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Singapore’s Productivity Solutions Grant (PSG)
Lack of expertise, insufficient business fund, lack of time, are among the major obstacles that smaller and medium-sized enterprises (“SMEs”) face while undergoing digital transformation. The Singaporean government has setup Productivity Solutions Grant (“PSG”) to help businesses to adopt technology solutions as well as to streamline existing schemes under a single platform.
Overview of Productivity Solutions Grant (PSG)
While digital transformation is not an easy journey, it need not be difficult. For one, technology is not just about high-end solutions that will cost you an arm and a leg. For another, you can begin your digitalisation journey with process automation and improved productivity. In light of this, the Singaporean government rolls out Productivity Solutions Grant (PSG) to support companies to adopt and implement IT solutions and equipment to enhance their business processes.
What Are Covered by PSG?
PSG is the incentive to help companies to implement technological solutions where it offers up to 70% of funding support. As such, companies can tap the high funding support to make long-term technology investments.
The PSG covers industry-specific solutions, i.e. retail, food, logistics etc., to name a few. Meanwhile, PSG also supports adoption of IT solutions in other areas, such as customer management, data analytics, financial management, inventory tracking, and eCommerce. Government agencies, Enterprise Singapore and National Parks Board (NParks), have pre-scoped these solutions.
Productivity Solutions Grant (SkillsFuture Training Subsidy)
Companies with approved Productivity Solutions Grant (PSG) applications can now apply for the Productivity Solutions Grant (SkillsFuture Training Subsidy) [PSG (SFTS)] via the Business Grants Portal (BGP) from 1 July 2019 onwards. Companies can start submitting their applications from now onwards until 31 March 2023.
Part of the enhanced PSG, this subsidy enables companies to provide job upskilling to their employees and reimburse as much as 70% of out-of-pocket training expenses (the reimbursement amount is capped at $10,000 per eligible company). One thing worth mentioning is that this subsidy will be offered on top of existing government course fee subsidies, and in addition to the industry-specific grant cap for the PSG pre-scoped productivity solutions.
The SMEs are eligible to apply for PSG if they meet the criteria below:
- They are registered and operating in Singapore.
- The purchased/leased/subscribed IT solutions or equipment must be used in Singapore.
- They have at least 30% of local shareholding (for selected solutions only).
The application steps for PSG are rather straightforward:
Identify relevant solutions (IT solutions or equipment) that meet your business needs from the list of supportable solutions that are available at Tech Depot on SME Portal.
- IT solutions: obtain a quotation from the pre-approved vendor.
- Equipment: identify the needed equipment and get a quotation from the vendor.
Apply on the Business Grant Portal (BGP) where you will have to register for a CorpPass account in order to transact on the portal.