Updated: 12 Aug 2026
If you run a small or medium business in Singapore and you've been putting off upgrading your accounting software, your POS system, or your HR platform because of the cost, the Productivity Solutions Grant is worth a proper look. It's one of the more accessible grants Enterprise Singapore offers, and unlike some of the bigger transformation grants, you don't need a consultant or a lengthy proposal to apply. You just need the right solution, the right vendor, and the right paperwork in the right order.
Here's what the PSG grant actually covers, who qualifies, and how the application process works from start to finish.
What Is the Productivity Solutions Grant (PSG)?
The Productivity Solutions Grant (PSG) is a government grant administered by Enterprise Singapore that helps local companies pay for pre-approved IT solutions, equipment, and consultancy services that improve productivity. Instead of applying for open-ended funding and pitching your own idea, you pick from a curated list of solutions that Enterprise Singapore and its partner agencies have already vetted. This is what keeps the process relatively fast compared to grants like the Enterprise Development Grant, where every project is assessed individually.
PSG solutions fall into two categories. Generic solutions are open to any business, regardless of industry, and cover things like accounting software, HR and payroll systems, customer relationship management tools, and cybersecurity products. Sector-specific solutions are curated for particular industries, aligned with Singapore's Industry Transformation Maps and Industry Digital Plans, and are only available to companies operating within that sector.
Who Is Eligible for the PSG Grant?
Eligibility is fairly broad, which is part of why PSG remains one of the most commonly used SME grants in Singapore. To qualify, your company generally needs to meet these conditions.
| Criteria | Requirement |
|---|---|
| Business registration | Registered and operating in Singapore |
| Local shareholding | At least 30% local equity (for selected solutions) |
| Company size | Group annual turnover under S$100 million, or group headcount under 200 |
| Deployment location | Solution must be purchased, leased, or subscribed to for use in Singapore |
| Payment timing | No payment or deposit made to the vendor before the application is submitted |
Newly incorporated companies can apply too, provided they meet the criteria above. If you've just gone through the incorporation process and are setting up your operational systems from scratch, this is actually a good time to check whether any of your planned software purchases qualify for PSG support before you commit to a vendor.
One condition trips up more applicants than any other: you cannot pay a deposit, sign a contract, or make any payment to your vendor before your application is submitted. Enterprise Singapore calls this a retrospective application, and it will not be supported. If you've already paid the vendor, the grant is off the table for that purchase, full stop.
How Much Funding Does PSG Provide?
PSG covers up to 50% of qualifying costs, capped at S$30,000 per company per financial year. So if you're implementing a cloud accounting system that costs S$8,000, you could receive up to S$4,000 back, provided the solution and vendor are on the approved list and your application is submitted correctly.
This cap resets every financial year, not per project. If your business plans to adopt multiple solutions over the next 12 months, say an accounting system this quarter and a CRM platform later in the year, both can potentially draw from the same S$30,000 allowance, so it pays to plan your tech roadmap rather than applying piecemeal.
How to Apply for the PSG Grant
The application runs through the Business Grants Portal (BGP), and you'll need a Corppass account to access it. Here's the process in order.
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Identify a supportable solution and vendor. Browse the list of pre-approved solutions on GoBusiness Gov Assist and pick one that fits what your business actually needs. Don't reverse-engineer your needs to fit a solution just because it's grant-eligible.
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Get a proper quotation. For IT solutions, this has to come from the pre-approved vendor and match the scope and cost breakdown set out in the solution's approved package. For equipment or consultancy services, get a quotation from the relevant vendor or consultant. The quotation must be addressed to your company's exact registered name as it appears on ACRA's Bizfile, not a shortened version.
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Prepare your supporting documents. This includes your financial statements for the past three years (or management accounts if you're newly incorporated), your deployment address or tenancy agreement, and a description of the productivity gains you expect from the solution.
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Submit your application on the BGP. Log in with Corppass, select PSG, and upload everything before you sign anything with the vendor or make any payment.
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Wait for your Letter of Offer. Applications typically take around six weeks to process. Once approved, you'll receive a Letter of Offer outlining the grant amount, project period, and conditions of support, which you'll need to accept within the given timeline.
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Complete the project. The solution needs to be purchased, deployed, and used for at least 30 days before you can claim.
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Submit your claim. You'll need the vendor invoice, proof of full payment, a usage report showing the solution has been in use for at least a month, and photo evidence of the software licence or equipment serial number.
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Receive your payout. Once your claim is approved, funds are disbursed via PayNow Corporate, usually within 14 working days, or via GIRO, which can take up to eight weeks.
If your paperwork is airtight and your solution is squarely within the pre-approved list, this process moves quicker than most founders expect. Where it slows down is usually at step three, when financial statements are incomplete or the quotation doesn't match the approved package exactly.
Where PSG Applications Usually Go Wrong
Most rejected or delayed applications aren't rejected because the business wasn't eligible. They're delayed because of paperwork mismatches. A quotation addressed to "ABC Global" instead of "ABC Global Pte Ltd" as registered with ACRA will bounce back. A deposit paid to the vendor two weeks before submission, even a small one, disqualifies the whole application. Financial statements that aren't signed off by an authorised person get flagged too.
None of this is complicated once you know what to look out for, but it's exactly the kind of administrative detail that gets missed when you're juggling grant applications alongside actually running your business. This is where having your corporate secretarial and accounting records already in order makes a real difference. If your company's financials are being handled through proper cloud accounting rather than a spreadsheet someone updates every few months, pulling together the documents PSG asks for takes an afternoon instead of a week.
Is PSG Worth Applying For?
If you're already planning to adopt a productivity tool that happens to be on the PSG list, the answer is almost always yes. There's no real downside to applying for a grant that covers half the cost of something you were going to buy anyway. Where it makes less sense is if you're chasing the grant first and picking software second. That approach tends to leave businesses with a tool that doesn't quite fit how they operate, just because it happened to qualify for funding.
And if you're a newly incorporated company still getting your compliance basics sorted, whether that's your corporate secretarial obligations or your company tax filing setup, getting those foundations right first will make every grant application you submit afterward, PSG included, considerably less painful.