Wednesday, July 17, 2024
HomeFeaturedWhat Is Productivity Solutions Grant (PSG) For Singapore Companies?

What Is Productivity Solutions Grant (PSG) For Singapore Companies?

The Productivity Solutions Grant (PSG) is a government funding initiative in Singapore that provides support to small and medium-sized enterprises (SMEs) to adopt pre-scoped productivity solutions. The goal of the PSG is to help SMEs in Singapore improve their productivity and competitiveness through the adoption of technology and innovation.

Eligible SMEs can receive funding support of up to 80% of the adoption costs for productivity solutions under the PSG. The amount of funding support that an SME can receive depends on the size of the company and the type of solution being adopted.

There are four categories of productivity solutions that are eligible for funding under the PSG:

  1. Automation Solutions: These are solutions that automate manual processes and tasks, such as robots, automation software, and automated machinery.
  2. Information and Communications Technology (ICT) Solutions: These are solutions that use information and communication technologies to improve business processes, such as business management software, customer relationship management software, and e-commerce platforms.
  3. Lean Solutions: These are solutions that improve operational efficiency and reduce waste, such as lean manufacturing, lean logistics, and lean office.
  4. Design for Manufacturing and Engineering (DFME) Solutions: These are solutions that improve the design and engineering of products and processes, such as design for manufacturing software and engineering simulation software.

Who may apply?

If a business entity satisfies the requirements listed below, it may apply for PSG:


1. Minimum 30% local shareholding
2. The yearly sales turnover for the Company’s Group should not exceed S$100 million, OR No more than 200 people should work for the company group.
3. The IT solutions or equipment must be purchased, leased, or subscribed to in Singapore.

The following entities do not qualify for grant support:

  • Charities, Institutions of Public Characters (IPCs)
  • Religious Entities
  • Voluntary Welfare Organisation (VWO)
  • Government agencies and subsidiaries
  • Societies

What documents do I need to prepare before applying?

  1. Quotation from the company ( PSG – Preapproved)
  2. Past 3 Years Financial Info (if applicable) including Financial Year (FY), FY End Date, Revenue, Net Profit before Tax, Total Overseas Sales

How do I make apply?

Access the list of solutions that are eligible for support in your industry and choose the ones that best meet the demands of your company.

IT-related solutions: Request a quote from the pre-approved supplier.
Regarding equipment: Find the necessary equipment and request a price from the supplier.
Regarding consulting services: Ask the pre-approved consultant for a quote.

Apply through the Business Grants Portal (BGP).
To make purchases on the site, you must create a Corppass account.

Before your claim due date, submit your grant claim on the BGP.

What documents do I need to prepare before doing the final claim?

  1. Bank Statement showing payment, payee’s name and account number
  2. Receipt or cheque
  3. Usage report
  4. Purchase Order or signed acceptance of quotation/Contract
  5. Invoice

What is the annual grant cap for PSG?

Each EnterpriseSG – supported company is subject to a S$30,000 annual grant cap for solutions sponsored by EnterpriseSG, which is in effect from 1 April through 31 March of the following year.

What if the grant cap is used up completely?

After using up all of their grant caps, companies are no longer eligible for help during the grant cap’s validity term. Instead, they can apply for new solutions during the period when the grant caps are refreshed. Planning the use of the PSG for business purchases is encouraged.

How long does it take to process applications?

Following the submission of all necessary paperwork, applications are processed in roughly 6 weeks.

Companies are strongly encouraged to submit their applications ahead of time to account for the application outcome and/or processing duration required.

Companies may decide to move on with the project and buy the IT solution or equipment after an application has been submitted regardless of the application’s outcome. However, if the application is denied, you won’t be able to make another claim.

RELATED ARTICLES

Most Popular