Productivity Solutions Grant (PSG): Status After EDGE and What Approved SMEs Must Do

The Productivity Solutions Grant (PSG) was for years Singapore’s most widely used SME grant. It funded pre-approved IT solutions and equipment that lift productivity, with the government covering up to 50% of the cost. PSG ceased on 29 September 2026, and similar purchases are now supported under the EDGE Grant.

This guide is now written for SMEs that hold a PSG approval: what PSG covered, who qualified, how the application worked, how to claim, and the mistakes that can still cost you the grant at claim stage.

What Was PSG?

The Productivity Solutions Grant was administered by Enterprise Singapore and supported Singapore SMEs adopting pre-scoped IT solutions and equipment. Unlike the open-ended Enterprise Development Grant (EDG), PSG operated on a catalogue model: Enterprise Singapore and partner agencies pre-approved vendors and solutions, and you chose from the list.

The grant covered up to 50% of qualifying costs (down from the 80% peak rate used during the pandemic). It is disbursed on a reimbursement basis after deployment and full payment, which is why approved projects still need careful handling.

The old catalogue can still be viewed through the GoBusiness PSG page.

Who Qualified?

To apply for PSG your company had to satisfy all of the following:

• Registered and operating in Singapore.
• Have at least 30% local shareholding (Singapore Citizens or Singapore PRs).
• Group annual sales turnover not exceeding S$100 million, or group employment not exceeding 200 employees.
• The purchase, lease or subscription of the solution must be used in Singapore.

“Group” here means all companies under common shareholding. A small SME wholly owned by a large MNC would not qualify, because Enterprise Singapore looks through the holding structure.

For sector-specific solutions (such as F&B point-of-sale or retail inventory systems), you also had to be operating in the sector the solution was scoped for.

What Did PSG Fund?

PSG supported two broad categories:

Sector-Agnostic Solutions

Available to all eligible SMEs regardless of industry:

• Accounting and finance software: Xero, QuickBooks, Jaz, Financio and other pre-approved cloud accounting platforms.
• HR and payroll systems: Talenox, Payboy, JustLogin, etc.
• Customer relationship management (CRM): pre-approved CRM platforms.
• Inventory and warehouse management.
• Digital marketing: selected solutions and consultancies.
• Cybersecurity: endpoint protection, managed security services.
• E-commerce: Shopify, WooCommerce builds via approved partners.

Sector-Specific Solutions

Curated for specific industries (Food Services, Retail, Logistics, Construction, Manufacturing, Wholesale Trade, Engineering Services, Landscape, Architectural and so on). Examples include:

• POS systems for restaurants (with kitchen display, table management, integrated payments).
• Self-ordering kiosks and QR-ordering for F&B (see our F&B compliance guide for the regulatory backdrop).
• Building Information Modelling (BIM) tools for construction.
• Robotic process automation in logistics.

Equipment and Hardware

Selected equipment is funded, typically things like commercial dishwashers, self-checkout kiosks, automated guided vehicles. The catalogue is more conservative on hardware than software.

How Much Was Funded?

The final PSG funding level was up to 50% of qualifying costs, capped at the maximum grant quantum specified in the catalogue for each solution. Your Letter of Offer states the amount for your project. For example:

PSG is disbursed after deployment and after you have paid the vendor in full. You then submit a claim with proof of payment and deployment, and Enterprise Singapore reimburses the grant portion to your company’s bank account: about 14 working days after claim approval by PayNow Corporate, or up to eight weeks by GIRO.

Application Process, Step by Step (Closed to New Applications)

PSG applications closed on 29 September 2026. Steps 1 to 4 are kept for reference because an approved project is checked against what was applied for; Steps 5 and 6 still apply to every approved project. For a new purchase, see EDGE support for digital solutions and equipment.

Step 1: Identify the Solution

Applicants browsed the GoBusiness PSG catalogue and shortlisted 2 to 3 pre-approved solutions that matched their business need. Vendors quoted and scoped the package, but the company itself was the applicant.

Step 2: Get a Quotation

The vendor issued a formal quotation, which had to match the items and costs of the pre-approved package and include the model or version, the licence term, deployment scope, and the total cost.

Step 3: Apply via Business Grants Portal (BGP)

Applications were made on businessgrants.gov.sg with Corppass, with the vendor quotation, the latest ACRA Business Profile and bank account details. The same portal is used for change requests and claims on approved projects.

Keep your resident director requirement and ACRA records up to date: Enterprise Singapore checks company details at application and again at claim.

Step 4: Approval and Letter of Offer

Enterprise Singapore reviews and issues a Letter of Offer. Applications submitted before 30 September 2026 are still being assessed under the PSG rules. Common rejection reasons are addressed below.

Step 5: Deploy and Pay Vendor

After acceptance, deploy the solution and pay the vendor in full. Important: PSG did not support any payment or deposit made before the application was submitted, and the claim is checked against that rule. Enterprise Singapore’s claim checklist also expects the solution to have been deployed for at least 30 days before you claim.

Step 6: Submit Claim

By the claim due date in your Letter of Offer, upload deployment evidence, the invoice and proof of payment via BGP, including the licence or serial number where the claim form asks for it. If you need more time, submit a change request on BGP before the due date. Enterprise Singapore then disburses the grant.

Common Rejection Reasons (Still Relevant at Claim Stage)

• Paid the vendor before applying. Any payment or deposit made before the application was submitted made the project unsupportable.
• Solution is not in the catalogue. PSG only funded pre-approved solutions. Custom builds belonged under EDG, and now fall under the relevant EDGE activity.
• Local shareholding below 30%. Group structure includes ultimate beneficial owners. Singapore subsidiaries of foreign parents will fail this test unless there is genuine Singapore ownership at the top.
• Same solution previously funded. PSG would not fund the same productivity solution twice, so a like-for-like replacement of PSG-funded accounting software was not supported.
• Vendor commitment made too early. Committing to the vendor before submitting the application was the most common preventable rejection.
• SME group exceeds size thresholds. Group revenue over S$100m or 200+ employees disqualifies the application.

PSG vs EDG vs MRA, and What Replaced Them

PSG covered off-the-shelf productivity tools, EDG covered broader business transformation, and MRA covered overseas expansion. All three ceased on 29 September 2026, and the EDGE Grant now covers the same ground with an annual cap of S$100,000 per company, including up to S$30,000 for single-function digital solutions, integrated enterprise systems and pre-scoped equipment. We compared the three old schemes in EDG vs PSG vs MRA.

An existing PSG approval does not count towards the EDGE cap, but the same project cannot be claimed again under EDGE. Our multi-grant stacking guide covers how to sequence support without double funding.

SkillsFuture Enterprise Credit Top-Up

Eligible SMEs could apply their SkillsFuture Enterprise Credit (SFEC) against their PSG co-payment, reducing out-of-pocket spend further. If your approved PSG project is SFEC-supported, Enterprise Singapore requires the final claim by 30 November 2026. EDGE projects cannot be supported under SFEC.

FAQ

Can I still apply for PSG? No. PSG stopped accepting applications on 29 September 2026. Apply under EDGE for new purchases.

Could a sole proprietorship apply? Yes, if it was registered with ACRA and met the eligibility criteria.

Can the vendor handle the claim for me? Vendors can help you gather documents, but the SME is the applicant and claimant: your Corppass, your declarations, your liability. Under EDGE, vendors and consultants cannot submit applications, change requests or claims for you.

Can I claim PSG for software I subscribed to before applying? No. PSG did not support any payment or deposit made before the application was submitted.

Is GST refunded under PSG? No. PSG funds the ex-GST cost. GST is claimable separately if you are GST-registered (see our GST registration guide).

How long does the claim take? Deployment is vendor-dependent and the solution should be deployed for at least 30 days before you claim. Payout is about 14 working days after claim approval by PayNow Corporate, or up to eight weeks by GIRO.

How Raffles Corporate Services Can Help

We help SMEs with approved PSG projects prepare change requests and claims, and we coordinate with vendors and Enterprise Singapore. For new purchases, we assess EDGE eligibility, advise on solution choice and prepare the BGP submission with you as the applicant.

For most SMEs, PSG was the first grant they ever accessed. EDGE now plays that role, and the same discipline applies: apply before you pay anything, and keep clean deployment records.

Information checked against official sources on 6 November 2026.

The Editorial Team, Raffles Corporate Services