Productivity Solutions Grant (PSG): A Complete Guide for Singapore Businesses

Many small and medium-sized businesses in Singapore face ongoing challenges when trying to improve efficiency, especially as labour costs rise and operations become more complex. Adopting digital tools and productivity systems can help address these challenges, but cost and uncertainty often slow down decision-making.

This guide, Venture Studio will help business owners understand whether the Productivity Solutions Grant is relevant to their needs. It brings together key considerations, practical information, and application insights so companies can evaluate their options and plan their next steps with confidence.

What Is the Productivity Solutions Grant?

The Productivity Solutions Grant is a Singapore government support scheme that helps local businesses enhance productivity by adopting approved digital tools, technology solutions, and productivity-related equipment. Its primary objective is to make operational improvements more accessible by reducing the upfront cost of implementing systems that streamline workflows, minimise manual effort, and improve efficiency.

The Productivity Solutions Grant is administered by Enterprise Singapore and delivered through the GoBusiness platform. Rather than funding customised or experimental projects, the grant focuses on pre-approved solutions that have been assessed for suitability and effectiveness, allowing businesses to adopt proven systems with a simpler and more straightforward application process.

Why the Productivity Solutions Grant Was Introduced

Many small and medium-sized enterprises recognise the need to improve productivity, but upgrading systems is often easier said than done. Businesses frequently face high upfront costs when adopting new software or equipment and without in-house IT or digital expertise, it can be difficult to assess which solutions are reliable, suitable, or worth the investment. As a result, important operational improvements are often delayed, even when inefficiencies are clearly affecting growth.

The Productivity Solutions Grant was introduced to address these practical challenges faced by businesses on the ground. By offering funding support for a curated list of pre-approved solutions, the grant removes much of the uncertainty from the decision-making process. Businesses can adopt tools that have already been evaluated for functionality, relevance, and industry use, instead of spending time and resources comparing multiple vendors or testing unproven systems.

In addition, the grant helps reduce financial risk. By subsidising part of the implementation cost, the Productivity Solutions Grant allows companies to focus on improving day-to-day operations such as automating manual tasks, improving accuracy, or streamlining workflows without committing to large capital outlays.

This makes productivity upgrades more accessible, especially for SMEs that need practical, cost-effective solutions rather than complex transformation projects.

Who Is Eligible for the Productivity Solutions Grant?

To ensure that the Productivity Solutions Grant supports businesses that are ready to adopt productivity-enhancing solutions, applicants must meet a set of basic eligibility conditions. These requirements focus on company ownership, size, and how the approved solution will be used.

The table below summarises the key criteria businesses need to fulfil before applying.

Eligibility Area	Requirement
Business Registration	The company must be registered and actively operating in Singapore
Local Ownership	At least 30% of the company’s shareholding must be held by Singapore citizens or permanent residents
Company Size	The business must qualify as an SME, with no more than 200 employees or annual turnover not exceeding S$100 million
Usage Location	The approved solution must be deployed for use within Singapore
Application Timing	No contracts should be signed and no payments made to vendors before submitting the grant application

Solutions Supported Under the Productivity Solutions Grant

The Productivity Solutions Grant supports pre-approved solutions that help businesses improve efficiency across key operational areas. These solutions are designed for practical use and can be implemented with minimal complexity.

Solution Category	How It Helps Businesses
Accounting & Financial Management	Automates bookkeeping, improves reporting accuracy, and simplifies compliance processes
Customer Relationship Management (CRM)	Centralises customer data, supports sales tracking, and improves customer engagement
Human Resource & Payroll Systems	Streamlines employee administration, payroll processing, and manpower management
Retail & F&B Systems	Supports point-of-sale operations, inventory tracking, and order management
Workflow Automation & Digital Tools	Improves internal coordination, task management, and operational efficiency
Cybersecurity & Data Protection	Helps safeguard systems, data, and digital operations as businesses adopt cloud solutions

Pre-Approved Vendors and Why They Matter

A key feature of the Productivity Solutions Grant is that only solutions from pre-approved vendors are eligible for funding. These vendors are evaluated by relevant government agencies to ensure their solutions meet established standards for functionality, reliability, pricing transparency, and post-implementation support.

Using a pre-approved vendor helps businesses reduce the risk of adopting unsuitable or untested technology. It also simplifies the grant application process, as the solution scope, pricing structure, and deployment requirements are already aligned with grant guidelines.

It is important to note that solutions from vendors who are not listed as pre-approved are generally not supported under the Productivity Solutions Grant. Businesses are therefore required to select from the approved vendor list to ensure their application and subsequent claims remain eligible.

How Much Funding Can Businesses Receive?

Under the Productivity Solutions Grant, eligible businesses can receive co-funding of up to 50% of qualifying costs, subject to prevailing government guidelines. The actual funding amount varies depending on the type of solution adopted and the support cap applicable at the time of application.

Funding support is provided on a per-company basis and applies only to costs directly related to the approved solution. This typically includes software subscription or licensing fees and essential implementation components required for the solution to function as intended.

Expenses that fall outside the approved scope are not supported. These generally include optional add-ons, customised features, or services that are not directly tied to the pre-approved solution.

Step-by-Step: How the Productivity Solutions Grant Application Works

Applying for the Productivity Solutions Grant follows a specific process that businesses must adhere to in order to qualify for funding. While the application itself is relatively straightforward, it is important to understand the sequence of actions involved, as certain steps such as signing contracts or making payments too early can affect eligibility.

The steps below outline how the application process works, from selecting an approved solution to submitting claims and receiving grant disbursement.

Step 1: Choose a Pre-Approved Solution

Start by identifying a solution that meets your business needs from the list of pre-approved solutions available on the GoBusiness portal. Only solutions and vendors on this list are eligible for support under the Productivity Solutions Grant.

Step 2: Request a Quotation

Once you have selected a suitable solution, request an official quotation from the pre-approved vendor. At this stage, do not sign any contracts, make any payments, or place deposits, as the grant does not support costs incurred before application approval.

Step 3: Submit the Grant Application

With the quotation ready, submit your application through the GoBusiness platform. You will be required to provide company details, confirm that the solution will be used in Singapore, and upload the vendor quotation as part of the submission.

Step 4: Application Review and Outcome

After submission, the application will be reviewed to assess eligibility and completeness. Processing times may vary, but applicants are typically informed of the outcome within a few weeks.

Additional information may be requested during this period if needed.

Step 5: Accept the Letter of Offer

If the application is approved, a Letter of Offer will be issued. The business must formally accept this offer before proceeding.

Only after acceptance can you purchase and implement the approved solution.

Step 6: Implement the Approved Solution

Once the Letter of Offer has been accepted, proceed with purchasing and deploying the solution according to the approved scope. Ensure that implementation aligns with what was submitted in the application.

Step 7: Submit the Claim for Reimbursement

After the solution has been implemented, submit a claim through the GoBusiness portal. Supporting documents such as invoices, proof of payment, and evidence that the solution is in use will be required.

Step 8: Receive Grant Disbursement

Following successful claim review, the grant amount will be disbursed. This typically takes a few weeks to a couple of months, depending on processing timelines.

Common Reasons Productivity Solutions Grant Applications Are Rejected

Although the Productivity Solutions Grant is designed to be accessible, applications may still be rejected when key requirements are not met. One of the most common issues occurs when businesses sign contracts or make payments before submitting their application, as the grant does not support retrospective claims.

Applications may also be unsuccessful if the selected solution is not listed as a pre-approved option or if required information and documents are incomplete at the point of submission. These issues can delay assessment or result in outright rejection.

Another frequent challenge arises when businesses customise solutions beyond the approved scope. Any changes that fall outside the listed parameters may cause certain costs to become ineligible. To improve approval chances, it is important to ensure that the selected solution, quotation, and implementation remain aligned with the approved specifications.

Is the Productivity Solutions Grant Suitable for Your Business?

The Productivity Solutions Grant remains one of the most practical and accessible government support schemes available to Singapore businesses. By focusing on pre-approved, productivity-enhancing solutions, it enables companies to modernise operations efficiently while maintaining control over costs.

For businesses seeking to reduce manual processes, improve operational accuracy, and scale more sustainably, the Productivity Solutions Grant continues to be a valuable option worth considering.