PSG Grants Singapore: A Comprehensive Guide to Business Growth

What is PSG in Singapore?

To assist local SMEs in enhancing their business operations through the use of IT services and equipment, the Singaporean government introduced the Productivity Solutions Grant (PSG) in April 2018. Among the industries PSG serves are retail, building, logistics, precision engineering, and the food industry. There are solutions that are industry-specific in addition to numerous systems, processes, and procedures like data analytics, finance management, inventory management, and customer management.

Additionally, PSG advocates the use of cross-sector solutions, such as customer management, data analytics, financial management, and inventory monitoring. Discover all you need to know to begin your PSG application!

What Do You Get From PSG?

PSG funds provide financial support for SMEs to adopt IT solutions, equipment, and consultancy services. While SMEs play a key role in assisting Singapore’s economic growth, they struggle to keep up with technologies, in this case, digital solutions. Systems for managing customer relationships and human resources are among them. Examples include:

1. Consultancy

The PSG Grant provides funding for a range of activities, including consultancy services. You can apply for money to help pay for the cost of hiring a consultant if you need assistance with your business strategy or marketing. The PSG Grant can lower the cost of consulting services, which can be very useful in launching your firm.

2. IT Solutions

The PSG Grant covers a wide spectrum of IT solutions, including services, support, and both hardware and software. This implies that companies can acquire the assistance they require to modernize their current systems, introduce new technology, or simply begin utilizing IT in their operations. The award can also be used to pay for the costs associated with training employees to use new IT systems. Ultimately, the PSG Grant helps businesses embrace easier-to-use and more affordable IT systems, thereby boosting their competitiveness and bottom line.

3. Equipment

PSG financing Singapore offers a range of equipment appropriate for each field. This organization also provides the equipment unique to each business. For instance, in the healthcare sector, equipment is crucial to delivering high-quality care to patients. There is a wide range of medical equipment available, from straightforward devices like tongue depressors to sophisticated devices like X-ray machines. PSG will fulfill any needs if they arise for the company.

How can PSG help boost your business?

1. Get assistance for up to 50% of eligible expenditures

The Singapore Productivity Solutions Grant (PSG) previously provided up to 70% funding support to help small and medium-sized enterprises (SMEs) adopt productivity solutions. However, starting from June 1st, 2020, the funding rate has been reduced to 50%.

Despite the reduction in funding support, the PSG remains an important initiative for businesses wanting to adopt technology or automate processes to enhance productivity. Eligible businesses can apply for the PSG through the Business Grants Portal.

To be eligible for PSG funding, a business must be registered and operating in Singapore, have a minimum of 30% local shareholding, and have an annual sales turnover of not more than SGD 100 million or an employment size of not more than 200 employees.

The following classifications apply to food services:

• Online/Digital Ordering and Payment
• Online Reservation
• Digital marketplace for businesses
• Queue Control
• Customer Relationship Management and e-Loyalty
• Equipment for General Food Services

Furthermore, the following categories apply to retail businesses:

• System for Enhanced Retail Management
• Commercial Screening for Money Laundering and Countering Terrorist Financing
• Shopper Analytics
• Online Store: E-Commerce (B2C)

2. Get in touch with superior digital solutions

In order for companies to have widespread access to excellent digital marketing solutions, many submit applications for the PSG award for SMEs. With the help of PSG Grant, businesses can enhance their operations by automating processes, cutting down on errors, and raising customer satisfaction, all of which are beneficial for organizations in all different industries. PSG Grant enables companies to access new markets and connect with fresh clients.

3. Advantageous for a vast majority of industries

The PSG Grant Singapore supports companies and industries that want to use digital technology to improve their operations. Therefore, the following sectors can apply for a PSG grant to help them with their demands for digital marketing or e-commerce:

• Logistics
• High-Tech Engineering
• Food and Beverage
• Wholesaler and retailer
• Construction
• Landscaping
• E-commerce

This funding also covers the adoption of solutions across sectors, so long as they are all linked to customer management, data analytics, financial management, and inventory monitoring.

How can I make the most of PSG grant support?

The PSG grant supports a variety of solutions across various industries including F&B, logistics, security, construction and more. While there are diverse solutions, not every category extends the same support level. For example, within the IT Solutions category, PSG Digital Marketing supports up to $10,000 in qualifying cost while PSG eCommerce only supports up to $5,600 at present. By making full use of available schemes in conjunction with PSG, you can adopt more powerful solutions for your company’s growth.

Stretch your dollar further with SFEC

In your journey to optimising your operations and growing your business, PSG grant support brings you halfway there. SFEC (SkillsFuture Enterprise Credit) helps to lighten the load further with up to 90% of funding on your remaining out-of-pocket costs. SFEC is a one-off $10,000 credit scheme by Enterprise Singapore to encourage employers to undertake enterprise and workforce transformation initiatives.

How much can I save with SFEC?

The total amount that you save will vary depending on the qualifying cost of the solutions you are engaging. The maximum amount that can be claimed for Enterprise Transformation is $7,000 while the full $10,000 can be used for Workforce Transformation.

How do I apply for the SFEC Credits?

There is no need to apply for the SFEC credits. If you qualify for the scheme, you will receive the $10,000 and be notified by EnterpriseSG through email.

Unsure about your eligibility? Log into the Business Grants Portal (BGP) or SkillsFuture Singapore’s SFEC Microsite in order to view your balance credit.

Can I receive both PSG and SFEC support on a single solution?

SFEC can be used in conjunction with PSG support to further reduce your total expenditure. After you have made full payment to the vendor, the SFEC funds will be disbursed to you automatically once you complete your PSG claims submission. Since the SFEC credits will expire on 30 June 2024, PSG claims submissions need to be submitted before that to enjoy the benefits of both schemes.

What other grants can I use SFEC with?

For Enterprise Transformation, SFEC-supported programmes include:

• Productivity Solutions Grant (PSG)
• Enterprise Development Grant (EDG)
• Market Readiness Assistance (MRA) Grant
• Enterprise Leadership for Transformation Programme (ELT)
• Scale-Up
• Aviation Development Fund (ADF)
• Business Improvement Fund (BIF)

Where can I find the full list of approved solution vendors?

Browse and compare the various approved solutions at https://services2.imda.gov.sg/CTOaaS/Solutions to find a package that matches your needs and budget. With the listing of pre-approved vendors, rest assured that the solutions are market-proven, cost-effective and supported by reliable vendors.

Get a clearer understanding of the savings you can enjoy with this simple cost breakdown of the support available.

Who Can Apply for the PSG Program?

If a business entity satisfies the requirements listed below, it may apply for the PSG:

• Operating and also registered in Singapore.
• All purchased or leased IT hardware, software, and consulting services must be used in Singapore.
• Local shareholders must own at least 30% of the business.
• Bring three or more local employees when deploying or applying the solution.

What Are the Necessary Documents?

Before applying, make sure you have all the required documentation, including:

• A purchase order for goods
• A bank record demonstrating the transfer of funds to a PSG-approved vendor
• License information for the digital solution (with evidence of usage for at least a month)
• A receipt
• A screenshot showing the names of your business and the solution

For your information, there is a waiting period before approval. An administrative body will get in touch with you and let you know if there are any problems with the PSG grant application.

Apply for a PSG Grant Today with These Easy Steps

1. Use your CorpPass to log in to the Business Grants Portal (BGP)

Please keep in mind that before beginning anything, you will need a quote from a PSG vendor who has already been approved and who will supply the application and help you.Verz Design is one of the few PSG-approved vendors, allowing you to obtain up to 80% government funding for a variety of web development solutions. You can submit your grant application through the business grant site with the quotation from Verz Design. The application requires a CorpPass account.

2. Proceed to “My Grants”

Select the “Applications” option on the “My Grants” page and under it you will find “Get new grant”. Consequently, you may then select the sector that has the best description of your business.

3. Select your business sector

You will be prompted to choose your business sector at this point. Go through the extensive list of available business sectors and choose the sector that best describes your business. If you don’t see your respective sector on the list of available options, click on “Others“. Therefore, once you click this, the options would include “adopt technology, improve business processes or raise service standards”. In addition, a question will pop up, “Which of the following best represents the region you intend to improve with this grant?” wherein you need to select the “Pre-scoped Productivity Solutions” option, and then click “Apply.”

4. Go over the “Eligibility” criteria

You will now be directed to the page where you can begin completing your grant application form. Scroll down and press the “Proceed” button. Check the award criteria to ensure that you are eligible for the grant. If you fulfill the qualifying requirements, click “Yes” and then “Next.” Alternatively, you may click “Save” and finish the application later.

5. Include the details of the main contact person

Following that, the application will request your contact information or the information of the primary contact person. This includes details for the Letter of Offer addressee. If it is the same as the main contact person, check the box. Otherwise, you can manually enter the individual’s information. You will also be required to provide your mailing address. Simply check the box if your mailing address is the same as your registered address in Company Profile. Otherwise, enter your selected postal address manually.

6. Click on “Equipment” or “IT Solution”

Choose the option that best applies. You can enter the vendor and solution specifics under the “Proposal” area, and then upload the vendor’s quote. “What kind of solution are you purchasing?” will then be asked of you for the next step. When you see this, choose the option “IT Solution.” Then, in the search area for the services solution, enter “Verz Design” and choose the appropriate package.

7. Fill in the information needed

Fill up the blanks with relevant information, such as the amount of units you’re requesting. Unless you specify otherwise, the date is usually the next day after your submission. Then you’ll have to explain why you need the grant. Finally, choose Verz Design as your vendor.

When you receive a quote, make sure it includes a list of the digital marketing services they will provide for your ecommerce store. Once you have that, you may attach it to your PSG application along with the other needed paperwork.

8. Complete the sections on cost details

For the next step, you will need to click on “Direct Purchase” for the question “How do you intend to make the purchase?” All you need to do when asked to enter the cost is do so in accordance with the quotation given.

9. Complete the declaration section

Then, go through the declaration section and tick the appropriate boxes accordingly. After completing the processes outlined above and receiving a price from your preferred PSG pre-approved vendor, the next step is to submit your PSG application through the Business Grants Portal. Make sure you have a registered Corppass before applying for the award.

The Business Grants Portal provides all of the information you need about the PSG grant application. Fill out the PSG application form with the necessary information. Once your application is complete, you may watch its progress and await confirmation until you receive a Letter of Offer and Appointment.

Other Grants You Can Apply For with Verz Design

The Enterprise Development Grant (EDG) supports the expansion and modernization of Singaporean companies. EDG grants provide financial assistance for initiatives that enhance your company’s modernization, innovation, or global expansion under the three pillars of Core Capabilities, Innovation and Productivity, and Market Access.

Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) supports the expansion and modernization of Singaporean companies. EDG grants provide financial assistance for initiatives that enhance your company’s modernization, innovation, or global expansion under the three pillars of Core Capabilities, Innovation and Productivity, and Market Access.

Businesses interested in applying for the Enterprise Development Grant (EDG) must fulfill the following requirements:

• Possess a Singapore business license and have a Singapore address.
• Local ownership must be at least 30%.
• To be able to begin and complete the project, you must be in a financially feasible situation.

Which Projects Fall Under These Scopes?

1. Core Capabilities

Projects in this pillar help companies lay the groundwork for their operations so they are ready for expansion and change. Among the five areas supported are business strategy development, financial management, human capital development, service excellence, and strategic brand and marketing development.

• Development of a strategic brand and marketing
• Develop business strategies
• Development of Human Capital
• Excellent Service
• Financial Administration

2. Productivity and Innovation

This pillar’s projects assist companies seeking for novel ways to grow or become more efficient. Automation, process restructuring, and product development are the three topics covered.

• Process Improvement
• Product Creation
• Automation

3. Market Access

The initiatives under this pillar aid Singaporean companies seeking international expansion. Adoption of standards, test beds and pilot projects, and mergers and acquisitions are encouraged (M&A).

• Overseas Marketing Presence (OMP)
• Market Entry
• Pilot Project and Test Bedding
• Mergers and Acquisitions (M&A)

Verz Design Can Help You with A Seamless PSG Grant Application

In all honesty, Singapore’s future is bright, due to the generous incentives offered by the Singaporean government. Take your time researching and selecting the ideal grant for your company. Verz Design is a certified vendor of the eCommerce PSG grant in Singapore, allowing you to get up to 50% funding for your website design! Contact us immediately to turn your website ideas into reality! Call 6841 1680 or contact sales@verzdesign.com today for a free consultation!