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Technology Adoption: Mechanisation Credit (MechC)


MechC Referral Programme

The MechC Referral Programme incentivises contractors who have successfully tapped on the MechC incentive scheme to share with their smaller subcontractors the benefits of the scheme and the need to improve productivity. Currently, the MechC has a funding cap of $250,000 per firm ($200,000 under Cash Purchase and $50,000 under Leasing). Under the MechC Referral Programme, the builder can earn an additional $20,000 credit to increase the per-firm funding cap, as an incentive for every successful referral.

Purchase and Leasing of Equipment under MechC

What is it?

The Mechanisation Credit (MechC) scheme helps to defray the cost incurred in technology adoption by companies to improve productivity for their construction projects.


Who is it for?

A contractor, specialist contractor or subcontractor firm incorporated and operating in Singapore will be eligible.


What is it for?

The Mechanisation Credit scheme defrays the cost of technology adoption purchasing or leasing equipment - that improves productivity by at least 20% (Standard MechC Scheme) or 30% (Enhanced MechC Scheme). The Scheme is targeted at construction firms (especially subcontractors) who are looking to using machines and equipment to improve work processes.


How much?

Depending on the impact to the project and the productivity improvement, the funding support is as shown below:


MechC Scheme

MechC Scheme*

For Purchase
of Equipment

Equipment cost < $100,000, grant up to 50% or capped at $20,000.

Equipment cost < $125,000, grant up to 70% or capped at $25,000.

Equipment cost > $100,000, grant up to 20% or capped at $100,000.

Equipment cost > $125,000, grant up to 20% or capped at $100,000.

For Leasing
of Equipment

For leasing cost < $30,000, grant up to 50% or capped at $6,000.

For leasing cost < $30,000, grant up to 70% or capped at $6,000.

For leasing cost > $30,000, grant up to 20% or capped at $30,000.

For leasing cost > $30,000, grant up to 20% or capped at $30,000.

*Note: To qualify for the increase in funding level from 50% to 70%, firms will have to meet at least 30% in productivity improvement and show evidence that they are also building capability through areas such as financial standing, human resource development, certifications and awards.

Additional criteria for Enhanced MechC Scheme (To fulfill 1 item each from any 2 sections)

(a) Financial Standing

  1. Paid up capital is more than the grant amount; or
  2. Revenue is more than the grant amount; or
  3. Annual Profit before tax for the three years preceding grant application

(b) Human Resource Development

  1. Minimum of 20% R1 workers per firm

(c) Certification and Awards

  1. ISO9001:2008 or ISO14000 or OSSAS18000/SS506 Part1;or
  2. Construction Productivity Award; or
  3. Safety management certification/award


Queries & Application Details

Form / Relevant Document Description
Guidelines - 28 Jul 2015
List of Supportable Equipment - March 2014


How To Apply?


  1. Application ( shall be submitted by applicant at least one (1) working day before the purchase/ lease. Application made after the purchase/ lease date will not be supported. The date of invoice is considered the date of purchase.
  2. All necessary supporting documents must be attached to the Application including the following and such other documents as may be specified by BCA:-
    • At least three quotations from different equipment suppliers for the same equipment or equipment with similar technical specification.
    • The technical brochure of the equipment
    • The written agreement / letter of award as proof that the applicant is a party to a construction project.
    • Business profile and name of shareholders (can be taken from Accounting and Corporate Regulatory Authority).
    • Documents required under the additional set criteria for Enhanced MechC Scheme.

We are committed to process 90% of the applications within 4 weeks, upon receipt of all necessary supporting documents. Applicants are advised to provide all required documents as well as complete and correct information early, to expedite the approval process.


How To Claim?

Applicants can submit the request for disbursement after the application has been supported. The following documents are to be attached together with the Mechanisation Credit Claim ( :-

  • Certificate of origin of the equipment issued by the manufacturer stating the year of manufacturer, engine number and serial number
  • Invoices (proof of purchase of the equipment)
  • Receipts (with the cheque number and invoice number)
  • Any other supporting documents

The funds will be disbursed through inter-bank GIRO. For applicants not on the GIRO scheme, a cheque will be issued.



Click here to download the list of frequently asked questions.


For more information, please contact

Ms Ezrin Binte Raof
DID: 6804 4255


Ms Tan Mui Kheng
DID: 6804 4257