Productivity Solutions Grant (PSG) - Singapore
Overview of PSG
The Productivity Solutions Grant (PSG) greatly reduces the costs of digitally enhancing your business. It is a joint initiative of Infocomm Media Development Authority (IMDA) and Enterprise Singapore. Clients with the below eligibility criteria can get up to 70% funding support through PSG. For eligible pre-scope solutions the funding is up to 80% from 1 April 2022 to 31 March 2023 for retails sector and food services.
Eligibility Criteria for PSG Singapore
A business should meet the below criteria in order to be eligible for the grant:
- Registered and operating in Singapore
- Purchase, lease or subscription of IT equipment, consultancy service or solutions must be used in Singapore
- Possess a minimum of 30% local shareholding (only for applicable solutions)
- Consist of at least three local employees at the time of application (only for consultancy services)
Industries Applicable for PSG Singapore
PSG covers industry-specific solutions that include food, retail, wholesale, logistics, precision engineering, construction, and landscaping. Apart from industry-specific solutions, PSG also supports the adoption of various solution process in areas including data analytics, financial management, customer management, human resource management, and inventory management. Here is a full list of pre-scoped solutions.
How to Apply for PSG Singapore
Following are the steps to follow when applying for PSG:
- View the list of solutions supported and determine the solutions that best suits your business needs.
- Follow the below steps according to the nature of the business need:
- a. Get a quotation from a pre-approved vendor if it is for IT solutions
- b. Source for the technical equipment and get a quotation from the relevant vendor if it for IT equipment
- c. Get a quotation from a pre-approved consultant if it is for a consultancy service
- Submit an application on the Business Grant Portal which requires you to register for a Corppass account for transactions done on the portal.
- Submit grant claim on the above portal before the due date of your claim.
Here is a detailed checklist for applying for PSG.
1. Check eligibility for PSG
- a. Business entity that is registered in Singapore
- b. Company does not belong to the following categories: Charity, Voluntary Welfare Organization (VWO), Institute of Public Characters (IPCs), Religious entity and Government agency or its subsidiary
- c. At least 30% of shareholding by Singaporean or an individual with Singapore PR Note: Solutions supported by Enterprise Singapore (ESG) are applicable to local SMEs only. To adopt an ESG supported solution, the following should also be fulfilled:
- d. For corporate group - Company Group Annual Sales Turnover must be ≤ S$100 million, or Company’s Group Employment Size must be ≤ 200 workers
For a solution package from a solution category that was approved previously, it must be deployed to a different location.
2. Prepare required documents
- a. Financial statements of the company for the past 3 years & ACRA Bizfile of holding companies and subsidiaries. For corporate group, also submit corporate group structure and SGX shareholder report.
- b. Vendor documents: Unsigned quotation, and product brochure and technical specification for equipment.
c. Licenses required for industry-specific solutions
- Security organization – Officially endorsed Police Licensing & Regulatory Department (PLRD) license.
- Food business entity – Singapore Food Agency (SFA) license.
- d. Tenancy agreement
PSG Application Process: Step-by-Step Guide
Here is a step-by-step guide to application submission for PSG.
- Log in to Business Grant Portal go to My Grants tab and click on ‘Get New Grant’
- Select the relevant sector and grant type. Click on ‘Upgrade key business areas’
- Click on ‘Pre-scoped Productivity Solutions’ and check ‘Yes’ if the eligibility criteria stated there are met
- Fill in contact details such as the main contact person and Letter of offer addressee
- Submit your proposal
- a. Check ‘Equipment’ or ‘IT Solution’
- b. Select vendor and fill in the details of IT solution or equipment
- c. Upload vendor quotation
- d. Fill in your deployment location
- Fill in the cost details of the project
- Explain the business impact by filling in details of overall impact and productivity gains
- Declare and submit the application by indicating your consent and acknowledgment, where applicable
Does the PSG have a cap for the grant amount offered?
The annual grant cap is SGD 30,000 from 1st April to 31st March of the following year.
How many PSG grants can a company apply for?
A company can apply for more than one PSG depending on the business needs. However, the grant is provided only for one package per solution category per deployment location. So, if the applicant applies for the same IT solution to be deployed in the same solution, after submitting the first application, then the application will be rejected.
Can I use the solution offered by the grant for a subsidiary under my business?
No, the solution and equipment can only be used by the applicant himself.
Can the vendor apply for PSG on behalf of my business?
The government requires all applications to be submitted by the business entity itself.
What are the supportable costs of adopted IT solutions?
Unless otherwise specified, only the actual purchase/lease/hire cost of the pre-approved equipment or pre-approved IT solution package is supportable. This cost excludes other related administrative fees/charges including delivery fees and installation.
How long does it take to process grant applications?
It takes about 6 weeks, from submission date, to process grant applications. Companies should submit applications ahead of time to avoid processing delays.