PSG Grant for Singapore SMEs: How to Get Up to 50% Off Business Solutions (2026 Guide)

Running a small business in Singapore means juggling operations, regulations, and costs all at once. The Productivity Solutions Grant (PSG) exists to help. It subsidises up to 50% of the cost of pre-approved IT solutions and equipment, including compliance management tools, accounting software, cybersecurity solutions, and more.

If you are an SME owner who has not explored PSG, you may be leaving thousands of dollars on the table. This guide walks you through everything you need to know: eligibility, application process, qualifying solutions, and how to maximise your grant.

What Is the PSG Grant?

The Productivity Solutions Grant is a Singapore government initiative under the SME Go Digital programme, administered by Enterprise Singapore (EnterpriseSG) in partnership with the Infocomm Media Development Authority (IMDA).

The grant covers:

• IT solutions and software: Pre-approved cloud-based and on-premise solutions
• Equipment: Certain productivity-enhancing equipment for qualifying sectors
• Consultancy: In some cases, implementation and training services bundled with solutions

The current support level is up to 50% of qualifying costs. This means if a solution costs S$10,000 per year, the government pays up to S$5,000 and you pay the remainder.

Why It Matters for Compliance

For Singapore SMEs, regulatory compliance is a growing cost centre. The PDPA requires every business to appoint a DPO, maintain data inventories, and implement security measures. Workplace safety regulations, employment law, and the Do Not Call Registry add further obligations. Compliance software that automates these processes is exactly the type of productivity solution PSG was designed to support.

Eligibility Requirements

To qualify for the PSG grant, your business must meet all of the following criteria:

Business Requirements

1. Registered and operating in Singapore — Your business must be incorporated or registered with ACRA and actively operating in Singapore.

2. Minimum 30% local shareholding — At least 30% of the company must be owned by Singapore Citizens or Permanent Residents. This applies at the company level (for Pte Ltd companies) or individual level (for sole proprietors).

3. Size limits — Your business must have:

   • Group annual sales turnover of less than S$100 million, OR
   • Fewer than 200 employees

4. No duplicate funding — You must not have received funding for the same solution from other government sources. However, you can receive PSG for different solutions simultaneously.

Solution Requirements

The solution you are purchasing must be:

• On the pre-approved PSG solution list maintained by IMDA/EnterpriseSG, OR
• Applied for and approved as a qualifying solution by the vendor

You can browse pre-approved solutions on the GoBusiness website.

Who Cannot Apply

• Government agencies and statutory boards
• Religious institutions
• Charitable organisations (unless they operate a commercial business)
• Businesses already receiving government funding for the same solution

How to Apply: Step-by-Step

Step 1: Identify Your Needs

Before applying, identify which business processes need improvement. Common areas where SMEs use PSG include:

• Compliance management — PDPA compliance, workplace safety, employment law
• Accounting and finance — Invoicing, GST filing, payroll
• Customer relationship management — CRM software
• Cybersecurity — Endpoint protection, email security
• E-commerce — Online store platforms, payment gateways
• Human resources — Leave management, recruitment tools
• Inventory and logistics — Stock management, delivery tracking

Step 2: Select a Pre-Approved Solution

Browse the GoBusiness portal to find pre-approved solutions in your area of need. Each listing shows:

• The vendor and solution name
• What the solution does
• The qualifying cost (what PSG will subsidise)
• The support level (currently up to 50%)

Step 3: Get a Quotation

Contact the vendor for a formal quotation. The quotation should clearly state:

• The solution name (matching the pre-approved listing)
• The subscription period or purchase terms
• The total cost and the PSG-qualifying portion
• Any implementation or training fees

Step 4: Submit Your Application

Applications are submitted through the Business Grants Portal (BGP) at https://www.businessgrantsportal.gov.sg. You will need:

• Your Corppass login credentials
• The vendor's quotation
• Your company's latest financial statements or latest IRAS Notice of Assessment
• A brief description of how the solution will improve your business

Important: Do not purchase or subscribe to the solution before receiving approval. PSG does not reimburse backdated purchases. Wait for the Letter of Offer before committing.

Step 5: Receive Approval

Processing typically takes 4 to 8 weeks. If approved, you will receive a Letter of Offer specifying:

• The approved grant amount
• The claim deadline (typically 6-12 months)
• Any conditions attached to the grant

Step 6: Purchase and Implement

After receiving the Letter of Offer:

1. Purchase or subscribe to the approved solution
2. Implement and begin using it
3. Keep all invoices, receipts, and proof of payment

Step 7: Submit Your Claim

Submit your claim through the BGP portal with:

• Paid invoices from the vendor
• Proof of payment (bank statements, payment receipts)
• Evidence that the solution has been implemented (screenshots, login credentials, deployment confirmation)

Reimbursement is typically processed within 4 to 6 weeks after claim submission.

What PSG Covers: Qualifying Solutions

Compliance and Regulatory Solutions

Compliance management tools are increasingly popular PSG claims. These include solutions that help businesses manage PDPA obligations, workplace safety requirements, and other regulatory frameworks. ComplyHQ, for example, automates gap assessments, policy generation, and compliance monitoring — exactly the type of productivity improvement PSG supports.

Other Common PSG Solutions

Common Mistakes to Avoid

1. Purchasing Before Approval

The most common mistake. If you buy or subscribe before receiving the Letter of Offer, your claim will be rejected. Wait for approval first.

2. Incomplete Documentation

Missing invoices, incorrect financial statements, or unsigned quotations can delay or derail your application. Double-check all documents before submission.

3. Claiming for Non-Qualifying Costs

PSG covers the solution itself and bundled implementation services. It typically does not cover:

• Hardware (unless specifically listed)
• Internal staff costs for implementation
• Ongoing subscription renewals beyond the approved period
• Travel or accommodation costs

4. Missing the Claim Deadline

Your Letter of Offer specifies a claim deadline. If you miss it, you forfeit the grant. Set a calendar reminder.

5. Not Comparing Solutions

Just because a solution is pre-approved does not mean it is the best fit. Compare features, pricing, and vendor support across multiple options before committing.

Maximising Your PSG Grant

Combine with Other Grants

PSG can be combined with other grants for different purposes:

• Enterprise Development Grant (EDG) — For larger transformation projects
• Market Readiness Assistance (MRA) — For overseas expansion
• SkillsFuture Enterprise Credit (SFEC) — For training and development

You cannot claim PSG and another grant for the same solution, but you can claim different grants for different business needs simultaneously.

Consider Multi-Year Plans

Some solutions offer annual subscriptions. PSG typically covers the first year. Plan your budget for subsequent years when the full cost applies.

Bundle Implementation Services

If the vendor offers implementation, training, or onboarding services, ask if these can be included in the PSG-qualifying quotation. Bundled services often qualify for the grant, reducing your out-of-pocket setup costs.

PSG for PDPA Compliance: A Smart Investment

For Singapore SMEs, PDPA compliance is not optional. Every business must appoint a DPO, maintain a privacy policy, implement security measures, and have a breach response plan. The penalties for non-compliance can reach S$1 million.

Using PSG to offset the cost of compliance software is one of the smartest grant applications an SME can make:

• Without PSG: Full cost of compliance software + internal time to manage compliance manually
• With PSG: 50% government subsidy on compliance software that automates the heavy lifting

The grant essentially pays for half of your compliance infrastructure, while the software saves you dozens of hours of manual work.

Get PDPA compliant with government support. ComplyHQ is designed for Singapore SMEs and is built to qualify for PSG. Automated gap assessments, AI policy generation, and compliance monitoring — at up to 50% off with PSG. Start a free assessment

Timeline: How Long Does It All Take?

Total timeline from start to reimbursement: Approximately 3-5 months.

Government Resources

• GoBusiness PSG Portal — Browse pre-approved solutions and apply
• Business Grants Portal — Submit applications and claims
• Enterprise Singapore — General enquiries on government grants
• IMDA SME Go Digital — Digital solutions programme information

Related Articles

• PDPA Compliance Checklist for Singapore SMEs (2026 Edition) — What you need to comply with
• PDPA Penalties and Fines: What You Risk for Non-Compliance — Why compliance matters financially
• How to Appoint a Data Protection Officer in Singapore — One of the requirements PSG can help fund
• 10 PDPA Obligations Every Singapore Business Must Follow — The full regulatory landscape