In the dynamic and challenging business landscape of Singapore, the success of enterprises is increasingly hinged on their productivity levels. Recognizing this, the Singapore Government introduced the Productivity Solutions Grant (PSG) in April 2018, a strategic initiative aimed at bolstering companies’ operational efficiency through technology.
Key Takeaways
- This grant is for local SMEs looking for IT solutions and equipment
- Helps to fund individual projects meant to increase productivity, restricted to a pre-approved list of vendors.
- Application time takes about 6 weeks.
- Funding Support is up to S$30,000
The PSG provides financial aid to businesses for integrating specific IT solutions, equipment, and consultancy services that are in sync with the broader industry development strategies, such as Industry Transformation Maps and Digital Plans.
This article aims to delve into the nuances of PSG, highlighting its benefits, discussing the eligibility criteria, simplifying the application steps, and underscoring the role of external assistance in maximising the benefits of this pivotal grant.
PSG Grant Eligibility
Who Can Submit an Application?
Companies that satisfy these requirements are eligible to apply for PSG:
- The Company must be registered with ACRA and be physically operating in Singapore.
- Required to utilise the IT solutions, equipment, or consultation service that was purchased, leased, or subscribed to in Singapore.
- Ensure at least 30% of the company’s shareholding is locally based, with this ownership stake held either directly by Singapore citizens or permanent residents, or indirectly through a chain of ownership involving Singapore-based entities.
- Have at least three local Singaporean workers at the moment of application.
- For businesses that are part of a corporate group, the eligibility for the Productivity Solutions Grant (PSG) requires that the total annual sales turnover of your company and its related entities within the group should not exceed S$100 million. Alternatively, the collective employment size of your company and its related entities within the corporate group should be fewer than 200 employees.
Refer to this Annex for more information. - Under the Productivity Solutions Grant (PSG), businesses are required to use the IT solutions or equipment that they have purchased, leased, or subscribed to within the geographical boundaries of Singapore.
Companies that are not eligible to apply for the Productivity Solutions Grant:
Charities, government agencies, and subsidiaries, religious organisations, charities, Institutions of Public Characters (IPCs), societies, and voluntary welfare organizations (VWOs) are not eligible to apply for this grant.
How to Apply and Submit PSG Claims?
- Identify Relevant Solutions:
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- Visit the GoBusiness Gov Assist website to access a list of supportable solutions and identify those relevant to your sector. Only solutions and equipment included in pre-scoped packages offered by pre-approved vendors are supported. This ensures that the solutions are reliable and easy to deploy.
- Obtain quotations from pre-approved vendors for IT solutions, equipment, or consultancy services.
- Vendor Selection Guidelines:
- Applicants should perform due diligence when engaging vendors and ensure that there are no improper relationships or connections with the selected vendors.
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- Submit Application on Business Grants Portal (BGP):
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- You need a Corppass account to transact on the BGP.
- Prepare necessary documents and information for the application, such as contact details, proposal, project cost, and business impact.
- Applications should not be submitted if a contract has been signed or any payment made before the application.
- Apply to the BGP website.
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- Claim Submission:
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- Submit your grant claim on the BGP before the claim due date.
- Ensure that the solution is purchased or subscribed as approved, has been used for 30 days, and has been paid in full.
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- Receiving Disbursements:
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- Disbursements are made only after claims have been approved.
- From 1 February 2023, funds are disbursed through PayNow Corporate.
Additional Notes:
- The maximum support level is up to 50% for all sectors from 1 April 2023.
- There’s an annual grant cap of S$30,000 for solutions supported by EnterpriseSG, from 1 April to 31 March the following year.
- It’s important to not share your Corppass with vendors for any grant application or claims.
Use and Procurement of Solutions and Equipment under PSG
Once a business is deemed eligible for the PSG, it’s important to understand the specific guidelines for using and procuring the supported IT solutions and equipment:
Holding Period Requirement: There is a mandatory one-year retention period for the equipment or IT solution from the date of approval of the final claim.
Usage Restrictions: The equipment or IT solution must be exclusively used by the applicant entity, and not by related parties or subsidiaries.
Discover the Ways We Can Support You with the PSG Grant
At MediaOne, we have the privilege of being a pre-approved vendor for the esteemed Productivity Solutions Grant (PSG), focusing on digital marketing solutions. Through our first-hand experience, we’ve seen businesses reap the benefits of up to 50% funding support* on our digital marketing packages.
Our team, having guided numerous clients through the grant application process, is ready to work alongside you to develop a digital marketing strategy that’s custom-fit to your business’s specific needs and goals.
Reach out to us now and let us share our expertise and insights to help elevate your business.
Benefits of Applying for the PSG Grant
Financial Support: Eligible enterprises may get financial assistance from the PSG, which covers up to half of the qualifying expenditures, up to a maximum of S$30,000.
Companies can overcome budgetary limits and speed the deployment of solutions that enhance productivity with this financial boost.
Enhanced Productivity: PSG advocates for digital solutions that help firms improve operations, automate repetitive jobs, and simplify procedures. Innovative tools and equipment may be implemented by enterprises with the help of PSG financing, which can increase productivity, decrease operating costs, and give them a competitive advantage.
Forging a Competitive Edge:
With the Productivity Solutions Grant (PSG), businesses can bolster their capabilities and leverage advanced technology, thus gaining a competitive advantage.
By integrating digital technologies, organizations can become more agile and responsive, enhancing their competitiveness in the market and positioning themselves for long-term success.
Types of PSG Solutions
Sector-specific Solutions
Sector-specific solutions are suitable for organizations within the relevant industries only. These solutions are particularly selected by sector lead agencies, matched to industry roadmaps such as the Industry Transformation Maps (ITMs) and Industry Digital Plans (IDPs).
For more information, please visit the GoBusiness website.
Generic Solutions
Generic solutions are for all enterprises, across business sectors and industries. Solutions are meant to boost companies’ efficiency in managing general business tasks and operations.
Human Resource Management System (HRMS)
- Functionality: Enhances efficiency in managing employee-related administrative tasks.
- Support for SMEs: Up to 50%; Not available for non-SMEs.
Accounting, Inventory, and Sales Management System
- Functionality: Streamlines financial, inventory, and sales operations.
- Support for SMEs: Up to 50%; Not applicable for non-SMEs.
Fleet Safety Management System
- Functionality: Improves fleet safety with advanced driver assistance technologies.
- Support for SMEs: Up to 50%; Not applicable for non-SMEs.
Document Management and Mobile Access System
- Functionality: Facilitates efficient document synchronization and management.
- Support for SMEs: Up to 50%; Not applicable for non-SMEs.
Digital Marketing Packages
- Services Offered: Comprehensive digital marketing strategies including SEO, SEM, and SMM.
- Support for SMEs: Up to 50%; Not applicable for non-SMEs.
E-Commerce – Online Shop (B2C)
- Provision: Sets up a secure online store for B2C transactions.
- Support for SMEs: Up to 50%; Not applicable for non-SMEs.
Managed Detection and Response
- Functionality: Provides continuous cybersecurity monitoring and response services.
- Support for SMEs: Up to 50%; Not applicable for non-SMEs.
Job Redesign Consultancy
- Support for SMEs and Non-SMEs: Up to 70%.
For more information, please visit the GoBusiness website.
Explore How We Can Assist You with the PSG Grant
MediaOne is a pre-approved productivity solutions grant (PSG) vendor for digital marketing solutions. That means businesses can enjoy up to 50% funding support* on their digital marketing packages when they sign up with MediaOne.
Our team of consultants will help you with the grant application process and work with you to develop a customized digital marketing strategy that meets your business goals.
Frequently Asked Questions (FAQ)
Can I apply for PSG if my business is registered overseas but I would like to expand to Singapore?
No, applicants must be registered as a business entity in Singapore to apply for PSG.
Are Non-Listed Solutions and Equipment Eligible?
Non-listed solutions and equipment are not eligible for the Productivity Solutions Grant (PSG) in Singapore. The PSG program specifically supports businesses in adopting pre-scoped IT solutions and equipment that have been pre-approved by EnterpriseSG and other participating agencies.
This means that for a company to receive support under the PSG, it must choose from the list of solutions and equipment that have already been evaluated and approved by the relevant authorities.
Do the equipment and IT solutions under PSG have a set expiration date?
The availability of equipment and IT solutions is subject to regular updates, in line with the vendors’ agreements with PSG agencies.
The inclusion of job redesign consultation services as part of PSG’s development was announced in Budget 2020. Where can I read up on this topic further?
Consulting services are now part of the PSG’s offerings, in addition to the adoption of IT solutions and equipment. With PSG, businesses can get job redesign consultancy support up to $30,000 per company or 70% of the qualifying cost.
Job redesign under PSG (PSG-JR) is an improvement to the current PSG that tries to facilitate job redesign by giving businesses JR consulting support to enhance and drive their workforce and company transformation.
Applications for PSG-JR have been accepted continuously since December 1, 2020. Interested businesses can apply for PSG-JR consultant support through the Business Grants Portal. For businesses to use the site for transactions, they must first create a Corppass account.
To get in touch with SNEF at psgjr@snef.org.sg or +65 6827 6910, or to view more details about PSG-JR, go here.
