Productivity Solutions Grant (PSG) — Eligibility and requirements checklist

The Productivity Solutions Grant (PSG) helps Singapore SMEs adopt pre-approved IT solutions and equipment that improve productivity, co-funding up to 50% of the cost. Because PSG covers ready-to-buy, vetted solutions, it is faster and simpler than project-based grants and is a common first step in an SME’s digital adoption journey.

Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.

What the PSG is

The Productivity Solutions Grant supports the adoption of pre-scoped digital solutions, accounting and payroll software, customer management systems, inventory tools, and sector-specific equipment, drawn from a catalogue of pre-approved vendors. Because the solutions are already vetted by the relevant agencies, applicants do not need to write a bespoke project proposal; they select a listed solution and apply for support. This makes PSG the quickest grant for straightforward technology upgrades.

Who is eligible

PSG is aimed at Singapore-registered SMEs that will deploy the solution within Singapore. Applicants must be registered and operating in Singapore, have at least 30% local shareholding, and be purchasing or leasing the solution for use in their Singapore business. It suits firms digitising finance, HR and operations without the scale of an EDG project. Companies planning a broader transformation often start with PSG and layer in larger grants later, as our cross-site Productivity Solutions Grant benchmarks and the S Pass hiring guide both illustrate for growing teams.

Eligibility and requirements checklist

  • Business registered and operating in Singapore with at least 30% local equity.
  • Purchase, lease or subscription of the IT solution or equipment used within Singapore.
  • Solution selected from the pre-approved list on the Business Grants Portal.
  • Purchase not made, and payment not committed, before the application is approved.
  • Company financially viable to fund the non-grant portion.

Funding levels and numerical specifics

PSG co-funds up to 50% of the qualifying cost of the approved solution. Support is disbursed on a reimbursement basis after purchase and deployment, so the SME pays the vendor first and claims the supported share afterwards. Because solutions are pre-priced by listed vendors, the funding calculation is straightforward: apply the support rate to the eligible cost. There is no bespoke consultancy assessment as with EDG, which is why PSG applications are typically approved more quickly. Confirm the current support rate and eligible categories on IMDA and the wider grant framework on Enterprise Singapore.

Step-by-step application process

Identify the business need, then find a matching pre-approved solution and vendor on the Business Grants Portal. Obtain the vendor quotation. Submit the PSG application before purchasing. Once approved, buy and deploy the solution, then submit the claim with the invoice and proof of payment and deployment for reimbursement. Keep the documentation, as claims are evidence-based. Firms combining software adoption with a capability project should read our cross-site note on the IP Development Incentive where technology creates qualifying IP, and coordinate with EDB where larger incentives interact.

Common mistakes and gotchas

As with EDG, buying before approval is the classic disqualifier. Others choose a solution that is not on the pre-approved list and expect funding anyway. Some overlook that PSG is reimbursement-based and assume the grant is netted off the invoice. And a few apply for solutions that do not genuinely fit their operations, which weakens the application. Keeping the company’s filings current with IMDA vendor requirements and Enterprise Singapore eligibility avoids delays at the claim stage.

Related guides

Frequently asked questions: productivity solutions grant

How much does PSG cover?
Up to 50% of the qualifying cost of the pre-approved solution, disbursed on a reimbursement basis. Support rates can change, so confirm the current rate on the Business Grants Portal before applying.

Is PSG faster than the EDG?
Generally yes. PSG covers pre-approved, pre-scoped solutions, so there is no bespoke project proposal to assess, which makes approval quicker for straightforward technology adoption.

Can I claim PSG for software I already bought?
No. You must apply and be approved before purchasing or committing to payment. Purchases made before approval are typically not eligible.

What solutions qualify for PSG?
Only solutions listed as pre-approved on the Business Grants Portal, spanning software such as accounting, HR and CRM systems, and sector-specific equipment. Solutions outside the list are not funded under PSG.

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.