On 10 July 2025, the Singapore Economic Resilience Taskforce (“SERT”) announced the launch of a new Business Adaptation Grant, designed to support companies affected by the global tariff environment. This initiative comes at a time of heightened global trade uncertainty, with the U.S. administration announcing the latest round of U.S. tariffs in July 2025, with some measures scheduled to take effect on 1 August 2025. These measures are part of broader shifts in global trade policies that have affected supply chains and increased costs for businesses involved in cross-border activities.
For Singapore, where trade plays a central role in the economy, the Business Adaptation Grant forms part of efforts to strengthen supply chain resilience and provide support for companies to recalibrate business models. The Grant aims to provide targeted assistance to mitigate the immediate impact of tariffs while promoting longer-term business diversification and competitiveness.
Business Adaptation Grant Launch
The Business Adaptation Grant will commence in October 2025 and run for two years. Funding is capped at SGD 100,000 per company, structured on a co-funding basis. Small and medium-sized enterprises (SMEs) will receive a higher level of government support compared to larger corporations.
Details on the application process are expected in October 2025.
Eligibility Criteria for Business Adaptation Grant
To be eligible for the grant, businesses must have at least 30% local shareholding. Two main groups of businesses are covered under the grant:
Exporting or Overseas-operating Businesses Impacted by Tariffs
Businesses that export to or operate in overseas markets and are affected by tariff measures may receive support in the following areas:
- Advising on Free Trade Agreement (FTA) and trade compliance
- Advising on legal and contractual matters
- Advising on supply chain optimisation and market diversification
Businesses with Manufacturing Operations Locally or Overseas
Businesses with manufacturing operations, whether in Singapore or abroad, may receive support for reconfiguration costs, including logistic adjustments and inventory holding expenses.
How the Business Adaptation Grant Helps Your Business
Beyond immediate relief, the grant is designed to assist businesses in adapting their operations to the evolving global trade environment. By providing financial support for activities such as supply chain optimisation, market diversification, and compliance with trade agreements, the grant aims to help businesses mitigate the immediate impacts of tariff measures. Additionally, the grant encourages companies to adopt strategic planning approaches that enhance long-term resilience and competitiveness.
How Yuen Law Can Support Your Business
| Services | How We Can Assist |
|---|---|
| Contractual Review & Negotiation | Drafting and reviewing supply, sales, distribution, licensing agreements, and other contracts affected by tariffs or operational changes, and supporting clients in renegotiating terms to safeguard commercial interests. |
| Market Entry & Cross-Border Expansion | Guiding businesses in setting up entities or joint ventures, securing regulatory approvals, and ensuring compliance with local and international trade laws. |
| Business Restructuring | Assisting in Mergers and Acquisitions (M&A), divestments, closures, and operational restructuring, to adapt to shifting trade conditions and business priorities. |
| Trade & Regulatory Compliance | Advising on customs regulations, free trade agreement (FTA) eligibility, licensing requirements, and establishing compliance frameworks to minimise regulatory risk. |
| Investor Protection & Shareholder Rights | Advising investors and shareholders on safeguarding their interests. |
| Commercial & Cross-Border Disputes | Advising clients on strategies to manage and resolve commercial and contractual disputes that may arise from supply chain changes or revised agreements, aiming for practical resolutions through negotiation and mediation, and when necessary, representing them in debt recovery, enforcing foreign judgments, and other disputes, both locally and across borders through arbitration or litigation. |
With the Business Adaptation Grant, which complements existing government schemes such as the Market Readiness Assistance Grant, Enterprise Development Grant, and Enterprise Financing Scheme, these initiatives collectively facilitate:
- Entry into new markets, including overseas market promotion and set-up;
- Business transformation and innovation initiatives;
- Access to financing for growth and operational needs.
Businesses can leverage these measures to adapt operations, optimise supply chains, and mitigate risks arising from shifting tariff regimes, strengthening overall competitiveness and resilience.
Reference Materials
The media release is available on the MTI website.
