The Business Adaptation Grant includes a co-funding element and will support two main groups of businesses, said Manpower Minister Tan See Leng at a press conference for the Singapore Economic Resilience Taskforce on Thursday, as reported by Channel News Asia.
The first group, which consists of companies that export goods or operate overseas, can use the grant to cover costs for advisory services related to free trade agreements, legal and compliance matters, supply chain optimization and market diversification.
The second group includes businesses involved in local or overseas manufacturing. For them, the grant can help offset reconfiguration expenses such as logistics and inventory management.
Tan, a member of the task force, noted that small and medium enterprises will likely receive a higher level of support than larger ones, The Straits Times reported.
“SMEs will receive more generous support, as they account for about two-thirds of Singapore’s workforce, with a significant proportion being Singaporeans,” he said at the conference held two days after U.S. President Donald Trump began sending letters to several countries to inform them of their new tariff rates.
Singapore has yet to receive a letter, but eight of its fellow ASEAN members have, with Laos and Myanmar told their tariffs could go as high as 40%.
Tan said the grant is intended to support businesses over a two-year period as they evaluate and adapt their international strategies in the new tariff environment, according to the Business Times.
“And subsequently, if some of the moves are more permanent, to eventually help facilitate that diversification – whether it is in supply chain (or) logistics,” he said.
At the same event, Tan Hee Teck, president of the Singapore National Employers Federation, noted that many companies are adopting a cautious stance on hiring.
Around 70% have planned or implemented workforce changes, including hiring freezes, team restructuring, and greater emphasis on upskilling and reskilling staff.
“To help alleviate cost pressures and drive transformation, we strongly encourage employers to tap the SERT’s enterprise and workforce support measures,” he said.
