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Productivity Solutions Grant (PSG): What It Is and How to Apply

In a fast-paced business environment like Singapore, Small and Medium Enterprises (SMEs) need to constantly improve productivity and adopt technology to remain competitive. Fortunately, the Singapore government recognises this and offers a range of grants to support SMEs — one of the most popular being the Productivity Solutions Grant (PSG).

At GrantConsultant.sg, we regularly assist businesses in applying for PSG and other related grants. In this article, we’ll break down exactly what the PSG is, who it’s for, what it covers, and how to successfully apply.

What is the Productivity Solutions Grant (PSG)?

The Productivity Solutions Grant (PSG) is a government initiative that supports SMEs in adopting IT solutions and equipment to improve productivity. It’s managed by Enterprise Singapore, in collaboration with other agencies like IMDA, NEA, and STB.

The PSG is ideal for companies looking to digitise or automate key aspects of their operations — whether it’s accounting, inventory management, point-of-sale systems, HR solutions, or even cybersecurity.

What Does PSG Cover?

The PSG provides funding support for:

  1. Pre-approved IT Solutions
    Examples:
    • Accounting software (e.g. Xero, QuickBooks)
    • HR management systems
    • CRM systems
    • Project management tools
    • Cybersecurity solutions
  2. Equipment
    Examples:
    • Thermal scanners
    • Automation tools for food production
    • Packaging equipment for manufacturers
  3. Sector-Specific Solutions
    Sectors include:
    • Retail
    • Food & Beverage
    • Construction
    • Logistics
    • Precision Engineering
    • Landscaping

Funding Support:
As of 2025, eligible SMEs can receive up to 50% of the cost covered by the grant.

Who Is Eligible for PSG?

To qualify for the PSG, your business must meet the following criteria:

  • Registered and operating in Singapore
  • Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore
  • Minimum 30% local shareholding
  • Company group annual sales turnover of less than S$100 million, or group employment size of fewer than 200 employees

For sector-specific solutions, your business must be classified under the relevant SSIC code.

Why Choose PSG Over Other Grants?

The PSG is one of the most straightforward grants for SMEs to tap into. Here’s why:

  • Shorter application process compared to grants like EDG
  • No need for a full-fledged business plan
  • Pre-approved vendor list makes solution sourcing easier
  • Ideal for first-time grant applicants

PSG also complements other schemes like SkillsFuture Enterprise Credit (SFEC), meaning you can stack benefits for the same project.

How to Apply for the PSG: Step-by-Step Guide

Applying for PSG isn’t difficult — but doing it right matters. Here’s a step-by-step breakdown to make the process smoother.

Step 1: Identify Your Business Needs

Start by identifying your pain points or growth areas. Ask yourself:

  • What are the inefficiencies in your current operations?
  • What kind of digital tools can solve those issues?
  • Is your goal to automate, improve accuracy, or enhance customer service?

Tip: At GrantConsultant.sg, we offer free consultations to help SMEs assess the right areas to apply for.

Step 2: Search for Pre-Approved Solutions

Head over to the GoBusiness portal (https://www.gobusiness.gov.sg/) and browse the PSG pre-approved solutions list.

You can search by:

  • Industry
  • Solution type
  • Vendor name

Make sure the solution you select is PSG-eligible and offered by a pre-approved vendor.

Step 3: Request a Quotation

Once you’ve chosen your solution or vendor, request a formal quotation from them.

The quotation must clearly state:

  • Name and details of the solution
  • Price breakdown (excluding and including GST)
  • Vendor’s company details

Step 4: Prepare Supporting Documents

You will typically need to upload:

  • Your company’s latest ACRA BizFile
  • The quotation from the pre-approved vendor
  • Any product brochures or solution write-ups (optional but helpful)

If your solution is sector-specific, you may need to prove your business classification (e.g., through SSIC codes).

Step 5: Submit Your Application via Business Grants Portal (BGP)

Log into the Business Grants Portal (BGP) using your CorpPass.

Steps:

  1. Select “Productivity Solutions Grant”
  2. Choose your solution from the pre-approved list
  3. Upload your supporting documents
  4. Submit the application

After submission, you’ll receive an acknowledgment and application ID.

Step 6: Wait for Approval

PSG applications generally take 2 to 6 weeks to process. Authorities may request further clarifications or documents, so check your email regularly.

Once approved, you will receive an official Letter of Offer (LOF).

Step 7: Accept the Grant Offer

Login to the BGP and formally accept the offer. Only then can you proceed with the purchase.

Step 8: Purchase and Implement the Solution

Go ahead and purchase/subscribe to the solution after you’ve accepted the offer.

Keep all invoices, receipts, and screenshots of implementation, as you’ll need them to submit a claim.

Step 9: Submit Your Claim

After implementation:

  • Login to BGP
  • Submit proof of purchase and deployment
  • Include screenshots, training records, user logs, etc.

Once your claim is approved, the reimbursement will be credited to your designated bank account.

Common Mistakes to Avoid

  1. Purchasing before approval – The grant won’t be valid if you make the purchase before the LOF.
  2. Using a non-approved vendor – Only pre-approved vendors are eligible under PSG.
  3. Submitting incomplete applications – Missing documents or unclear project scopes can lead to rejection.
  4. Not implementing within the deadline – You typically have 6 months from approval to complete the project.

Why Work with a PSG Consultant?

Working with a grant consultant like GrantConsultant.sg ensures:

  • Accurate and timely submissions
  • Help with finding the most suitable solution
  • Stronger business case presentation
  • Less stress, fewer errors

We help guide you through the entire PSG journey — from assessment to claim submission.

Final Thoughts

The Productivity Solutions Grant (PSG) is a valuable opportunity for SMEs in Singapore to modernise and digitise their operations with financial support from the government. With the right strategy and support, even smaller businesses can take bold steps forward in tech adoption.

If you’re ready to improve your business productivity and want to leverage PSG without the hassle, contact us at GrantConsultant.sg. Our team of experts is here to help you maximise your chances of approval — and achieve your business goals faster.