The Productivity Solutions Grant (PSG) is Singapore’s most accessed SME grant — over 30,000 successful applications in the past three years. It funds pre-approved IT solutions and equipment that lift productivity, with the government covering up to 50% of the cost. For a small business buying accounting software, an inventory system, a POS, or a website, PSG is usually the fastest way to claim tangible support from Enterprise Singapore.
This guide walks you through the 2026 PSG — who qualifies, what’s funded, how to apply through the Business Grants Portal, and the mistakes that disqualify applicants.
What Is PSG?
The Productivity Solutions Grant is administered by Enterprise Singapore and supports Singapore SMEs adopting pre-scoped IT solutions and equipment. Unlike the open-ended Enterprise Development Grant (EDG), PSG operates on a catalogue model — Enterprise Singapore pre-approves vendors and solutions, and you simply choose from the list.
The grant covers 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 project completion.
You can browse the full catalogue on the GoBusiness PSG page.
Who Qualifies?
To apply for PSG your company must 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 will not qualify — Enterprise Singapore looks through the holding structure.
For sector-specific solutions (such as F&B point-of-sale or retail inventory systems), you must also be operating in the sector the solution is scoped for.
What Does PSG Fund?
PSG supports 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 Is Funded?
The current PSG funding level is 50% of qualifying costs, capped at the maximum grant quantum specified in the catalogue for each solution. For example:
| Example Solution | List Price | PSG Cap | Your Co-Payment |
|---|---|---|---|
| Cloud accounting software (3-year licence) | S$6,000 | S$3,000 | S$3,000 |
| POS system for restaurant | S$15,000 | S$7,500 | S$7,500 |
| HR & payroll subscription | S$8,000 | S$4,000 | S$4,000 |
| E-commerce website build | S$12,000 | S$6,000 | S$6,000 |
PSG is disbursed after deployment and after you’ve 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, typically within 4–6 weeks.
Application Process — Step by Step
Step 1: Identify the Solution
Browse the GoBusiness PSG catalogue and shortlist 2–3 pre-approved solutions that match your business need. Talk to the vendors directly; they will quote, scope and often guide you through the application paperwork.
Step 2: Get a Quotation
The vendor issues a formal quotation, which must include the PSG-supportable items, the model / version, the licence term, deployment scope, and the total cost.
Step 3: Apply via Business Grants Portal (BGP)
Log into businessgrants.gov.sg with your CorpPass. Create the PSG application, upload the vendor quotation, your latest ACRA Business Profile, and bank account details. The portal will calculate your eligible grant quantum.
Make sure your resident director requirement and ACRA records are up to date — Enterprise Singapore cross-checks ACRA at application.
Step 4: Approval (Usually 4–8 Weeks)
Enterprise Singapore reviews and issues a Letter of Offer. Approval is typically routine if the solution is pre-scoped, the SME meets eligibility, and the documentation is clean. Common rejection reasons are addressed below.
Step 5: Deploy and Pay Vendor
After acceptance, deploy the solution and pay the vendor. Important: do not pay or sign contracts before the Letter of Offer date — anything before the offer date is not claimable.
Step 6: Submit Claim
Within the claim period (typically 6 months from approval), upload deployment evidence, tax invoice and proof of payment via BGP. Enterprise Singapore disburses the grant.
Common Rejection Reasons (Avoid These)
- Paid the vendor before approval. The Letter of Offer date is the cut-off. Anything dated before it is ineligible. Get approval first, then pay.
- Solution is not in the catalogue. PSG only funds pre-approved solutions. If you want a custom build, look at EDG instead.
- 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 won’t fund the same productivity solution twice — if you previously claimed PSG for accounting software, you can’t claim again for a like-for-like replacement.
- Vendor contract starts before Letter of Offer. This is 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
PSG is the right grant when you’re buying off-the-shelf productivity tools. For broader business transformation, look at EDG; for overseas expansion, MRA. We compared all three in EDG vs PSG vs MRA: Which Singapore Government Grant Is Right for You?
Many SMEs stack grants — for example, using PSG to digitise back-office accounting in year one and EDG to fund process redesign in year two. Our multi-grant stacking guide walks through how to sequence them.
SkillsFuture Enterprise Credit Top-Up
Eligible SMEs can apply their SkillsFuture Enterprise Credit (SFEC) against their PSG co-payment, effectively reducing out-of-pocket spend further. The S$10,000 SFEC credit can be applied across multiple PSG / EDG claims, capped at 90% of out-of-pocket per claim.
FAQ
Can a sole proprietorship apply? Yes, if registered with ACRA and meeting the eligibility criteria.
Does the vendor handle the application for me? Many pre-approved vendors guide you, but the SME is the applicant — your CorpPass, your declarations, your liability.
Can I claim PSG for software I subscribed to last year? No. PSG only funds new purchases / new subscriptions made after the Letter of Offer.
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 whole process take? From quotation to grant disbursement, typically 4–6 months. Application approval: 4–8 weeks. Deployment: vendor-dependent. Claim payout: 4–6 weeks after submission.
How Raffles Corporate Services Can Help
We help SMEs build the case for PSG — assessing eligibility, advising on solution choice, preparing the BGP submission, and coordinating with vendors and Enterprise Singapore. For multi-grant strategies that combine PSG with EDG, SFEC and the Enterprise Innovation Scheme, we sequence the applications so each grant amplifies the next.
PSG is the cleanest first grant most SMEs ever access. Done right, it cuts your digitisation costs by half and seeds your eligibility for bigger grants down the line.
— The Editorial Team, Raffles Corporate Services