PSG Grants: The Complete Guide

How do you kickstart your technology journey with limited resources? The Productivity Solution Grant (PSG) is a great place to start.

The Productivity Solution Grant (PSG) offers funding support for projects that aim to improve productivity and benefit the public and society, focusing on information and communication technology (ICT).

This guide serves to guide Singaporean SMEs on how to successfully apply for the PSG grant.

What’s the PSG?

  • The Productivity Solutions Grant (PSG) is a government grant that supports businesses in their adoption of pre-scoped IT solutions that can help them become more productive and operationally efficient.
  • The grant supports companies keen on adopting IT solutions such as accounting, CRM, HR systems, e-commerce, etc.

What’s the Grant Amount?

  • Under the PSG, businesses can receive up to 50% funding support to purchase IT solutions and services, with a maximum quantum of $350,000 per company.
  • For example, if your company spends $10,000 on an IT solution, you can receive up to $5,000 from the government.
  • What are the pre-scoped solutions?

Various industry-specific software solutions have been pre-scoped for the PSG to make it easier for businesses to adopt IT solutions that fit their needs.

That means businesses no longer need to go through the time-consuming evaluation process to determine if the solution meets their requirements.

Some of the pre-scoped solutions include:

  • Accounting and financial management software
  • Inventory, procurement, and supply chain management software
  • Customer relationship management (CRM) software
  • Enterprise resource planning (ERP) software
  • Human resources (HR) and payroll management software
  • Business process management (BPM) software
  • E-commerce platforms
  • Cybersecurity solutions
  • Data analytics tools
  • Cloud storage and backup services
  • Digital marketing solutions

To view the complete list of pre-scoped solutions, click here.

Are you eligible for the PSG?

Before applying for the PSG, you must check that your company is eligible for the grant.

To be eligible, your company must:

  • Be a registered business in Singapore with sole proprietorship, partnership, limited liability partnership, private limited company, or other legal entity;
  • Have at least 30% local shareholding if it is a privately-held company;
  • The purchased or leased IT solutions and services must be used in Singapore.
  • Not have more than 200 employees at the time of application; and
  • The group’s annual turnover must not exceed $100 million, and annual group funding from any source must not exceed $100 million.

What Documents Do You Need to Apply?

To apply for the PSG, you will need the following documents:

  • A quotation for a pre-scoped IT solution or service from an Authorised Reseller or pre-approved vendor;
  • A copy of the latest ACRA for your company;
  • A copy of the latest audited or unaudited financial statements or management accounts for the past three years;
  • A copy of the last three months’ bank statements; and
  • Estimated project costs, including a detailed breakdown of hardware, software, and implementation fees (where applicable).

What does the PSG cover?

  • The PSG covers a lot of sector-specific IT solutions and services, which are crucial for businesses to optimise their operations and become more productive.
  • These include:
  • IT Solutions: Take a quote from an Authorised Reseller or pre-approved vendor for an IT solution pre-scoped under the PSG.
  • For example, if you’re a food and beverage (F&B) business, you may want to get a point-of-sale system that can help you manage your inventory and sales more efficiently.
  • Equipment: source for and purchase equipment necessary for you to use the IT solution.
  • For example, suppose you’re in the healthcare business. In that case, pre-scoped IT solutions offer food-specific software solutions such as nutrition tracking and an intraoral scanner to help you manage your patients’ nutritional intake and improve their oral health.
  • The grant also covers laptops, servers, storage devices, and other hardware you may need to implement the solution.
  • Consultancy Service: Hire a consultant to help you with the feasibility study, system analysis, design, prototyping, testing, training, and project management for the IT solution.
  • For example, let’s say you’re setting up a new e-commerce business. You may want to engage a consultant to help you understand your business requirements and recommend an appropriate e-commerce platform.

What entities are excluded from the PSG?

  • Charities, religious organisations, and non-profit bodies, or Institutions of Public character (IPCs)
  • quasi-government bodies
  • Government Ministries, Statutory Boards, and Organs of State
  • Foreign-registered companies
  • Voluntary Welfare Organisations (VWOs)
  • Centralised Purchasing Bodies (CPBs)
  • Businesses that have been in operation for less than six months at the time of application
  • Businesses with more than 200 employees at the time of application
  • Companies with an annual group turnover of more than $100 million or annual group funding from any source of more than $100 million
  • Corporations that have been convicted of an offence under the Corruption, Drug Trafficking, and Other Serious Crimes (Confiscation of Benefits) Act within the last five years
  • Companies that have been fined or had their business licences revoked for breaches of the Consumer Protection (Fair Trading) Act or Singapore Tourism Board Act within the last five years
  • Businesses blacklisted by any government agency within the past three years
  • Companies that are in bankruptcy, liquidation, or under any form of insolvency proceedings at the time of application
  • Societies, clubs, and associations (SCAs), unless they are applying for the PSG to support a project that will generate income for the SCA
  • Businesses that have received other government grants, subsidies, or funding for the same project applied under the PSG
  • Companies that offer services such as gambling, money-lending, political campaigning, door-to-door sales, Tupperware parties, direct selling, and multi-level marketing

Does the PSG Grant support an unlisted IT solution?

  • No, the PSG only supports IT pre-scoped solutions listed on the PSG website.
  • For equipment purchases, there’s no need to check if the equipment is listed on the PSG website, as long as it meets the specifications provided.
  • If you’re looking for an IT solution not listed on the PSG website, you may wish to check if it’s eligible for other government grants. For example, the SMEs Go Digital Programme supports businesses in adopting a range of digital solutions, including e-invoicing, accounting, and inventory management software.

Is the PSG grant taxable?

  • The PSG grant isn’t considered taxable income as it’s given to offset business costs.
  • However, you might be required to pay taxes on any earnings from the PSG grant-funded project.
  • For example, if you use the grant to purchase an e-commerce platform and make a profit from selling products on the platform, you’ll need to declare the profit as taxable income.
  • For more information about this, please refer to the IRAS website.

Can pre-owned solutions and equipment be claimed under the PSG?

  • No, the PSG only supports the purchase of new IT solutions and equipment.
  • The PSG is meant to help businesses adopt new technologies and upgrade their capabilities.
  • If you’re looking for support to purchase pre-owned equipment, you may wish to check if it’s eligible for other government grants.

What is the difference between the PSG and other government grants?

  • The PSG is meant to help businesses offset the costs of adopting new IT solutions and equipment and upgrading their capabilities.
  • Other government grants, such as Grow Digital, help companies expand overseas; the Local Enterprise and Association Development (LEAD) Programme to companies improve their capabilities and international projects; and the Market Readiness Assistance (MRA) Grant helps companies get a presence in international markets. For more information, read here.
  • The PSG grant can’t be used for already-completed projects.

How’s the S$30,000 grant cap applied?

  • The grant is tied to the company’s Unique Entity Number (UEN).
  • In other words, each company is entitled to a maximum of $350,000 in grant funding, regardless of how many subsidiaries or branches it has.

Is the $350,000 cap per project or in total?

  • The $350,000 cap is the total amount of grant funding a company can receive, regardless of how many projects it undertakes.
  • Only the IT solution or equipment’s actual purchase, lease, or hire cost is counted towards the $30,000 cap.
  • Other costs, such as installation, professional services, and maintenance fees, are not counted towards the $350,000 cap.
  • The grant is disbursed on a reimbursement basis.
  • You’ll first need to incur the costs before applying for the grant.
  • You’ll then need to submit receipts or invoices as supporting documents when applying for the grant.

Can I make concurrent applications for several PSG-eligible projects?

  • Yes, you can make concurrent applications for multiple PSG-eligible projects.
  • However, the total amount of grant funding that you can receive is still capped at S$350,000.
  • That means that your company will have to bear any costs that exceed the S$350,000 cap.

What should I not do before receiving the official letter of approval?

  • Do not make any payment to a vendor, supplier, or third party regarding the purchase or subscription of the IT solution, equipment, or consultancy service.
  • Do not sign any contract with the vendor, supplier, or third party to purchase or subscribe to the IT solution, equipment, or consulting service.
  • Only make payment to the vendor, supplier, or third party after receiving approval for the grant.

What happens after I apply?

  • IDA will review your application. If your application is successful, you will accept the Letter of Offer.
  • You will then have to make payment to the vendor, supplier, or third party for the purchase or subscription of the IT solution, equipment, or consultancy service.
  • After that, you can submit a claim for reimbursement of up to 50% of the costs incurred.

How many times can I apply?

  • There is no limit on the number of times you can apply for the grant. However, the total amount of grant funding that a company can receive is still capped at S$350,000.
  • Plus, support can only be extended for one package per solution category per deployment location.
  • For example, suppose your company has already received support for an e-commerce platform in Yishun. In that case, you will not be able to receive support for another e-commerce platform in the same region (Yishun).

Can I deploy the PSG solution if my business is operating from a residential address?

  • For a business operating from a residential address (such as an HBD flat or private property), the PSG solution can still be deployed in the residential area, but only if it meets the required PSG solution.
  • Most importantly, the company must ensure the selected PSG solution and intended function align with the area’s HBD/URA master plan and zoning regulations.
  • For more information on home office scheme guidelines, please refer to the relevant schemes at URA or HDB.

How long must the purchase of the IT solution be held for?

  • The holding period for the IT solution or equipment purchased with the PSG grant is one year.
  • Consultancy service providers must be contacted within one year from the date of grant approval, and the services must be completed within six months from the date of commencement.
  • The project duration for deploying the IT solution must not exceed 12 months from the approval date.

Can a pre-approved PSG vendor apply on your behalf?

  • No, only the applicant company can apply for the grant.
  • After receiving a pre-approved quote from the vendor, you’ll have to process the application through BGP with all the required documents.

Can you edit or make changes to a pre-approved quote?

  • No, you cannot. All pre-approved quotes are final, and any modification renders them ineligible for grant support.

How will you be notified if your application is successful?

  • If your application is successful, you will be notified via the email you stated on the BGP portal.
  • You will then have to sign a grant into the BGP portal and accept the letter of offer.
  • After that, you can make a payment to the vendor, supplier, or third party for the purchase or subscription of the IT solution, equipment, or consulting service.

What’s the processing time for applications?

  • It takes approximately 4 to 6 weeks after submitting your application until the day you receive feedback.
  • However, this may differ depending on the nature and complexity of your application.
  • The PSG team will notify you if your application requires more time for processing.
  • Applications will be processed in the order they’re received.
  • You can check the status of your application via the Business Grants Portal (BGP).

What’s the processing time for claim disbursement?

  • After accepting the Letter of Offer, it takes approximately 4 to 6 weeks for the PSG team to disburse the grant amount.
  • The time for claim disbursement may differ depending on the solution for which you’re filing the claim.
  • Companies are encouraged to submit their claims after receiving their invoice or proof of purchase.
  • This will help to avoid any delays in the claims process.
  • What payment terms are accepted for the PSG?

The PSG allows for standard payment terms such as bank transfers and cheques.

For a sole proprietorship, you can make payments via credit card. But the credit card must belong to the sole proprietorship, not anyone else.

How is the PSG grant disbursed?

  • The PSG grant amount will be disbursed to the company’s bank account via GIRO within 4 to 6 weeks after accepting the Letter of Offer.
  • The grant amount will be credited into the company’s bank account in a single lump sum.
  • The company’s bank must verify the completed GIRO form before it’s submitted to ESG for disbursement.
  • If you’re submitting multiple claims, you only need to submit the GIRO form for the first claim.
  • For subsequent claims, the grant amount will be disbursed to the company’s bank account automatically via GIRO.
  • How Will You Be Notified of the Claims Disbursement?

An email notification will be sent to the main contact person’s email address as stated in the company’s Letter of Offer, notifying you of the disbursement.

The notification will include the GIRO transaction form and the grant amount credited into the company’s bank account.

What happens if you do not use the PSG grant within the stated period?

  • If your company doesn’t utilise the fund, the Offer for the grant will lapse, and you will have to apply all over again.
  • If you fail to complete the project within the stated period, you may have to refund all or part of the grant amount back to ESG.
  • If your reasons are not valid, it may further lead to your company being blacklisted and ineligible for future grant applications.

What happens if you change your bank account after submitting the GIRO form?

  • If you change your company’s bank account details after submitting the Giro form, you’ll need to notify ESG and submit a new GIRO form with the updated bank account details.
  • Your company’s grant disbursements will be on hold until the new GIRO form is received and processed.

Can I apply for the PSG if I’m not a Singaporean or PR?

  • Yes, you can. However, a Singaporean or PR must own at least 30% of your company’s shareholding.

I’m a one-person company. Can I apply for the PSG?

  • Yes, you can. One-person companies are eligible for the PSG as long as they meet the eligibility criteria.

Could an unlisted IT solution and equipment be supported under PSG?

  • The PSG aims to facilitate the adoption of IT solutions and equipment recommended by sector-led agencies. The agency has to be listed on the IMDA website for IT solutions to be included as part of the PSG scope.

I’m planning to purchase a standard off-the-shelf software package, would this be eligible?

  • It will not be approved unless the Approved Vendor and its software or equipment are first pre-approved by the PSG and listed in the BGP.


How to apply for the PSG Grant: a step-by-step guide

Step 1: Create a Business Grant Portal (BGP)

The first step is to create an account on the Business Grant Portal (BGP).

You need a CorpPass account to access the portal.

A CorpPass account is an online account for businesses and other entities to transact with government agencies in Singapore.

If you don’t have a CorpPass account, you can apply for one via the CorpPass website.

Here’s a simplified guide on how to create a CorpPass account:

Log in with SingPass

  • Go to
  • Click on “log in with SingPass.”
  • Log into the CorpPass portal by either scanning the QR code provided using the SingPass app or inputting your SingPass user ID and Password.
  • Confirm your logging request on the SingPass app by tapping on the logging button.
  • You may also be required to verify your identity using an SMS OTP. Enter the 6-digit code sent to your mobile number and click “submit.”
  • Alternatively, select “Face verification” to verify your identity using your phone camera or webcam.
  • Click on “Begin Scan” and follow the on-screen instructions.
  • After logging in, select the entity you want to transact on behalf of. Note that this option will only show if you hold multiple CorpPass accounts.

Create the CorpPass Account:

  • Select your entity profile.
  • After logging into your CorpPass account, you’ll be prompted to select the profile that best describes your entity:
  1. I’m the Only User
  2. My Entity Has Users

Choose “I’m the Only User” if you’re the only user in your organisation that needs access.

Choose “My Entity has Users” if your organisation would love to grant access to multiple users, not just you.

Selecting “My Entity Has Users” will direct you to create user accounts by clicking “Create User Accounts.”

You’ll have to input the user’s name, email address, account type, country, and identity type.

  • Check the last box if you wish to grant the user “Access to All e-Services.”
  • Under “Identity Type,” you can select NRIC, Foreign ID, and FIN.

If you choose NRIC as the identity type, the user’s full name, country, and region of issuance will be auto-populated.

If you select the NRIC/FIN user account, you’ll be required to fill in the NRIC/FIN number and the corporate email address of the user.

The user will receive an email asking them to activate their CorpPass account.

  • For “Account Type,” you have the option to select between “user,” “enquiry user,” and “mini admin.”

“User” only allows the user to transact with government digital assets on behalf of the entity—nothing else.

“Enquiry User” can transact with the government’s digital assets on behalf of the entity. On top of that, they can search and view the details of other users within the entity.

However, they can’t assign digital service access or manage other users’ accounts.

“Sub-admin” can manage the CorpPass accounts of other users within the entity. They can also create new user accounts and assign them digital service access.

  • Lastly, select if you want to assign the user “access to all e-services.” If left unchecked, you’ll have to assign the digital services individually.

Every time you wish to add a new user, click on “Add new user” and repeat the process.

  • Click “Next’ once you have added all the users.

Review the details before hitting “submit.”

  • You want to review the foreign user ID and other foreign user details for foreign users. Once confirmed, check the “terms of use” box before hitting “submit.”

Ta-da! You’ve successfully created your CorpPass account. Now on to the next step.

Step 2: Sign in to the BGP portal using your CorpPass account

After creating your CorpPass account, you can now sign in to the Business Grant Portal (BGP) using your CorpPass credentials.

Once on the BGP homepage, click on “Get a New Grant.”

psg grant

Next, you’ll be asked to answer three questions related to your business:

  1. Which sector best describes your business?

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2. I need this grant to?

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  • Which best describes the area you’ll develop with this grant?

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Step 3: Check Yes: “Does the Applicant Meet the Eligibility Criteria?”

On the next page, select “Yes” for the question “Does the Applicant Meet the Eligibility Criteria?” and click on “Next.”

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Step 4: Provide Your Contact Details

You’ll be asked to provide your contact information on the next page. IMDA will use the information you input here if they need to contact you regarding your application.

Fill in all the required fields before proceeding to the next page.

You’ll be asked to provide the main contact person’s name, job title, contact no, email, and alternate contact person’s email.

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Step 5: Submit Your Proposal

This is where you input all of your data related to the grant you’re applying for.

You’ll be asked to select “what type of solution you’re purchasing.”

Your options include:

You’re also to search for the security solution you want to purchase.

Next, choose the number of units you wish to purchase and input the date you plan to start using the solution.

You’ll also be asked to select the vendor’s quotations, location type, and input company address. This is also where you upload the quotation the vendor gave you.

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At this point, you must reach out to the vendor and ask them for a quote. If it’s an IT solution, you have to ensure the vendor is pre-scoped by BGP. In other words, they should be among the listed IT solutions.

Step 6: Provide Details of Cost

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The next page will prompt you to provide the cost details for the solution you’re applying for.

You’ll need to input the solution type, the solution’s name, the number of units, and the reason for purchasing the solution.

You’re also required to upload the quotation or estimate and supporting documents.

Step 7: Complete Your Overall Business Impact and Productivity Gains

The next page will require you to provide data on how the solution you’re applying for will impact your business productivity-wise.

You’ll need to answer questions related to how the solution will increase your productivity, workforce savings, and sales turnover.

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Step 8: Review Your Application and Click “Submit”

The last step is to review your application to ensure that all the information you’ve input is accurate.

Once you’re satisfied, check the consent box and click on “Submit.”

You’ll receive an email notification confirming that your application has been submitted.

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Upon approval, you’ll receive an email with a letter of offer. You can log into your BGP account to accept the letter.

Simplified guide on how to accept the Letter of Offer

What happens after you’ve successfully submitted your application and received the Letter of Offer? The next step is to accept the Letter of Offer via the BGP.

Here’s a step-by-step guide on how you can do that:

Step 1: Again, you can begin by logging into your BGP portal and navigating to “My Grants” => “Claims” => “File New Claims.”

Step 2: Select the Approved Grant You Wish to Claim

You’ll see a list of approved grants. Select the grant you wish to claim and click “Proceed.”

Step 3: Fill in Your Contact Data

The next page will require you to fill in the contact details of the main contact person (name, job title, contact number, and email) and the alternate contact person’s email.

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Step 4: Claim the Information

On the next page, you’ll be required to fill in your claim information.

You’re also required to upload supporting documents and fill in the payment details before proceeding to the next page.

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Step 5: Business Outcomes

Next, fill in the business outcome data.

That includes information on how the solution you’re claiming has helped improve your productivity, staffing savings, and sales turnover.

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Step 6: Declaration and Submit

The last step is to declare that your information is accurate.

You’re to review everything before ticking the checkbox and clicking “save.”

How can MediaOne help?

MediaOne is a pre-approved productivity solutions grant (PSG) vendor for digital marketing solutions. That means businesses can enjoy up to 50% funding support* on their digital marketing packages when they sign up with MediaOne.

Our team of consultants will help you with the grant application process and work with you to develop a customised digital marketing strategy that meets your business goals. Call 6965 7008 or email us at [email protected] today.