Singapore Startups in 2025: Government Injection Fuels New Financing Opportunities

Singapore has long been a top choice for startups due to its business-friendly policies, strong government support, and thriving venture funding ecosystem. The government offers various grants, tax incentives, and in-kind assistance schemes to encourage entrepreneurship. These benefits apply to both local and foreign-owned businesses, making Singapore a preferred hub for innovation-driven companies. Beyond grants and incentives, Singapore has actively developed its venture funding landscape over the past decade. Today, it stands as Asia’s leading destination for venture capital, providing startups with access to diverse funding sources. By incorporating in Singapore, businesses can tap into this well-established ecosystem, increasing their chances of securing investment and scaling successfully.

Budget 2025: Focusing on Singapore Startup Support

In Budget 2025, the Singapore government has reinforced its commitment to startups. Several key measures announced this year are especially relevant to new businesses. These include a 50% rebate on corporate income taxes for 2025, a SG$3 billion top-up to the National Productivity Fund, and more than SG$10 billion committed to R&D and innovation infrastructure. Funds have also been targeted to supporting adoption of AI, improving private credit access, and aiding internationalisation efforts by startups. These initiatives not only help reduce operating costs but also provide high-growth startups with new tools that will help them scale effectively, both locally and globally.

In this blog post, we’ll break down Budget 2025’s key changes to funding programmes designed to empower Singapore-based startups. 

Private Credit Growth Fund: New Fundraising Options for High-Growth Startups

To address a longstanding gap in the capital market, Budget 2025 introduced the SG$1 billion Private Credit Growth Fund — an initiative to support high-growth startups in Singapore and the region. Traditionally, many promising companies with scalable business models have struggled to secure funding through conventional bank loans or early-stage equity rounds. This new fund aims to provide an alternative, more flexible route to financing.

Private credit is often seen as a less-dilutive and less-intrusive source of funding compared with equity financing. For startups focused on rapid growth, technology innovation, and international expansion, this can be a more cost-effective way to raise capital without giving up significant ownership or control. By facilitating access to private credit, the fund will help local enterprises bridge the funding gap as they scale toward global competitiveness.

In addition to supporting individual startups, this initiative is part of a broader strategy to enhance Singapore’s position as a leading capital market hub. By attracting more private credit players to set up locally, Singapore will strengthen its ecosystem for venture financing, complementing its strong base of venture capital and private equity firms. For founders seeking smart, scalable capital, this fund offers new fundraising opportunities with long-term potential.

Long-Term Investment Fund: Providing "Highly Patient" Capital for Startups

Not all startups grow in a linear or fast-paced way — especially those developing deep tech, tackling niche markets, or innovating in nascent sectors. Recognising this, the Singapore government is launching a new S$200 million Long-Term Investment Fund to support enterprises that require more time and resources to realise their full potential.

Unlike traditional equity investments, which typically operate on a three- to seven-year horizon, this fund will offer "highly patient" capital tailored to startups with longer product development cycles or more complex expansion strategies. Whether pursuing long-term organic growth or strategic acquisitions, eligible companies will have the flexibility to focus on sustainable development without the pressure of needing to show short-term returns.

The fund reflects Singapore’s broader ambition to diversify its financing landscape and build a future-ready innovation economy. By supporting long-gestation ventures with longer investment horizons, the government is fostering the next wave of high-impact, globally competitive startups anchored in Singapore. More details on the fund’s structure and eligibility criteria are expected in the second half of 2025.

Enhanced Enterprise Financing Scheme (EFS): Better Financing for Internationalisation

As Singaporean startups look to expand beyond local borders, access to strategic and flexible financing becomes increasingly crucial. In Budget 2025, the Enterprise Financing Scheme (EFS) received key enhancements aimed at empowering startups and SMEs to pursue international growth with greater confidence and capacity.

One major update is the permanent increase of the EFS – Trade Loan cap from S$5 million to S$10 million. This higher limit acknowledges the rising costs of cross-border business and supports companies as they engage in larger, more complex trade deals. For startups eyeing regional or global markets, this expanded support can be a valuable enabler for scaling up operations.

In addition, the EFS – Mergers & Acquisitions Loan has been broadened to include targeted asset acquisitions. This shift recognises that not all growth needs to come from full equity acquisitions — sometimes a strategic asset buyout can provide just the right leverage. This flexibility allows startups to scale more strategically while managing financial exposure.

These enhancements are aligned with Singapore’s broader push toward internationalisation. Trade Associations and Chambers (TACs) are also expected to play a more active role, potentially offering advice to guide startups in navigating mergers, acquisitions, and alternative capital solutions. With stronger financing tools and greater access to expertise, startups can now pursue expansion overseas in a way that’s more resilient and agile.

Market Readiness Assistance Grant: Empowering Startups to Expand into New Markets

For startups with ambitions beyond Singapore, the Market Readiness Assistance (MRA) grant is a valuable springboard for international growth. Designed to support the early stages of overseas expansion, the MRA grant helps businesses offset costs related to market entry, including overseas promotion, business development, and set-up activities.

In Budget 2025, the government announced that it would extend the enhanced grant cap of S$100,000 per new market until 31 March 2026. This extension ensures that local startups and SMEs continue to receive critical support as they explore and establish footholds in new regions.

Whether the goal is to launch in Southeast Asia, expand into the US, or test new product-market fit in Europe, the MRA grant empowers startups to take bold steps while reducing their financial risk. By making it easier to internationalise, this scheme helps companies unlock new growth opportunities and build global-ready business models.

Global Founders Programme: Funding Experienced Founders for Their Next Big Idea

The Global Founders Programme (GFP), supported by the Economic Development Board (EDB), is being developed further to focus on experienced entrepreneurs and operators looking to build their next venture from Singapore. By providing targeted support to seasoned founders, the programme aims to deepen Singapore’s role as a launchpad for globally oriented startups.

This initiative is expected to amplify the economic benefits that come from anchoring high-potential ventures in Singapore — strengthening the innovation ecosystem, attracting talent, and drawing in new capital and partnerships. It complements Singapore’s broader strategy to support not only early-stage startups but also repeat founders with a proven track record of scaling businesses.

More details will be shared by EDB in due course, as the programme evolves to better serve the needs of experienced founders and create long-term value.

Enterprise Compute Initiative: Helping Startups Leverage AI 

Artificial intelligence (AI) continues to reshape how businesses operate and scale. To help startups harness its full potential, Budget 2025 introduced the SG$150 million Enterprise Compute Initiative (ECI) — a strategic effort to help local enterprises speed up their adoption of AI.

This initiative will help eligible startups gain access to AI tools, computing power, and expert consultancy services by partnering with leading cloud service providers. Whether the aim is to build smarter products, streamline operations, or unlock new customer insights, ECI will help lower the barriers to AI integration by providing technical resources and guidance.

How We Can Help

If you're planning to launch your business in Singapore and want to take advantage of the new financing opportunities introduced in Budget 2025, it’s important to set up your company the right way. Our trusted partner, CorporateServices.com, offers reliable company incorporation and compliance services designed specifically for startups and entrepreneurs.

They can assist with setting up your business, meeting all regulatory requirements, and staying compliant with local laws—so you can focus on growth and innovation. With expert support, you’ll be ready to tap into Singapore’s startup ecosystem and benefit from available grants, funding schemes, and expansion programs.

Contact them today to kick-start your journey in Singapore.