The Enterprise Development Grant (EDG) can co-fund up to 50% of qualifying custom technology projects in Singapore — including bespoke software development that PSG does not cover. Here is what qualifies and how to structure a strong application.
A Singapore distribution company came to me after their PSG application was rejected. They needed a custom warehouse management system — not an off-the-shelf product on the pre-approved PSG list. Their IT vendor had told them grants were "probably not possible" for custom development.
Wrong.
The Enterprise Development Grant (EDG) funded 50% of their custom WMS. The project cost S$120,000. They received S$60,000 back. The application process took 6 weeks. The project qualified because we structured it correctly.
The difference between getting EDG funding and not getting it is almost entirely about how you frame the application.
PSG vs EDG: The Key Difference
PSG (Productivity Solutions Grant) covers pre-approved technology solutions. Limited to the GoBusiness catalogue. Fast approval (4–8 weeks). Up to 50% co-funding.
EDG (Enterprise Development Grant) covers a much broader scope: business development, capability upgrading, innovation, internationalisation. For digital technology, it covers projects that enhance business capabilities, improve productivity, or enable market expansion. Includes custom development. Approval takes longer (8–16 weeks), requires a stronger business case, but has no pre-approved vendor list.
Simply: PSG is for buying approved products. EDG is for building new capabilities.
What Digital Projects Qualify for EDG
The EDG has multiple pillars. For digital technology projects, the most relevant is Core Capabilities — Process Upgrading.
Projects that qualify:
- Custom software development that significantly improves an operational process
- System integration projects that connect existing systems to eliminate manual work
- Digital transformation initiatives with measurable productivity outcomes
- Platform modernisation that enables new capabilities or market reach
- AI and automation implementation with documented business impact
The common thread: the project must produce a measurable improvement in business performance. Enterprise Singapore wants to see that the investment creates real productivity gain, not just a technology upgrade for its own sake.
The Three Things Enterprise Singapore Cares About
Every EDG application is evaluated on three dimensions:
1. Business need and strategic fit
Why does your business need this project? What specific operational problem or growth opportunity drives it? How does it align with your business strategy? The application needs to tell a clear story from business problem to solution to outcome.
2. Measurable outcomes
What will be different after the project? Quantified. "We will reduce order processing time from 2 hours to 20 minutes" is the right kind of statement. "We will improve efficiency" is not.
3. Vendor capability and project plan
Enterprise Singapore wants to know the project will actually be delivered. Your vendor's track record, a credible project plan, milestones, and defined deliverables all support the application.
How to Write a Strong EDG Business Case
The business case section is where most applications fail. Here's the structure that works:
Current state (the problem)
Describe the specific operational process that has the problem. Include current time/cost measurements. Example: "Our purchase order approval process currently requires manual review by 3 people across email, averaging 3 days from submission to approval. We process 200+ POs per month. At current speed, this is a bottleneck that delays production."
Root cause analysis
Why does this problem exist? "The approval workflow is managed via email with no system tracking, no automation, and no visibility into approval status."
Proposed solution
Describe the technology project. Be specific about what will be built or implemented. "A custom digital purchase order management system with automated routing, digital approvals, real-time status tracking, and integration with our existing ERP."
Measurable outcomes
Before/after comparisons. "Approval cycle time: from 3 days to 4 hours. Staff time on PO management: from 12 hours/week to 2 hours/week. Error rate (mis-routed approvals): from 8% to near-zero."
How you'll measure outcomes
Enterprise Singapore increasingly requires outcome tracking. "Measured using system-generated reports 6 months post-implementation, compared against pre-project baseline data."
The Application Process Step by Step
Step 1: Register on the Business Grants Portal (BGP)
Log in with Singpass. Ensure your company profile is complete and accurate.
Step 2: Engage Enterprise Singapore pre-application
Contact your assigned Enterprise Singapore Business Advisor before submitting. This is often skipped and often costly. Advisors can indicate whether your project is a strong fit before you invest significant time in the application.
Step 3: Get a detailed quote from your vendor
The quote should include itemised scope, timeline, deliverables, and payment milestones. EDG applications require a credible project plan from a credible vendor.
Step 4: Prepare supporting documents
Latest audited financial statements, business profile, ACRA report, proof of operational need (process maps, current system screenshots, productivity data).
Step 5: Submit on Business Grants Portal
Do not start the project before receiving the Letter of Offer. This is as critical for EDG as for PSG.
Step 6: Implement and track outcomes
Most EDG grants require outcome reporting at 6 or 12 months post-completion. Track your baseline metrics before the project starts so you have comparison data.
Step 7: Submit claim
Within the timeline specified in your LOO, submit with invoices, proof of payment, and outcome evidence.
Funding Levels and Eligible Costs
As of 2026, SMEs can receive up to 50% co-funding for qualifying costs. Eligible costs include:
- Professional fees (external consultant/vendor fees)
- Software licensing costs (if part of the project)
- Training costs related to the project
Ineligible costs include internal staff costs, ongoing subscription fees, hardware, and costs incurred before the LOO date.
Working with NICKTUNG on EDG Applications
We've helped Singapore clients structure and successfully apply for EDG co-funding on custom development projects. We know how to write the project description, scope the deliverables, and document the productivity outcomes in a way that aligns with Enterprise Singapore's evaluation criteria.
We don't promise approval — that's Enterprise Singapore's decision. But we structure every eligible project to give the application its strongest chance.
Planning a significant technology project? Talk to us before you start — grant timing is critical, and a project started without pre-approval loses the grant window entirely.