Development and Expansion Incentive for Manufacturing (DEI(Mfg))

What does it support?

The incentive supports new or expanded qualifying manufacturing activities carried out in Singapore. The project must involve the fixed-asset investment and skilled employment required for the approved award tier.

Who can apply?

Entities registered and operating in Singapore and undertaking qualifying manufacturing activities may apply. There is no local ownership requirement. Standard EDB exclusions for certain prohibited and regulated activities remain applicable.

How does the support work?

The approved concessionary corporate tax rate can be 5%, 10% or 15% on qualifying manufacturing income above base income. There is no fixed monetary cap: the benefit depends on the income qualifying under the award and the approved rate, subject to the commitments being met.

What expenditure can qualify?

DEI(Mfg) applies to qualifying income from approved manufacturing activities; it does not reimburse manufacturing expenditure. Fixed-asset investment is an award commitment, rather than a cost category paid back at the concessionary tax percentage.

Key conditions

The qualifying period is five years. By Year 5, the minimum additional commitments are:

• 5% rate: S$13 million in fixed-asset investment and 30 skilled employees.
• 10% rate: S$7 million in fixed-asset investment and 20 skilled employees.
• 15% rate: S$5 million in fixed-asset investment and 13 skilled employees.

The company's investment and hiring plans should be assessed together against the intended award tier.

Timing and application process

Engage EDB before committing to the project. The rolling application process uses a Core Form and Supplementary Form covering proposed products, employment, fixed-asset investment and total business expenditure.

Important programme distinctions

Base income is the average income from qualifying manufacturing activities over the 36 months immediately preceding DEI(Mfg). The concession applies to qualifying income above that base.

Large multinational groups within Singapore's Domestic Top-up Tax scope should assess the impact of the 15% minimum effective tax rate on the expected benefit.

Related funding routes

• Development and Expansion Incentive for Services — for service activities outside the manufacturing track.
• Refundable Investment Credit — for qualifying strategic investments.
• RIS(C) — for relevant R&D and innovation activities.