One-time cash grant among a list of measures offered by the Singapore government to SMEs
The Singapore government has announced a one-off cash grant of up to $2,500 to small and medium-sized enterprises (SMEs), among other support measures, to help keep them afloat amid the ongoing conflict in the Middle East.
Senior Minister of State for Trade and Industry Low Yen Ling said eligible SMEs will receive grant of $500 per local employee, with a cap of $2,500 per company.
Active SMEs with at least one local employee will be eligible for the grant, which will be disbursed in November 2026.
Eligible sole proprietorships, partnerships, and limited liability partnerships with at least one local business owner but no local employees may also receive a flat $500 grant, according to the official.
The one-off cash grant is one of the support measures announced by the government in a press conference this week, which it said aims to support Singaporeans and businesses manage cost pressures amid the Middle East conflict.
Further support measures
The government is also making a time-bound enhancement to the Enterprise Financing Scheme from September 2026 to March 2027 to help SMEs better access financing to meet their cashflow needs.
"We will increase the Government's risk-share from 50% to 70% for the EFS – SME Working Capital Loan and EFS – Project Loan. Businesses will have improved access to financing for their cashflow," Low said.
"We will also enhance the coverage of the EFS – Project Loan. Currently, it supports financing for overseas projects. We will expand its coverage to also cover and support domestic projects by local construction enterprises, amidst higher costs. This will make it easier for them to secure financing to manage higher costs amidst a challenging environment."
Rental support for stallholders in markets and hawker centres that are managed by the government and government-appointed operators will also be provided, according to the official.
"Beyond these measures, we are continuing to work closely with sector agencies to support and strengthen our businesses through this challenging time," Low said.
"We are keeping a very close watch on how businesses fare, and we stand ready to provide additional targeted support when needed as the situation evolves."
Impact of Middle East crisis
The crisis in the Middle East erupted in April, prompting the government to roll out support measures to cushion the conflict's energy price impact to businesses and Singaporeans.
Second Minister for Finance Jeffrey Siow said the economy held up better than expected in the wake of the crisis, but noted that performance across the economy has been "uneven."
"Businesses that are more exposed to supply disruptions and energy costs have come under greater pressure. SMEs, in particular, feel these cost pressures more acutely," Siow said.
The Singapore Business Federation (SBF) said elevated energy prices continue to weigh on business costs, particularly for firms with significant transport, logistics and energy requirements.
Businesses are also facing broader cost pressures from higher utilities, labour, and other operating expenses, which continue to impact margins and competitiveness.
"We welcome these timely measures and are glad that the Government continues to stand by our businesses during this difficult and uncertain period," SBF Chairman Mark Lee said.
"Cash flow is the lifeblood of every business. Taken together, these measures will provide breathing space for SMEs, preserve business activity and help companies retain their workers. We hope that with stronger government risk-sharing support, smaller enterprises can have quicker and more substantive access to financing."
