Top 5 Things to Know Before Applying for the Productivity Solutions Grant (PSG) in Singapore

If you’re a small or medium-sized enterprise (SME) in Singapore looking to digitalise your business and boost productivity, you’ve likely come across the Productivity Solutions Grant (PSG). With support from the Singapore government, PSG has helped thousands of businesses upgrade operations through technology and equipment, offering up to 50% funding support.

However, before diving into the application process, it’s crucial to be fully informed. Many businesses miss out on funding or face delays due to simple mistakes or a lack of preparation.

In this article, we’ll walk you through the top five things every business owner should know before applying for the PSG Grant in Singapore. By understanding these factors early on, you’ll avoid common pitfalls and increase your chances of a successful application.

1. Eligibility Criteria: Not Every Business Qualifies

Before spending time exploring solutions or vendors, make sure your company is eligible for the PSG Grant.

To qualify, your business must:

Be registered and operating in Singapore
Have a minimum of 30% local shareholding
Use the purchased/subscribed solution only in Singapore
Have either an annual turnover of less than S$100 million or employ fewer than 200 employees (for selected sectors)

Additionally, the PSG Grant is typically only available to SMEs. Larger enterprises or companies with foreign ownership may not qualify.

Even if your company meets these criteria, be aware that funding approval is not automatic. The grant is competitive and subject to Enterprise Singapore’s review process. For a smoother journey, consider consulting with experts such as those at GrantConsultant.sg to verify eligibility and ensure you’re on the right track.

2. Solutions Must Be Pre-Approved

This is one of the most important things to understand: only pre-approved solutions qualify for the PSG Grant.

The list of eligible IT solutions, equipment, and consultancy services is available on the GoBusiness Gov Assist portal. These solutions are carefully selected by government agencies to ensure they are effective, relevant, and vendor-reliable.

Categories of solutions include:

Accounting and Financial Management Software
Human Resource Management Systems (HRMS)
Customer Relationship Management (CRM) Tools
Cybersecurity Solutions
Retail POS Systems
E-Commerce Website Builders
Digital Marketing Packages
F&B Ordering and Payment Systems

You must not sign any contracts or make any payment to the vendor before receiving official approval of your PSG application. Doing so will immediately disqualify your application, even if the solution is otherwise eligible.

3. Application Documentation Must Be Accurate and Complete

One of the most common reasons for rejection or delay is incomplete or inaccurate documentation. Before applying, prepare the following:

Latest ACRA BizFile (must not be more than 6 months old)
Quotations from pre-approved vendors (must be official and itemized)
Financial statements or management accounts (depending on your grant type)
Information about your company’s ownership and structure
Use-case justification for the solution being purchased (why you need it and how it will benefit your business)

When submitting your application through the Business Grants Portal (BGP), ensure every field is filled in correctly and completely. Double-check that your contact details and company information match your BizFile records.

To save time and reduce errors, you can engage a grant application specialist. GrantConsultant.sg offers end-to-end assistance, including application review and submission support.

4. The Approval Process Takes Time – Plan Ahead

Some business owners make the mistake of expecting instant approval and get frustrated when there are delays. The average processing time for PSG applications is about 4 to 6 weeks, sometimes longer if there is high demand or if clarifications are required.

You should factor this waiting period into your implementation timeline. If you’re in a rush to deploy a system or solution, PSG may not be suitable unless you can wait for approval.

Here are a few tips to manage this better:

Submit during off-peak periods if possible (avoid Q1 and Q4 when applications spike)
Ensure all supporting documents are ready and valid before submission
Respond quickly to any queries from Enterprise Singapore or your grant officer

Being patient and well-prepared gives you a far higher chance of a smooth approval process.

5. You Must Claim After Implementation – and Do It Right

Getting the PSG Grant approved is only half the journey — you also need to successfully implement the solution and file for claims to receive reimbursement.

After receiving approval:

Purchase the solution from the approved vendor
Implement it in your operations (and take note of proof of use)
Collect all receipts, invoices, and payment records
Submit your claim on the BGP portal within the deadline (usually within 6 months of approval)

Your claim must include:

A signed vendor contract
An invoice marked “Paid”
Bank transaction record
Before-and-after photos or screenshots
An implementation report (some categories)

Any mistakes here — such as missing documents or late submissions — can result in non-reimbursement.

If you’re unsure about the claims process, it’s best to work with consultants who are familiar with government grant procedures. The team at GrantConsultant.sg can support both the application and claims phases, ensuring you meet all requirements for a successful disbursement.

Bonus Tip: Combine PSG with Other Grants

While PSG is a great starting point, it can be stacked or paired with other grants like the EDG (Enterprise Development Grant) or MRA (Market Readiness Assistance) for even greater funding coverage.

For example, a company may:

Use PSG to fund digital marketing tools
Use EDG to engage a consultant for business strategy
Use MRA to expand into overseas markets

This holistic funding approach allows your business to grow faster and more strategically. Reach out to a grant expert to understand how you can build a grant strategy that works.

Final Thoughts

The Productivity Solutions Grant (PSG) is one of Singapore’s most impactful funding schemes for SMEs. But to take full advantage of it, you must understand the key requirements and processes before applying.

By keeping these top 5 things in mind — eligibility, solution pre-approval, documentation accuracy, application timelines, and claim procedures — you set your business up for a smooth and successful grant experience.

Need help getting started?
Visit https://grantconsultant.sg/productivity-solutions-grant-psg-singapore/ to get expert guidance on your PSG journey today.