What is the Singapore Productivity Solutions Grant (PSG)?

In today’s rapidly evolving business environment, small and medium enterprises (SMEs) in Singapore face increasing pressure to stay competitive through digitalisation, automation, and process optimisation. Recognising this, the Singapore government introduced the Productivity Solutions Grant (PSG)—a targeted initiative designed to support local companies in adopting pre-approved productivity-enhancing technologies and solutions.

The PSG is one of the most popular and accessible grants available to SMEs. Whether you’re a retail business, F&B operator, logistics company, or service provider, PSG can help reduce the cost of upgrading your operations and improve your efficiency through proven IT solutions and equipment.

Purpose of the Productivity Solutions Grant

The PSG aims to encourage early adoption of IT solutions and equipment that improve productivity and business operations. It provides financial support of up to 50% of the cost of qualifying solutions, making it highly attractive for SMEs seeking to digitalise or automate specific functions.

The solutions supported under PSG are pre-scoped and pre-approved by relevant government agencies. This makes the application process straightforward and ensures that businesses adopt technologies that are tried and tested within their respective industries.

What Types of Solutions Are Covered?

The PSG supports solutions across a range of sectors, including:

Retail
Food & Beverage (F&B)
Construction
Logistics
Precision Engineering
Wholesale Trade
Landscaping

It also supports cross-industry solutions that are applicable to most businesses, such as:

Accounting and HR management software
Customer Relationship Management (CRM) systems
Cybersecurity solutions
Digital marketing tools
E-commerce platforms
Inventory management software
Point-of-Sale (POS) systems
Remote working and collaboration tools

All approved solutions can be found on the GoBusiness Gov Assist website, where businesses can browse vendors and specifications before applying.

Key Benefits of the PSG

1. Subsidised Adoption of Technology

PSG provides up to 50% funding support for eligible solutions. This significantly lowers the cost barrier for SMEs that want to invest in productivity tools but may not have the capital to do so otherwise.

2. Wide Range of Pre-Approved Solutions

With hundreds of pre-scoped solutions from reputable vendors, businesses don’t need to worry about whether a solution is credible or meets grant requirements. The government has done the vetting for you.

3. Simple Application Process

Compared to other grants like the EDG (Enterprise Development Grant), PSG has a more streamlined process. Applications are submitted via the Business Grants Portal (BGP) and don’t require lengthy proposals or business strategy documentation.

4. Immediate Business Impact

PSG solutions are typically ready-to-deploy and deliver immediate results. Whether it’s a POS system to speed up order-taking or an inventory management software to reduce stockouts, businesses see quick ROI.

5. Complementary to Other Grants

PSG can be used alongside other schemes such as the SkillsFuture Enterprise Credit (SFEC), which offers additional subsidies for training and business transformation.

Eligibility Criteria

To qualify for the PSG, your business must meet the following criteria:

Registered and operating in Singapore
At least 30% local shareholding
Purchasing/using the solution in Singapore
Solution must be used for business operations (not for resale)

Additionally, the solution must be on the pre-approved list of vendors under PSG. Custom or bespoke solutions that are not on the list will not qualify.

How to Apply for the PSG

Here’s a step-by-step guide to applying for the PSG:

Step 1: Identify Suitable Solution

Visit the GoBusiness Gov Assist website and browse the list of pre-approved solutions by sector or functionality. Select the solution that best fits your business needs.

Step 2: Get a Quotation from a Pre-Approved Vendor

Reach out to the vendor to request a formal quotation. The vendor must be listed as a pre-approved provider under PSG.

Step 3: Submit Application on Business Grants Portal (BGP)

Vendor quotation
Company ACRA profile
Cost breakdown
Project justification (brief)

Step 4: Await Approval

Applications are usually processed within 2–6 weeks. You’ll receive a Letter of Offer (LOF) if your grant is approved.

Step 5: Purchase and Deploy the Solution

After receiving the LOF, proceed to purchase and implement the solution as proposed. Do not make purchases before approval, or your claim may be rejected.

Step 6: Submit Claim for Reimbursement

Once the solution is implemented, you’ll need to submit:

Invoice from the vendor
Proof of payment
Screenshot or photos of the deployed solution
Bank statement reflecting payment

Upon successful verification, your reimbursement will be credited to your account.

Real-World Example: PSG in Action

Let’s say you run a small café in Singapore and want to improve service speed and reduce human error in order taking. By adopting a POS and ordering system from a pre-approved PSG vendor, you can:

Reduce customer wait time
Improve order accuracy
Track sales performance
Manage inventory in real time

The total system cost is $10,000. Under PSG, you receive up to 50% funding, bringing your out-of-pocket expense down to $5,000. Within months, improved efficiency boosts your revenue, pays back the investment, and increases customer satisfaction.

Common Mistakes to Avoid

Despite its straightforward process, some businesses still make mistakes that lead to rejection or delayed claims. These include:

Purchasing the solution before receiving approval
Submitting incomplete documentation
Choosing vendors not on the approved list
Implementing the solution outside of Singapore
Providing inaccurate or inflated cost breakdowns

To avoid these pitfalls, many businesses choose to engage a grant consultant for expert guidance.

Why Work with a Grant Consultant?

At GrantConsultant.sg, we help Singapore SMEs identify the right PSG solutions, liaise with vendors, prepare documentation, and submit successful grant applications. Our role is to simplify the process and ensure you get the funding you’re entitled to.

We provide:

End-to-end grant application support
Vendor matching based on your business needs
Application tracking and documentation advice
Claims submission assistance

Let us take the complexity off your plate so you can focus on implementing the solution and running your business.

Complementary Grants to Consider

PSG can be combined with other grants such as:

SkillsFuture Enterprise Credit (SFEC): Get up to 90% support for eligible PSG solutions if you meet SFEC eligibility.
Enterprise Development Grant (EDG): For more strategic and customised projects like business transformation and innovation.
Market Readiness Assistance (MRA): If you’re looking to expand overseas after digitalising locally.

Conclusion

The Productivity Solutions Grant (PSG) is one of the most accessible and impactful grants for Singapore SMEs looking to digitise, automate, and streamline operations. By covering up to 50% of solution costs, PSG lowers the barrier to entry and enables businesses to adopt proven technologies that drive real results.

Whether you’re looking to upgrade your POS system, move your HR processes online, improve cybersecurity, or enhance inventory management—PSG is the grant to consider.

At GrantConsultant.sg, we specialise in helping businesses like yours apply for and maximise PSG support. From choosing the right solution to submitting a winning application, we’re here to ensure your journey to productivity is smooth and successful.

Reach out to us today to get started on your PSG journey!