Capability Development Grant (CDG)

Business Grants

Would Capability Development Grant (known as CDG) replace Productivity Innovation Credit (PIC)?

Business grants are the important building blocks of a business. As a business consultant, it is important to note that grants support innovation and productivity. PIC  ended in 2017, the popularity of CDG started to grow. As a result, most people perceived this as a replacement for PIC. This article will focus on comparing and highlight the difference.

PIC started in 2011 by IRAS to encourage SMEs to innovate their business. To qualify for the scheme, business would have to invest into 6 qualifying categories. Below is a summary of the scheme.

  • 40% support
  • Used in the purchase of IT hardware/software
  • Up to 100k claim per year
  • Simple application process
  • Ending in YA 2018

CDG Scheme is started by SPRING Singapore, the scheme encourage business to develop their core capabilities and it supports investment into 10 supportable areas.

  • Up to 70% support
  • Could be used in many areas beside IT hardware/software
  • No limit subjected to approval
  • Required Proposal
  • No plans to end (but would evolve into EDG by 4th quarter)

Most businesses have been using CDG as a replacement to PIC, as a result, most use the scheme for replacement of information technology. The chart below shows that there are more supportable areas.

Capability Development Grant

Application Checklist

1. Project Proposal

For applications for grant support of $30,000 or less (i.e. total project cost of approximately $45,000 or less), applicants are required to submit their completed project questionnaire. Reply five relevant question on project questionnaire.

For applications for grant support of more than $30,000 (i.e. total project cost of more than $45,000), applicants are required to submit their completed project proposal. Required Proposal guide from SPRING


Latest ACRA Search or Instant Information (≤6 months old*) of your Corporate Shareholders if applicable.

3. Financial Statement

Latest Audited Financial Statements (≤1 year old*) of your Company and Consolidated Financial Statement of your ultimate parent company if applicable.

4. Quotation

Relevant Proof of Quotation for your project cost items.

5. Consultant proposal*

For projects where consultants are engaged, please provide the consultants’ proposal detailing the scope of work, man-day breakdown of the service, as well as the CVs and scanned copies of SPRING-recognised certification(s) of individual consultant.

*there is a lot of confusion concern consultant proposal please approach SME Centre for clarification.

6. CDG has been replaced by EDG.

You could find out more information on EDG from SME Portal.


To summarised, CDG is made for businesses and it should not be taken as a scheme to replace PIC. Hence, I have developed templates to help them with the application.  It would not only help them to focus on the main topic but also not to overwrite. It might be my job as a business consultant, to aid the SME but there is more assessments. For instance, the background on the vendor or profile of the applicant. Information technology is one of the cores of businesses, Therefore, CDG is one of the crucial schemes to keep the business update. In summary, it would be good to have an appointment with me to understand there scheme.

To find out about Productivity Innovation Credit.

Contact us to find out more CDG

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