How to Apply for the Productivity Solutions Grant (PSG) in Singapore

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In today’s competitive business landscape, productivity and efficiency are key to staying ahead. Recognising this, the Singapore government introduced the Productivity Solutions Grant (PSG) to support Small and Medium Enterprises (SMEs) in adopting IT solutions and equipment that improve their business processes. The PSG provides up to 50% funding support and is one of the most accessible and useful grants available to local businesses.

In this article, we will guide you through everything you need to know about the PSG and provide a step-by-step breakdown of how to apply for it.

What Is the Productivity Solutions Grant (PSG)?

The PSG was launched by Enterprise Singapore (ESG) in collaboration with Infocomm Media Development Authority (IMDA) and various other sectoral agencies. It aims to support local companies in adopting pre-approved productivity-enhancing solutions in areas such as:

  • Accounting
  • Human Resource Management
  • Digital Marketing
  • Customer Relationship Management (CRM)
  • Inventory Tracking
  • Cybersecurity
  • E-commerce solutions

Whether you are a small retail shop, an F&B outlet, or a service provider, PSG allows you to invest in digital tools with reduced financial burden.

Key Features of the PSG

  • Funding Support: Up to 50% of eligible costs.
  • Pre-Approved Solutions: Choose from a curated list of IT solutions and equipment.
  • Easy Application: Simple online process via the Business Grants Portal (BGP).

Eligibility Criteria

Before applying, it is important to ensure that your company meets the following requirements:

  1. Business Entity is Registered and Operating in Singapore
  2. Purchase/Lease/Subscription of IT Solutions or Equipment Must Be Used in Singapore
  3. Company Must Have at Least 30% Local Shareholding
  4. For Equipment/Software: Must not have commenced before the grant application is submitted.

Note: Companies that have previously received PSG funding for a particular solution will not be eligible to apply for the same solution again.

Step-by-Step Guide: How to Apply for PSG

Let’s break down the application process into easy-to-follow steps:

Step 1: Identify Your Business Needs

Before diving into the PSG application, assess your current business challenges and define the area you want to improve. For instance:

  • Are you struggling with manual invoicing? You might need an accounting solution.
  • Want to manage staff better? Consider a HRM or payroll system.
  • Need better online visibility? Look into digital marketing packages.

Identifying your needs clearly will help you choose the most suitable solution.

Step 2: Choose a Pre-Approved Solution

Visit the GoBusiness Gov Assist website:
👉 https://www.gobusiness.gov.sg/productivity-solutions-grant

Use the search filters to find pre-approved vendors and solutions under your relevant industry or solution category. Each listing provides:

  • Solution features
  • Supported cost components
  • Vendor details
  • Cost of solution

Be sure to reach out to the vendor to understand their offering, ask for a quotation, and clarify any doubts.

Step 3: Get a Quotation from the Vendor

After selecting a solution, contact the vendor directly to request a formal quotation. This document is required for your grant application.

Important: Do not sign or make payment before the grant application is approved. PSG only supports projects that have not started at the time of submission.

Step 4: Submit Your Application on the Business Grants Portal (BGP)

Head to the Business Grants Portal to submit your PSG application.

Steps on the BGP:

  1. Login using your CorpPass.
  2. Click on “Get New Grant”.
  3. Choose the option for Productivity Solutions Grant.
  4. Fill in the following:
    • Company details
    • Solution name (select from dropdown list)
    • Vendor name
    • Cost breakdown from quotation
    • Project details (why you need this solution, expected outcomes)
  5. Upload required documents:
    • Vendor quotation
    • Company ACRA profile (latest)
    • Any other supporting documents, if requested

Double-check all details and submit your application.

Step 5: Wait for Approval

The processing time is usually 4 to 6 weeks, though it can be quicker if all documents are in order. You will be notified via email and through the Business Grants Portal once your application is approved.

During this period, you must not commence the project, including signing contracts, issuing purchase orders, or making payments.

Step 6: Accept the Letter of Offer (LOF)

Once approved, you’ll receive a Letter of Offer (LOF) through the portal. Carefully review the terms and accept it online to proceed.

You can now officially engage the vendor and start the project.

Step 7: Project Implementation

Go ahead with the project and keep detailed records:

  • Invoices and receipts
  • Delivery orders
  • Screenshots or photos of implementation
  • Bank statements showing payment

These will be required for the claim submission after the project is completed.

Step 8: Submit Your Claim

Once the solution is fully deployed and paid for, return to the Business Grants Portal to submit your claim.

Required documents include:

  • Invoice(s)
  • Official receipt(s)
  • Proof of payment (e.g. bank transaction records)
  • Screenshot or documentation showing implementation
  • Final signed quotation
  • Deployment evidence (e.g. user login, system dashboard)

You may also be asked to complete a project evaluation survey.

Claims are generally processed in 4 to 6 weeks, and successful applicants will receive the grant disbursement directly into their company’s bank account.

Common Mistakes to Avoid

  1. Starting the project before approval – PSG only supports new projects.
  2. Incomplete documentation – Missing invoices or unclear bank records can delay approval.
  3. Applying for the same solution again – PSG funding is typically one-time per solution.
  4. Vendor not pre-approved – Only pre-approved vendors are eligible under PSG.

Additional Tips for a Successful Application

  • Work closely with the vendor to prepare a strong justification of how the solution improves productivity.
  • Ensure your ACRA information is updated, especially if there have been recent changes in shareholders or directors.
  • If you’re unsure about the process, consider speaking with a grant consultant or Enterprise Singapore representative for support.

Conclusion

The Productivity Solutions Grant (PSG) is a highly valuable tool for Singapore businesses seeking to improve efficiency through digital solutions. By subsidising the cost of software and equipment, the PSG lowers the barriers to technology adoption and helps businesses remain competitive in today’s digital economy.

With a clear understanding of your business needs and a step-by-step approach to application, you can confidently take advantage of this grant to drive your business forward. Whether you’re a new startup or an established SME, PSG can help transform the way you work.

If you need help with your PSG application, feel free to reach out to GrantConsultant.sg—we can assist you in identifying suitable solutions, preparing documentation, and ensuring a smooth application process.

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