The Productivity Solutions Grant (PSG) is the Singapore government’s flagship subsidy for SMEs that adopt pre-approved digital and productivity solutions. It is administered jointly by Enterprise Singapore and the Infocomm Media Development Authority (IMDA), and it is the most-applied-for grant in the Enterprise Singapore stable for one simple reason — it is fast, predictable, and pays out at a meaningful percentage of cost.
Yet PSG is also the grant SMEs most often misunderstand. The headline 50% support rate is real, but only against a defined list of vendors and solutions, only for qualifying SMEs, and only when the application is submitted before the purchase commitment. Get the sequence wrong and a perfectly good claim becomes ineligible.
This guide walks through the 2026 PSG framework: who qualifies, which solutions are pre-approved, how to apply, the documentation that trips most companies up, and how to combine PSG with other Enterprise Singapore support without falling foul of the no-double-funding rule.
What PSG Is — and Is Not
PSG provides funding support for the adoption of pre-approved IT solutions, equipment, and consultancy services that have been vetted by IMDA, Enterprise Singapore, or the relevant sector lead agency. It is not a research or innovation grant — it does not fund custom builds, prototypes, or first-of-its-kind work. It funds the adoption of solutions someone else has already built and approved.
For a broader overview of the Singapore grant ecosystem and how PSG sits alongside the Enterprise Development Grant (EDG) and Market Readiness Assistance (MRA) Grant, see our companion piece on EDG vs PSG vs MRA.
2026 Funding Levels
From 1 April 2023, the maximum support level under PSG was set at up to 50% of qualifying costs. The cap on funding per company per year has historically been S$30,000 across all PSG applications. The PSG-Job Redesign track (PSG-JR), which co-funds consultancy on job redesign, sits separately with its own cap of S$30,000.
Always verify the current cap and percentage for your specific solution category on the Enterprise Singapore website and the Business Grants Portal, because the rates have changed several times since the scheme launched and may be revised again at the next Singapore Budget.
Who Qualifies for PSG?
Your company must satisfy all of the following at the point of application:
- Registered and operating in Singapore
- The solution being purchased must be used in Singapore
- Have a minimum of 30% local shareholding (Singapore Citizen or Permanent Resident)
- Group annual sales turnover of less than S$100 million, OR group employment size not exceeding 200 employees
- For sector-specific solutions (e.g. retail POS, food services kitchen automation): be in the relevant sector
The 30% local shareholding test is calculated at the ultimate beneficial owner level, not the immediate shareholder. Holding structures that interpose offshore vehicles between the Singapore operating company and its founders can inadvertently fail this test. Companies setting up incorporation structures should bear this in mind — see our piece on the Singapore entity structures comparison.
What PSG Funds: The Solution Categories
PSG-supported solutions fall into two broad buckets — sector-agnostic solutions and sector-specific solutions.
Sector-agnostic solutions (available to all SMEs)
- Accounting and bookkeeping software — Xero, QuickBooks Online, MYOB, Financio, and other approved providers
- Customer Relationship Management (CRM) — Salesforce starter packages, HubSpot, Zoho CRM (selected packages)
- Human Resource Management Systems (HRMS) — Talenox, JustLogin, PayrollHero, and similar
- Cybersecurity solutions — endpoint protection, email security gateways, managed detection and response
- Data backup and recovery
- Inventory management — for SMEs that need a stock control layer above their accounting software
- E-commerce platforms — Shopify, WooCommerce setup with approved digital agencies
- Digital marketing — search engine marketing, social media advertising packages from approved agencies
Sector-specific solutions
The sector lead agencies (Singapore Tourism Board for hospitality, Building and Construction Authority for construction, Enterprise Singapore for retail and food services) maintain their own lists of approved sector-specific solutions. Common categories include:
- Food services — kitchen display systems, queue management, online ordering, kitchen automation equipment
- Retail — point-of-sale systems, queue management, e-commerce platforms with payment gateway integration
- Construction — common data environment platforms, productivity equipment
- Logistics — warehouse management, last-mile delivery routing
- Healthcare and beauty/wellness — appointment management, electronic medical records
For a sector-by-sector compliance walkthrough, our F&B compliance guide covers many of the operational requirements that PSG-funded solutions address.
How to Apply: Step-by-Step
Step 1 — Browse approved solutions
Go to the Tech Depot on the GoBusiness portal (gobusiness.gov.sg/productivity-solutions-grant) and browse the list of pre-approved solutions for your sector. Filter by your industry, then by solution type. Each solution lists the approved vendor(s), the supportable cost, and the funding cap that applies to that specific solution.
Step 2 — Get a vendor quote
Approach the vendor directly. The quote must:
- Be on the vendor’s letterhead and dated
- Itemise the solution components, hardware/software, and subscription period
- Match the description and price band on the Tech Depot listing
- Include training and implementation hours where these are part of the supported package
Critically, do NOT sign a contract, pay a deposit, or commit in writing before submitting the application. Any commitment before approval will disqualify the entire application.
Step 3 — Submit the application via Business Grants Portal
Log in to the Business Grants Portal (BGP) at businessgrants.gov.sg using your CorpPass. Select PSG, the relevant solution, the vendor, and upload the quote together with your latest financial statements (or, for newer companies, latest management accounts and ACRA business profile).
Companies that struggle to produce clean financial statements at this stage often discover that their bookkeeping is not in shape. Our payroll and accounting guide covers what records you should be keeping monthly.
Step 4 — Wait for outcome (typically 4 to 6 weeks)
Enterprise Singapore evaluates the application based on three criteria: company eligibility, solution fit, and the appropriateness of the proposed budget. The outcome is communicated by email and via the BGP. Approval letters specify the supportable amount and the funding percentage.
Step 5 — Purchase, implement and pay vendor in full
Only after approval do you sign the contract with the vendor. PSG works on a reimbursement basis — you pay the vendor 100% of the cost, then claim back the supportable percentage from Enterprise Singapore.
Step 6 — Submit claim with proof of payment
Within the claim period stated on your Letter of Offer (typically 6 to 12 months from approval), submit the claim through BGP. You will need:
- Vendor invoice marked as paid
- Bank statement showing the outgoing payment
- Proof of solution deployment (screenshots, photos of installed equipment, training attendance records)
- Subscription confirmation for SaaS solutions
Funds are typically disbursed to the company’s registered bank account within 4 to 8 weeks of a complete claim submission.
Common Mistakes That Get PSG Applications Rejected
- Buying first, applying second. The single most common reason for rejection. PSG requires the application to be submitted before any commitment is made to the vendor. A signed contract, a paid deposit, or even a written purchase order before approval will sink the application.
- Choosing a non-approved vendor. The vendor must appear on the GoBusiness Tech Depot for that specific solution. A general “we use Xero” doesn’t qualify if the implementation partner you chose isn’t on the approved partner list.
- Failing the local shareholding test. Companies wholly-owned by foreign parents do not qualify. The 30% local rule is calculated through to the ultimate beneficial owner.
- Stale or unaudited financial statements. If your latest financials are more than 12 months old, Enterprise Singapore may ask for management accounts. Plan ahead.
- Quote does not match the Tech Depot listing. If your vendor quote includes scope or hardware not listed on the Tech Depot, the additional items will not be supported and the entire claim may be queried.
- Double funding. If part of the solution is being funded by another grant (Enterprise Innovation Scheme, sector-specific subsidies), you cannot also claim PSG for that portion. Disclose all overlapping funding upfront.
Combining PSG with Other Grants
PSG can be stacked with other Singapore government support but only where the funding addresses different costs or different scopes. Common combinations:
- PSG + SkillsFuture Enterprise Credit (SFEC): SFEC can be used to top up the company’s out-of-pocket portion of an approved PSG application. This is one of the few clean stacks available.
- PSG + EDG: Use PSG for off-the-shelf solutions and EDG for any custom development or business transformation work that goes beyond what PSG covers.
- PSG + MRA: Use PSG to fund the technology that supports an overseas market entry, and MRA to fund the actual market entry costs (overseas marketing, agent fees, in-market collateral).
The cardinal rule of grant stacking: never apply twice for the same cost. Our deeper guide on stacking Singapore government grants walks through the boundaries in detail.
What Happens After Approval
An approval letter is not a free hand. Enterprise Singapore retains the right to audit any approved project for up to five years after disbursement. Companies must keep all supporting documents — vendor invoices, payment proofs, deployment evidence, training records — for at least five years.
If a company is found to have made false declarations or used the funded solution outside Singapore, the funding will be clawed back with interest, and in serious cases the company and its directors may be referred for criminal prosecution under the Penal Code.
Our piece on post-approval compliance and audits covers what to expect.
PSG vs Buying Without a Grant
For a Singapore SME purchasing a S$10,000 cloud accounting + payroll bundle:
- Without PSG: Out-of-pocket cost S$10,000
- With PSG (50%): Out-of-pocket cost S$5,000; reimbursement of S$5,000 from Enterprise Singapore
- With PSG + SFEC top-up (where applicable): Net cost can come down to S$2,000-S$3,000
The cash flow profile matters: you still pay the vendor in full upfront and wait 6 to 10 weeks for reimbursement. Plan working capital accordingly.
Conclusion
The Productivity Solutions Grant is one of the most accessible and reliable forms of Singapore government support for SMEs. The 50% funding rate and pre-approved solution lists take much of the guesswork out of digitalisation projects, and the application process is materially less onerous than EDG or sector-specific schemes.
The single most important rule: apply before you commit. Sign nothing, pay nothing, and order nothing until your Letter of Offer is in hand. Companies that respect that rule almost always succeed; companies that don’t will see their applications rejected on procedure regardless of the merits.
If you would like help shortlisting an eligible solution, preparing the BGP application, or coordinating the post-approval claim, the team at Raffles Corporate Services handles PSG end-to-end for SMEs across multiple sectors. We also provide the underlying bookkeeping and financial statement support that PSG applications require.
— The Editorial Team, Raffles Corporate Services