacturing.

Australian businesses setting up operations in Singapore can use PSG to offset technology implementation costs—especially useful for streamlining operations from day one.

6. Double Tax Deduction for Internationalisation (DTDi)

While technically a tax scheme rather than a grant, the DTDi allows companies to deduct 200% of qualifying expenses for international market expansion.

Eligible Activities:

• Overseas business development trips

• Participation in trade fairs

• Marketing campaigns targeting overseas markets

For Australian companies basing regional operations in Singapore, DTDi can reduce taxable income significantly.

7. Industry-Specific Grants and Incentives

Beyond broad-based schemes, Singapore offers sector-specific funding through agencies like:

• Singapore Tourism Board (STB) – For tourism-related projects.

• Infocomm Media Development Authority (IMDA) – For media, IT, and communications sectors.

• Singapore Food Agency (SFA) – For F&B businesses, food innovation, and food safety compliance.

Australian companies in these industries should check for relevant incentives before launching.

8. Private and Alternative Funding Sources

Singapore’s funding ecosystem isn’t limited to government grants—there’s also a strong private investment market:

• Venture Capital (VC) – Singapore is home to numerous VC firms focusing on Asia-Pacific growth.

• Private Equity (PE) – Well-suited for larger-scale expansions or acquisitions.

• Angel Investors – Networks like the Business Angel Network of Southeast Asia (BANSEA) connect startups with seed funding.

• Bank Loans and Trade Financing – Local banks offer competitive interest rates, especially for companies with strong business plans.

Australian business owners with scalable ideas can often secure a mix of government support and private investment.

9. How to Qualify and Apply for Funding

To maximise your chances of securing funding:

• Incorporate in Singapore – Most grants require a locally registered entity.

• Meet SME Criteria – For certain schemes, your Singapore entity must have at least 30% local shareholding.

• Prepare Detailed Proposals – Outline your market entry strategy, projected outcomes, and how funds will be used.

• Track Deadlines and Cycles – Some schemes have fixed application windows.

Working with a grant consultant or corporate service provider in Singapore can help streamline the process.

10. Avoiding Common Funding Mistakes

• Assuming Automatic Approval – Grants are competitive; you must demonstrate clear business impact.

• Overlooking Compliance – Most grants require post-project reporting and evidence of spending.

• Failing to Align with National Priorities – Projects that align with Singapore’s economic goals (e.g., digital transformation, sustainability) have a higher success rate.
  

Conclusion

For Australian businesses, Singapore offers far more than just a strategic location and low taxes—it also provides generous funding and grant support for companies willing to set up locally and contribute to its economic growth. From market entry assistance via the MRA Grant to innovation funding under the Startup SG umbrella, there’s a wide range of opportunities to offset expansion costs.

By combining government incentives with private sector funding, Australian companies can reduce their financial risk, accelerate market entry, and position themselves for long-term success in Singapore and across Asia.