The Productivity Solutions Grant (PSG) remains one of the most-used SME support schemes in Singapore — and for good reason. It funds up to 50% of qualifying costs for pre-approved IT solutions and equipment that help small businesses digitalise, automate and become more productive. If you are a Singapore-incorporated company with at least 30% local shareholding and turnover under S$100 million (or fewer than 200 employees), PSG is almost certainly the cheapest path to building out your digital stack.
In 2026, PSG continues to be administered by Enterprise Singapore (EnterpriseSG) with the Business Grants Portal (BGP) as the front door. This guide walks through who qualifies, what the 50% support cap actually buys you, which solutions are on the approved list, and how to file the application without tripping the common rejection reasons.
What Is the Productivity Solutions Grant?
PSG is a co-funding grant that subsidises pre-approved IT solutions and equipment in sectors including F&B, retail, logistics, precision engineering, construction, food manufacturing, landscape and the professional services. It also covers cross-sector solutions like accounting software, HR/payroll systems, customer management, inventory management, cybersecurity and digital marketing.
The grant is paid as a reimbursement after you have engaged a pre-approved vendor and the solution is deployed. You do not get the money upfront; you pay the vendor first, then claim the 50% from EnterpriseSG.
Who Is Eligible?
To qualify for PSG in 2026, your company must meet all of the following:
- Registered and operating in Singapore (i.e. a Singapore-incorporated business — typically a private limited company set up with ACRA).
- At least 30% local shareholding (Singapore citizens or Singapore Permanent Residents, looking through to the ultimate individual shareholders).
- Group annual sales turnover of not more than S$100 million, OR group employment size of not more than 200 employees.
- The solution must be deployed in Singapore for use by the entity that is applying.
If you have just incorporated, do not panic — newly-formed companies are eligible provided they meet the criteria above. If you are still in the process of setting up, our foreign subsidiary set-up guide covers the incorporation step.
How Much Funding Can You Get?
Since 1 April 2023, the standard PSG funding level has been 50% of qualifying costs, capped per-solution at the level set on the Tech Depot listing for each pre-approved package. There is also an annual grant cap of S$30,000 per company per financial year across all PSG applications.
What this typically translates to:
- Accounting / ERP: vendor packages on Tech Depot are commonly listed at S$1,500 – S$25,000 — you pay 50%.
- HR / payroll software: typical packages at S$1,200 – S$8,000 — you pay 50%.
- Inventory / POS systems: S$2,000 – S$15,000 ranges are common.
- Cybersecurity solutions (endpoint protection, MFA, email security): S$2,000 – S$10,000 ranges.
Which Solutions Are Pre-Approved?
Only solutions listed on the GoBusiness PSG Tech Depot qualify. The list is updated continuously, but the broad categories are:
Sector-specific solutions
Examples include kitchen automation and queue management for F&B, warehouse management systems for logistics, building information modelling for construction, and clinic management systems for healthcare.
Cross-sector solutions
These are useful for almost every SME:
- Accounting software (e.g. Xero, QuickBooks, Jaz and other listed vendors)
- HR and payroll management
- Customer relationship management (CRM)
- Inventory management
- Cybersecurity
- Digital marketing
- E-commerce platforms
- Data analytics and business intelligence
Step-By-Step Application Walkthrough
Step 1: Identify the right solution
Browse the Tech Depot at gobusiness.gov.sg and shortlist the solution that fits your problem. Get a quote from the pre-approved vendor.
Step 2: Prepare your supporting documents
You will need: company ACRA business profile, latest financial statements (or management accounts), the vendor’s quotation, and a board resolution if your constitution requires it for capital expenditure.
Step 3: Apply via the Business Grants Portal
Log in to businessgrants.gov.sg using your CorpPass. Submit the PSG application with the vendor quote attached. Approval is usually granted within 4–6 weeks.
Step 4: Engage the vendor and deploy
Once you receive a Letter of Offer, accept it within the deadline, engage the vendor and complete the deployment. Keep all invoices and payment evidence.
Step 5: Submit your claim
After deployment, file a claim through BGP with invoices, proof of payment and a deployment confirmation. The 50% reimbursement is paid into your nominated bank account.
Common Rejection Reasons (and How to Avoid Them)
- Engaging the vendor before applying: If you sign the vendor contract or pay before EnterpriseSG approval, the application is rejected. Always wait for the Letter of Offer.
- Buying a non-listed solution: Only solutions on the Tech Depot qualify. Custom builds are not covered under PSG.
- Foreign-owned company without 30% local shareholding: The local shareholding test looks through nominee structures.
- Wrong financial year baseline: The S$30,000 cap resets each financial year, so timing matters.
PSG vs Other Grants — Where Does PSG Fit?
PSG is the right grant for buying pre-approved IT solutions and equipment. For broader transformation projects involving consulting or custom development, look at the Enterprise Development Grant (EDG). For overseas market entry, the Market Readiness Assistance (MRA) Grant is the better fit. See our post-grant claims and audit guide for what happens after approval.
Final Thoughts
PSG is one of the best-value grants on offer in Singapore. The mechanics are simple but the rules are strict — apply before you engage the vendor, pick an approved solution, and keep clean documentation. Done right, you can equip your business with a full digital stack at half the sticker price.
If you need help packaging the application or navigating the Business Grants Portal, Raffles Corporate Services handles end-to-end PSG submissions for our clients. We also work with Singapore Secretary Services for compliance-side support.
— The Editorial Team, Raffles Corporate Services