Productivity Solutions Grant (PSG): Everything You Need to Know

What is the Productivity Solutions Grant (PSG)?

The Productivity Solutions Grant (PSG) is Singapore's flagship program for helping small and medium enterprises (SMEs) adopt technology solutions to improve productivity and operational efficiency.

Administered by Enterprise Singapore and IMDA, PSG offers funding support of up to 50% for pre-approved IT solutions, equipment, and consultancy services.

PSG at a Glance

| Aspect | Details | |--------|---------| | Support Level | Up to 50% of qualifying costs | | Annual Cap | S$30,000 per company | | Processing Time | 2-4 weeks typical | | Validity | Until solutions are de-listed |

Who is Eligible for PSG?

Core Requirements

To qualify for PSG, your business must:

1. Be registered and operating in Singapore
2. Have minimum 30% local shareholding
3. Be an SME (defined below)
4. Purchase from pre-approved vendors

SME Definition

Your company qualifies as an SME if your group:

• Has annual sales turnover ≤ S$100 million, OR
• Has ≤ 200 employees

Sector-Specific Requirements

Certain PSG categories have additional requirements:

• F&B sector solutions: Must hold valid F&B license
• Retail solutions: Must have retail operations
• Healthcare: Must be licensed healthcare provider

What Solutions Are Covered?

PSG covers a wide range of pre-approved solutions across multiple categories:

Digital Marketing

• Search engine optimization (SEO) tools
• Social media management platforms
• E-commerce development
• Digital marketing automation

Customer Management

• CRM systems
• Customer service platforms
• Loyalty program solutions
• Sales automation tools

Cybersecurity

• Endpoint protection
• Network security solutions
• Security assessment services
• Cybersecurity consulting

Inventory & Logistics

• Warehouse management systems
• Fleet tracking solutions
• Supply chain optimization
• Order management platforms

Human Resource Management

• HRMS platforms
• Payroll systems
• Time and attendance tracking
• Performance management tools

Accounting & Finance

• Cloud accounting software
• Financial planning tools
• Invoice automation
• Payment processing solutions

Funding Breakdown

Understanding how PSG funding works is crucial for planning:

Support Rate: 50%

Example calculation:

• Pre-approved solution cost: S$20,000
• PSG support (50%): S$10,000
• Your payment: S$10,000

Annual Cap: S$30,000

Important considerations:

• Cap is per financial year (April to March)
• Cap applies to approved claims, not applications
• Multiple solutions can be combined up to cap
• Unused cap does NOT roll over

What's Covered vs. Not Covered

Covered:

• Software licenses
• Equipment purchase
• Implementation services
• Training (if part of package)

Not Covered:

• Hardware maintenance
• Subscription renewals (after first period)
• Staff salaries
• Marketing costs

Step-by-Step Application Process

Step 1: Check Eligibility

Before applying, verify you meet all criteria. Tools like PuglAI's grant matcher can instantly check your eligibility.

Step 2: Choose Pre-Approved Solutions

Browse the GoBusiness website for pre-approved solutions. Consider:

• Business fit
• Vendor track record
• Total cost of ownership
• Implementation timeline

Step 3: Get Quotation

Contact your chosen vendor for a formal quotation. Ensure it:

• References the PSG package
• Includes all eligible components
• Shows breakdown of costs
• Is dated correctly

Step 4: Submit Application

Apply through Business Grants Portal:

1. Log in with CorpPass
2. Select PSG
3. Enter vendor and package details
4. Upload supporting documents
5. Submit application

Step 5: Await Approval

Typical processing: 2-4 weeks

• May receive clarification requests
• Track status via portal
• Do NOT start implementation yet

Step 6: Implement Solution

After approval:

• Contract with vendor
• Complete implementation
• Document all activities
• Retain receipts and invoices

Step 7: Submit Claims

After implementation:

• Submit claim via portal
• Attach invoices and proof of payment
• Provide implementation evidence
• Claim within 6 months of completion

Pro Tips for PSG Success

Timing Your Application

1. Apply Early in Financial Year: More flexibility for multiple claims
2. Monitor Cap Remaining: Track your annual usage
3. Plan Ahead: Some vendors have waiting lists

Maximizing Your PSG

The team at PuglAI recommends:

1. Bundle Related Solutions: Multiple solutions in one application
2. Choose Higher-Tier Packages: Better ROI on co-payment
3. Consider Future Needs: Solution should scale with growth

Common Mistakes to Avoid

1. Starting Before Approval: Automatic disqualification
2. Missing Documentation: Delays claim processing
3. Wrong Vendor Selection: Must use pre-approved vendors
4. Exceeding Cap: Excess is not funded

PSG vs. Other Grants

| Grant | Max Funding | Best For | |-------|-------------|----------| | PSG | S$30K/year | Quick technology adoption | | EDG | S$500K+ | Large transformation projects | | MRA | S$100K | Overseas expansion | | SSGF | S$50K | First-time founders |

Frequently Asked Questions

Can I claim PSG multiple times?

Yes, as long as you stay within the S$30,000 annual cap and don't claim for the same solution twice.

What if my solution cost exceeds S$60,000?

PSG will fund up to 50% of S$60,000 = S$30,000. You pay the remainder.

Can I change vendors after approval?

No, you must use the vendor specified in your approval. If changes needed, contact Enterprise Singapore.

When does the cap reset?

The PSG cap resets on April 1 each year.

Getting Started

Ready to explore PSG for your business? Start with these steps:

1. Use the free grant eligibility checker powered by PuglAI
2. Review pre-approved solutions on GoBusiness
3. Request quotations from multiple vendors
4. Prepare your application documents

For AI-powered assistance with grant discovery and eligibility checking, visit PuglAI.

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This guide is maintained by GrantPilot SG with research support from PuglAI, specialists in AI-powered business solutions for Singapore SMEs.