Quick answer: The Productivity Solutions Grant (PSG) helps Singapore SMEs adopt pre-approved digital solutions, covering up to 50% of costs. Before applying, map your business pain points, research pre-approved solutions on the GoBusiness portal, get a quotation from an approved vendor, and confirm you meet eligibility criteria. Planning first ensures you pick the right tool—not just any tool.
Many small businesses rush to apply for the PSG grant because the funding sounds attractive. Then they hit a wall. They pick the wrong solution, submit incomplete documents, or realize halfway through that the tool doesn’t actually solve their problem.
The grant works best when you treat it as the final step of a plan—not the starting point. A little groundwork upfront saves weeks of back-and-forth and helps you get real value from whatever software or equipment you adopt.
This guide walks you through how to plan your digitalisation journey before you submit a single form. You’ll learn what the PSG grant covers, how to identify the right solution for your business, and the exact steps to prepare a smooth application.
What is the PSG grant and who is it for?
The Productivity Solutions Grant (PSG) is a Singapore government scheme that supports SMEs adopting IT solutions and equipment to boost productivity. It’s administered by Enterprise Singapore and covers a wide range of pre-approved solutions across sectors like retail, food services, logistics, and professional services.
The grant typically funds up to 50% of qualifying costs, though support levels can change based on government announcements. Because the funding applies only to pre-approved solutions and vendors, your choices are more structured than an open-ended tech budget.
To qualify, your business generally needs to:
- Be registered and operating in Singapore
- Have at least 30% local shareholding
- Purchase or lease the solution for use within Singapore
- Meet group annual sales or employment size criteria (where applicable)
Always check the latest eligibility rules on the official GoBusiness portal, since criteria and funding rates are updated periodically.
Why should you plan your digitalisation before applying?
The most common mistake SMEs make is treating the PSG grant as a shopping voucher. They see the funding, browse the solution list, and pick something that looks useful. Months later, the software sits unused because it never matched a real business need.
Planning first flips this around. When you start with your actual problems, the technology becomes a fix—not a guess. You also avoid three costly outcomes:
- Wasted subsidy on a tool your team abandons
- Rejected applications from incomplete or mismatched documentation
- Poor adoption because staff weren’t ready for the change
Choose to plan carefully if long-term value matters more to you than speed. A rushed application might get approved faster, but a planned one delivers results that last.
How do you identify the right digital solution for your business?
Before you look at any grant list, look inward. The goal is to understand where your business loses time, money, or accuracy—then find technology that closes those gaps.
Map your daily pain points
Sit down with your team and list the tasks that eat up hours or cause repeated errors. Common examples include:
- Manual invoicing and bookkeeping
- Tracking inventory on spreadsheets
- Handling appointment bookings by phone
- Chasing customer payments
- Duplicating data across systems
Write these down plainly. A pain point like “we spend six hours a week reconciling sales figures” is far more useful than “we need better software.”
Rank problems by impact
Not every problem deserves a digital fix right away. Rank your list by two factors: how much time or money the problem costs, and how easy it is to solve with available tools. Focus your first PSG application on the issue that scores high on both.
Match problems to solution categories
The PSG grant covers broad categories such as accounting software, inventory management, customer relationship management (CRM), e-commerce platforms, and digital marketing tools. Match your top pain point to the category that addresses it directly. If manual invoicing is your biggest drain, accounting software is your lead candidate—not a shiny new e-commerce site.
What are the pre-approved PSG solutions and how do you find them?
The PSG grant only funds solutions and vendors that Enterprise Singapore has vetted. This protects SMEs from unproven products, but it also means you can’t pick just any software off the market.
You’ll find the full, searchable list on the GoBusiness portal. There you can filter by sector and business need, then compare the pre-approved options within each category. Take time to read what each solution actually does, since two tools in the same category can serve very different needs.
When comparing options, ask:
- Does it solve my specific pain point, or just something similar?
- Can my team learn it without heavy training?
- Does it connect with software I already use?
- What ongoing costs remain after the grant subsidy ends?
That last question matters more than most people expect. The grant helps with adoption costs, but you’ll pay subscription or maintenance fees on your own afterward. Factor those into your decision.
How do you prepare a strong PSG grant application?
Once you’ve chosen a solution, preparation is mostly about paperwork and sequence. Getting the order right prevents delays.
Step 1: Confirm your eligibility
Recheck the eligibility criteria on the official portal before spending time on anything else. Confirm your local shareholding, business registration, and size criteria all line up.
Step 2: Get a quotation from an approved vendor
Contact the pre-approved vendor for the solution you selected and request a formal quotation. This quote becomes a core part of your application, so make sure it reflects the exact package you intend to buy.
Step 3: Gather your supporting documents
Applications typically require details like your company profile, financial information, and the vendor quotation. Prepare these in advance so you’re not scrambling once you start the form.
Step 4: Submit through the Business Grants Portal
PSG applications go through the Business Grants Portal, which requires a Corppass account. Set up your Corppass early if you don’t already have one, as this step often trips up first-time applicants.
Step 5: Wait for approval before purchasing
Do not buy or pay for the solution before your application is approved, unless the official guidelines say otherwise. Purchasing early can disqualify your claim.
What common mistakes should SMEs avoid?
Even well-intentioned applicants stumble on avoidable errors. Watch for these:
- Buying before approval. This is the most frequent reason claims get rejected.
- Choosing a solution that isn’t pre-approved. The grant won’t cover it, no matter how good the tool is.
- Underestimating training time. New software needs staff buy-in and practice. Budget time for it.
- Ignoring ongoing costs. A subsidized purchase can still become expensive once recurring fees kick in.
- Applying for too many solutions at once. Start with one clear win, prove the value, then expand.
How long does the PSG process take, and what does it cost?
Processing times vary, so treat any single estimate with caution and check current guidance on the portal. Application review is not instant—plan for a wait between submission and approval, and factor that into any project timeline.
On cost, the PSG grant covers up to 50% of qualifying expenses, with your business covering the rest plus any recurring fees. Because support levels are subject to change, confirm the current rate before you budget. The key point: the grant reduces your cost, it doesn’t remove it.
Turning your plan into action
The businesses that get the most from the PSG grant share one habit: they plan before they apply. They know their pain points, they’ve matched them to a pre-approved solution, and they’ve lined up their documents before touching the application form.
Start with a simple audit of where your business loses time each week. Rank those problems, then explore the pre-approved solutions on the GoBusiness portal to see which one fits. Confirm your eligibility, secure a vendor quotation, and only then submit through the Business Grants Portal.
Digitalisation isn’t a one-time purchase—it’s an ongoing shift in how you work. The PSG grant gives you a head start, but the direction is yours to set. Plan well, and the funding becomes a launchpad rather than a gamble.
Frequently asked questions
Who is eligible for the PSG grant in Singapore?
SMEs registered and operating in Singapore with at least 30% local shareholding are generally eligible. The solution must be used within Singapore, and your business must meet the relevant group sales or employment size criteria. Check the GoBusiness portal for the latest rules.
How much does the PSG grant cover?
The PSG grant covers up to 50% of qualifying costs for pre-approved solutions. Support levels can change based on government announcements, so confirm the current rate before applying. Your business covers the remaining cost and any recurring fees.
Can I choose any software for the PSG grant?
No. The PSG grant only funds solutions and vendors pre-approved by Enterprise Singapore. You can browse the full list on the GoBusiness portal and filter by sector and business need to find eligible options.
Do I need to apply before buying the solution?
Yes. In most cases you must submit your application and receive approval before purchasing or paying for the solution. Buying early can disqualify your claim, so always confirm the sequence in the official guidelines first.
Where do I submit my PSG grant application?
PSG applications are submitted through the Business Grants Portal, which requires a Corppass account. Set up your Corppass in advance, since this is a common holdup for first-time applicants.
