Is there a government grant for AI projects in Singapore?

Yes, several. WDG(JR+) funds AI and automation that changes how work gets done, at 70% for SMEs, when it is paired with job redesign. Enterprise Singapore’s EDGE Grant funds listed activities, including automation and digitalisation, and the Enterprise Compute Initiative funds AI consultancy with a participating cloud provider. All funding is subject to eligibility and approval.

What replaced the PSG and EDG for AI projects?

From 30 September 2026, the EDGE Grant replaced the Productivity Solutions Grant, the Enterprise Development Grant and Market Readiness Assistance. For AI projects that change jobs, WDG(JR+) funds the AI build together with the job redesign, which EDGE does not cover.

Can I use more than one grant for the same AI project?

Yes, on different costs. WDG(JR+) can fund the AI build and the job redesign, the Career Conversion Programme can support the salaries of redesigned staff, and EDGE can fund a separate listed activity. The same cost cannot be funded twice.

What is the Enterprise Compute Initiative?

A S$150 million initiative from Budget 2025, run by Digital Industry Singapore, that pairs companies with participating cloud providers for AI tools, compute and consultancy. It funds 70% of consultancy costs, capped at S$105,000 per company, and needs CEO or equivalent sponsorship, at least 10 staff based in Singapore and a tech team of at least two.

Does the EIS AI tax deduction apply to grant-funded spend?

No. The 400% deduction on the first $50,000 of qualifying AI spend a year, for YA 2027 and YA 2028, does not apply to spending already funded by a government grant. It can apply to qualifying AI spend you fund yourself. Check eligibility with your tax adviser.

Do I need to redesign jobs to get AI funding?

Under WDG(JR+), yes: Workforce Tech Solutions must be paired with Workforce Consultancy or Capability Building. EDGE and the Enterprise Compute Initiative do not require it, but projects that redesign roles alongside the AI tend to deliver more, and redesigned staff can be invited to apply for CCP salary support.

AI grants in Singapore for SMEs: what funds an AI project in 2026

Last updated: 28 October 2026

BizGrants Consulting · 28 October 2026 · 8 min read

The short answer: in 2026, an SME’s AI project in Singapore is usually funded through WDG(JR+) when it changes how people work, through Enterprise Singapore’s EDGE Grant for listed activities, or through the Enterprise Compute Initiative for AI consultancy with a participating cloud provider. AI spend you fund yourself may also earn a 400% tax deduction under the Enterprise Innovation Scheme, and the Career Conversion Programme supports the salaries of staff trained into redesigned roles. The Productivity Solutions Grant and the Enterprise Development Grant ceased on 29 September 2026, so older guides that point to them for AI are out of date.

This guide compares the routes, explains which one fits which kind of project, and sets out the rule that matters most when you combine them: each cost can only be funded once. All funding is subject to eligibility and approval.

AI funding in Singapore at a glance

Route	What it funds	Support	Best for
WDG(JR+) Skills and Workforce Development Agency	The AI build and team training under Workforce Tech Solutions, paired with job redesign	70% for SMEs, 50% for non-SMEs. Workforce Tech Solutions capped at $90,000, within $150,000 per enterprise	A custom AI workflow that changes roles
EDGE Grant Enterprise Singapore	Listed activities across eight business areas, including Automation and Digitalisation	Differs by activity. S$100,000 a year in total, of which S$30,000 can go to digital solutions, enterprise systems and pre-scoped equipment	Packaged digital solutions and other listed activities
Enterprise Compute Initiative Digital Industry Singapore	AI consultancy, with tools and compute from a participating cloud provider	70% of consultancy costs, capped at S$105,000 per company	A larger AI build, for companies with at least 10 staff in Singapore and a tech team
Enterprise Innovation Scheme IRAS	Qualifying AI expenditure that is not grant-funded	400% tax deduction on the first $50,000 a year, YA 2027 and YA 2028	AI spend you pay for yourself
Career Conversion Programme Skills and Workforce Development Agency	Salary support while staff train into new or redesigned roles	70% of monthly salary, or 90% for staff aged 40 and above or long-term unemployed, subject to monthly caps	The people moving into AI-changed jobs

WDG(JR+): AI projects that come with job redesign

The SkillsFuture Workforce Development Grant (Job Redesign+), or WDG(JR+), is a workforce grant, but its third component, Workforce Tech Solutions, funds technology that changes how work gets done. That makes it the natural route for a custom AI or automation project when the roles around it will change too.

Support: 70% for SMEs and 50% for non-SMEs.
Caps: Workforce Tech Solutions is capped at $90,000, within a cap of $150,000 per enterprise across all three components.
Bundling rule: Workforce Tech Solutions cannot be taken on its own. It must be paired with Workforce Consultancy (job redesign) or Capability Building.
What it suits: a workflow-level AI solution, such as quotation drafting, invoice matching or a customer service assistant, built around your processes, with training included.

Staff who move into the redesigned roles can then be invited to apply for Career Conversion Programme salary support. See how a project runs on our AI transformation page, including a worked example of the numbers. All funding is subject to eligibility and approval.

EDGE Grant: Enterprise Singapore’s single business grant

From 30 September 2026, the EDGE Grant replaced the Productivity Solutions Grant, the Enterprise Development Grant and Market Readiness Assistance. Businesses apply by the activity they plan, across eight business areas, one of which is Automation and Digitalisation.

Support: up to S$100,000 in total grant support per year, shared across all activities and refreshed on 1 April. Support levels differ by activity.
Digital sub-cap: within the S$100,000, up to S$30,000 can go to single-function digital solutions, integrated enterprise systems and pre-scoped equipment, according to Enterprise Singapore.
Who can apply: all Singapore businesses, including non-SMEs.
What it suits: activities listed under EDGE, including packaged digital solutions that IMDA is moving onto EDGE in a new format.

EDGE material we have seen does not cover hiring, reskilling or job redesign, so pair it with the workforce grants when roles change. Check the support level for your specific activity on Enterprise Singapore’s EDGE page before relying on a single percentage.

Enterprise Compute Initiative: AI consultancy with a cloud provider

The Enterprise Compute Initiative (ECI) was announced in Budget 2025 as a S$150 million initiative run by Digital Industry Singapore (DISG). It pairs companies with participating cloud providers for the AI tools, compute and consultancy needed to build AI into their operations.

Support: DISG funds 70% of consultancy costs, capped at S$105,000 per company, on a total supportable consultancy cost of S$150,000.
Who can apply: a business entity registered or incorporated and physically present in Singapore, with CEO or equivalent sponsorship, at least 10 staff based in Singapore and a tech team of at least two. All sectors may apply except gambling and betting.
What it suits: companies ready for a larger AI build on a major cloud platform that will lead to their own AI team.

Our Enterprise Compute Initiative guide covers how to apply and how it compares with WDG(JR+).

Enterprise Innovation Scheme: the AI tax deduction

Budget 2026 added qualifying AI expenditure to the Enterprise Innovation Scheme (EIS): a 400% tax deduction on up to $50,000 of qualifying AI spend per Year of Assessment, for YA 2027 and YA 2028. It is a tax deduction, not a grant, and spending already funded by a government grant does not qualify. In practice it can apply to AI spend you fund yourself, such as your own share of a project, if the item meets IRAS’s conditions. Check eligibility with your tax adviser.

Career Conversion Programme: salary support for the people side

An AI project changes jobs, and the Career Conversion Programme funds salaries while staff are trained into new or redesigned roles: 70% of monthly salary capped at $5,000 a month, or 90% capped at $7,500 a month for staff aged 40 and above or long-term unemployed. It covers new hires and existing staff, through Programme Pathways that set the role, duration and minimum salary. All funding is subject to eligibility and approval.

Other national AI programmes worth knowing

National AI Impact Programme. Launched by the Ministry of Digital Development and Information in March 2026 to help 10,000 enterprises integrate AI into their business processes over three years, and to train 100,000 “AI bilingual” workers who combine AI skills with their own field.
Champions of AI. An Enterprise Singapore programme from Budget 2026 that backs leading companies using AI to transform their businesses comprehensively, as pathfinders for others in their industry.
Catalytic AI Solutions. More than S$45 million over three years, announced in October 2026, to help manufacturing SMEs deploy ready-to-use AI solutions.
The redesigned SkillsFuture Enterprise Credit. After the current credit expires in November, a redesigned credit run by the Skills and Workforce Development Agency gives eligible employers a fresh S$10,000 for workforce transformation.

One cost, one grant

You can use several schemes on one transformation, but never on the same cost. A typical combination keeps each item in its own lane:

The AI build and the job redesign under WDG(JR+).
Salaries of staff moving into the redesigned roles under the Career Conversion Programme.
A separate, listed activity, such as a packaged digital solution, under the EDGE Grant.
AI spend you fund yourself, where it qualifies, under the EIS tax deduction.

Keep a simple cost register that shows which scheme funds each line. It prevents double claims and makes every claim easier to evidence.

Which route fits your project

A custom AI workflow that changes roles, such as quotation drafting or invoice matching: start with WDG(JR+), then CCP for the redesigned staff.
A packaged digital solution you can buy off the shelf: check the EDGE Grant’s Automation and Digitalisation activities.
Hiring someone new into an AI-related role: the Career Conversion Programme, through the Programme Pathway that fits the role.
AI spend you are paying for yourself: ask your tax adviser about the EIS deduction.

Not sure which applies? Our AI use case library shows 47 projects by function and industry, and a short discovery call is usually enough to map the route.

Before you apply

Do not sign or pay first. Get quotations, but submit the application before signing a contract or paying a deposit.
Pick one workflow. A focused, measurable first project is easier to approve and to deliver than a company-wide programme.
Set a baseline. Record hours, turnaround time and error rate now, so the result can be shown later.
Name the roles that change. Job redesign funding and salary support both depend on a clear change in job scope.

Frequently asked questions

Q: Is there a government grant for AI projects in Singapore?
A: Yes, several. WDG(JR+) funds AI and automation that changes how work gets done, at 70% for SMEs, when it is paired with job redesign. Enterprise Singapore’s EDGE Grant funds listed activities, including automation and digitalisation, and the Enterprise Compute Initiative funds AI consultancy with a participating cloud provider. All funding is subject to eligibility and approval.
Q: What replaced the PSG and EDG for AI projects?
A: From 30 September 2026, the EDGE Grant replaced the Productivity Solutions Grant, the Enterprise Development Grant and Market Readiness Assistance. For AI projects that change jobs, WDG(JR+) funds the AI build together with the job redesign, which EDGE does not cover.
Q: Can I use more than one grant for the same AI project?
A: Yes, on different costs. WDG(JR+) can fund the AI build and the job redesign, the Career Conversion Programme can support the salaries of redesigned staff, and EDGE can fund a separate listed activity. The same cost cannot be funded twice.
Q: What is the Enterprise Compute Initiative?
A: A S$150 million initiative from Budget 2025, run by Digital Industry Singapore, that pairs companies with participating cloud providers for AI tools, compute and consultancy. It funds 70% of consultancy costs, capped at S$105,000 per company, and needs CEO or equivalent sponsorship, at least 10 staff based in Singapore and a tech team of at least two.
Q: Does the EIS AI tax deduction apply to grant-funded spend?
A: No. The 400% deduction on the first $50,000 of qualifying AI spend a year, for YA 2027 and YA 2028, does not apply to spending already funded by a government grant. It can apply to qualifying AI spend you fund yourself. Check eligibility with your tax adviser.
Q: Do I need to redesign jobs to get AI funding?
A: Under WDG(JR+), yes: Workforce Tech Solutions must be paired with Workforce Consultancy or Capability Building. EDGE and the Enterprise Compute Initiative do not require it, but projects that redesign roles alongside the AI tend to deliver more, and redesigned staff can be invited to apply for CCP salary support.

Where to check current terms

Figures here reflect the official material we could find as at 28 October 2026. Confirm current terms with Enterprise Singapore’s EDGE Grant page and its EDGE FAQ, DISG’s Enterprise Compute Initiative page, IRAS on the Enterprise Innovation Scheme, WDG(JR+), Enterprise Singapore on Champions of AI and MDDI on the National AI Impact Programme.

This article is general information, not financial or legal advice.