Singapore has emerged as a global hub for innovation and entrepreneurship, particularly in the life sciences sector. The city-state’s strategic position, robust infrastructure, and supportive government policies create a fertile ground for startups in this high-impact field.

One of Singapore’s most significant advantages for life science startups is the comprehensive and well-structured grant landscape. This blog explores how startups can leverage these grants to fuel their growth and innovation, providing practical guidance on navigating this dynamic funding ecosystem.

Singapore’s grant landscape is characterized by various funding opportunities designed to support various stages of a startup’s lifecycle. These grants are provided by different governmental bodies and institutions, each targeting specific needs and stages of development. Some of the primary agencies involved include:

A*STAR (Agency for Science, Technology and Research)

A*STAR plays a crucial role in advancing research and development in the life sciences sector. It provides grants and funding for research collaborations, innovation projects, and technology commercialization.

 A*STAR’s Biomedical Research Council (BMRC)

• Supports and coordinates public sector biomedical R&D activities, aiming to foster a robust biomedical cluster
• Focuses on building core research capabilities in areas such as bioprocessing, genomics, molecular biology, and computational biology.
• Promotes translational medicine, and cross-disciplinary research, and supports biomedical R&D at public institutions like universities and hospitals.
• BMRC fosters talent development in biomedical sciences and raises public awareness through outreach programs.
• Manages several A*STAR research institutes and labs focused on diverse areas including infectious diseases, bioprocessing, and immunology. It also leads national therapeutic priorities through task forces focused on key diseases such as cancer, cardiovascular conditions, diabetes, infectious diseases, and neurological disorders.

The Industry Alignment Fund – Pre-Positioning Programme (IAF-PP)

Designed to develop industry-ready capabilities by aligning public sector research with industry needs. It supports both new and existing programs with a track record of success and industry potential, aiming for industry involvement within 3-5 years. Projects are expected to last up to 5 years and focus on themes aligned with national strategies, with a key criterion being their potential for industry development and economic impact.

The Industry Alignment Fund – Industry Collaboration Projects (IAF-ICP)

Supports strategic R&D collaborations between public research institutions and industry, emphasizing economic outcomes. Proposals are evaluated on their ability to generate product or process innovations, create economic activity in Singapore, develop local talent and technology, and uplift the broader ecosystem through partnerships. The IAF-ICP is overseen by a Strategic Oversight Committee consisting of leaders from A*STAR, Economic Development Board (EDB), Enterprise Singapore, and National Research Foundation, Singapore (NRF), which governs policies and project approvals.

Enterprise Singapore (ESG)

As a government agency dedicated to supporting Singapore’s enterprises, ESG offers various grants and programs to foster innovation and growth. Their focus includes helping startups with market access, capability development, and financial support. Early-stage innovation grants offered by Enterprise Singapore include:

Startup SG Founder (SSGF) Programme

Purpose: To support first-time entrepreneurs to launch their own innovative businesses by offering both mentorship and financial support.

Support offered:

• Funding: Entrepreneurs can receive a startup grant ranging from S$20,000 to S$50,000.
• Mentorship: Successful applicants will benefit from guidance provided by Accredited Mentor Partners (AMPs). This includes:
  • Pitch training
  • Networking opportunities with investors and corporations

Startup SG Tech

Startup SG Tech supports the development and commercialization of proprietary technology solutions through Proof-of-Concept (POC) and Proof-of-Value (POV) grants. This program is designed for startups with innovative technologies and scalable business models.

Grant Types:

• Proof-of-Concept (POC): Supports early-stage development and validation of innovative technologies.
• Proof-of-Value (POV): Aids in demonstrating the value and potential market for the technology.

Companies can apply for either POC or POV grants depending on their technology’s stage of development.

Grant Disbursement: grants are awarded upon the completion of each milestone rather than through reimbursement. This change aims to improve cash flow for successful applicants.

Equity Component: To align with venture-backed startup practices and promote financial discipline, the grant now includes an equity component. Enterprise Singapore has the right to exercise a share subscription as part of this component.

Enterprise Development Grant (EDG)

The EDG supports projects aimed at upgrading, innovating, growing, and transforming businesses. Eligible businesses can submit proposals detailing their project plans and expected outcomes to receive funding.

Funding Coverage: EDG covers third-party consultancy fees, software and equipment purchases, and internal manpower costs.

Support Levels:

• For Local SMEs: Up to 50% of eligible costs.
• Sustainability-Related Projects: From April 1, 2023, to March 31, 2026, these projects may receive up to 70% support. Further details can be found on the Enterprise Sustainability Programme page.

Eligibility Criteria:

• Business Entity: Must be registered and operating in Singapore.
• Local Equity: The company must have at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by ultimate individual ownership.
• Financial Readiness: The company must be financially prepared to start and complete the project. The Assessment will use common financial indicators, such as the current ratio.

SEEDS Capital – Investment Arm of Enterprise Singapore

SEEDS Capital plays a pivotal role in driving early-stage investments into technology startups based in Singapore. By co-investing with institutional investors, SEEDS Capital focuses on startups with strong intellectual content and potential for global market success.

With a portfolio of over 100 deep tech startups and more than 50 co-investment partners, including venture capital firms and corporate investment arms, SEEDS supports innovation across strategic sectors such as Advanced Manufacturing & Engineering, Health & Biomedical Sciences, and Urban Solutions & Sustainability.

SEEDS Capital is also active in emerging industries like Agritech, Artificial Intelligence, Blockchain, Quantum Computing, and Space Technologies.

Notable venture capital partners in life sciences include Heritas Capital, HealthXCapital, and Lightstone Singapore, all of which focus on therapeutic-oriented startups.

Success stories in SEEDS Capital’s portfolio include companies such as ABM Respiratory Care, AIM Biotech, HistoIndex, Hummingbird Bioscience, and KYAN Technologies, demonstrating the impact of co-investment in advancing pioneering innovations.

National Health Innovation Centre Singapore (NHIC)

NHIC is a national program office that partners with Public Health Institutions across Singapore to identify and commercialize promising clinical innovations. NHIC provides funding, strategic guidance, and industry connections to help medical innovations become market-ready products.

Since its establishment in 2014, NHIC has supported various projects, contributing to advancements in healthcare in Singapore and beyond. NHIC operates as part of the Consortium for Clinical Research and Innovation, Singapore (CRIS).

Innovation to Startup (I2START)

The I2Start program is a premium funding initiative targeted at MedTech startups from Singapore public institutions. It streamlines the process of transforming health and biomedical innovations into startups by connecting NHIC, SMART and Enterprise Singapore, offering phased funding and strategic support.

It offers funding through three phases:

• Phase 1: SMART Innovation Grant of up to S$300,000 to demonstrate technical feasibility, supported by a Letter of Intent from NHIC.
• Phase 2: NHIC I2D Grant of up to S$300,000 for further translation, with Enterprise Singapore offering support for startup formation.
• Phase 3: Startup SG Tech provides up to S$250,000 for Proof-of-Concept or S$500,000 for Proof-of-Value projects.

Eligibility requires a team consisting of a Clinical and Technical Principal Investigator from Singapore’s public institutions, with a strong focus on startup formation.

Singapore Economic Development Board (EDB)

EDB provides support for companies investing in R&D and innovation, offering grants and incentives to enhance Singapore’s status as a leading R&D hub.

Research Incentive Scheme for Companies (RISC) Grant

This grant provided by A*STAR focuses on supporting companies in the development and commercialization of innovative technologies. The grant aims to help businesses undertake research and development projects that have the potential for significant commercial impact.

Purpose: To support R&D activities and facilitate the commercialization of new technologies.

Coverage: Typically includes funding for project costs, including manpower, equipment, and other relevant expenses.

EDBI – Investment Arm of EDB

EDBI, originally founded in 1991 as EDB Investments (EDBInv), was established to support high-growth companies and key industry sectors that contribute to Singapore’s economic development. In the early 2000s, EDBInv played a pivotal role in catalyzing the formation of Singapore’s biomedical industry by launching Bio*One Capital, EDB’s dedicated Biomedical Sciences Investment Fund. To keep pace with emerging disruptive trends, EDBInv restructured and rebranded as EDBI, evolving into an active global venture investor. This transformation enabled EDBI to focus on areas such as digitalization, deep tech, and building new capabilities within Singapore.

Through its value creation efforts and extensive network, EDBI offers opportunities in:

• Market and Technology Access
• R&D Collaborations and Technology Commercialization
• Strategic Development and Financing
• Ecosystem Connectivity
• Talent Support

EDBI’s portfolio of biotech innovators includes companies like Aspen Neuroscience, ImmunoScape, MiRXES, and Nuevocor.

SG Growth Capital

In August 2024, it was announced that EDBI and SEEDS Capital will merge to form a new entity, SG Growth Capital, by April 2025. This merger aims to consolidate their expertise and resources to further strengthen Singapore’s ecosystem for innovative enterprises.

SG Growth Capital will focus on growing portfolio companies and enhancing collaboration between local and foreign firms. By leveraging EDBI’s growth-stage investments and SEEDS Capital’s support for early-stage startups, the new entity will play a pivotal role in nurturing deep tech, venture building, and financing for emerging industries such as artificial intelligence, advanced manufacturing, and biotechnology. This strategic alignment will help drive Singapore’s broader economic priorities and its role as a global innovation hub​.

Maximizing Grant Impact

Once a grant is secured, it’s essential to maximize its impact by effectively utilizing the funds and resources provided:

1. Focus on Deliverables: Clearly define the deliverables and milestones associated with the grant. Ensure that your project progresses as planned and that you meet all the requirements outlined in the grant agreement.
2. Monitor and Report Progress: Regularly monitor your project’s progress and provide detailed reports as required by the grant provider. Transparent reporting helps build trust and may positively influence future funding opportunities.
3. Utilize Additional Resources: Take advantage of other support services offered by grant providers, such as mentorship, networking opportunities, and access to industry experts. These resources can further enhance your startup’s success.
4. Plan for Sustainability: Develop a strategy for sustaining your project beyond the grant period. This includes planning for future funding, scaling your operations, and maintaining momentum.

R&D Tax Measures

Singapore’s R&D tax incentive scheme has been a valuable support for businesses, particularly small and medium enterprises (SMEs), which make up 85% of the claims. These incentives encourage companies to invest in research and development, fostering innovation and driving growth. By offering substantial tax deductions, the government aims to stimulate R&D activities that lead to new products, improved processes, and competitive advantages for local businesses.

To claim R&D tax incentives in Singapore, taxpayers must include the R&D claim in their Income Tax Return and submit the R&D Claim Form. Proper documentation, kept from the start of the R&D project, is crucial. IRAS has also established a Technical Advisory Panel to assist in reviewing R&D claims.

Who is Eligible?

• Any company registered in Singapore, regardless of shareholding distribution.
• Companies conducting R&D work directly, outsourcing it to an R&D service provider, or participating in R&D cost-sharing agreements.

Qualifying Requirements for R&D Tax Incentives in Singapore

• The R&D activity must have a clear purpose set before starting and should aim to:
• Gain new knowledge previously unavailable.
• Create new products or processes.
• Improve existing products or processes.
• Novelty or Technical Risk: The R&D must be innovative or involve technical risk, meaning it addresses scientific or technological uncertainties not easily resolved by professionals in the field. If prior research exists, the activity must demonstrate distinctiveness from previous findings.
• Systematic Study: The R&D must be a systematic, investigative, and experimental study aimed at advancing science or technology.

Benefits

• 250% tax deduction for qualifying R&D expenses incurred in Singapore.
• 100% tax deduction for qualifying R&D expenses incurred abroad.

This results in net savings of 42.5% on qualifying expenses incurred in Singapore and 17% on expenses incurred abroad.

Enterprise Innovation Scheme (EIS)

The EIS allows eligible businesses to convert up to $100,000 of their total qualifying expenditure per Year of Assessment (YA) into a cash payout at a 20% conversion rate. This option, capped at $20,000 per YA, is non-taxable and helps small, growing businesses manage the costs of their innovation activities. Instead of taking tax deductions or allowances, businesses can choose this cash payout to support their R&D and innovation efforts.

Singapore’s grant landscape offers a wealth of opportunities for life science startups to thrive and make an impact. By understanding the various grants available, navigating the application process effectively, and leveraging the funding to drive innovation, startups can significantly enhance their chances of success. With a supportive ecosystem and strategic funding options, Singapore remains a prime destination for life science entrepreneurs looking to turn their groundbreaking ideas into reality.

In summary, leveraging Singapore’s grant landscape requires careful planning, strategic application, and effective utilization of resources. For life science startups, this means not only accessing vital funding but also tapping into a network of support that can drive their growth and success. Read our article on scaling up for clinical trial success in Singapore to help you navigate the resources available in Singapore.