Get Co-Funding for IT Solutions & Equipment in Singapore with the Productivity Solutions Grant (PSG)
- Cha Aujla
- Jul 10
- 7 min read
Updated: Aug 5
Summary
Manual Back-Office Friction: Managing your back-office manually creates significant operational friction and severe compliance risks, including steep ACRA penalties and Employment Act violations for incorrect CPF calculations.
Reduced Upfront Cost: The Productivity Solutions Grant (PSG) offsets up to 50% of upfront procurement costs for pre-scoped digital tools like Xero cloud accounting, directly safeguarding your corporate working capital.
Strict Compliance is Key: To secure the PSG, you need to lodge your application before making any vendor commitments, execute payments solely through traceable corporate bank channels, and generate verified software usage logs.
As a business owner, you are no stranger to the back office and how quickly it drains your resource capacity, especially if your workflows are manual. Whether you run a boutique consultancy, law firm, or family office in Singapore, relying on legacy spreadsheets and documents can lead to serious operational friction.
Your staff end up spending hours keying invoice data into Excel sheets, where a single keystroke mistake can easily disrupt your quarterly GST reconciliation reports. This inevitably triggers the Accounting and Corporate Regulatory Authority (ACRA)’s audit investigations, which may result in late-fee notices that start at S$300 per breach and can escalate quickly.
To help you overcome these upfront cost barriers, Enterprise Singapore (EnterpriseSG) formulated the Productivity Solutions Grant (PSG) to co-fund pre-scoped IT tech stacks in Singapore. The PSG covers up to 50% of your qualifying costs to offset the purchase price of IT solutions and equipment.
This article walks you through the fundamentals of the PSG, showing you how your business can tap into the grant to streamline your work processes with tech upgrades.
How the Productivity Solutions Grant (PSG) Supports Software Automation
The PSG makes automation immediately accessible by defraying the upfront costs of new software licenses. Instead of paying thousands of dollars upfront for new software licenses, you stand to pay just a fraction of the cost.
As the PSG is structured such that the government either pays the vendor directly or reimburses your business after deployment, your working capital is protected. This enables you to redirect your cash reserves toward operational marketing or regional expansion.
Under the PSG, all qualifying IT solutions have been rigorously evaluated for quality and security by official government bodies. This means you don’t need to source IT consultants to design bespoke systems or write custom software specifications, thus accelerating your tech stack deployment.
How Do I Qualify for the PSG in Singapore?
The PSG goes a long way in jumpstarting your business’s tech upgrade, but you must first fulfil specific structural criteria to qualify. To qualify for the PSG, your business must meet all of the following requirements:
Be registered and operating in Singapore
Use the purchased/leased/subscribed IT solutions or equipment in Singapore
Have at least three local employees for consultancy service solutions
Have a group annual sales turnover not exceeding S$100 million OR group employment size not exceeding 200 employees
Not fall under the following categories:
Charities
Institutions of a Public Character
Religious entities
Voluntary Welfare Organisations
Government agencies and subsidiaries
Societies
Once you settle your application, you can then move on to the next step to select your software solutions from EnterpriseSG’s pre-approved list.
Which PSG Pre-Approved Software Solutions Drive the Highest Productivity Returns?
The PSG offers a wide range of software categories, with financial management topping the charts as the most immediate area for structural improvement and back-office efficiency.
Xero is one such financial management solution, serving as the market-leading software in cloud accounting. Xero eliminates manual data entry by connecting directly to your local DBS, UOB, and OCBC bank accounts. The software then automates your daily transactions, ensuring they are synchronised with corresponding invoices via preset banking rules. This alone reduces manual reconciliation work by at least 80%.
Human resource management systems (HRMS) are also on the pre-approved list. These solutions streamline your HR functions by automating your CPF calculations and payroll processing, as well as generating itemised payslips that are fully compliant with Ministry of Manpower (MOM) regulations. HRMS also manage leave applications and expense claims online, eliminating the need for manual human input.
And if you’re looking to boost your sales funnel, you can also consider the customer relationship management (CRM) software on the pre-approved list. By centralising your customer data under one dashboard, CRM software helps automate your sales and marketing pipelines, empowering your sales teams to focus on converting leads and closing deals.
Depending on your needs, the PSG pre-approved tools work in tandem to create a unified digital system for your business, eliminating dangerous data silos and reducing administrative friction across the board.
Submitting a Successful PSG Application on the Business Grants Portal (BGP)
Now comes the hard part: Applying for the PSG itself. While the application process is entirely digital, there are several key steps you must take to maximise your success. Below are the steps you need to follow:
Ensure your business has an active Corppass account. Your Corppass administrator must assign the "Business Grants Portal" e-service to the specific user submitting the application, who must then log in via Singpass.
Select a pre-approved vendor. Once you’ve chosen a vendor, obtain a formal quotation that specifies the exact PSG package’s name and code. It must also show the precise pricing that the government has pre-approved.
Log in to the Business Grants Portal (BGP) and select the "Get new grant" option. Choose the sector that best matches your primary business activity, then select "Technology" as your core development area. From here, choose the specific PSG solution and vendor from the provided dropdown menu.
Upload your vendor quotation. You must also upload your business’s latest audited financial statements or management accounts, alongside the corporate profile PDF obtained directly from ACRA BizFile+.
Once you’ve completed your application, BGP will route your submission to the relevant government agency for a review that usually takes four to six weeks.
Secure Your PSG Funding Ahead of the Upcoming EDGE Grant Framework
While preparing for your business’s digital transformation, bear in mind that Singapore’s grant landscape will undergo a major shift in 2H 2026. EnterpriseSG will officially consolidate the PSG, Market Readiness Assistance (MRA) Grant, and the Enterprise Development Grant (EDG) into a unified grant known as the EDGE Grant.
The EDGE Grant is designed to provide a single touchpoint, where an intelligent portal evaluates your business’s data and automatically recommends a funding mix covering productivity upgrades, capability building, and regional expansion.
While existing PSG approvals will remain legally bound by their current terms, the transition to EDGE means that businesses planning near-term tech upgrades face a critical window of opportunity.
Applying now under the existing PSG framework locks in up to 50% of qualifying costs, enabling you to avoid potential bottlenecks of the new EDGE portal. To ensure you work through this transition with few to no interruptions, work with a partner who is an expert in both corporate compliance and strategic grant advisory.
Partner with Mezzanine Enterprise to Get Co-Funded for IT Solutions in Singapore
Don’t wait for the EDGE consolidation to happen before you upgrade your business’s tech stack. Work with Mezzanine Enterprise’s team of expert grant advisors to kickstart your PSG application and secure the funding to expand your tech capabilities now.
And if you’re looking to hire a corporate secretary to manage your ACRA filings and overall compliance, our corporate secretarial specialists stand ever ready to guarantee 100% compliance from S$35/month.
Chat with us today to start the ball rolling for your PSG application.
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Frequently Asked Questions
Which advanced digital solutions are pre-approved under the current Productivity Solutions Grant (PSG) model?
Under the current PSG model, Enterprise Singapore pre-approves specific software categories to drive automation. These include Xero cloud accounting systems for real-time financial tracking, automated payroll and HR management systems for MOM compliance, customer relationship management (CRM) platforms, and inventory tracking tools.
Can I apply for the PSG if I've already signed a contract with the software vendor?
No. Enterprise Singapore explicitly requires you to submit your grant application via the Business Grants Portal (BGP) before making any financial commitment. If you sign a vendor agreement, pay a deposit, or issue a formal purchase order before receiving your official Letter of Offer, the system will automatically disqualify your application.
How long does the PSG approval and reimbursement process take in 2026?
The initial grant application review typically takes 4-6 weeks from the date of submission on the BGP. Once approved and deployed, you must use the software for at least 30 days before filing a claim. After submitting your reimbursement claim with the required bank statements and usage logs, it generally takes another 4-8 weeks for the government to process the audit and disburse the funds via GIRO.
Does the S$30,000 PSG cap apply to a single financial year or the lifetime of my company?
The S$30,000 grant cap resets annually, tied strictly to the government financial year (1 April to 31 March). This allows you to divide your software adoption into phases, claiming up to the maximum cap for one pre-approved solution this year, and applying for a different operational tool in the following financial year.
What happens if I pay for the pre-approved software using my personal director’s credit card?
Your reimbursement claim will be rejected during the final audit phase, as the PSG operates on a strict corporate reimbursement model designed to prevent fraud. All payments must be made directly from your company's Singapore corporate bank account using a corporate credit card, GIRO, or a corporate bank transfer. Never use your personal cards or cash to pay for your software.
