As one of Asia’s most dynamic and business-friendly environments, Singapore has long been a magnet for entrepreneurs and multinational companies. But what really sets the city-state apart is its forward-thinking approach to economic development. Through targeted sector promotion and supportive funding, Singapore’s government seeks to ensure long-term economic resilience while also advancing technological and environmental goals. For new business owners, Permanent Residents (PRs), and foreign entrepreneurs, understanding which sectors are prioritized and what incentives are available can make a strategic difference in setting up a successful enterprise. This article highlights the five key sectors that Singapore is focused on promoting, along with the grants, funding options, and regulatory benefits available.
1. Advanced Manufacturing: Pioneering Future Industries
Advanced manufacturing, encompassing fields like robotics, Artificial Intelligence (AI), and precision engineering, has become a cornerstone of Singapore’s industrial growth strategy. This sector is pivotal for enhancing productivity and maintaining Singapore’s competitive advantage as global supply chains evolve.
Why Singapore is Investing in Advanced Manufacturing
Singapore’s commitment to advanced manufacturing is driven by the global shift toward automation and smart production. The government envisions Singapore as a hub for precision manufacturing, employing cutting-edge tech to support industries like electronics, aerospace, and biomedical devices. By leading in automation and data-driven production, Singapore aims to attract high-value investments and skilled talent to strengthen its economy.
Key Government Incentives for Advanced Manufacturing
Research and Innovation Funding: The government has allocated significant funding toward R&D in fields like robotics, MedTech, and AI. Enterprise Singapore offers grants under the Research, Innovation, and Enterprise 2025 (RIE2025) plan, which supports collaborative projects with research institutions.
Enterprise Financing Scheme (EFS): This scheme helps businesses access capital for high-tech projects and investments. With subsidies on equipment, automation, and working capital loans, the EFS is tailored for companies adopting digital manufacturing tools.
By investing in advanced manufacturing, businesses not only benefit from Singapore’s supportive ecosystem but also gain access to global markets where precision and efficiency are paramount.
2. Sustainability and Green Economy: Embracing a Low-Carbon Future
Sustainability isn’t just a trend in Singapore; it’s a national priority. From developing green energy solutions to promoting eco-friendly technologies, the government is committed to creating a green economy that aligns with environmental, social, and governance (ESG) principles.
Why Singapore Prioritizes the Green Economy
The green economy represents a dual benefit for Singapore: reducing carbon emissions while generating economic growth in areas like renewable energy, energy storage, and water technology. With international climate targets tightening, Singapore aims to lead in sustainable solutions that also boost resilience against climate change. This direction appeals particularly to environmentally conscious businesses looking to make a positive impact.
Grants and Support for Green Businesses
- Energy Efficiency Grant (EEG): This grant encourages companies to implement energy-efficient processes and reduce operational emissions. The EEG applies to various sectors, including manufacturing, construction, and retail, with funding available to offset initial setup costs.
- Green Growth Innovation Grants: These grants provide financing for green projects, such as renewable energy initiatives or carbon reduction strategies. As part of Singapore’s “Green Plan 2030,” companies pursuing innovative environmental technologies receive priority access to government support.
Singapore’s green policies provide businesses with a chance to reduce costs, attract eco-conscious customers, and stay ahead of regulatory demands globally.
3. Information and Communications Technology (ICT): Building a Digital-First Economy
Singapore has been at the forefront of the digital revolution, and its commitment to ICT reflects an ambition to be a leader in areas like cybersecurity, data analytics, and software development. ICT infrastructure is essential for all other sectors, creating a robust digital foundation for innovation and security.
Why ICT is Key for Singapore
The ICT sector is a driver of economic growth, and Singapore’s government recognizes its critical role in areas like fintech, e-commerce, and artificial intelligence. By promoting ICT, Singapore aims to build a resilient digital economy with capabilities in data protection, automation, and remote operations — essential in the post-pandemic landscape.
Digital Transformation Incentives
- Productivity Solutions Grant (PSG): The PSG supports SMEs in adopting IT solutions to enhance productivity. With grants covering software, digital marketing tools, and cybersecurity measures, businesses can modernize their operations.
- SkillsFuture Enterprise Credit (SFEC): To address talent shortages in tech, SFEC subsidizes training costs, allowing companies to invest in upskilling employees. Training focuses on high-demand skills like AI, data science, and cloud computing.
As digital transformation accelerates, Singapore provides a nurturing environment for tech-focused businesses to scale rapidly with government-backed financial support and a tech-savvy talent pool.
4. Biomedical Sciences: Supporting Health Innovation and Research
The biomedical sciences sector in Singapore spans pharmaceuticals, biotechnology, and medical technology. With substantial R&D infrastructure and government support, Singapore has become a thriving hub for companies focusing on drug discovery, clinical trials, and medical device manufacturing.
Why Singapore is Strengthening Biomedical Sciences
The COVID-19 pandemic underscored the importance of local and resilient health systems. Singapore is investing in biomedical sciences to build a future-ready healthcare infrastructure that not only serves its population but also supports global health initiatives. High-quality research facilities, paired with regulatory agility, make Singapore an attractive destination for health and biotech companies.
Government Support for Biomedical Ventures
- Research and Development (R&D) Tax Incentives: Companies conducting R&D in Singapore, especially in life sciences, are eligible for tax deductions. The tax benefits can reach up to 250% for R&D-related expenses.
- Research, Innovation, and Enterprise (RIE) 2025 Plan: The government committed substantial funding to the RIE 2025 plan, focusing on advancing research and development in key areas, including biomedical sciences as part of the Singapore Budget 2024.
‍ - Competitive Research Programme (CRP): Administered by the National Research Foundation (NRF), the CRP funds use-inspired basic research projects, including those in biomedical sciences. This program fosters multi-disciplinary teams to conduct cutting-edge research relevant to Singapore's needs.
For biomedical startups and established firms alike, Singapore offers an ecosystem where cutting-edge research meets favorable regulatory support.
5. Financial Services: A Fintech-Friendly Ecosystem
Singapore has earned a reputation as a leading global financial hub, with financial services encompassing banking, insurance, and an expanding fintech sector. With robust regulations, innovative digital banking, and a regulatory sandbox for fintech startups, the financial services sector is poised for ongoing growth.
Why Singapore Invests in Financial Services
Financial services are crucial for Singapore’s economy, providing a stable base of wealth management, corporate banking, and investment services. With the government’s push for fintech and green finance, Singapore’s financial sector is evolving to meet the needs of a digital-first and sustainable economy.
Funding and Support for Financial Services
- Financial Sector Development Fund (FSDF): This fund received a significant top-up in the 2024 budget, supporting projects in fintech and green finance. Grants are available for companies focusing on digital banking, blockchain solutions, and sustainable investment products.
- Fintech Regulatory Sandbox by MAS: The Monetary Authority of Singapore (MAS) enables fintech startups to test their innovations in a controlled environment. This allows for product testing without the full regulatory compliance burden, providing a soft landing for new financial technologies.
Singapore’s regulatory environment allows fintech and finance companies to innovate while maintaining the highest standards of security and consumer trust.
Why It Matters for New Business Owners and Investors
For entrepreneurs and investors, aligning with Singapore’s priority sectors can mean access to vital financial resources, favorable tax conditions, and collaborative networks. Singapore’s focus on these sectors signals stability and a future-oriented vision, offering business owners an ecosystem designed for growth and resilience.
Advantages of Operating in a Promoted Sector
- Access to Grants and Subsidies: Priority sectors receive substantial funding, from R&D grants to equipment subsidies, reducing the financial burden for companies aiming to innovate.
- Collaboration Opportunities: Singapore’s focus on sector-based clusters promotes partnerships between companies, research institutions, and government bodies, creating a cohesive business environment.
- Enhanced Market Reach: Being in a government-promoted sector increases a company’s visibility and credibility, attracting both customers and investors interested in high-growth areas.
How ATHR Can Support Your Singapore Venture
Setting up a business in Singapore involves navigating regulatory requirements, compliance standards, and sector-specific incentives. ATHR offers specialized services to simplify these processes and maximize your business potential in Singapore’s key industries.
Incorporation Services: We handle every step of company registration, from gathering KYC documents to managing your compliance filings. Our team ensures that your setup aligns with Singapore’s legal requirements, particularly in priority sectors where specific regulations may apply.
Corporate Secretary Services: Ensuring compliance with Singapore’s corporate governance standards is vital, especially as you scale. Our corporate secretary services streamline administrative tasks, maintain statutory records, and manage key filings, allowing you to focus on core operations.
Accounting and Financial Compliance: Singapore’s financial and compliance landscape can be complex. ATHR’s accounting team provides end-to-end support, from bookkeeping to financial reporting, ensuring your business meets tax obligations and maximizes available financial incentives.
With ATHR’s expertise, entrepreneurs can confidently explore Singapore’s thriving sectors and benefit from tailored support to navigate the regulatory and financial landscape with ease. Book a call with ATHR today to learn how we can help you maximize your business potential and make the most of Singapore’s sector-specific incentives.
