Grants, Funding & Other Support

Enhance the Enterprise Financing Scheme (EFS)

As part of the Enterprise Support Package announced in Budget 2024, 3 enhancements have been proposed to the EFS:

Permanent enhancement of the maximum loan quantum under the EFS – Small and Medium-sized Enterprise (SME) Working Capital Loan from $300,000 to $500,000 to help SMEs meet increased working capital and operational cashflow needs, especially amid elevated costs.
Extension of the enhanced maximum loan quantum of $10 million under the EFS – Trade Loan till 31 March 2025 to support businesses’ internationalisation efforts amid global supply chain disruptions.
Extension of the maximum loan quantum of $15 million under the EFS – Project Loan till 31 March 2025 to support domestic construction firms amid a challenging operating environment.

Enhance the Progressive Wage Credit Scheme (PWCS)

To strengthen support for employers in uplifting lower-wage employees, the PWCS co-funding support will be enhanced for wage increases given in qualifying year 2024. The enhanced co-funding support will also apply to wage increases given in qualifying year 2023 that are sustained in 2024.

The gross monthly wage ceiling for PWCS co-funding will be increased from $2,500 to $3,000 in qualifying years 2025 and 2026. This is shown in the table below.

Table: PWCS Co-Funding Levels for Eligible Wage Increases from 2022 to 2026

Qualifying Year	Payout Period	Current	Current	Enhanced	Enhanced
		First Tier
Gross Monthly Wage Ceiling ≤$2,500	Second Tier
Gross Monthly Wage Ceiling >$2,500 and ≤ $3,000	First Tier
Gross Monthly Wage Ceiling ≤$2,500	Second Tier
Gross Monthly Wage Ceiling >$2,500 and ≤ $3,000
2022	Q1 2023	75%[1]	45%[1]	75%	45%
2023	Q1 2024	75%[2]	45%[2]	75%	45%
2024	Q1 2025	30%	15%	50% (+20%-pt)	30% (+15%-pt)
		Single Tier:
Gross Monthly Wage Ceiling ≤ $2,500	Single Tier:
Gross Monthly Wage Ceiling ≤ $2,500	Single Tier:
Gross Monthly Wage Ceiling ≤ $3,000 (+$500)	Single Tier:
Gross Monthly Wage Ceiling ≤ $3,000 (+$500)
2025	Q1 2026	30%	30%	30%	30%
2026	Q1 2027	15%	15%	15%	15%

Notes:

Enhanced in June 2022’s support package, from 50% to 75% for the First Tier, and from 30% to 45% for the Second Tier.
Enhanced at Budget 2023, from 50% to 75% for the First Tier, and from 30% to 45% for the Second Tier.

Expand the Energy Efficiency Grant (EEG)

The EEG aims to support businesses in their sustainability journey by co-funding investments in energy-efficient (EE) equipment.

The EEG will be expanded to more sectors including Manufacturing, Construction, Maritime, and Data Centres and their users. Existing grant schemes for the adoption of EE equipment will also be gradually streamlined and subsumed under the EEG.

Companies registered and operating in Singapore with:

at least 30% local shareholding
at least one local employee, and
group annual sales turnover of no more than $500 million

will be eligible for support under the EEG.

The EEG will also be enhanced to provide 2 tiers of support:

a Base Tier to provide support for pre-approved EE equipment up to a $30,000 cap, and
an Advanced Tier to support companies that wish to make larger investments to drive greater energy efficiency (see Table).

Table: Summary of EEG Tiers of Support

Tier	Support Cap Per Company	Qualifying Equipment	Support Rate (until 31 Mar 2026)
Base Tier	Up to $30,000	Pre-approved EE equipment	Government will support 70% and 30% of pre-approved EE equipment costs for SMEs and non-SMEs respectively.
Advanced Tier (for selected sectors)	Up to $350,000 across Base and Advanced Tiers	EE equipment need not be pre-approved, but must demonstrate energy savings above 350t lifetime carbon abatement	Grant quantum computed based on the lower of:
i.Support levels under the Base Tier, or
ii.EE equipment’s expected lifetime carbon abatement.

More details will be provided at the Ministry of Trade and Industry (MTI) Committee of Supply.

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This online newsletter and website has been prepared by Crowe Horwath First Trust (”Crowe Singapore”) and should be used as a general guide only. No reader should act solely upon any information found on this website. We recommend that professional advice be sought before taking action on specific issues and making significant business decisions. Crowe Singapore expressly disclaims all and any liability to any person in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this website. While every effort has been made to ensure the accuracy of the information contained herein, Crowe Singapore shall not be responsible whatsoever for any errors or omissions in it.
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