In the dynamic and competitive realm of business, productivity is a key determinant of an organisation’s success. Recognising this, the Singapore government first rolled out the Productivity Solutions Grant (PSG) on April 2018 to bolster the efficiency of local companies. This article is designed to offer a comprehensive guide on the PSG, detailing its advantages, eligibility requirements, the application steps, and how seeking external expertise can maximise the benefits of this initiative.
What is the PSG Grant?
It is a government initiative that supports businesses in adopting IT solutions and equipment to enhance their productivity. The PSG Singapore is available for businesses across different sectors and industries, including retail, food services, logistics, and healthcare.
The main aim of the grant is to provide funding support to small and medium-sized enterprises (SMEs) for pre-approved productivity solutions. This also helps these businesses leverage technology and automation to upgrade their capabilities, streamline manual processes, and amplify productivity.
Quick Facts About the Grant
- The Productivity Solutions Grant (PSG) funding supports up to 70% of the qualifying costs and is capped at S$30,000 per company.
- Businesses can apply for the grant through the Business Grants Portal.
- All applications are processed within six weeks of submitting all required information.
- Effective from 1st April 2023, the maximum support level for pre-approved solutions was revised to 50% of qualifying costs.
Eligibility Criteria
There are certain eligibility criteria for the companies to get funding support from PSG Grant in Singapore. It includes
- The businesses must be registered in Singapore with local shareholding and qualify as Small and Medium Enterprises (SMEs).
- A minimum annual sales turnover of S$100,000.
- An employment size of less than 200 employees
- Local equity ownership of at least 30% owned by Singaporeans or Permanent Residents.
- The primary and secondary Singapore Standard Industrial Classification (SSIC) code of applicants must start with 692.
- The applicant must purchase or take a subscription to the IT solution that is used in Singapore.
Types of PSG solutions
Sector-specific solutions
Sector-specific solutions are designed exclusively for businesses operating within particular industries. These tailored solutions are developed by leading sector agencies and are in line with sector-specific development strategies, such as Industry Transformation Maps (ITMs) and Industry Digital Plans (IDPs).
Generic solutions
Generic solutions cater to businesses from various sectors and industries, offering tools and strategies to enhance the productivity of essential business operations and processes.
To delve into the full spectrum of sanctioned solutions and their respective vendors, please examine the thorough registry made available by the governing bodies.
How To Apply for a PSG Grant?
You can easily navigate the application process by following the steps below:
- Firstly, you must identify relevant solutions for your business needs, such as productivity or technology enhancements, that are eligible for the grant. Obtain direct quotations from pre-approved vendors for the identified relevant solutions.
- Create an account on the Business Grants Portal by submitting the necessary documents for the PSG grant application process. Fill out the application form on the portal, providing details about your business, the selected solutions, and the quotations obtained.
- Review and submit the application on the portal for processing. Monitor the status of your application on the Business Grants Portal to stay updated on any additional requirements or the final decision.
- Once you’ve received approval for your application and begun utilising the solution, you may initiate the process of filing for reimbursement claims. It’s essential to verify that the solution you’ve purchased or subscribed to aligns with the approved application criteria, has been actively used for at least 30 days, and has been fully paid for. All required claim documentation should be submitted through the Business Grants Portal without delay.
- Once your claims have been validated, the funds will be released. Commencing on the 1st of February, 2023, all payments will be conducted via PayNow Corporate. It is advisable to enroll for PayNow Corporate using your Unique Entity Number (UEN) by liaising with your bank. Your PayNow Corporate information can be submitted via the FormSG platform.
Documents Required and Information Needed for PSG Grant Application
You must provide the documents below when applying for the Productivity Solutions Grant (PSG) application.
| Documents Required | Why Is It Important |
|---|---|
| Financial Statements | Provides a clear picture of your organization’s financial health |
| Contact Details of the Main Contact Person | Ensures effective communication throughout the application process |
| Proposal with Vendor Information | Gives insight into the products or services being considered for the business entity. |
| Project Cost Details and Business Impact Information | Demonstrates the feasibility and potential benefits of the proposed project |
| Deployment Location/Tenancy Agreement and Letter of Offer Addressee | Provides crucial information for the application process. |
Benefits Of Singapore Productivity Solutions Grant (PSG)
The Singapore Productivity Solutions Grant (PSG) offers numerous advantages to businesses, including financial assistance to enhance productivity and increase competitiveness. This funding support enables businesses to invest in technology solutions that streamline business processes and improve overall productivity.
By integrating digital solutions through PSG, businesses can gain a competitive edge in their respective industries. Moreover, it encourages SMEs to adopt technology-driven solutions and helps businesses remain competitive.
FAQs on Productivity Solutions Grant in Singapore
- The business entities which are not eligible to apply for PSG Singapore application are as follows:
- Charities, Institutions of Public Characters (IPCs)
- Religious Entities
- Voluntary Welfare Organisation (VWO)
- Government agencies and subsidiaries
- Under PSG, eligible Singapore companies can receive financial backing, with up to 50% of the qualifying expenses being co-funded, subject to a maximum of S$30,000.
- Change requests can be submitted for the Enterprise Development Grant (EDG), Market Readiness Assistance (MRA), and Business Improvement Fund (BIF). If adjustments are required for your approved Productivity Solutions Grant (PSG) application, you may address them during the claims submission process.
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