Productivity Solutions Grant (PSG) — Step-by-step walkthrough

The Productivity Solutions Grant is a Singapore government grant that co-funds pre-approved IT solutions and equipment that help SMEs improve productivity. Administered by Enterprise Singapore, the productivity solutions grant is the fastest, simplest grant for adopting digital tools off a curated list. This walkthrough explains who qualifies, the funding level, the application steps and the common mistakes to avoid in 2026.

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

What the Productivity Solutions Grant is

The Productivity Solutions Grant (PSG) supports the adoption of pre-scoped, pre-approved digital solutions and equipment that raise productivity. Unlike the broader Enterprise Development Grant, which funds bespoke transformation projects, PSG is deliberately simple: Enterprise Singapore and sector agencies maintain a catalogue of approved solutions — accounting software, customer-management systems, inventory tools, point-of-sale systems, sector-specific equipment and more — and the grant co-funds adoption of those listed items. Because the solutions are pre-vetted, the application is lighter and approval is faster than for a custom project grant.

Who the grant is for

PSG is aimed squarely at Singapore SMEs that want to digitalise a specific function without the overhead of a full transformation project. It suits a retailer adopting a point-of-sale and inventory system, a services firm moving to cloud accounting, or a clinic adopting a queue-management tool. Eligible applicants are business entities registered and operating in Singapore, purchasing or leasing the solution for use within Singapore, and with the financial capacity to fund the non-grant portion. The scheme is well-suited to first-time digital adopters because the curated catalogue removes the guesswork of choosing a vendor.

Funding level and the numbers

PSG co-funds up to 50% of qualifying costs for SMEs as the prevailing support level in 2026 (the support rate is reviewed periodically, so confirm before purchasing). Qualifying costs include the purchase, lease or subscription of approved solutions and equipment. The applicant pays the balance. As with other Enterprise Singapore grants, support is disbursed on a reimbursement basis after the solution is purchased and deployed, so the company funds the cost first and claims afterward against proof of purchase and payment. There is a cap on annual PSG support per applicant, which is reviewed from time to time, so a company planning multiple adoptions should confirm the current cap.

Eligibility and what to check first

Before applying, confirm three things: that the solution you want is on the approved list; that your company meets the registration and local-use conditions; and that you have not already committed to or paid for the solution, since pre-commitment disqualifies the spending. The company should also be in good statutory standing. Grant planning sits alongside the company’s wider tax position — our partner guide to loss carry-back relief under Section 37E of the Income Tax Act is useful where a company is investing heavily in a loss-making year and wants to understand how relief interacts with cash flow.

Cost and timeline

There is no application fee. Because solutions are pre-approved, PSG applications are typically processed faster than EDG — often within a few weeks where the submission is complete. The practical timeline is: choose an approved solution and obtain the vendor quotation (a few days), submit through the Business Grants Portal, await approval, then purchase and deploy. Do not pay the vendor before approval. After deployment, submit the claim with the invoice and proof of payment; disbursement follows verification. From decision to disbursement, a straightforward PSG adoption commonly spans one to three months.

Step-by-step process

First, identify the productivity gap and find an approved solution on the PSG catalogue that addresses it. Second, obtain a quotation from a pre-approved vendor. Third, submit the application through the Business Grants Portal with the quotation. Fourth, wait for approval before committing or paying. Fifth, purchase and deploy the solution. Sixth, submit the claim with the invoice and payment evidence, and receive the co-funded amount on verification. Where you want to combine PSG with other support across several projects, our companion guide on how to stack Singapore government grants explains how the schemes fit together.

Authoritative sources

Confirm the approved-solutions catalogue and current support levels with the agencies: Enterprise Singapore administers the PSG and the Business Grants Portal; the Infocomm Media Development Authority curates many of the digital solutions on the list; and the Singapore Economic Development Board supports larger capability projects.

Common mistakes and gotchas

The most common mistake is paying the vendor before the application is approved, which disqualifies the cost. The second is choosing a solution that is not on the approved list and expecting PSG to cover it. The third is overlooking the annual support cap when planning multiple adoptions. The fourth is treating PSG as covering custom-built software — bespoke development generally belongs under EDG, not PSG. The fifth is weak claim documentation, which delays disbursement. If the digital adoption is paired with hiring technical staff from abroad, the Employment Pass, S Pass and EntrePass 2026 comparison sets out the relevant work passes.

Worked example — a clinic adopting a queue and records system

Consider a small medical clinic that wants to replace its paper queue and manual records with an approved practice-management system. It selects a solution from the PSG catalogue priced at S$18,000 for the software, hardware and first-year subscription. At the 50% SME co-funding level, PSG would reimburse up to S$9,000, with the clinic funding the balance. The clinic obtains a quotation from the pre-approved vendor, submits the application through the Business Grants Portal, and waits for approval before paying. Once approved, it purchases and deploys the system, trains its staff, and submits the claim with the invoice and proof of payment. Disbursement follows verification. Because PSG draws on a vetted catalogue, the assessment is light and approval is comparatively fast, which is why PSG is usually the right starting point for an SME making its first digital investment rather than a bespoke EDG project.

Choosing between PSG and a bespoke project

The dividing line between PSG and the Enterprise Development Grant is whether the solution exists off the shelf. If the productivity gain can be met by a listed, pre-approved solution — cloud accounting, a point-of-sale system, inventory management, a customer-relationship tool — PSG is faster and simpler. If the company needs something bespoke, such as custom software, a re-engineered process or a market-entry strategy, that belongs under EDG, which funds tailored transformation but requires a fuller proposal and outcomes. Many SMEs use both over time: PSG to digitalise discrete functions quickly, EDG for the larger transformation. The annual PSG support cap means a company planning several adoptions should sequence them and confirm the remaining cap before each purchase, so that approvals and the cap are managed deliberately rather than discovered at the claim stage.

FAQs

How much does PSG cover? Up to 50% of qualifying costs for SMEs as the 2026 support level, subject to an annual cap per applicant.

What is the difference between PSG and EDG? PSG funds pre-approved off-the-shelf solutions with a light application; EDG funds bespoke transformation projects and requires a fuller proposal.

Can I pay the vendor before approval? No. Pre-commitment or payment before approval disqualifies the spending, so wait for approval.

How fast is PSG approval? Often within a few weeks where the submission is complete, because the solutions are pre-vetted.

How is the grant paid? On a reimbursement basis after purchase and deployment, against the invoice and proof of payment.

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.