Written reply to PQs on Rationale for Minimum Eligibility Criterion of at Least One Local Employee for Energy Efficiency Grant

Questions

Mr Ng Shi Xuan: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what is the rationale for imposing a minimum eligibility criterion of at least one local employee at the firm-level for the Energy Efficiency Grant; and (b) whether the Ministry will consider tightening this eligibility criterion.

Mr Ng Shi Xuan: To ask the Deputy Prime Minister and Minister for Trade and Industry for an update on (a) the take up rate for the Energy Efficiency Grant (EEG); and (b) what are the total energy savings to date arising from the deployment of energy efficient equipment as a result of the EEG.

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

1. The Energy Efficiency Grant (EEG) was introduced in September 2022. Since then, close to 15,800 applications have been approved as of August 2025.

2. There are two tiers of support to the EEG.

a. For the EEG Base Tier, companies can choose from a list of pre-approved equipment that have been assessed to be energy efficient. This list is reviewed regularly to incorporate new technologies that can meet the energy efficiency criteria. As we do not require companies to submit their energy savings data, we do not have the requested data for the EEG Base Tier. This approach strikes a balance between simplifying and streamlining the EEG application process, while ensuring that companies are using energy efficient equipment.

b. For the EEG Advanced Tier, which offers a higher quantum of support, eligible firms would have to demonstrate energy savings above 350 tonnes of lifetime carbon abatement, as endorsed by a whitelisted third-party assessor. Based on the applications approved thus far, we project an estimated 10,700 tonnes of carbon abatement across the lifetime of the approved equipment.

3. Since June 2025, companies no longer have to meet the minimum eligibility criterion of at least one local employee at the firm-level to qualify for the EEG. This

criterion was previously included to ensure that EEG would benefit companies with legitimate operations in Singapore. However, this had inadvertently restricted companies such as sole proprietors in the Food and Beverage sector with no employees, from accessing the EEG. Instead, agencies administering the EEG have put in place safeguards such as post-disbursement audits, to ensure that the EEG is channelled correctly to eligible companies.