What is the PSG Grant and Why You Need PSG Grant Consultants

For Small and Medium Enterprises (SMEs) in Singapore, staying competitive in a rapidly evolving digital landscape is crucial. However, adopting new technologies, upgrading infrastructure, or digitalising operations can be costly. That’s where the Productivity Solutions Grant (PSG) comes in — offering financial support to help local businesses embrace pre-approved IT solutions and equipment.

While the PSG Grant is straightforward in concept, applying for it and selecting the right solution can be overwhelming for many SMEs. This is where PSG Grant Consultants come in — helping you navigate the application process, choose the best-fit solution, and ensure your business gets the maximum benefit.

In this article, we’ll break down what the PSG Grant is, its key features, who’s eligible, and why engaging a PSG Grant Consultant is a wise move for your business.

What is the PSG Grant?

The Productivity Solutions Grant (PSG) is an initiative by Enterprise Singapore, supported by other agencies like IMDA (Infocomm Media Development Authority), designed to encourage SMEs to adopt IT solutions and equipment that enhance productivity and streamline operations.

Unlike broader grants like the EDG, the PSG focuses on sector-specific and pre-approved solutions. The beauty of the PSG is that it significantly lowers the cost barrier to digital transformation, allowing businesses to stay competitive in their industries.

Key Features of the PSG Grant

• Funding Support: Up to 50% of the cost of pre-approved solutions.

• Wide Range of Solutions: Covers industries such as retail, logistics, construction, food services, precision engineering, and general solutions like accounting, HR, inventory management, and e-invoicing.

• Pre-approved Vendors: Solutions must be purchased from vendors that are pre-approved by Enterprise Singapore or relevant sector agencies.

• Quick Application: Compared to other grants, PSG has a relatively straightforward and fast application process through the Business Grants Portal (BGP).

Who is Eligible for the PSG Grant?

To qualify for the PSG Grant, your business must:

1. Be registered and operating in Singapore.

2. Have at least 30% local shareholding.

3. Use the IT solution or equipment within Singapore.

4. Be an SME with a genuine need for productivity-enhancing tools.

Note: For IT solutions, the subscription or license must be purchased from pre-approved vendors listed on the Business Grants Portal.

Why the PSG Grant Matters

1. Lowers the Cost of Digital Transformation

Many SMEs hesitate to adopt digital tools due to upfront costs. The PSG removes that hurdle by funding a large portion of the solution cost, enabling companies to upgrade without breaking the bank.

2. Encourages Business Efficiency

With the right IT systems or automation tools, businesses can save time, reduce manpower costs, improve accuracy, and serve customers more efficiently.

3. Supports Industry-Specific Needs

From a POS system for retail businesses to fleet management software for logistics firms, PSG offers tailored solutions for each industry’s unique needs.

4. Speeds Up Implementation

With pre-approved vendors and clear scopes of work, solutions under PSG are generally plug-and-play, meaning faster turnaround times and quicker productivity improvements.

Why You Need a PSG Grant Consultant

Even though the PSG Grant is more straightforward than other grants, the application process and solution selection can still be confusing. Here’s why engaging a PSG Grant Consultant can help:

1. Clarity in Choosing the Right Solution

The PSG Grant covers hundreds of pre-approved solutions — which can be overwhelming. A consultant can help assess your business needs and recommend the most suitable solution for your budget and goals.

2. Assistance with Grant Application

While the application is online, it still requires proper documentation, justification, vendor quotations, and declarations. A consultant can help ensure that your application is complete and properly aligned with PSG criteria — reducing rejection risks.

3. Vendor Liaison and Negotiation

Consultants often work closely with pre-approved vendors and can help negotiate better deals or explain solution features more clearly than vendors do on their own.

4. Cost Planning & Budgeting

PSG consultants can help map out the total costs involved (including hidden costs) and advise how to structure the deal so you get the maximum claimable amount under the grant.

5. Faster Approval and Implementation

With an experienced consultant, your application process is streamlined, and you avoid common pitfalls like choosing ineligible solutions or submitting incomplete forms.

Common Mistakes When Applying Without a Consultant

Many SMEs try to DIY their PSG applications and run into problems like:

• Choosing non-approved vendors

• Submissions with missing documents or unclear business justifications

• Misunderstanding eligibility criteria (e.g., applying for multiple overlapping solutions)

• Inaccurate costing or timelines

• Delayed implementation due to vendor miscommunication

These issues can delay or derail your digital transformation plans altogether.

What to Look for in a PSG Grant Consultant

When choosing a PSG Grant Consultant, make sure they offer:

• Solution Matching Services: They should evaluate your needs and recommend the right fit from the PSG list.

• Grant Application Support: From preparing the business case to submitting on the Business Grants Portal, they should handle the whole process.

• Vendor Network: A good consultant will have strong ties with pre-approved vendors and possibly help you negotiate better packages.

• Post-implementation Support: After project approval, they should be able to help you monitor implementation and prepare the claim documentation.

Look out for consultants with proven track records, testimonials, and familiarity with various PSG-eligible industries.

Popular PSG-Approved Solutions

Some of the most commonly adopted PSG solutions include:

• Accounting Software: Xero, QuickBooks, Sage, Financio

• HR & Payroll Systems: Payboy, Info-Tech, Talenox

• POS Systems: EPOS, Vend, iReap POS

• Inventory Management: TradeGecko, Unleashed

• CRM Systems: Zoho CRM, Salesforce (pre-approved versions)

• Fleet Management Tools

• E-Commerce Enablement Platforms

• Cybersecurity Solutions

These tools can help companies digitise, streamline operations, and improve customer experiences.

Conclusion

The Productivity Solutions Grant (PSG) is a powerful tool that makes digital transformation accessible to SMEs in Singapore. Whether you’re upgrading your accounting system, adopting a new HR platform, or setting up a POS for your retail shop, PSG helps reduce costs and lower the risk of tech investments.

However, selecting the right solution, navigating the application, and ensuring smooth implementation can be challenging. That’s where a PSG Grant Consultant can provide invaluable support — guiding you from start to finish, avoiding common mistakes, and ensuring you maximise your grant benefits.

Need help applying for the PSG Grant or choosing the right digital solution for your business?
Reach out to the experienced team at GrantConsultant.sg — your one-stop solution for PSG, EDG, and MRA grants. We simplify the process, match you with the right solutions, and make digital transformation stress-free.