Quick answer: The Productivity Solutions Grant (PSG) helps Singapore SMEs adopt pre-approved digital solutions by covering up to 50% of eligible costs. Before applying, SMEs should confirm eligibility, choose a pre-approved solution and vendor, get a quotation, apply through the Business Grants Portal before purchase, and prepare for post-purchase claims. Planning ahead avoids rejected applications and lost funding.
Going digital is one of the smartest moves a small or medium-sized enterprise (SME) can make—but the price tag often gives business owners pause. That’s where the Productivity Solutions Grant (PSG) comes in. Administered by Enterprise Singapore, the PSG helps SMEs offset the cost of adopting IT solutions and equipment that boost productivity.
The catch? Many business owners rush into their digital upgrade without fully understanding how the grant works. They buy the software first, apply later, or pick a vendor that isn’t pre-approved—and end up footing the entire bill.
This guide breaks down the five most important things you should know before planning your next digital upgrade with the PSG Grant. Whether you’re rolling out an accounting system, an e-commerce platform, or a customer management tool, these insights will help you apply with confidence and maximize your funding.
What is the PSG grant, and how does it work?
The Productivity Solutions Grant is a government initiative designed to encourage SMEs in Singapore to adopt technology and improve productivity. It supports the purchase of pre-approved digital solutions, equipment, and IT tools across a wide range of sectors and business functions.
Rather than reimbursing any tech purchase, the PSG works from a curated list of pre-scoped solutions vetted by Enterprise Singapore. These cover common needs like accounting, human resources management, inventory tracking, customer relationship management (CRM), and digital marketing.
The grant currently supports up to 50% of eligible costs. Because funding levels and support caps are periodically reviewed and adjusted, always check the official Business Grants Portal (BGP) for the latest rates before you plan your budget.
1. Confirm your eligibility before anything else
Before you fall in love with a shiny new software solution, make sure your business actually qualifies. Applying without meeting the criteria is the fastest way to a rejected application.
To be eligible for the PSG, your business generally needs to meet these conditions:
- Registered and operating in Singapore. Your business must be legally registered and active.
- Local shareholding. SMEs typically need at least 30% local (Singaporean or Permanent Resident) shareholding.
- Purchase, lease, or subscription used in Singapore. The solution must be deployed within the country.
- Group revenue or employee limits. Your company usually needs to fall within the SME thresholds set by Enterprise Singapore.
Eligibility criteria can vary slightly depending on the specific solution and sector. Take the time to read the requirements listed alongside each pre-approved solution, since some carry extra conditions.
2. Choose from pre-approved solutions and vendors only
Here’s a mistake that catches many first-time applicants off guard: the PSG only funds solutions and vendors that appear on the official pre-approved list.
You can’t simply pick any software you like, buy it, and expect the grant to cover half the cost. If the solution or the vendor isn’t listed on the Business Grants Portal, the purchase won’t qualify—no exceptions.
How do you find pre-approved solutions?
The full catalogue of pre-approved solutions lives on the GoBusiness portal. You can filter by sector or by business function, which makes it easier to find something that fits your needs. Categories typically include:
- Accounting and bookkeeping
- Inventory and warehouse management
- Customer relationship management (CRM)
- E-commerce and digital storefronts
- Human resources and payroll
- Data analytics and reporting
When browsing, compare a few options rather than settling on the first result. Look at the features, the vendor’s track record, and whether the solution scales with your business. A tool that fits today but can’t grow with you may cost you more in the long run.
3. Apply through the Business Grants Portal before you buy
This is the single most important rule, and it trips up more SMEs than any other: you must apply for the PSG before you purchase, sign, or pay for the solution.
Enterprise Singapore will not fund purchases made before your application is submitted and approved. If you buy the software in January and apply in February, you’ve likely disqualified yourself from any support for that purchase.
What does the application process look like?
The application flows through the Business Grants Portal, and the general steps are:
- Get a quotation from your chosen pre-approved vendor.
- Log in to the Business Grants Portal using your Singpass or Corppass credentials.
- Submit your application, attaching the vendor quotation and any required supporting documents.
- Wait for the outcome. Processing times vary, so factor this into your project timeline.
- Proceed with the purchase only after approval.
Because approval isn’t instant, avoid committing to a go-live date that assumes immediate funding. Build a buffer into your rollout schedule so you’re not left waiting on paperwork.
4. Understand the claims process and your out-of-pocket costs
Getting approved is only half the journey. The PSG operates on a reimbursement model, which means you pay the vendor first and claim the grant portion back afterward.
That cash-flow reality matters. If a solution costs S$10,000 and the grant covers 50%, you’ll still need to pay the full S$10,000 up front, then submit a claim to recover S$5,000. For SMEs with tight cash flow, this timing gap deserves careful planning.
What do you need to submit a claim?
After you’ve purchased and deployed the solution, you’ll typically need to provide:
- Proof of payment to the vendor (such as bank transfer records or receipts).
- A copy of the vendor invoice.
- Evidence of deployment or delivery, showing the solution is actually in use.
Keep every document organized from day one. Missing or inconsistent paperwork is a common reason claims get delayed or rejected. A simple folder—digital or physical—dedicated to your PSG project can save you significant hassle later.
5. Plan your digital upgrade as a long-term strategy, not a one-off purchase
The most successful PSG applicants treat the grant as one piece of a broader digital transformation plan, not a quick discount on a single tool.
Before you apply, ask yourself what problem you’re actually solving. Are you drowning in manual invoicing? Losing customers because your online store feels clunky? Struggling to track inventory across locations? A clear problem statement helps you choose the right solution—and justifies the investment to yourself and your team.
It’s also worth thinking about how your chosen tools work together. An accounting system that integrates with your e-commerce platform will save far more time than two disconnected tools bought in isolation. When solutions talk to each other, you reduce double entry, cut errors, and free up staff for higher-value work.
Finally, consider the human side. New software only delivers value if your team actually uses it. Budget time for training and set realistic expectations for the adjustment period. The grant covers the tool; your people make it worthwhile.
Making the most of your PSG application
The Productivity Solutions Grant can meaningfully lower the cost of modernizing your business—but only if you approach it with a plan. Confirm your eligibility, choose from the pre-approved list, apply through the Business Grants Portal before you buy, prepare for the reimbursement model, and treat the upgrade as part of a bigger strategy.
Your next step is simple: head to the GoBusiness and Business Grants Portal websites to review the current pre-approved solutions and the latest funding rates. From there, shortlist the tools that solve your most pressing challenges, request quotations, and get your application in early.
A little preparation now can translate into thousands of dollars saved—and a business that runs smarter for years to come.
Frequently asked questions
Who is eligible for the PSG grant in Singapore?
SMEs registered and operating in Singapore are generally eligible, provided they have at least 30% local shareholding and the purchased solution is used within Singapore. Companies must also fall within Enterprise Singapore’s SME thresholds. Specific solutions may carry additional conditions, so check the requirements listed for each one.
How much funding does the PSG grant provide?
The PSG currently supports up to 50% of eligible costs for pre-approved solutions. Because funding levels and caps are reviewed periodically, confirm the current rate on the Business Grants Portal before finalizing your budget.
Can I apply for the PSG after buying the software?
No. You must apply through the Business Grants Portal and receive approval before you purchase, sign, or pay for the solution. Purchases made before your application is submitted will not be funded.
How long does PSG grant approval take?
Processing times vary depending on the application and current volume. Because approval isn’t instant, build a buffer into your project timeline and avoid setting a go-live date that assumes immediate funding.
Does the PSG cover the full cost of a digital solution?
No. The PSG operates on a reimbursement model and covers a percentage of eligible costs—currently up to 50%. You pay the vendor the full amount first, then claim the grant portion back with proof of payment, an invoice, and evidence of deployment.
Where can I find the list of pre-approved PSG solutions?
The full catalogue of pre-approved solutions is available on the GoBusiness portal, where you can filter by sector or business function to find tools that match your needs.
