Introduction

For small and medium-sized enterprises (SMEs) in Singapore, adopting technology and digital tools can be a game-changer for productivity and growth. However, the cost of implementing new software, equipment, and systems can be a significant barrier — particularly for smaller businesses with limited budgets.

This is where the Productivity Solutions Grant (PSG) comes in. Administered by Enterprise Singapore and the Infocomm Media Development Authority (IMDA), the PSG provides funding support of up to 50% of qualifying costs to help Singapore businesses adopt pre-approved IT solutions, equipment, and consultancy services. With a grant cap of S$30,000 per company per financial year, the PSG is one of the most accessible government grants available to local businesses.

This guide explains everything you need to know about the PSG — from eligibility criteria and the types of solutions covered, to the application process and important tips for a successful claim.

What Is the Productivity Solutions Grant (PSG)?

The Productivity Solutions Grant was introduced by the Singapore Government to encourage local SMEs to embrace digitalisation and improve their operational efficiency. Rather than requiring companies to source and evaluate technology solutions from scratch, the PSG provides a curated list of pre-approved solutions across various business functions — from accounting and payroll to customer relationship management and cybersecurity.

By co-funding up to 50% of the cost of these solutions, the PSG significantly lowers the financial barrier for SMEs looking to modernise their operations. The grant is particularly well-suited for companies that are looking to automate manual processes, improve data management, or strengthen their digital capabilities.

It is worth noting that Enterprise Singapore has announced plans to introduce a new grant framework called EDGE in the second half of 2026, which will consolidate several existing grants. However, the PSG remains fully accessible until the EDGE framework is launched, making now an ideal time to apply.

Who Is Eligible for the PSG?

To qualify for the Productivity Solutions Grant, your business must meet all of the following criteria.

First, your business must be registered or incorporated in Singapore. This includes private limited companies, sole proprietorships, partnerships, and limited liability partnerships. If you are considering incorporating a company to take advantage of the PSG and other government support schemes, our guide on setting up a business in Singapore provides a useful starting point.

Second, your company must have a group annual sales turnover of not more than S$100 million, or a group employment size of not more than 200 workers. This criterion ensures that the PSG is targeted at genuine SMEs rather than large corporations.

Third, the purchase, lease, or subscription of the IT solution or equipment must be used in Singapore. The grant does not cover solutions deployed overseas.

Fourth, your company must have at least 30% local shareholding — that is, at least 30% of the shares must be held directly or indirectly by Singapore citizens or permanent residents.

Importantly, you must not have made any payment or signed any contract with the vendor before submitting your PSG application. Any purchase made prior to application approval will not be eligible for reimbursement.

What Does the PSG Cover?

The PSG covers three main categories of eligible expenses: IT solutions, equipment, and consultancy services.

IT Solutions

This is the most popular category under the PSG. It includes pre-approved software and digital tools across a wide range of business functions, such as accounting and finance software (for example, cloud-based accounting platforms that automate bookkeeping, invoicing, and financial reporting), human resource management systems (including payroll processing, leave management, and employee records), customer relationship management (CRM) platforms (to manage leads, sales pipelines, and client communications), inventory and supply chain management tools, e-commerce solutions (for businesses looking to establish or enhance their online sales channels), cybersecurity solutions (including endpoint protection, data backup, and threat detection), and project management and collaboration tools.

For companies that need assistance with their corporate tax filing or accounting record-keeping, adopting a PSG-supported accounting solution can be a cost-effective way to streamline these processes.

Equipment

The PSG also supports the purchase of productivity-enhancing equipment in specific sectors such as food services, retail, logistics, and construction. Examples include commercial kitchen equipment, point-of-sale systems, and automated machinery. The equipment must be from the pre-approved list and used in Singapore.

Consultancy Services

In addition to software and equipment, the PSG covers advisory services from pre-approved consultants. These services can help businesses review and improve their operational processes, identify areas where technology can enhance productivity, and develop digital transformation roadmaps.

How Much Funding Can You Receive?

Under the current PSG framework, eligible companies can receive funding of up to 50% of qualifying costs, subject to a cap of S$30,000 per company per financial year. This means that if a pre-approved IT solution costs S$10,000, the PSG will cover S$5,000, and your company pays the remaining S$5,000.

It is important to note that the grant amount is based on the pre-approved package price listed on the GoBusiness portal, not on any custom or negotiated price. If the vendor charges more than the pre-approved price, the additional cost is borne entirely by the applicant.

Companies can apply for multiple PSG solutions within the same financial year, but the total grant disbursement is capped at S$30,000 per year.

Step-by-Step Application Process

Applying for the PSG involves several straightforward steps. Here is a walkthrough of the process.

Step 1: Identify the Right Solution

Visit the GoBusiness Gov Assist portal to browse the full list of pre-approved IT solutions, equipment, and consultancy services. Filter by industry or business function to find solutions that match your needs.

Step 2: Get a Quotation from a Pre-Approved Vendor

Once you have identified a suitable solution, contact the pre-approved vendor to obtain a quotation. Ensure that the items and costs in the quotation match the pre-approved package listed on the portal. Do not make any payment or sign a contract at this stage — doing so will disqualify your application.

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

Log in to the Business Grants Portal using your company’s Corppass account. Complete the application form and upload the required supporting documents, including the vendor’s quotation.

Step 4: Await Approval

Applications are typically processed within four to six weeks from the submission of all required information. You will receive notification of the outcome via the BGP portal.

Step 5: Implement the Solution and Make Payment

Once your application is approved, proceed with the purchase and implementation of the solution. Make payment to the vendor and ensure you keep all invoices, receipts, and proof of payment.

Step 6: Submit Your Claim

After the solution has been implemented and payment has been made, submit your claim on the BGP portal with the supporting documents. The grant disbursement will be processed after your claim is verified.

Common Mistakes to Avoid

Many PSG applications are rejected or delayed due to avoidable errors. Here are some common pitfalls to watch out for.

Making payment before approval is the most common disqualifying error. You must not pay the vendor or sign any binding contract before your PSG application is approved. Even a deposit payment can render your application ineligible.

Choosing solutions not on the pre-approved list is another frequent mistake. Only solutions and vendors listed on the GoBusiness portal qualify for the PSG. Custom or bespoke solutions, no matter how relevant, will not be covered unless they appear on the approved list.

Failing to meet the eligibility criteria at the time of disbursement is also a risk. Your company must continue to meet all eligibility criteria — including the 30% local shareholding requirement and the SME size thresholds — not just at the time of application, but all the way through to the point of grant disbursement.

Incomplete documentation can also cause delays. Ensure that all required documents, including quotations, invoices, and proof of implementation, are complete and accurate before submission.

How the PSG Complements Other Government Grants

The PSG is just one of several government grants available to Singapore SMEs. Depending on your business needs, you may also wish to explore the Enterprise Development Grant (EDG), which supports larger-scale business transformation projects with higher funding amounts, or the Market Readiness Assistance (MRA) Grant, which helps companies expand into overseas markets.

It is possible to apply for multiple grants simultaneously, provided they cover different aspects of your business operations. However, you cannot use multiple grants to co-fund the same expense item — this constitutes double-dipping and is not permitted.

For a broader overview of the grants and incentives landscape, see our page on grants available to hire, train, and upskill employees.

Important Considerations for Business Owners

Before applying for the PSG, there are a few practical matters to keep in mind.

Your company must have an active Corppass account to access the Business Grants Portal. If you have not yet set up Corppass, you will need to do so before you can submit an application. This requires having your company’s UEN (Unique Entity Number) and at least one registered officer.

Your company must also be in good standing with ACRA and other government agencies. This means ensuring that your annual returns are filed on time, your compliance requirements are met, and there are no outstanding regulatory issues. Companies that are in default of their statutory obligations may face difficulties in securing grant approvals.

Finally, consider engaging your company secretary or corporate services provider to help ensure that your company’s corporate records and filings are up to date before you apply. A well-maintained compliance record strengthens your grant application.

Conclusion

The Productivity Solutions Grant is one of the most practical and accessible government grants for Singapore SMEs. By co-funding up to 50% of the cost of pre-approved digital solutions and equipment, the PSG makes it significantly easier for small businesses to embrace technology, automate processes, and improve productivity.

With the upcoming transition to the new EDGE grant framework expected in the second half of 2026, now is an excellent time for businesses to take advantage of the PSG while it remains available. Whether you need accounting software, an HR management system, or cybersecurity tools, there is likely a pre-approved PSG solution that can help your business.

If you need assistance with your company’s corporate compliance, annual filings, or corporate secretarial matters — all of which support a strong grant application — Raffles Corporate Services is here to help. Contact us today to ensure your company is in the best possible position to take advantage of government support schemes.

— The Editorial Team, Raffles Corporate Services