Written reply to PQ on increasing EDG support level to encourage greater participation in productivity and innovation projects

Question:

Mr Gerald Giam Yean Song: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) to what extent is the $0.62 billion projected underspending in development expenditure for FY2025 due to the reduction in the Enterprise Development Grant (EDG) support level; and (b) whether the Ministry will consider increasing the EDG support level to encourage greater participation in productivity and innovation projects amidst persistent inflationary pressures. 

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

1.           The $0.62 billion projected reduction in the Ministry of Trade and Industry’s (MTI) development expenditure for FY2025 was not due to a reduction in the support level of the Enterprise Development Grant (EDG), which has not changed since April 2023. Instead, it mainly reflects adjustments in development expenditure across MTI and its agencies, as some larger investment projects required more time than anticipated for review. Disbursements will therefore be made in 2026 instead. 

2.                  The Government is fully committed to supporting our enterprises to grow and transform amid the uncertain and volatile economic environment. At Budget 2026, the Prime Minister and Minister for Finance announced enhancements to the support levels for internationalisation grant schemes. Local SMEs will receive support of up to 70% of eligible costs, up from the previous 50%, while local non-SMEs will receive support of up to 50% of eligible costs, up from 30%.