Singapore grants for AI and automation in 2026: EDGE, EIS and ECI explained
Singapore's main business grants changed on 30 September 2026, when the EDGE Grant replaced the Productivity Solutions Grant (PSG), Enterprise Development Grant (EDG) and Market Readiness Assistance (MRA). Here is what is available for AI and automation projects now, who qualifies, and how grant support changes the business case.
Check before you commit. Grant rules, support levels and eligibility change. This guide reflects publicly available information as of 24 Oct 2026. Always confirm current terms on the official Enterprise Singapore, IRAS and IMDA websites, or with the agency, before signing any contract or making payment.
What changed in 2026
- PSG, EDG and MRA ceased on 29 September 2026. From 30 September 2026, new applications for business grant support go through the EDGE Grant.
- Applications submitted before 30 September continue to be processed under the old schemes, and ongoing projects can still claim on completion.
- Budget 2026 also announced a new Champions of AI programme for leading companies pursuing enterprise-wide AI transformation.
If a vendor describes a product as "PSG-approved", that refers to the old scheme. Ask whether it is listed for EDGE.
The EDGE Grant
EDGE brings Enterprise Singapore's business grants under one roof, covering eight business areas and more than 150 activities — including Automation & Digitalisation.
| Feature | Details |
|---|---|
| Support level | Up to 70% for SMEs and up to 50% for non-SMEs; the level differs by activity |
| Annual cap | Up to S$100,000 in total grant support per company per year, shared across all activities and refreshed on 1 April |
| Digital and automation sub-cap | Up to S$30,000 of the annual cap for single-function digital solutions, integrated enterprise systems and selected automation activities |
| Basic eligibility | Business entity registered in Singapore with at least 30% Singaporean and/or PR shareholding; other conditions may apply by activity |
| Payment | Reimbursement only — claim after the activity is completed and paid in full |
| Apply via | Business Grants Portal (needs the appropriate Corppass role) |
Automation and digitalisation activities
| Activity | What it covers | Indicative outcome time |
|---|---|---|
| Single-function digital solutions | Pre-approved solutions for specific business functions | About 1 week |
| Integrated enterprise systems | One platform consolidating several business functions | About 10 weeks |
| Pre-scoped equipment | Pre-scoped automation equipment | About 4 weeks |
| Large-scale automation | Customised enterprise-wide automation | Case by case |
| Large-scale digital transformation | Large integrated digital transformation projects | Case by case |
Indicative timings as published by Enterprise Singapore. Pre-approved digital solutions are listed on IMDA's SMEs Go Digital platform.
Rules that catch people out
- Do not sign, pay a deposit or start work before applying. Activities started before the application are generally treated as retrospective and not supported.
- You usually cannot switch vendors after approval without the grant being affected.
- It is a reimbursement. You pay the full cost first, so plan cash flow for the gap between payment and claim.
- The S$30,000 digital sub-cap is shared within the overall S$100,000 annual cap.
Enterprise Innovation Scheme (EIS): tax deductions
EIS is a tax incentive administered by IRAS rather than a grant. For Years of Assessment 2024 to 2028 it provides enhanced deductions — up to 400% — on qualifying spending, including:
- Training employees on qualifying courses: 400% deduction on up to S$400,000 of expenditure per year.
- Innovation projects with qualified partners such as polytechnics and ITE: 400% on up to S$50,000 per year.
- R&D, IP registration and IP acquisition or licensing, each with their own caps.
Eligible businesses may instead convert up to S$100,000 of qualifying expenditure into a non-taxable cash payout at 20% (up to S$20,000) per year, subject to conditions including employing at least three full-time local employees. For an automation project, training your team on the new tools is often the most relevant EIS item. Check the IRAS rules on qualifying courses.
Enterprise Compute Initiative (ECI): larger AI projects
ECI, run by Digital Industry Singapore, supports companies building their own AI solutions with cloud credits, tools and consultancy. It is aimed at companies with some AI capability already:
- At least 10 Singapore-based staff and a technical team of at least two, with CEO-level sponsorship.
- Consultancy for AI strategy, implementation and change management, with 70% of costs covered up to S$105,000 per company (on a consulting cap of S$150,000).
- Cloud credits and training from a chosen cloud provider.
- Deliverables include a 12-month AI roadmap and a minimum viable product tested with at least five users.
Most small businesses automating routine tasks will find EDGE more relevant; ECI suits firms building custom AI.
How grants change your ROI
Grants reduce your effective setup cost, which shortens payback. Using our standard five-person team example (13 hours per person per week on target tasks, $40 loaded hourly cost, 35% time saved, 80% adoption):
| Scenario | Effective setup cost | Payback | Year-1 ROI | 3-year net value |
|---|---|---|---|---|
| No grant | $20,000 | 10 months | 32% | $67,953 |
| 50% grant support | $10,000 | 6 months | 132% | $77,953 |
Illustrative only, in Singapore dollars. Grant support usually applies to qualifying costs, not to internal staff time, so the real reduction in setup cost may be smaller than the headline percentage.
Do not let a grant justify a weak project. Run the ROI calculator without the grant first. If the project only works with grant support, it is fragile — the grant reduces cost once, but running costs and adoption risks remain.
A practical sequence
- Pick the task and build the business case without grants (see business case template).
- Check whether a suitable solution is pre-approved for EDGE on IMDA's SMEs Go Digital list — pre-approved solutions are typically processed fastest.
- Get quotations, but do not sign or pay.
- Apply on the Business Grants Portal and wait for the Letter of Offer.
- Implement, pay in full, then submit your claim.
- Check whether staff training qualifies for EIS.
AI Automation ROI is an independent publication and is not affiliated with Enterprise Singapore, IRAS, IMDA or Digital Industry Singapore. This guide is general information, not tax or financial advice.
Sources
- Enterprise Singapore, "EDGE Grant" (accessed 24 Oct 2026)
- Enterprise Singapore, "FAQ: EDGE Grant"
- IMDA, "SMEs Go Digital — Pre-approved digital solutions"
- Dollars and Sense, "Enterprise Innovation Scheme: Up To 400% Tax Deductions" — summarising IRAS rules
- Digital Industry Singapore, "Enterprise Compute Initiative Factsheet" (8 Jan 2026)
- Enterprise Singapore, "Champions of AI Programme" media release (March 2026)
- Enterprise Singapore, "Budget 2026" support measures