Productivity Solutions Grant (PSG)
70% Government subsidy
on Pre-approved Digital Solutions
What is PSG
The Productivity Solutions Grant (PSG) is an initiative under the SME GO Digital program to support companies in adopting IT solutions and equipment to enhance business processes.
What is covered
There are 3 main categories of pre-approved solutions as follow:
- General solutions such as Accounting, HR, Customer Management and Inventory Tracking.
- Sector-specific solutions such as POS, Fleet management etc.
- Covid-19 business continuity solutions such as virtual meeting tools, queue management systems and temperature screening solutions.
Approved solutions are eligible for subsidies up to 70% (capped at S$30,000 per company per financial year).
Who can apply
SMEs can apply for PSG if they meet the following criteria:
- Registered and operating in Singapore
- Purchase/subscription/lease of the IT solutions must be used in Singapore
- Have a minimum 30% local shareholding
How to apply
- Obtain a quotation for the pre-approved IT solution.
- Submit the PSG application online via Business Grants Portal. SMEs need not accept the quotation at this stage.
- Once the application has been submitted, you may purchase, setup and start using the IT solution without waiting for approval.
- PSG applications will be approved in about 2 to 6 weeks usually.
- Submit your claim online to receive the approved funding.
How many PSG grants can a company apply for
Companies can put in more than one PSG application depending on business needs. However, support can only be extended for one package per solution category per deployment location.
Supportable applications are:
- The purchase of one unit of either an equipment/IT solution per deployment;
- Subsequent purchase of the IT solution to be deployed at a different location.
This means that if the Applicant applies subsequently (i.e. after the first application) for the same IT solution to be deployed at the same location, this application will be rejected.
Additional Funding
Skills Future Enterprise Credit (SFEC)
With effect from 1 April 2020, the government provides a once-off $10,000 SFEC credit to encourage companies to further develop their capabilities and to boost their workers’ skills sets. This credit will be used to defray up to 90% of such out-of-pocket expenses.
What can SFEC be used for?
The $10,000 credit can be used for the following 2 categories.
- Enterprise transformation
Programmes that support enterprise transformation.
- Productivity Solutions Grant (PSG)
- Enterprise Development Grant (EDG)
- Market Readiness Assistance (MRA)
Companies that have successfully received partial funding through the above programmes, can further claim up to 90% of the unfunded portion. However, only a maximum of $7,000 SFEC credit can be used under this category.
- Workforce transformation
Job redesign initiatives, and curated training programmes by SkillsFuture Singapore and Workforce Singapore, such as training courses aligned to the Skills Framework, Professional Conversion Programmes and sector-specific programmes.
Who is eligible for SFEC?
From 1 January 2021 ,employers must meet the following conditions over the qualifying period:
- Have employed at least three Singapore Citizens (SCs) or Permanent Residents (PRs) every month over the qualifying period; and
- Have not been previously qualified for SFEC; and
- Are not in default of their SDL contributions during the qualifying period and do not have an inactive ACRA status during qualification.
Case example
Company A received approval for their PSG grant application to implement Xero Cloud Accounting system. The package price is $3,200. After getting 70% funding from PSG, Company ABC can still further claim up to 90% of the balance unfunded cost through SFEC. With PSG and SFEC, Company A only needs the bear $96.
$3,200
($2,240)
$ 960
$ 864
$ 96
Xero Standard Full Package
Less: 70% funding from PSG
Balance not funded by PSG
Less: SFEC (if applicable)
Balance not funded
How we can assist you
Xero Cloud Accounting software is a Pre-approved Digital Solution for 70% PSG Grant registered with IMDA (Infocomm Media Development Authority).
Its key features include automatic bank feeds, e-invoicing, accounts payable, expense claims, purchase orders, automated bank reconciliations, and robust business and management reporting.
Find out more information about Xero.
What you will get
1 year subscription of Xero
Migration of data
Set up chart of accounts, reports and forms
Personalized onsite training
12 months local technical support