Productivity Solutions Grant (PSG) — Complete 2026 guide

The Productivity Solutions Grant is a Singapore government grant, administered by Enterprise Singapore, that co-funds up to half the cost of pre-approved IT solutions, software and equipment that improve business productivity. For Singapore SMEs accessing government grants and incentives in 2026, the productivity solutions grant is the fastest, simplest scheme to adopt accounting software, point-of-sale systems, scheduling tools and other ready-made digital solutions.

What the Productivity Solutions Grant is

Unlike the consultancy-heavy Enterprise Development Grant, the PSG funds pre-approved, off-the-shelf solutions from a published list. Enterprise Singapore — the statutory board established under the Enterprise Singapore Board Act 2018 — works with sector agencies including the Infocomm Media Development Authority to vet solutions before they appear on the list, so SMEs can buy with confidence and claim a fixed share of the cost. Eligible items range from accounting, inventory and HR software to sector-specific equipment.

Because the solutions are pre-vetted, the PSG is far quicker to apply for than project grants, and is the natural starting point for a small business digitalising its back office.

Who the Productivity Solutions Grant is for

The PSG suits SMEs adopting standard digital tools or equipment — a retailer installing a point-of-sale and inventory system, a services firm moving to cloud accounting, or a clinic adopting practice-management software. For larger, bespoke transformation projects with consultants, the Enterprise Development Grant is the better fit, as our grant-stacking guide explains. Companies adopting new systems often restructure roles at the same time; our partner note on Singapore’s tightening job market and hiring rules helps when productivity gains change headcount plans.

Eligibility requirements

To qualify for the PSG, a business generally must:

• Be registered and operating in Singapore.
• Purchase, lease or subscribe to the IT solution or equipment for use within Singapore.
• Have at least 30% local shareholding (for selected solutions and higher-value items).

The solution must be bought from a pre-approved vendor and deployed in the applicant’s Singapore operations. Confirm the current solution list and support level with the GoBusiness grants portal and, for infocomm solutions, IMDA.

Cost, support level and timeline

Indicative parameters for 2026 planning:

• Support level: up to 50% of the cost of the pre-approved solution or equipment.
• Application route: the Business Grants Portal, using Corppass.
• Assessment time: PSG applications are typically processed faster than project grants — often within weeks for standard solutions.
• Disbursement: reimbursement after purchase, deployment and a satisfactory claim with proof of payment.

As with other grants, the PSG is generally assessable income under the Income Tax Act 1947 unless exempt, so the net benefit is below the headline 50%. If the solution pushes your annual taxable turnover above S$1 million, remember the GST registration obligation under the Goods and Services Tax Act 1993.

Step-by-step: applying for the PSG

First, browse the pre-approved solutions list and identify the tool or equipment that fits your need. Second, obtain a quotation from the listed vendor. Third, log in to the Business Grants Portal with Corppass and submit the application before purchasing. Fourth, on approval, complete the purchase and deploy the solution in your Singapore operations. Fifth, submit the claim with the invoice and proof of payment to receive the reimbursement. Keep the records with your normal bookkeeping so the claim and your financial statements reconcile.

Common mistakes and gotchas

The classic error is buying first and applying later — purchase before approval and the cost is usually not supportable. A second is choosing a solution that is not on the pre-approved list; only listed solutions from listed vendors qualify. A third is buying a solution that will not actually be used in Singapore. A fourth is missing the 30% local-shareholding condition that applies to certain items. Finally, businesses sometimes forget that the grant is taxable and that adopting a system does not change their statutory filing duties. For broader transformation, plan the PSG together with the tax incentives covered in our incentives guide and the complementary EDB schemes.

Related guides

See our guide to stacking Singapore government grants for combining the PSG with the EDG and Market Readiness Assistance, and our incentives overview for the tax angle.

Worked example: cloud accounting for a small firm

A services firm subscribes to a pre-approved cloud accounting and invoicing solution costing S$6,000 over the first year. At a 50% support level, the PSG could reimburse up to S$3,000 after purchase, deployment and a satisfactory claim. The firm buys only after its application is approved, deploys the software in its Singapore operations, and keeps the invoice and proof of payment for the claim. Because the grant is assessable income, the net benefit is a little below S$3,000 once tax is applied — still a material saving on a low-effort application.

How to read the pre-approved solutions list

The PSG funds only solutions on Enterprise Singapore’s pre-approved list, supplied by listed vendors. The list is organised by sector and by generic solution categories — accounting, human-resource management, inventory, customer management, and sector-specific tools. Before applying, confirm that both the solution and the vendor are listed, and that the version you are buying matches the listing. Buying a similar but unlisted product, or from an unlisted reseller, is a frequent cause of rejection.

PSG within a wider digitalisation roadmap

The PSG is best seen as the first rung of a digitalisation ladder. A business typically starts by adopting pre-approved tools with the PSG, then, as needs grow more bespoke, moves to a consultant-led project funded by the Enterprise Development Grant. Sector agencies and the Infocomm Media Development Authority publish digital roadmaps that map common solutions to business stages, which helps sequence purchases sensibly rather than buying tools that will not integrate.

Claims and common rejection reasons

After deploying the solution, submit the claim with the invoice and proof of payment. Claims are commonly reduced or rejected for buying before approval, buying an unlisted solution, deploying the tool outside Singapore, or failing the 30% local-shareholding condition where it applies. Keeping the purchase documentation with your normal bookkeeping ensures the claim reconciles cleanly to your accounts.

PSG versus EDG at a glance

If you can pick a finished product off a list, the PSG is faster and simpler. If you need a consultant to design something specific to your operations, with outcomes to be measured, the EDG fits better. Many SMEs use the PSG for tools and the EDG for transformation, taking care never to claim the same cost under both schemes.

Sector solutions and equipment examples

The pre-approved list spans both generic and sector-specific solutions. Generic categories include accounting, invoicing, inventory and warehouse management, customer-relationship management, human-resource and payroll systems, and digital marketing tools. Sector lists add specialised solutions — for example, point-of-sale and queue-management systems for retail and food services, clinic and practice-management software for healthcare, and job-management tools for trades and services. Selected equipment also qualifies where it improves productivity. Always match the exact solution and vendor to the listing before buying.

Subscriptions versus one-time purchases

Many modern solutions are sold as subscriptions rather than one-time licences. The PSG can support subscription-based software, but the supportable period and treatment differ from a capital purchase, so check how the grant treats the subscription term for the solution you are buying. For subscriptions, model the ongoing cost beyond the supported period, since the grant accelerates adoption but does not fund the tool indefinitely.

How PSG fits with integration and change

Buying software is the easy part; adopting it is the work. Budget for data migration, staff training and process change around the new tool, and recognise that these wraparound costs may not all be supportable under the PSG. Where the change is substantial — integrating several systems or redesigning a process around the new software — a consultant-led Enterprise Development Grant project may be the better instrument, with the PSG used for the off-the-shelf components.

Timeline, claims and record-keeping

PSG applications are generally faster than project grants, often assessed within weeks for standard solutions. After approval you purchase, deploy in Singapore, and submit the claim with the invoice and proof of payment. Keep the documentation with your bookkeeping so the claim reconciles to your accounts, and record the grant as assessable income under the Income Tax Act 1947. A tidy paper trail is the difference between a smooth reimbursement and a delayed or reduced one.

FAQs

How much does the Productivity Solutions Grant cover?
Up to 50% of the cost of a pre-approved IT solution or equipment. Confirm the prevailing support level with Enterprise Singapore, as it is reviewed periodically.

What can I buy with the PSG?
Only solutions and equipment on Enterprise Singapore’s pre-approved list, from listed vendors — for example accounting, inventory, HR and point-of-sale software, and selected sector equipment.

How is the PSG different from the EDG?
The PSG funds ready-made, pre-approved solutions and is quick to apply for; the Enterprise Development Grant funds larger, bespoke projects with consultants and measurable outcomes.

Do I need 30% local shareholding?
For selected solutions and higher-value items, yes. The company must also be registered in Singapore and deploy the solution in its Singapore operations.

Is the PSG taxable?
Government grants are generally assessable income under the Income Tax Act 1947 unless specifically exempt, so the net benefit is below the headline 50%.

Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.