The Productivity Solutions Grant (PSG) covers up to 50% of qualifying software costs for Singapore SMEs — but only for pre-approved solutions applied for before work starts. Here is exactly how to qualify, apply, and avoid the mistakes that get claims rejected.
A Singapore F&B chain owner called me after getting his PSG application rejected. He'd spent S$28,000 on a custom ordering system. Totally legitimate. Totally useful. Totally rejected — because his vendor wasn't pre-approved and his documentation didn't match the grant criteria.
He could've gotten S$14,000 back. Instead he got zero.
I'm going to make sure that doesn't happen to you.
What Is the PSG Grant?
The Productivity Solutions Grant (PSG) is administered by Enterprise Singapore. It co-funds the adoption of IT solutions and equipment that help Singapore SMEs improve productivity.
As of 2026, the PSG covers up to 50% of qualifying costs for approved technology solutions. The grant is not a loan. You don't repay it. It's free money for upgrading your business systems.
The catch? There are rules. And most SME owners either don't know them or find out too late.
Who Can Apply
Your business must meet all of the following:
- Registered and operating in Singapore
- At least 30% local shareholding
- Annual turnover ≤ S$100 million, OR fewer than 200 employees
- The solution must be used in Singapore
Most SMEs qualify on all four points. The harder part is finding qualifying solutions and vendors.
The Pre-Approved Vendor List: Why It Matters More Than You Think
Here's where most business owners get tripped up.
PSG doesn't fund any software. It funds pre-approved solutions on the GoBusiness portal. These are solutions that have been evaluated, vetted, and approved by Enterprise Singapore.
If your vendor isn't on the pre-approved list, your claim will be rejected — no matter how legitimate or useful the software is.
This means if you want PSG funding, you have two paths:
- Choose from the existing approved solutions catalogue
- Work with a vendor who is actively pursuing pre-approval (or already has it)
At NICKTUNG, we help clients navigate this. If your specific requirement can be met by an approved solution, we'll point you there. If you need something custom, we'll help you understand whether there's an alternative funding pathway (like EDG) that fits better.
What Software Categories Are Covered Under PSG
The GoBusiness portal lists approved solutions across many categories. As of 2026, common ones include:
- Customer Management (CRM) — tools for managing leads, customers, sales pipelines
- Inventory Management — tracking stock, orders, warehouse operations
- Financial Management — accounting software, invoicing, payroll
- HR & Payroll Systems — leave, claims, onboarding
- E-commerce Solutions — online store platforms
- Cybersecurity Tools — firewalls, endpoint protection, security monitoring
- Data Analytics — dashboards, reporting, business intelligence
- Retail Management — POS systems, loyalty programmes
The list changes regularly. Always check GoBusiness.gov.sg for the current approved solutions before committing to a vendor.
The Step-by-Step Application Process
Here's how a PSG application actually works:
Step 1: Check eligibility on GoBusiness
Log in with your Singpass. Confirm your company meets the criteria. Check the approved solutions catalogue for solutions relevant to your needs.
Step 2: Get a quote from an approved vendor
You need a formal quotation before applying. The quotation should clearly list the solution name, scope, and cost — exactly matching what's on the approved solutions listing.
Step 3: Submit your application on GoBusiness before starting work
This is critical. You must apply before you start the project. If you sign the contract or make payment before getting approved, the grant will be rejected. Full stop.
Step 4: Wait for the Letter of Offer (LOO)
Processing typically takes 4–8 weeks. Once you receive the LOO, you can proceed.
Step 5: Implement the solution and pay your vendor
Keep all invoices, payment receipts, and delivery documentation.
Step 6: Submit your claim
Within 6 months of the LOO date (confirm the deadline on your specific LOO). Submit via GoBusiness with full documentation — invoice, proof of payment, screenshots showing the solution is deployed and in use.
Step 7: Receive disbursement
Successful claims are disbursed to your registered bank account, typically within 4–6 weeks of claim submission.
Common Reasons PSG Claims Get Rejected
I've spoken to enough SME owners to know these patterns repeat constantly:
1. Started work before the LOO was received
Even a single WhatsApp message saying "let's start" before the LOO can be used as evidence that work began early. Wait for the letter.
2. Payment method doesn't match the approved vendor
Payment must go to the approved vendor entity — exactly as registered. No cash. No payments to a related party or a different entity.
3. Solution scope doesn't match what was approved
If you applied for a CRM but your vendor delivered additional customisation outside the approved scope, the extras won't be covered — and if the core scope can't be separated, the whole claim may be rejected.
4. Missing deployment evidence
You need to show the system is actually deployed and being used. Screenshots, user accounts, configuration proof — not just a paid invoice.
5. Claiming costs that aren't in scope
Training costs, travel, hardware not listed in the approved solution — these get stripped out of claims. Only claim what's explicitly covered.
What If You Need Custom Software That Isn't on the Pre-Approved List?
This comes up often. Your business has a unique process. Off-the-shelf solutions don't fit. You need something built for you.
PSG generally doesn't cover fully custom development. But there are options:
Enterprise Development Grant (EDG) — covers business development, innovation, and capability upgrading. Custom technology projects with a productivity or capability angle can qualify. The application process is more rigorous, but the funding can be substantial.
PSG-compliant customisation — Some pre-approved solutions allow limited customisation within scope. Work with the vendor to understand what's possible within the approved framework.
Self-funding with strategic planning — Sometimes the right move is to self-fund a custom system now, use PSG for a related tool (like a CRM or analytics layer), and document the productivity gains for future EDG applications.
We help NICKTUNG clients think through this trade-off. The goal is always to maximise your funding coverage without compromising on what your business actually needs.
How Much Can You Actually Get Back?
Some real numbers to set expectations:
A retail business implementing a PSG-approved inventory system at S$15,000 total cost: S$7,500 back.
A professional services firm deploying an approved CRM at S$22,000: S$11,000 back.
An F&B chain adding PSG-approved POS and table management at S$40,000: S$20,000 back.
These are meaningful amounts for SMEs. Over several grant cycles, smart businesses stack these benefits to modernise their tech infrastructure with minimal out-of-pocket cost.
The Bottom Line
The PSG grant is real money. But it only works if you follow the process correctly — approved vendor, apply before you start, document everything, claim within the deadline.
If you're considering a technology upgrade, the first question to ask is: does an approved PSG solution exist for this? If yes, start there. If your needs go beyond what's available, we'll help you explore EDG and hybrid approaches.
NICKTUNG works with Singapore SMEs on technology projects that are designed to maximise grant eligibility from the start. Before we scope any project, we walk through the funding landscape with you — so the solution you build is one you can actually get support for.
Ready to explore your options? Talk to us — we'll map out your technology needs and what grants apply to your situation.