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Ministry of Trade and Industry
3. Parliamentary replies

Written reply to PQ on Energy Efficiency Grant increase for SMEs and non-SMEs amid rising business costs due to Strait of Hormuz's prolonged blockade

5 May 2026

Question:

Ms Joan Pereira: To ask the Deputy Prime Minister and Minister for Trade and Industry whether the Government will consider further increasing the Energy Efficiency Grant to support (i) up to 90% for SMEs and (ii) up to 50% for non-SMEs, for the next 12 months, in view of rising business costs due to the prolonged blockade of the Strait of Hormuz. 

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1.                  As a result of the Middle East conflict, businesses are expected to face higher energy costs for some time. To encourage our businesses to adopt energy efficient equipment, the Government recently announced the expansion of the Energy Efficiency Grant (EEG) Base Tier to all sectors and extended this support for another year, to 31 March 2028. This will enable more businesses to benefit from the EEG, and adopt eligible energy efficient solutions to be more energy resilient and sustainable.

2.                  Small and Medium Enterprises (SMEs) already receive a higher support level of 70%, with non-SMEs receiving 30%, under the current EEG. We will implement the expanded scheme at these grant support levels, and monitor the adoption and impact of the EEG Base Tier expansion.

3.                  Beyond energy efficiency support, the Government has also taken steps to help businesses manage their overall costs. In the immediate term, we have enhanced the Corporate Income Tax rebate announced at Budget 2026 from 40% to 50% for the Year of Assessment 2026. The minimum benefit that an active company with at least one local employee will receive was also raised from $1,500 to $2,000. The total benefit cap for each company was raised from $30,000 to $40,000.

4.                  The Government will continue to monitor the situation closely and will roll out more support measures for businesses, where necessary. 

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