Fukuoka courts Singapore startups with subsidies

The package includes rent and job incentives worth $800,000 each.

Singapore startups and small businesses can receive as much as $1.6m (¥200m) in incentives to set up operations in Japan’s Tenjin district, as the Fukuoka City government steps up efforts to attract foreign companies seeking alternatives to Tokyo.

The incentives are tied to the redevelopment of Tenjin, the city’s main commercial hub, under the Tenjin Big Bang project, which aims to upgrade office space and strengthen the district as an international business centre.

Officials said the programme is meant to help overseas firms—particularly from Singapore—overcome the cost and operational barriers that often hinder global expansion.

Cost remains a key challenge for Singapore companies looking abroad. A January report by KPMG Advisory Services Pte. Ltd. and the Singapore Institute of Directors found that one in two firms cited business costs as their biggest obstacle to overseas expansion, driven largely by infrastructure and licensing expenses.

Fukuoka’s support package includes rent subsidies of as much as $800,000 (¥100m) and employment incentives worth the same amount.

The subsidies target sectors such as information and communications technology, digital content creation, and research and development in fields including medical technology, nanotechnology and energy.

The incentives complement internationalisation support already offered in Singapore. In his 2026 budget speech, Prime Minister Lawrence Wong said the government would strengthen programmes aimed at helping local companies expand overseas.

Starting April 1, Singapore will expand support for overseas expansion by covering as much as 70% of eligible costs for small businesses seeking to enter foreign markets until March 2029, whilst keeping the funding cap at $100,000.

Separate programmes that help companies build global partnerships and innovation networks will also provide support of as much as 70% for small firms and up to 50% for bigger companies seeking to expand globally.

In addition, qualifying overseas expansion activities will be eligible for enhanced tax incentives, letting companies claim deductions equivalent to 200% of certain costs, with the cap increased to $400,000 from $150,000.

Fukuoka also offers administrative support to help foreign companies handle local procedures. Officials help firms with government requirements, business networking and talent recruitment.

“Tokyo is a large market, so it’s a good place for sales,” Taishi Nakamura, director of the business attraction section at the Fukuoka City government, told reporters in Tenjin. “But Tokyo lacks this kind of government support.”

British branded-content agency NUNAI Ltd. said the assistance helped it manage language barriers and unfamiliar procedures after setting up operations in the city.

Fukuoka also highlights its talent pipeline. Local universities and vocational schools produce about 7,000 science and engineering graduates each year.

Through initiatives that promote talent development and a streamlined visa process for engineers, the city aims to make it easier for foreign firms to hire skilled workers.

Officials say the strategy has attracted steady interest, with roughly 50 companies setting up in Fukuoka annually over the past decade and more than 160 foreign-affiliated offices established.