Singapore to pump S$150m into Startup SG Founder programme

THE government will pump up to S$150 million into the Startup SG Founder programme to continue spurring innovation and entrepreneurship during the Covid-19 pandemic, Deputy Prime Minister and Finance Minister Heng Swee Keat said on Monday. (see amendment note)

The funds will be used to raise the programme's startup capital grant and continue providing mentorship to startups under the programme.

Currently, the scheme provides mentorship and a startup capital grant of S$30,000 to first-time entrepreneurs with innovative business ideas, with startups required to co-match funds of S$10,000 to the grant.

The funding is part of the government's efforts to transform and position the Singapore economy to seize growth opportunities in a post-Covid world, Mr Heng said. In February, the Unity Budget allocated S$8.3 billion over three years for such efforts under the Transformation and Growth strategy.

"Firms that have invested in innovation were able to nimbly pivot to new opportunities during this crisis," Mr Heng noted. "Our startups are also contributing to economic growth and our efforts against Covid-19."

He cited retailer Decks Private Limited and precision engineering firm Certact Engineering as examples of firms that pivoted successfully. Decks revamped its e-commerce platform and expanded to other e-marketplaces during the circuit breaker, and its online sales have since increased tenfold. Meanwhile, Certact Engineering pivoted to manufacturing parts for high-demand medical equipment like ventilators.

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More details on the Startup SG Founder programme's enhancement will be provided by the Ministry of Trade and Industry later this week, said Mr Heng.

Amendment note: The article has been amended to clarify that the government will pump "up to" S$150 million into the programme. This is because while S$150 million has been set aside for the programme, it may not be the exact amount ultimately used.