DIGITAL MARKETING DONE
GET YOUR FREE QUOTE +65 6789 9852

PSG Grants: The Complete Guide

PSG Grants_ The Complete Guide

Table of Contents

How do you kickstart your technology journey with limited resources? The Productivity Solution Grant (PSG) is a great place to start.

The Productivity Solution Grant (PSG) offers funding support for projects that aim to improve productivity and benefit the public and society, focusing on information and communication technology (ICT).

This guide serves to walk Singapore SMEs on how to successfully apply for the PSG grant.

70% PSG Grant for eCommerce | Singapore PSG Pre Approved Vendor | Verz Design

What’s the PSG?

The Productivity Solutions Grant (PSG) is a government grant that supports businesses in their adoption of pre-scoped IT solutions that can help them become more productive and operationally efficient.

The grant supports companies keen on adopting IT solutions such as accounting, CRM, HR systems, e-commerce, etc.

What’s the Grant Amount?

Under the PSG, businesses can receive up to 70% funding support to purchase IT solutions and services, with a maximum quantum of $350,000 per company.

For example, if your company spends $10,000 on an IT solution, you can receive up to $7,000 from the government.

What are the Pre-scoped Solutions?

Various industry-specific software solutions have been pre-scoped for the PSG to make it easier for businesses to adopt IT solutions that fit their needs.

That means businesses no longer need to go through the time-consuming evaluation process to determine if the solution meets their requirements.

Some of the pre-scoped solutions include:

  • Accounting and financial management software
  • Inventory, procurement, and supply chain management software
  • Customer relationship management (CRM) software
  • Enterprise resource planning (ERP) software
  • Human resources (HR) and payroll management software
  • Business process management (BPM) software
  • E-commerce platforms
  • Cybersecurity solutions
  • Data analytics tools
  • Cloud storage and backup services
  • Digital marketing solutions

To view the complete list of pre-scoped solutions, click here.

Are You Eligible for the PSG?

Before applying for the PSG, you must check that your company is eligible for the grant.

To be eligible, your company must:

  • Be a registered business in Singapore with sole proprietorship, partnership, limited liability partnership, private limited company, or other legal entity;
  • Have at least 30% local shareholding if it is a privately-held company;
  • The purchased/leased IT solutions and services must be used in Singapore;
  • Not have more than 200 employees at the time of application; and
  • The group’s annual turnover must not exceed $100 million, or annual group funding from any source must not exceed $100 million.

What Documents Do You Need to Apply?

To apply for the PSG, you will need the following documents:

  • A quotation of pre-scoped IT solution/service from an Authorized Reseller/pre-approved vendor;
  • A copy of the latest ACRA for your company;
  • A copy of the latest audited/unaudited financial statements or management accounts for the past three years;
  • A copy of the last three months’ bank statements; and
  • Estimated project costs, including a detailed breakdown of hardware, software, and implementation fees (where applicable).

What Does the PSG Cover?

The PSG covers a lot of sector-specific IT solutions and services, which are crucial for businesses to optimize their operations and become more productive.

These include:

IT Solutions: Take a quote from an Authorized Reseller/pre-approved vendor for an IT solution pre-scoped under the PSG.

For example, if you’re a food and beverage (F&B) business, you may want to get a point-of-sale system that can help you manage your inventory and sales more efficiently.

Equipment: Source for and purchase equipment necessary for you to use the IT solution.

For example, suppose you’re in the healthcare business. In that case, pre-scoped IT solutions offer food-specific software solutions such as nutrition tracking and an Intraoral scanner to help you manage your patients’ nutritional intake and improve their oral health.

The grant also covers laptops, servers, storage devices, and other hardware you may need to implement the solution.

Consultancy Service: Hire a consultant to help you with the feasibility study, system analysis, design, prototyping, testing, training, and project management for the IT solution.

get google ranking ad

For example, let’s say you’re setting up a new e-commerce business. You may want to engage a consultant to help you understand your business requirements and recommend an appropriate e-commerce platform.

What Entities Are Excluded from the PSG?

The following entities are not eligible for the PSG:

  • Charities, religious organizations and non-profit bodies, or Institutions of Public characters (IPCs)
  • quasi-government bodies
  • Government Ministries, Statutory Boards, and Organs of State
  • Foreign-registered companies
  • Voluntary Welfare Organizations (VWOs)
  • Centralized Purchasing Bodies (CPBs)
  • Businesses that have been in operation for less than six months at the time of application
  • Businesses with more than 200 employees at the time of application
  • Companies with an annual group turnover of more than $100 million or annual group funding from any source of more than $100 million
  • Corporations that have been convicted of an offense under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act within the last five years
  • Companies that have been fined or had their business licenses revoked for breaches of the Consumer Protection (Fair Trading) Act or Singapore Tourism Board Act within the last five years
  • Businesses blacklisted by any government agency within the past three years
  • Companies that are in bankruptcy, liquidation, or under any form of insolvency proceedings at the time of application
  • Societies, clubs, and associations (SCAs), unless they are applying for the PSG to support a project that will generate income for the SCA
  • Businesses that have received other government grants, subsidies, or funding for the same project applied under the PSG
  • Companies that offer services such as gambling, money-lending, political campaigning, door-to-door sales, Tupperware parties, direct selling, and multi-level marketing

Does the Grant Support an Unlisted IT Solution Not Pre-approved?

No, the PSG only supports IT pre-scoped solutions listed on the PSG website.

For equipment purchase, there’s no need to check if the equipment is listed on the PSG website as long as it meets the specifications provided.

If you’re looking for an IT solution not listed on the PSG website, you may wish to check if it’s eligible for other government grants. For example, the SMEs Go Digital Program supports businesses in adopting a range of digital solutions, including e-invoicing, accounting, and inventory management software.

Is the PSG Grant Taxable?

The PSG grant isn’t considered a taxable income as it’s given to offset business costs.

However, you may be required to pay taxes on any profits made from the project funded by the PSG grant.

For example, if you use the grant to purchase an e-commerce platform and make a profit from selling products on the platform, you’ll need to declare the profit as taxable income.

For more information about this, please refer to the IRAS website.

Can Pre-owned Be Claimed under the PSG?

No, the PSG only supports the purchase of new IT solutions and equipment.

The PSG is meant to help businesses adopt new technologies and upgrade their capabilities.

If you’re looking for support to purchase pre-owned equipment, you may wish to check if it’s eligible for other government grants.

What Is the Difference Between PSG and other Government Grants?

The PSG is meant to help businesses offset the costs of adopting new IT solutions and equipment and upgrading their capabilities.

Other government grants, such as the SMEs Go Digital Program, offer support for businesses to adopt a range of digital solutions, including e-invoicing, accounting, and inventory management software.

The PSG grant can’t be used for already completed projects.

You may have to check out other government grants for these projects.

How’s the S$30,000 Grant Cap Applied?

The grant is tied to the company’s Unique Entity Number (UEN).

In other words, each company is entitled to a maximum of S$350,000 in grant funding, regardless of how many subsidiaries or branches it has.

Is the S$350,000 Cap Limit Per Project or in Total?

The S$350,000 cap is the total amount of grant funding a company can receive, regardless of how many projects it undertakes.

Only the IT solution or equipment’s actual purchase/lease/hire cost is counted towards the S$30,000 cap.

Other costs such as installation, professional services, and maintenance fees are not counted towards the S$350,000 cap.

The grant is disbursed on a reimbursement basis.

You’ll first need to incur the costs before applying for the grant.

You’ll then need to submit receipts or invoices as supporting documents when applying for the grant.

How does a Company Make concurrent Applications for Multiple PSG-Eligible Projects?

Yes, a company can make concurrent applications for multiple PSG-eligible projects.

However, the total amount of grant funding that a company can receive is still capped at S$350,000.

That means that the company will have to bear any costs that exceed the S$350,000 cap.


Grants & Funding - PSG, Digital Resilience Bonus

6 Key Benefits of Website PSG Grant to SMEs?

The PSG grant allows SMEs to offset up to 70% of the costs of adopting website productivity solutions, such as content management systems (CMS) and e-commerce platforms.

That can help SMEs save on the costs of developing and maintaining a website and free up resources to focus on other areas of their business.

In addition to that, here are six other ways the PSG grant can benefit SMEs:

  • Let Your Business Go Digital: The grant can help you offset the costs of adopting website productivity solutions, which can help your business go digital.
  • Increase Productivity: The grant can help you increase productivity by freeing up resources that would otherwise be spent on developing and maintaining a website.
  • Expand Your Business Globally: The time to go global is now. With the grant, you can expand your business by taking it online and reaching a global audience.
  • Enhance Your Customer Experience: A good website can help you enhance your customer experience by providing them with a convenient way to find information about your products or services and make purchases.
  • Stay Competitive: In today’s digital age, you must stay competitive. The grant can help you do that by helping you offset the costs of adopting website productivity solutions.
  • Save on Costs: The grant can help you save on the costs of developing and maintaining a website.

What Not to Do When Applying for the PSG Grant

  • Don’t make any payment to a vendor, supplier, or third party regarding the purchase or subscription of the IT solution, equipment, or consultancy service.
  • Don’t sign any contract with the vendor, supplier, or third party to purchase or subscribe to the IT solution, equipment, or consultancy service.
  • Only make payment to the vendor, supplier, or third party after receiving approval for the grant.

What Happens After You Submit an Application for the PSG Grant?

IDA will review your application. If your application is successful, you will need to sign a grant agreement with IDA.

You will then have to make payment to the vendor, supplier, or third party for the purchase or subscription of the IT solution, equipment, or consultancy service.

After that, you can submit a claim for reimbursement of up to 70% of the costs incurred.

How Many Times Can You Apply for PSG Grant?

There is no limit on the number of times you can apply for the grant. However, the total amount of grant funding that a company can receive is still capped at S$350,000.

Plus, support can only be extended for one package per solution category per deployment location.

For example, suppose your company has already received support for an e-commerce platform in Yishun. In that case, you will not be able to receive support for another e-commerce platform in the same region (Yishun).

Can I Deploy the PSG Solution to a Residential Address?

For a business operating from a residential address (such as an HBD flat or private property), the PSG solution can still be deployed in the residential area, but only if it meets the required PSG solution.

Can I Deploy the PSG Solution to a Residential Address?

For a business operating from a residential address (such as an HBD flat or private property), the PSG solution can still be deployed in the residential area, but only if it meets the required PSG solution.

Most importantly, the company must ensure the selected PSG solution and intended function align with the area’s HBD/URA master plan and zoning regulations.

For more information on Home office scheme guidelines, please refer to the relevant schemes at URA or HBD.

How Long Must the Purchase of the IT Solution be Held for?

The holding period for the IT solution or equipment purchased with the PSG grant is one year.

Consultancy service providers must be contacted within one year from the date of grant approval, and the services must be completed within six months from the date of commencement.

The project duration for deploying the IT solution must not exceed 12 months from the approval date.

Can a Pre-approved PSG Vendor Apply on Your Behalf?

No, only the applicant company can apply for the grant.

After receiving a pre-approved quote from the vendor, you’ll have to process the application through BGP with all the required documents.

engaging the top social media agency in singapore

Can You Edit or Make Changes to a Pre-approved Quote?

No, you cannot. All pre-approved quotes are final, and any modification renders them ineligible for grant support.

How Will You Be Notified if Your Application is Successful?

If your application is successful, you will be notified via the email you stated on the BGP portal.

You will then have to sign a grant into the BGP portal and accept the letter of offer.

After that, you can make payment to the vendor, supplier, or third party for the purchase or subscription of the IT solution, equipment, or consultancy service.


How to Apply for the PSG Grant: Step-by-step Guide

Step 1: Create a Business Grant Portal (BGP)

The first step is to create an account on the Business Grant Portal (BGP).

You need a CorpPass account to access the portal.

A CorpPass account is an online account for businesses and other entities to transact with government agencies in Singapore.

If you don’t have a CorpPass account, you can apply for one via the CorpPass website.

Here’s a simplified guide on how to create a CorpPass account:

Log in with SingPass

  • Go to www.corppass.gov.sg
  • Click on “log in with SingPass.”
  • Log into the CorpPass portal by either scanning the QR code provided using the SingPass app or inputting your SingPass user ID and Password.
  • Confirm your logging request on the SingPass app by tapping on the logging button.
  • You may also be required to verify your identity using an SMS OTP. Enter the 6-digit code sent to your mobile number and click “submit.”
  • Alternatively, select “Face verification” to verify your identity using your phone camera or webcam.
  • Click on “Begin Scan” and follow the on-screen instructions.
  • After logging in, select the entity you want to transact on behalf of. Note that this option will only show if you hold multiple CorpPass accounts.

Create the CorpPass Account:

  • Select your entity profile.
  • After logging into your CorpPass account, you’ll be prompted to select the profile that best describes your entity:
  1. I’m the Only User
  2. My Entity Has Users

Choose “I’m the Only User” if you’re the only user in your organization that needs access.

Choose “My Entity has Users” if your organization would love to grant access to multiple users, not just you.

Selecting “My Entity Has Users” will direct you to create user accounts by clicking “Create User Accounts.”

You’ll have to input the user’s name, email address, account type, country, and identity type.

  • Check the last box if you wish to grant the user “Access to All e-Services.”
  • Under “Identity Type,” you can select NRIC, Foreign ID, and FIN.

If you choose NRIC as the identity type, the user’s full name, country, and region of issuance will be auto-populated.

If you select the NRIC/FIN user account, you’ll be required to fill in the NRIC/FIN No., and the corporate email address of the user.

The user will receive an email asking them to activate their CorpPass account.

  • For “Account Type,” you have the option to select between “user,” “enquiry user,” and “mini admin.”

“User” only allows the user to transact with government digital assets on behalf of the entity—nothing else.

“Enquiry User” can transact with the government’s digital assets on behalf of the entity. On top of that, they can search and view the details of other users within the entity.

psg digital marketing

However, they can’t assign digital service access or manage other users’ accounts.

“Sub-admin” can manage the CorpPass accounts of other users within the entity. They can also create new user accounts and assign them digital service access.

  • Lastly, select if you want to assign the user “access to all e-services.” If left unchecked, you’ll have to assign the digital services individually.

Every time you wish to add a new user, click on “Add new user” and repeat the process.

get google ranking ad

  • Click “Next’ once you have added all the users.

Review the details before hitting “submit.”

  • You want to review the foreign user ID and other foreign user details for foreign users. Once confirmed, check the “terms of use” box before hitting “submit.”

Ta-da! You’ve successfully created your CorpPass account. Now on to the next step.

Step 2: Sign in to the BGP portal using your CorpPass account

After creating your CorpPass account, you can now sign in to the Business Grant Portal (BGP) using your CorpPass credentials.

Once on the BGP homepage, click on “Get New Grant.”

psg grant

Next, you’ll be asked to answer three questions related to your business:

  1. Which sector best describes your business?

PSG Grant

2. I need this grant to?

PSG Grants: The Complete Guide

  • Which best describes the area you’ll develop with this grant?

psg grant

Step 3: Check Yes “Does the Applicant Meet the Eligibility Criteria.”

On the next page, select “Yes” for the question “Does the Applicant Meet the Eligibility Criteria?” and click on “Next.”

psg grant

Step 4: Provide Your Contact Details

You’ll be asked to provide your contact information on the next page. IMDA will use the information you input here if they need to contact you regarding your application.

Fill in all the required fields before proceeding to the next page.

You’ll be asked to provide the main contact person’s name, job title, contact no, email, and alternate contact person’s email.

PSG Grants: The Complete Guide 1

Step 5: Submit Your Proposal

This is where you input all of your data related to the grant you’re applying for.

You’ll be asked to select “what type of solution you’re purchasing.”

Your options include:

  • Equipment
  • IT solution

You’re also to search for the security solution you want to purchase.

Next, choose the number of units you wish to purchase and input the date you plan to start using the solution.

You’ll also be asked to select the vendor’s quotations, location type, and input company address. This is also where you upload the quotation the vendor gave you.

PSG Grants: The Complete Guide 2

At this point, you must reach out to the vendor and ask them for a quote. If it’s an IT solution, you have to ensure the vendor is pre-scoped by BGP. In other words, they should be among the listed IT solutions.

Step 6: Provide Details of Cost

PSG Grants: The Complete Guide 3

The next page will prompt you to provide the cost details for the solution you’re applying for.

You’ll need to input the solution type, solution’s name, number of units, and the reason for purchasing the solution.

You’re also required to upload the quotation/estimate and supporting documents.

Step 7: Complete Your Overall Business Impact and Productivity Gains

The next page will require you to provide data on how the solution you’re applying for will impact your business productivity-wise.

You’ll need to answer questions related to how the solution will increase your productivity, workforce savings, and sales turnover.

PSG Grants: The Complete Guide 4

Step 8: Review Your Application and Click “Submit”

The last step is to review your application to ensure that all the information you’ve input is accurate.

Once you’re satisfied, check the consent box and click on “Submit.”

You’ll receive an email notification confirming that your application has been submitted.

PSG Grants: The Complete Guide 5

Upon approval, you’ll receive an email with a letter of offer. You can log into your BGP account to accept the letter.

Simplified Guide on How to Accept the Letter of Offer

What next after you’ve successfully submitted your application and received the Letter of Offer?

The next step is to accept the Letter of Offer via the BGP.

Here’s a step-by-step guide on how you can do that:

Step 1: Again, you can begin by logging into your BGP portal and navigate to “My Grants” => “Claims” => “File New Claims.”

Step 2: Select the Approved Grant You Wish to Claim

You’ll see a list of approved grants. Select the grant you wish to claim and click “Proceed.”

Step 3: Fill in Your Contact Data

The next page will require you to fill in the contact details of the main contact person (name, job title, contact number, email) and the alternate contact person’s email.

PSG Grants: The Complete Guide 6

Step 4: Claim the Information

On the next page, you’ll be required to fill in your claim information.

You’re also to upload supporting documents and fill in the payment details before proceeding to the next page.

PSG Grants: The Complete Guide 7

Step 5: Business Outcomes

Next, fill in the business outcomes data.

That includes information on how the solution you’re claiming has helped improve your productivity, staffing savings, and sales turnover.

PSG Grants: The Complete Guide 8

Step 6: Declaration and Submit

The last step is to declare that your information is accurate.

You’re to review everything before ticking the checkbox and clicking “save.”


FAQs About The Productivity Solutions Grant (PSG)

What’s the Processing Time for Applications?

It takes approximately 4 to 6 weeks after submitting your application to the day you receive feedback.

However, this may differ depending on the nature and complexity of your application.

The PSG team will notify you if your application requires more time for processing.

Applications will be processed in the order they’re received.

You can check the status of your application via the Business Grants Portal (BGP).

What’s the Processing Time for Claims Disbursement?

After accepting the Letter of Offer, it takes approximately 4 to 6 weeks for the PSG team to disburse the grant amount.

The time for claims disbursement may differ depending on the solution for which you’re filing the claim.

Companies are encouraged to submit their claims after receiving their invoice/proof of purchase.

This will help to avoid any delays in the claims process.

What Payment Terms Are Accepted for the PSG?

The PSG allows for standard payment terms such as bank transfers and cheques.

For sole proprietorship, you can make payments via credit card. But the credit card must belong to the sole proprietorship, not anyone else.

How’s the PSG Grant Disbursed?

The PSG grant amount will be disbursed to the company’s bank account via GIRO within 4 to 6 weeks after accepting the Letter of Offer.

The grant amount will be credited into the company’s bank account in a single lump sum.

The company’s bank must verify the completed GIRO form before it’s submitted to ESG for disbursement.

If you’re submitting multiple claims, you only need to submit the GIRO form for the first claim.

For subsequent claims, the grant amount will be disbursed to the company’s bank account automatically via GIRO.

How Will You Be Notified of the Claims Disbursement?

An email notification will be sent to the main contact person’s email address as stated in the company’s Letter of Offer notifying you of the disbursement.

The notification will include the GIRO transaction form and the grant amount credited into the company’s bank account.

What Happens If You Don’t Use the Grant Within the Stated Period?

If your company doesn’t utilize or fails to complete the project within the stated period, you may have to refund all or part of the grant amount back to ESG.

Failure to do so may also lead to your company being blacklisted and ineligible for future grant applications.

What Happens If You Change Your Bank Account Details After Submitting the GIRO Form?

If you change your company’s bank account details after submitting the Giro form, you’ll need to notify ESG and submit a new GIRO form with the updated bank account details.

Your company’s grant disbursements will be on hold until the new GIRO form is received and processed.


FAQs

Q: Can I apply for the PSG if I’m not a Singaporean or PR?

A: Yes, you can. However, at least 30% of your company’s shareholding must be held by a Singaporean or PR.

Q: I’m a one-person company. Can I apply for the PSG?

A: Yes, you can. One-person companies are eligible for the PSG as long as they meet the eligibility criteria.

Q: Could an unlisted IT solution and equipment be supported under PSG?

A: PSG aims to facilitate the adoption of IT solutions and equipment recommended by sector-led agencies. The agency has to be listed on the IMDA website for IT solutions to be included as part of the PSG scope.

Q: I’m planning to purchase a standard off-the-shelf software package. Would this be considered an IT solution?

A: Yes, it would be considered an IT solution if it meets the eligibility criteria.

Q: How will my company’s bank account details be verified?

A: The company’s bank account details will be verified when the completed GIRO form is submitted.

How Can MediaOne Help?

MediaOne is a pre-approved productivity solutions grant (PSG) vendor for digital marketing solutions. That means businesses can enjoy up to 70% 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.

Share:

More Posts

what do seo agencies do

What Does An SEO Agency Do

A professional SEO agency should generally deliver on-site SEO, off-site SEO, and technical SEO such as: keyword planning website audit pagespeed enhancement removal of crawl

what do seo agencies do

What Does An SEO Agency Do

A professional SEO agency should generally deliver on-site SEO, off-site SEO, and technical SEO such as: keyword planning website audit pagespeed enhancement removal of crawl

Read More »