The Productivity Solutions Grant (PSG) is one of the most accessible and widely used funding schemes available to small and medium-sized enterprises (SMEs) in Singapore. By subsidising up to 50% of web design and development costs, the PSG website grant provides a valuable opportunity for businesses to boost their digital presence at a significantly reduced cost.
However, despite the straightforward process, many applicants make mistakes that delay their approval — or worse, lead to outright rejections or loss of funding. These errors can be avoided with the right guidance and preparation.
In this blog post, we will explore the common mistakes to avoid when applying for the PSG website grant, so your business can secure the support it needs without unnecessary setbacks.
Why the PSG Website Grant Matters
Before we dive into the mistakes, let’s briefly understand why the website grant Singapore businesses rely on is so crucial.
Whether you’re a startup, retail outlet, F&B establishment, or service provider, your website is often the first point of contact for potential customers. A well-designed website enhances your brand credibility, generates leads, and supports sales — but professional web development can be costly.
The PSG website grant reduces this burden, making it more affordable for SMEs to go digital. However, to benefit from this support, you must follow the process precisely.
Mistake #1: Engaging a Vendor Before Grant Approval
One of the most common mistakes made by applicants is engaging a vendor — either by signing a contract or making a payment — before the grant has been officially approved.
❌ Why This Is a Problem:
According to PSG rules, any financial commitment made prior to grant approval automatically disqualifies the project from receiving funding.
✅ What To Do Instead:
- Choose your pre-approved PSG vendor
- Request a quotation from them
- Submit your application through the Business Grants Portal (BGP)
- Wait for the Letter of Offer (LOF) before committing
You should only sign contracts or make payments after receiving the LOF. Doing otherwise will result in rejection — even if your company meets all other eligibility criteria.
Mistake #2: Using a Non-Approved Vendor
Another major error is choosing a web development vendor who is not pre-approved under the PSG scheme.
❌ Why This Is a Problem:
The PSG only supports vendors who are pre-scoped and approved by the Infocomm Media Development Authority (IMDA). Projects done by non-approved vendors are not eligible for funding — no matter how professional they are.
✅ What To Do Instead:
- Visit the Business Grants Portal or speak to a grant consultant to shortlist PSG-approved website vendors
- Choose a package listed under their pre-approved offerings
- Work only with vendors who can provide an official PSG quotation and package code
Avoid the temptation to work with a cheaper vendor who isn’t approved — it will cost you the entire grant.
Mistake #3: Submitting Incomplete or Inaccurate Applications
Filling out your PSG application with missing or incorrect information can delay your approval by weeks — or result in rejection.
❌ Common Errors Include:
- Uploading the wrong quotation format
- Providing inconsistent company details (e.g., wrong UEN or registered name)
- Not describing how the solution improves business productivity
- Forgetting to attach essential documents (e.g., past invoices, product screenshots, ACRA profile)
✅ What To Do Instead:
- Double-check all uploaded files for accuracy
- Ensure that quotations match the vendor’s pre-approved PSG package
- Provide a clear value proposition for how the website improves productivity (e.g., automation, lead generation, e-commerce)
- Work with a consultant to verify your application
The Business Grants Portal is strict — even small errors can result in major delays.
Mistake #4: Not Understanding the Scope of the Grant
Many SMEs wrongly assume that any kind of website development is covered under PSG. In reality, the PSG only supports pre-defined scopes and deliverables.
❌ Common Misunderstandings:
- Thinking that branding or digital marketing is included
- Expecting custom development features not listed in the approved package
- Assuming maintenance or content creation is part of the funding
✅ What To Do Instead:
- Carefully review the scope of the PSG-approved package before applying
- Clarify what’s included with your vendor
- Budget separately for services not covered by the grant (e.g., ongoing SEO, copywriting, marketing campaigns)
Knowing the grant’s limitations helps you plan realistically.
Mistake #5: Missing the Claim Submission Deadline
Receiving the Letter of Offer (LOF) is not the end of the process — you must submit a claim after project completion to receive your reimbursement.
❌ Why This Is a Problem:
If you miss the claim deadline, you risk forfeiting the grant — even after the project has been approved and executed.
✅ What To Do Instead:
- Start the project immediately after LOF approval
- Keep track of deliverables, screenshots, and receipts
- Submit your claim on the BGP within the timeframe stated in the LOF (usually within 6 months of approval)
- Work with your vendor to gather the required evidence, including:
- Completed project screenshots
- Access to CMS
- Proof of payment (invoices, bank transfers)
- Training and handover documentation
Timely claims = timely reimbursements.
Mistake #6: Misrepresenting Your Business Eligibility
To qualify for the PSG website grant, your business must meet certain criteria, including:
- Registered and operating in Singapore
- At least 30% local shareholding
- Company’s group annual turnover < S$100 million OR fewer than 200 employees
Some companies may attempt to “bend” the truth in hopes of getting approval. This is risky and can lead to disqualification — or even future ineligibility for other grants.
✅ What To Do Instead:
- Review the latest eligibility requirements on the Business Grants Portal
- Confirm your company details on ACRA
- Speak with a grant consultant if you’re unsure whether you qualify
Honesty and clarity ensure smooth application outcomes.
Mistake #7: Ignoring the Role of a Grant Consultant
While the PSG application process may seem simple, inexperienced applicants often underestimate the paperwork, formatting, and vendor coordination involved.
Trying to DIY the process often leads to:
- Application errors
- Long processing delays
- Rejected claims
- Missed deadlines
✅ What To Do Instead:
Work with an experienced grant consultant who understands the PSG ecosystem inside out.
At GrantConsultant.sg, we help SMEs by:
- Assessing eligibility
- Matching you with the best PSG-approved vendors
- Preparing and submitting applications
- Handling documentation and claim processes
- Avoiding mistakes that cost time and money
Mistake #8: Expecting the PSG to Cover Everything
The PSG provides co-funding — not full funding. It also does not cover:
- GST (you must pay GST even if the grant is approved)
- Hosting renewal after the first year
- Monthly maintenance or content updates
- Marketing, branding, or social media management
✅ What To Do Instead:
- Budget for what the PSG does not cover
- Use the savings from the PSG to invest in complementary digital efforts like SEO or paid ads
- Maintain your website post-development to keep it secure and updated
Mistake #9: Poor Communication with the Vendor
Lastly, many SMEs don’t communicate clearly with their vendor about expectations, deliverables, and timelines. This leads to:
- Misunderstood scope
- Delays in project completion
- Frustration and wasted resources
✅ What To Do Instead:
- Schedule a kick-off meeting with your vendor after LOF approval
- Set clear deadlines for each phase (design, development, testing, handover)
- Ask for documentation and user guides during training
The success of your PSG website project depends on collaboration.
Final Thoughts: Avoid These Mistakes for a Smooth PSG Website Grant Experience
Applying for the PSG website grant is one of the smartest moves an SME in Singapore can make — but only if done right.
By avoiding the common mistakes covered in this article, you can increase your chances of:
- Fast application approval
- Smooth project execution
- Timely claim reimbursement
Work With the Experts at GrantConsultant.sg
At GrantConsultant.sg, we specialize in making your PSG journey seamless.
Here’s what we offer:
- ✅ Vendor selection support
- ✅ Full documentation assistance
- ✅ Accurate, error-free application submission
- ✅ Claim support and evidence gathering
- ✅ Zero confusion from start to finish