Productivity Solutions Grant (PSG): Complete Guide for SMEs in Singapore

Introduction

In today’s fast-changing digital economy, small and medium-sized enterprises (SMEs) in Singapore need to adopt technology to stay competitive. The Productivity Solutions Grant (PSG) is a key initiative by the Singapore government to help businesses do just that—without the heavy upfront costs.

If your business is looking to implement digital solutions such as accounting software, HR systems, or e-commerce platforms, PSG can cover up to 50% of your cost. Here’s a step-by-step guide to help you understand how the PSG works and how to apply.

What is the Productivity Solutions Grant (PSG)?

The Productivity Solutions Grant (PSG) is a government grant managed by Enterprise Singapore, IMDA, and relevant sectoral agencies. It encourages businesses to adopt pre-approved digital solutions and equipment that enhance productivity and efficiency.

• Funding Support: Up to 50% of qualifying costs, capped at S$30,000 per company per financial year.

• Categories Supported: IT solutions, automation tools, and sector-specific productivity enhancements.

Key Benefits of PSG for SMEs

a. Reduced Digital Adoption Cost

PSG significantly lowers the barrier to entry for technology adoption by subsidising up to 50% of the cost of pre-approved tools.

b. Access to Trusted Solutions

Businesses choose from a curated list of pre-approved vendors and solutions, ensuring quality and industry relevance.

c. Improved Business Efficiency

By adopting digital tools, SMEs can streamline operations, reduce manual work, and scale faster.

d. Supports Sector-Specific Needs

Solutions are tailored to industries like retail, F&B, construction, logistics, and healthcare.

Types of Solutions Covered Under PSG

Some of the popular PSG-supported categories include:

• Accounting software (e.g., Xero, QuickBooks)

• Customer Relationship Management (CRM) systems

• E-invoicing and billing platforms

• HR and payroll management systems

• E-commerce website development

• Inventory and POS systems

• Cybersecurity tools

• Restaurant order management systems

• Retail analytics solutions

Note: The solutions must be selected from the official list of pre-approved vendors.

PSG Eligibility Criteria

To qualify for the PSG, your business must:

• Be registered and operating in Singapore

• Purchase or subscribe to the IT solution/equipment only for use in Singapore

• Have at least 30% local shareholding (for selected sectors or enhancements)

• Not have commenced the purchase or contract before applying

Step-by-Step Guide to Applying for PSG

Step 1: Identify Your Business Need

Start by understanding which area of your business requires improvement:

• Are you spending too much time on manual payroll?

• Do you want to automate invoicing?

• Are you lacking visibility into customer data?

Step 2: Choose a Pre-Approved Solution

Browse the list of pre-approved solutions on the GoBusiness Singapore portal. Filter by sector or business function.

Note the following for each:

• Vendor contact

• Features and implementation details

• Cost breakdown

• Grant support percentage

Step 3: Get a Quotation from the Vendor

Contact the vendor directly to:

• Discuss your needs

• Confirm the fit of the solution

• Request an official quotation

Important: Do not sign the contract or make any payment before the grant is approved.

Step 4: Submit Your PSG Application

Apply online via the Business Grants Portal:

1. Log in with Corppass

2. Select "Productivity Solutions Grant"

3. Fill in company information, solution category, and vendor details

4. Upload the quotation and supporting documents

5. Submit for review

Step 5: Await Approval

• Application processing takes about 2 to 6 weeks

• EnterpriseSG may request further clarifications

• You will receive an email notification upon approval

Step 6: Purchase and Implement the Solution

Once approved:

• Sign the contract with the vendor

• Complete the installation or setup

• Ensure you keep all invoices and proof of implementation

Step 7: Submit Claim for Reimbursement

After implementation:

• Log back into the Business Grants Portal

• Submit your claim with the required documents:

  • Invoice

  • Proof of payment

  • Screenshot or evidence of solution in use

  • Final report or implementation summary

Reimbursement is processed after approval.

How ProLead Can Help

ProLead does not provide PSG solutions directly, but we help businesses:

• Identify the most suitable pre-approved solutions

• Compare vendors and pricing across categories

• Clarify eligibility requirements

• Prepare for application submission on the Business Grants Portal

We simplify the decision-making process by connecting you with reliable technology partners who understand your industry.

Conclusion

The Productivity Solutions Grant (PSG) is one of the fastest and most accessible ways for SMEs to adopt digital tools and improve efficiency. With up to 50% grant support, it offers an excellent opportunity to upgrade operations without straining your budget.

If you're unsure which solution best fits your business needs or how to get started, reach out to ProLead for personalised guidance. We’ll help you navigate the options and link you with the right service providers.