Quick answer: The Productivity Solutions Grant (PSG) helps Singapore SMEs adopt pre-approved digital solutions and equipment, covering up to 50% of eligible costs. To qualify, your business must be registered in Singapore, have at least 30% local shareholding, and purchase the solution for use within Singapore. Applications go through the Business Grants Portal.
If you run a small or medium enterprise in Singapore, chances are you’ve heard the term “PSG grant” thrown around at networking events or in your accountant’s emails. It sounds promising—government money to help you upgrade your systems and work smarter. But between the eligibility rules, the vendor lists, and the application steps, it’s easy to feel lost before you even begin.
This guide breaks down what the Productivity Solutions Grant actually covers, who can apply, and the common mistakes that trip up first-time applicants. By the end, you’ll know whether the PSG is right for your business and how to give your application the best shot at approval.
Let’s clear up the confusion so you can focus on what matters: growing your business.
What is the PSG grant?
The Productivity Solutions Grant (PSG) is a Singapore government scheme managed by Enterprise Singapore. It supports businesses that want to improve productivity by adopting IT solutions, equipment, and consultancy services.
Instead of leaving companies to figure out which technology works, the government maintains a list of pre-approved solutions. These have already been vetted for quality and value. That means you don’t have to gamble on unproven software or overpriced hardware—the vetting is done for you.
The PSG currently supports adoption across many sectors, including retail, food services, logistics, precision engineering, and more. It also covers solutions that cut across industries, such as accounting software, human resource management systems, and cybersecurity tools.
How much funding does the PSG grant provide?
As of 2024, the PSG covers up to 50% of qualifying costs. This funding cap has shifted over the years, so it’s worth checking the latest figure on the official Enterprise Singapore website before you budget.
Here’s what that means in practice. If you buy a pre-approved inventory management system that costs S$10,000, the grant could cover up to S$5,000. You pay the remaining balance.
The support level has changed in the past. During the pandemic, the funding rate was temporarily raised to 80% to help businesses cope. It later returned to lower levels, which is a good reminder that grant terms are not fixed. Always confirm current rates before applying.
Who is eligible for the PSG grant?
To qualify for the PSG, your business must meet a few core conditions. These criteria exist to make sure support goes to genuine Singapore-based enterprises.
- Business registration: Your company must be registered and operating in Singapore.
- Local shareholding: The business must have at least 30% local (Singaporean or Permanent Resident) shareholding.
- Purpose of use: The equipment, IT solution, or service must be used within Singapore.
- Financial viability: In some cases, you may need to show your business is financially able to start and complete the project.
Small and medium enterprises across most sectors can apply. However, meeting the baseline criteria doesn’t guarantee approval—your application still needs to be complete and accurate.
What can the PSG grant be used for?
The PSG supports two broad categories: sector-specific solutions and generic solutions that apply across industries.
Sector-specific solutions
These are tailored to the needs of particular industries. A restaurant might use the grant for a queue management system, while a logistics firm might adopt a fleet tracking tool. Enterprise Singapore keeps these lists updated by sector.
Generic solutions
These help almost any business, regardless of industry. Common examples include:
- Accounting and bookkeeping software
- Human resource management systems
- Customer relationship management (CRM) platforms
- Cybersecurity solutions
- Digital marketing tools
- Data analytics platforms
Because these solutions cut across sectors, they tend to be the most popular choice among SMEs applying for the first time.
How do you apply for the PSG grant?
The application process runs through the Business Grants Portal (BGP). While the steps are straightforward, rushing through them is where many applicants slip up.
- Identify your solution. Browse the list of pre-approved solutions on the GoBusiness website. Make sure the solution fits a real business need, not just something nice to have.
- Get a quotation. Contact the pre-approved vendor and request a formal quote for the solution you want.
- Log in to the Business Grants Portal. Use your Singpass to access the portal. You’ll need to register your company if you haven’t already.
- Submit your application. Fill in the required details, attach your quotation, and submit before making any purchase.
- Wait for approval. Do not buy or pay for the solution until you receive approval. Purchases made beforehand are usually not eligible for funding.
- Complete the project and claim. Once approved, proceed with the purchase, implement the solution, and submit your claim with the necessary documents.
The order matters. Applying before you buy is one of the golden rules of the PSG.
What mistakes should SMEs avoid when applying?
Even strong applications get rejected over avoidable errors. Knowing these pitfalls ahead of time can save you weeks of delay.
Buying before you apply
This is the most common mistake. If you pay for a solution before your application is approved, you likely forfeit the funding. Always secure approval first.
Choosing a non-approved vendor
The grant only covers solutions and vendors on the pre-approved list. A great piece of software that isn’t on the list won’t qualify, no matter how useful it is.
Submitting incomplete documents
Missing quotations, unsigned forms, or unclear invoices slow everything down. Double-check every document before you hit submit.
Treating the grant as free money
The PSG covers only part of the cost. You still pay the balance, so choose solutions that deliver genuine returns rather than chasing the subsidy alone.
Is the PSG grant worth it for your SME?
For most Singapore SMEs, the answer is yes—but with conditions.
Choose the PSG if you have a clear productivity problem that a pre-approved solution can solve. For example, if manual invoicing eats up hours each week, subsidized accounting software pays off quickly in saved time and fewer errors.
Think twice if you’re only applying because funding is available. A subsidized tool that doesn’t fit your workflow still costs you money and effort. The grant works best when it supports a decision you’d make anyway.
The bottom line: the PSG lowers the risk of investing in productivity tools, but it doesn’t remove the need for smart planning.
Making your PSG application count
The Productivity Solutions Grant is one of the most accessible forms of government support for Singapore SMEs. It reduces the cost of adopting proven technology, backs you with a vetted list of solutions, and helps level the playing field for smaller businesses.
To give your application the best chance, start with a real business need, pick a pre-approved solution, and follow the application steps in the right order. Apply before you buy, keep your documents in order, and confirm the current funding rate before you budget.
Your next step is simple: visit the GoBusiness and Enterprise Singapore websites to browse current solutions and check the latest eligibility details. With a clear plan in hand, you’ll be ready to turn government support into real business growth.
Frequently asked questions
How long does PSG grant approval take?
Approval timelines vary, but many applications are processed within a few weeks. Submitting complete and accurate documents helps speed things up. Complex or incomplete applications may take longer, so plan ahead if you have a project deadline.
Can I apply for the PSG grant more than once?
Yes. Businesses can apply for multiple solutions over time with grantconsultant.sg, as long as each application meets the eligibility criteria. However, there may be annual caps on total funding, so check current limits on the Enterprise Singapore website.
Do I need to pay the vendor upfront?
You typically pay the vendor after your application is approved and the project proceeds. The grant is disbursed as a reimbursement once you submit your claim with valid proof of payment and completion.
What is the difference between the PSG and other business grants?
The PSG focuses on adopting pre-approved, ready-to-use solutions and equipment. Other grants, such as the Enterprise Development Grant, support broader or more customized projects like business transformation and overseas expansion. Choose the PSG if you need a proven, off-the-shelf solution quickly.
Is the PSG grant only for tech companies?
No. The PSG is open to SMEs across many industries, from food services to retail to logistics. Both sector-specific and generic solutions are available, so businesses of all types can benefit.