Productivity Solutions Grant (PSG): A Complete Guide for Singapore SMEs (2026)

For Singapore small and medium enterprises (SMEs) looking to upgrade their technology, improve operational efficiency, or strengthen their digital capabilities, the Productivity Solutions Grant (PSG) remains one of the most accessible and practical government funding schemes available. Administered by Enterprise Singapore and the Infocomm Media Development Authority (IMDA), the PSG helps businesses offset the cost of adopting pre-approved IT solutions, equipment, and consultancy services.

This guide provides a comprehensive overview of the PSG for 2026 — covering eligibility criteria, funding levels, the types of solutions supported, and the step-by-step application process. Whether you are a newly incorporated company or an established SME looking to scale up, this article will help you understand whether the PSG is right for you and how to apply successfully.

What is the Productivity Solutions Grant?

The Productivity Solutions Grant (PSG) is a government initiative that co-funds the adoption of productivity-enhancing tools, technologies, and services by Singapore-registered businesses. Unlike broader grant programmes such as the Market Readiness Assistance (MRA) Grant — which focuses on helping companies expand overseas — the PSG is specifically designed to help businesses improve their internal processes and productivity within Singapore.

The PSG was established in 2018 and has since been expanded to cover a wide range of industries and business functions. It is particularly well-suited for SMEs that are ready to invest in digital transformation but need financial support to reduce the upfront cost of doing so.

How Much Funding Does the PSG Provide?

The PSG currently funds up to 50% of qualifying costs for pre-approved solutions. This applies to costs associated with purchasing, leasing, or subscribing to eligible IT solutions, equipment, or consultancy services.

There is a grant cap of S$30,000 per company per financial year (running from 1 April to 31 March of the following year). This means that across all PSG-funded solutions you adopt in a given financial year, the total government co-funding you can receive is capped at S$30,000, regardless of how many separate solutions or vendors are involved.

Who is Eligible for the PSG?

To qualify for the PSG, your company must meet all of the following criteria:

• The business entity is registered and operating in Singapore.
• The company has a Group Annual Sales Turnover of not more than S$100 million, or a Group Employment Size of not more than 200 employees.
• The IT solutions, equipment, or services being funded must be used in Singapore.
• The company has at least 30% local shareholding (held by Singapore citizens or Permanent Residents).
• The applicant has not made any payment or deposit to the supplier or vendor prior to submitting the grant application. (This is a critical rule — paying your vendor before applying will disqualify your application.)

The following entities are not eligible for the PSG: charities, Institutions of a Public Character (IPCs), religious entities, Voluntary Welfare Organisations (VWOs), government agencies and their subsidiaries, and registered societies.

What Types of Solutions Are Supported?

The PSG covers three main categories of eligible expenses:

1. IT Solutions

This is the most widely used PSG category. Pre-approved IT solutions include accounting software, enterprise resource planning (ERP) systems, customer relationship management (CRM) platforms, payroll and HR management systems, point-of-sale systems, cybersecurity tools, e-commerce platforms, and more. Each solution is pre-evaluated and approved by Enterprise Singapore or IMDA, so you can be assured that the technology meets a defined standard of quality and functionality.

2. Equipment

PSG funding is also available for sector-specific equipment that improves productivity. This includes food processing equipment for F&B businesses, medical or dental equipment for healthcare providers, and other physical machinery relevant to particular industries.

3. Consultancy Services

Pre-approved consultancy services can help businesses improve their processes, implement new systems, or prepare for specific certifications. These services must be sourced from consultants or firms that are pre-approved by Enterprise Singapore under the PSG framework.

To find out what solutions are currently pre-approved under the PSG, visit the GoBusiness Grants Portal, where you can search and filter by industry and business function.

Step-by-Step: How to Apply for the PSG

Applying for the PSG involves a straightforward process, but attention to timing is critical — you must apply before committing to any expenditure with your vendor.

Step 1: Identify a Pre-Approved Solution

Visit the GoBusiness portal and browse the list of pre-approved solutions. Filter by your industry and the type of business function you want to improve. Select a solution that fits your needs and identify a vendor from the approved list.

Step 2: Get a Quotation from Your Vendor

Contact your chosen vendor and request a formal quotation. Do not sign any contract, make any deposit, or pay any fees at this stage. Doing so before your grant application is submitted and approved will automatically disqualify you.

Step 3: Submit Your Application via the Business Grants Portal (BGP)

Log in to the Business Grants Portal using your Corppass credentials and submit your PSG application. You will need to provide details about your company, the solution you are adopting, and the expected costs. Attach the vendor quotation to your application. Ensure your company’s incorporation documents are up to date before applying, as these may be required.

Step 4: Await Approval

Processing typically takes 4 to 6 weeks, though this may vary depending on the volume of applications. You will be notified through the Business Grants Portal once a decision has been made.

Step 5: Receive Your Letter of Offer (LOF)

If your application is approved, you will receive a Letter of Offer through the Business Grants Portal. Only proceed with purchasing or implementing the solution after receiving your LOF. Review the LOF carefully, as it will specify the grant amount, conditions, and the timeline within which you must implement the solution and claim the grant.

Step 6: Implement the Solution and Submit Your Claims

After implementation, you must submit a disbursement claim through the Business Grants Portal within the timeframe specified in your LOF. You will typically need to provide proof of payment (invoices and receipts) and evidence that the solution has been implemented. Once verified, the grant funds will be disbursed to your company.

Common Mistakes to Avoid

• Paying the vendor before applying: This is the single most common reason for PSG disqualification. Always apply and receive your LOF before making any payment.
• Choosing a non-pre-approved solution: Only solutions on the PSG pre-approved list are eligible. Purchasing an off-list solution — even a good one — will not qualify for funding.
• Exceeding the grant cap: If you have already received S$30,000 in PSG grants in the current financial year, you cannot receive more, even if you adopt additional eligible solutions.
• Not meeting the local shareholding requirement: If your company has less than 30% local shareholding, you will not be eligible. Ensure your company’s shareholding structure complies before applying.
• Missing the claim deadline: Once you receive your LOF, there is a limited window to implement the solution and submit your claim. Missing this deadline means forfeiting the grant.

PSG and Corporate Compliance: What to Keep in Mind

Receiving a PSG grant does not reduce your company’s ongoing statutory obligations. Your company must remain compliant with ACRA, IRAS, and MOM requirements throughout the grant period. For instance, you must ensure that your company’s registration and incorporation documents are in order, and that your annual corporate compliance obligations — including Annual Returns and corporate tax filings — are kept up to date. A lapse in compliance status can affect your eligibility for government grants, so it is worth ensuring your company’s housekeeping is in order before and during the grant period.

For a broader overview of what SMEs in Singapore need to comply with, refer to our guide on important compliance requirements for Singapore companies. If you have just published an article on AGM requirements, you might also want to read our guide on Annual General Meeting (AGM) Requirements for Singapore Companies.

PSG vs. Other Singapore Government Grants: A Quick Comparison

Conclusion

The Productivity Solutions Grant is one of the most practical and accessible government funding schemes available to Singapore SMEs in 2026. With up to 50% co-funding for a wide range of pre-approved IT solutions, equipment, and consultancy services, it represents a genuine opportunity for businesses to invest in productivity improvements at a reduced cost.

The key to a successful PSG application lies in preparation: identifying the right pre-approved solution, submitting your application before engaging your vendor, and ensuring your company meets all eligibility requirements. If you need guidance on navigating the grant application process — or if you want to ensure your company’s corporate compliance and secretarial obligations are fully in order — the team at Raffles Corporate Services is ready to assist. We work with SMEs across Singapore to keep their companies compliant, organised, and well-positioned to take advantage of government support schemes. Reach out to us today.

— The Editorial Team, Raffles Corporate Services