The Productivity Solutions Grant (PSG) is a strategic initiative by the Singapore government, designed to support small and medium-sized enterprises (SMEs), including cafés and restaurants, in adopting technology solutions to enhance their productivity and competitiveness. Launched in April 2018, the PSG provides financial assistance to businesses seeking to implement pre-approved IT solutions, equipment, and consultancy services that streamline operations and improve efficiency.
Objectives of the PSG
The primary goal of the PSG is to encourage SMEs to embrace digital transformation by subsidizing the costs associated with adopting technology solutions. By doing so, the grant aims to:
- Enhance business productivity through the use of technology.
- Support sector-specific and generic solutions aligned with industry transformation maps.
- Facilitate the digitalization of SMEs to remain competitive in a rapidly evolving business landscape.
Eligibility Criteria
To qualify for the PSG, businesses must meet the following conditions:
- Business Registration: The company must be registered and operating in Singapore.
- Local Shareholding: At least 30% of the company’s shareholding must be held by Singaporean citizens or permanent residents.
- SME Status: The company should have:
- An annual sales turnover of not more than S$100 million, or
- An employment size of not more than 200 employees.
- Solution Usage: The IT solutions or equipment purchased, leased, or subscribed to must be used in Singapore.
- Pre-Approval: The solutions must be pre-approved by the relevant authorities.
- No Prior Commitment: The company must not have made any payment or signed any contract with the vendor prior to the PSG application.
Types of Supportable Solutions
The PSG covers a wide range of solutions categorized into:
- Sector-Specific Solutions: Tailored solutions for industries such as retail, food services, logistics, precision engineering, construction, and more. These solutions are aligned with the Industry Transformation Maps (ITMs) for each sector.
- Generic Solutions: Solutions that are applicable across various industries, including:
- Customer Relationship Management (CRM) systems
- Human Resource Management Systems (HRMS)
- Accounting and financial management systems
- Inventory management systems
- Digital marketing solutions
- Cybersecurity solutions
- Consultancy Services: Support for consultancy services aimed at business process improvement and job redesign.
Funding Support
As of April 1, 2023, the PSG offers funding support of up to 50% of the qualifying costs for eligible solutions. This support level is applicable across all sectors. The grant cap is set at S$30,000 per financial year (April 1 to March 31) for each company.
Application Process
Businesses interested in applying for the PSG should follow these steps:
- Identify Suitable Solutions: Browse the list of pre-approved solutions available on the GoBusiness Gov Assist website and select the ones that best meet your business needs.
- Obtain Quotations: Request a quotation from the pre-approved vendor for the selected solution. Ensure that the quotation aligns with the specifications and pricing of the pre-approved package.
- Submit Application: Log in to the Business Grants Portal (BGP) using your Corppass account and submit the PSG application along with the required documents.
- Await Approval: The application will be evaluated, and if approved, you will receive a Letter of Offer.
- Implement Solution: Upon approval, proceed to purchase, lease, or subscribe to the solution as per the approved application.
- Submit Claims: After implementing the solution and making full payment, submit your claims through the BGP. Required documents typically include:
- Invoice and receipt from the vendor
- Bank statement showing payment
- Screenshot or report demonstrating usage of the solution
- Receive Disbursement: Once the claim is approved, the grant amount will be disbursed to your company’s bank account via GIRO.
Important Considerations
- No Retrospective Applications: Applications submitted after the purchase or payment for the solution will not be accepted. Ensure that you apply for the PSG before committing to any purchase.
- Vendor Selection: Only solutions and vendors that are pre-approved under the PSG are eligible for funding.
- Deployment Location: The solution must be deployed and used in Singapore.
- Holding Period: The purchased solution must be held and used for at least one year from the date of final claim approval.
Additional Support: SkillsFuture Enterprise Credit (SFEC)
Businesses that are eligible for the SkillsFuture Enterprise Credit (SFEC) can receive additional subsidies on top of the PSG. The SFEC provides up to S$10,000 to cover up to 90% of out-of-pocket expenses for supportable initiatives, including those under the PSG.
Resources and Support
For more information and assistance:
- GoBusiness Gov Assist: https://www.gobusiness.gov.sg/productivity-solutions-grant/
- Enterprise Singapore: https://www.enterprisesg.gov.sg/financial-support/productivity-solutions-grant
- Business Grants Portal: Enterprise
These platforms provide comprehensive information on the PSG, including the list of supportable solutions, application procedures, and contact details for further assistance.
By leveraging the PSG, SMEs in Singapore can significantly reduce the financial barriers to adopting new technologies, especially as a café or restaurant owner, thereby enhancing their operational efficiency and staying competitive in the digital economy.
