Singapore October 2025 Grant: Up to S$100K for SMEs Facing Tariff Disruptions

In response to escalating global trade tensions and the ripple effects of US tariffs on Singapore-based businesses, the Singapore government has announced the Business Adaptation Grant, set to launch in October 2025.

This initiative aims to support small and medium enterprises (SMEs) navigating disruptions caused by shifting trade dynamics. Here’s an overview highlighting the main features of this grant and its effects on Singapore’s business community.

Overview of the Business Adaptation Grant

• Grant Name: Business Adaptation Grant
• Launch Date: October 2025
• Target Audience: Singapore-based companies, with a focus on SMEs
• Grant Amount: Up to S$100,000 per company over two years
• Co-funding Requirement: Participating businesses must contribute a portion of the costs.

Support Areas Under the Grant

For Exporting or Overseas-Operating Companies

The grant supports two main areas. For exporting or overseas-operating companies, it offers advisory services. This includes assistance with Free Trade Agreement (FTA) compliance and legal guidance for navigating international trade regulations.

Companies can also receive supply chain optimisation strategies and market diversification planning to reduce reliance on tariff-affected regions.

For Companies with Local or Overseas Manufacturing Operations

The grant provides funding for operational adjustments. This covers logistics costs for rerouting supply chains, inventory holding expenses to manage delays or disruptions, and costs related to reconfiguring supply chains to mitigate risks.

Why the Grant is Necessary

• Global Trade Tensions:
  • While Singapore has not been directly impacted by US tariffs, eight out of ten ASEAN countries have received tariff notices, creating regional disruptions.
  • Singapore-based firms operating in affected regions, such as China’s Suzhou Industrial Park, are experiencing ripple effects.
• Economic Impact:
  • The grant addresses challenges faced by SMEs in adapting to changing trade environments.
  • It aligns with broader government efforts to safeguard Singapore’s economic resilience amid global uncertainties.

Key Announcements and Stakeholders

Minister for Manpower, Dr. Tan See Leng, and Deputy Prime Minister, Gan Kim Yong, along with other key government and business leaders, made these key announcements.

The grant highlights the government's commitment to supporting businesses during periods of economic volatility.

To further bolster SMEs, the Business Adaptation Grant works alongside existing support schemes:

• Market Readiness Assistance Grant: Helps companies expand into new markets.
• Enterprise Development Grant: Supports business transformation and innovation.
• Enterprise Financing Scheme: Provides access to loans of up to S$10 million to address cash flow challenges.

How SMEs Can Benefit

SMEs can benefit in several ways. They can use advisory services for strategic planning to comply with FTAs and explore alternative markets. Additionally, they can leverage funding to optimise logistics and supply chain operations.

The grant also provides financial relief by offsetting costs related to supply chain disruptions and market diversification. SMEs can combine this grant with complementary schemes for more comprehensive support.

Conclusion: Strengthening SME Resilience

The Business Adaptation Grant is a timely and targeted intervention to help Singapore SMEs adapt to global trade disruptions.

By providing financial assistance and advisory support, the grant empowers businesses to navigate challenges posed by US tariffs and regional trade tensions.

Combined with complementary schemes, it reinforces Singapore’s commitment to fostering a resilient and adaptable economy.

Quick Facts:

• Up to S$100,000 available per company over two years.
• Two main support areas: Advisory services for exporters and funding for manufacturing/logistics adjustments.
• Complementary schemes: Market Readiness Assistance Grant, Enterprise Development Grant, and Enterprise Financing Scheme.
• Focus on resilience: Helping SMEs mitigate risks and thrive in an uncertain global trade environment.