A new $5 million grant to encourage Singaporeans to be active in creating their cultural heritage was launched by the Prime Minister on Sunday.

Those with good ideas on how to capture and celebrate Singapore's shared heritage through exhibitions, publications, documentaries or mobile apps can apply for grants ranging from $1,000 to $30,000.

An open call for proposals will be made from August 1.

Prime Minister Lee Hsien Loong said he hoped Singaporeans would take full advantage of the grant and lend their voices to the telling of the Singapore story.

Speaking at the launch of the Singapore Heritage Fest, which celebrates it's 10th anniversary this year, he said heritage is essential to peoples and nations.

It anchors our sense of place and identity, it enables a nation to adapt to change and progress; it is the yin to the yang of material progress, Mr Lee said.