A PSG grant is also known as the Productivity Solution Grant. It is a funding program by the government to financially help SMEs that want to adopt IT solutions or make IT conversions for their business operations.
The purpose of introducing the PSG grant to SMEs is to encourage digitalization for the ease of many business operating areas such as data analysis, better management, improving inventory and et cetera.
Also, most of those with no experience in digital solutions are businesses by the older generation with no knowledge on technology. Government encourages these small-medium enterprises to outsource and go digital so that their businesses can survive.
There will be different packages from different vendors and SMEs can look for the pre-approved vendor that offers them the equipment or packages that they need.
Some examples of the packages or services would be outsourcing of the accounting department where SMEs can implement accounting software called Xero. Another example of the services provided would be helping SMEs set up their very own E commerce web to enable consumers to do online payment and delivery.
There are a few criteria that SMEs have to take note before applying for the PSG grant. First of all, the digital solution that SMEs applied for must be implemented in Singapore, the business must also be incorporated in Singapore.
Next, the director of the business has to be a Singaporean with a minimum of 30% shareholding. Lastly, the company should have an employment size of less than 200 individuals or less than a total of 100 million SGD for the company’s annual sales turnover.
It is beneficial for SMEs to apply for the PSG grant because they can get subsidies of up to a total of 80%. By going digital or implementing digital solutions into their businesses, these SMEs are also increasing business exposure to the consumers that are in the digital field.
With digital solutions, businesses can see advantages like cost saving from multiple aspects and an increase in productivity. Furthermore, the grant not only benefits the above, it is also to help traditional businesses with few or zero knowledge on technology to increase exposure, increase sales and to keep their businesses alive.
The digital solution or equipment under the PSG grant will last for a year. There are numerous support solutions available that can be subsidized by the PSG grant. Different business categories will require different solutions that suit their operations. It is therefore important for businesses to find out what they require and see if it can be subsidized under the program.