Fund a custom AI build with Singapore's EDG — how it works in 2026

Singapore companies can fund up to 50% of a custom AI build through the Enterprise Development Grant (EDG). The funding covers qualifying project costs with no upper cap for SMEs. Most companies that would qualify don't apply — either because they don't know the scheme exists, or because they don't scope their project in a way that meets Enterprise Singapore's criteria.

This article explains what qualifies, what doesn't, and how to scope a project so the application succeeds.

What is the Enterprise Development Grant?

EDG is an Enterprise Singapore scheme that co-funds projects that help Singapore companies grow, innovate, or transform. It covers a range of project categories, including:

• Innovation & Productivity — custom software builds, AI system development, process automation
• Market Access — overseas expansion infrastructure
• Human Capital — workforce training tied to capability upgrades

Custom AI systems and data platforms most commonly qualify under the Innovation & Productivity pillar.

Who is eligible?

• Singapore-registered company (incorporated locally)
• At least 30% local shareholding
• Must be financially viable (Enterprise Singapore conducts a basic financial check)
• For SME co-funding rates (up to 50%): fewer than 200 employees, or annual revenue under S$100M

Larger enterprises may still apply, but at lower co-funding rates (typically 30%).

What kinds of AI projects qualify?

EDG is not restricted to off-the-shelf tools — custom builds are explicitly supported. Projects that have qualified in practice include:

• Agentic AI systems replacing or augmenting manual workflows
• Custom data ingestion and analytics platforms for internal use
• Role-based client data management systems
• Automated reporting and monitoring tools powered by LLMs

The key requirement: the project must demonstrably improve productivity, reduce costs, or enable new capabilities for the company — and you must be able to show the before/after.

What doesn't qualify?

• Projects already started or completed before the grant is approved (you cannot backdate)
• Consulting or advisory spend that doesn't produce a working deliverable
• Off-the-shelf SaaS subscriptions (these fall under PSG, not EDG)
• General R&D without a defined commercial application

How the application works

1. Scope the project — you need a clear project brief: the problem, the proposed solution, a work plan, and a cost breakdown. This is where most applications fail; vague scopes get rejected or reduced.
2. Submit on the Business Grants Portal — applications are submitted at businessgrants.gov.sg. First-time applicants should allow 6–10 weeks for processing.
3. Do not start the project before approval — any work done before your Letter of Offer is issued is not claimable.
4. Claim after completion — grants are disbursed after you submit a completion report and claims documentation.

The EDGE framework (launching 2H 2026)

Enterprise Singapore is launching EDGE — an AI-specific lane under EDG — in the second half of 2026. EDGE is designed specifically for companies building or adopting AI systems, with streamlined qualifying criteria and potentially higher co-funding for AI-specific project components. Details are still being finalised; we'll update this article when they're published.

Practical advice

• Scope your project before you pick a vendor — the grant covers the project, not the team.
• Build the "before" evidence: document the manual process, the current system's limitations, and the cost of the status quo. This becomes your business case.
• Work with a vendor who understands the grant framing — the work plan and cost breakdown in your application needs to match how the project will actually be structured.
• Plan your cashflow: grants are disbursed after completion, not upfront.

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Indicative figures based on 2026 published schemes. Final eligibility is determined by Enterprise Singapore. This article is not financial or grant advice.