Enterprise Singapore’s Productivity Solutions Grant (PSG) has been a vital tool in helping small and medium-sized enterprises (SMEs) in Singapore to adopt technology solutions, enhance their productivity, and stay competitive in the market. The grant provides financial support to SMEs to purchase or subscribe to pre-approved IT solutions and equipment, as well as consultancy services.
In line with the Singaporean Government’s goal of supporting businesses in their digital transformation journey, such as when developing an eCommerce website, the PSG Grant has undergone changes in terms of the maximum support level provided to SMEs. From 1 April 2022 to 31 March 2023, the maximum support level is up to 70% for all eligible solutions, except for certain sub-categories in the Food Services and Retail sectors, which can receive enhanced support of up to 80%.
However, starting from 1 April 2023, the maximum support level for all sectors will be reduced to 50%. You can read more about this here. This means that SMEs applying for the PSG Grant can receive up to 50% of the qualifying costs incurred for the purchase or subscription of eligible solutions, subject to a cap of $30,000 per company per year.
SMEs should take note that only pre-approved IT solutions, equipment, and consultancy services listed on the Business Grants Portal (BGP) are eligible for PSG. Sector-specific solutions are available only to companies within the respective sectors, while generic solutions are intended to improve productivity for companies across all sectors.
To apply for PSG, companies must fulfill the eligibility criteria, which include being registered and operating in Singapore, having a minimum of 30% local shareholding for selected solutions, and having at least three local employees for consultancy service solutions at the point of application. Companies must also ensure that the purchased or subscribed IT solutions or equipment are used in Singapore.
The application process for PSG involves four steps: accessing the list of supportable solutions eligible for your sector and identifying relevant solutions, obtaining a quotation from the pre-approved vendor or consultant, submitting an application on the BGP, and submitting your grant claim on the BGP before the claim due date.
SMEs are reminded to carry out due diligence when engaging vendors and to not share their Corppass with vendors for the submission of grant applications or claims. This will ensure that the PSG Grant is used effectively to support the digital transformation and productivity enhancement of SMEs in Singapore.
In conclusion, while the PSG Grant’s maximum support level will be reduced to 50% from 1 April 2023 onwards, it still provides significant financial support to SMEs in their digital transformation journey. SMEs are encouraged to explore the pre-approved IT solutions, equipment, and consultancy services listed on the BGP and apply for PSG to enhance their productivity and competitiveness in the market.