Supplementary Budget 2020 for ERP Projects EDG
Singapore companies has been utilizing the Enterprise Development Grant (EDG) to subsidize their investment for Enterprise Resource Planning (ERP) Projects. These projects are often funded as part of Singapore Government’s effort to encourage Singapore companies to improve their “Innovation and Productivity”.
The grant funds qualifying project costs namely third party consultancy fees, software and equipment, and internal manpower cost.
What is Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) helps Singapore companies grow and transform. This grant supports projects that help Singapore companies upgrade their business, innovate or venture overseas, under three pillars:
Projects under Core Capabilities help businesses prepare for growth and transformation by strengthening their business foundations. These should go beyond basic functions such as sales and accounting.
Innovation and Productivity
Projects under Innovation and Productivity support companies that explore new areas of growth, or look for ways to enhance efficiency. These could include reviewing and redesigning workflow and processes. Companies could also tap into automation and technologies to make routine tasks more efficient.
Projects under Market Access support Singapore companies that are willing and ready to venture overseas. Company may tap into the EDG to help defray some of the costs of expanding into overseas markets.
Enhancement by Supplementary Budget 2020
The Supplementary Budget 2020 enhances the scheme with increased support level:
- Maximum support level will be raised from 70% to 80% from 1 April 2020 to 31 December 2020.
- For firms that are most severely impacted by COVID-19, the maximum support level can be further raised to 90% on a case-by-case basis.
- Unionized enterprises and e2i partners under the Labor Movement are eligible to receive an additional 10% funding support, subject to NTUC e2i’s assessment.
Who can apply?
To qualify for the EDG, companies need to:
- Be registered and operating in Singapore
- Have a minimum of 30% local shareholding
- Be in a financially viable position to start and complete the project
Applications will be assessed by Enterprise Singapore based on project scope, project outcomes and competency of service provider.
If you will like to understand more, you can contact us or check from the Enterprise Singapore web site.