Today, technology no longer stands for fancy and expensive high-end solutions. You can kick-start your technology journey by taking simple steps to automate existing processes and improve productivity. Singapore Government has introduced the Productivity Solutions Grant (PSG) to support companies keen on adopting IT solutions and equipment to enhance business processes. Here we will go through all what you need to know about Productivity Solutions Grant (PSG).
What is Productivity Solutions Grant (PSG)?
Productivity Solutions Grant (PSG) is focused on adopting internet technology solutions in several selected industries. For a start, PSG covers sector-specific solutions including the retail, food, logistics, precision engineering, construction and landscaping industries. Other than sector-specific solutions, PSG also supports adoption of solutions that cut across industries, such as in areas of customer management, data analytics, financial management and inventory tracking.
These solutions have been pre-scoped by various government agencies such as Enterprise Singapore, National Environmental Agency (NEA) and Singapore Tourism Board (STB).
As announced at Budget 2021, the enhanced maximum support level of up to 80% will be extended from 30 September 2021 to 31 March 2022.
What kind of help is giving with Productivity Solutions Grant (PSG)?
The Government of Singapore is ready to allocate about $110 million in financial assistance to the company that will get into the modernisation strategy of their business through PSG.
The Government is funding for innovation of these local businesses through Productivity Solutions Grant (PSG). The grants will provide a computerised accounting that is more accurate and gives the online marketer more room in concentrating on other business matter. Additionally, use of automated transactions places your business at the exposure of a larger area of online users. You can gain access to more potential buyers and also gives you an ideal platform for company marketing campaigns.
Are You Eligible for Productivity Solutions Grant (PSG)?
SMEs can apply for PSG if they meet the following criteria:
- Registered and operating in Singapore
- Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore
- Have a minimum of 30% local shareholding; with Company’s Group annual sales turnover less than S$100 million, OR less than 200 employees (for selected solutions only)
How to apply for Productivity Solutions Grant (PSG)?
Here are the steps you can take when applying for PSG:
- Visit GoBusiness Gov Assist to access the list of supportable solutions and identify relevant solutions that best suit your business needs.
- For IT solutions: Get a quotation from the pre-approved vendor.
For equipment: Source for the equipment and get a quotation from the vendor - Submit an application on the Business Grants Portal (BGP). You will need to register for a CorpPass account to transact on the portal.
The simplest way is to contact us to help you on application. You can save time and energy and focus on your main business.
What are the payment terms accepted?
Most of the usual business payment terms are accepted for the PSG claims, such as cheque and bank transfer.
For credit card payments, the owner of the card has to be the sole proprietor. Or in the case of corporate entities, there has to be an official document stating that the expenses incurred were by the company and not of a personal nature. Reimbursements to the director/individual who has paid using their credit card will have to be shown as well.
When can I claim my expenses under the PSG?
The claims must be submitted after the solutions are used and expenses are fully paid for; and before the 13th-month mark after approval for purchases and 7th-month mark after the approval for hire purchases, subscriptions or leases.
Is there a cap to the number of packages or applications for each SME?
You can apply for more than one solution under the PSG but the deployment location of each solution must differ.
For applications supported by Enterprise Singapore (ESG), there is also a grant cap of $30,000 for each business entity between 1 April to 31 March of every year.
Be sure of the solutions you need each year before you jump into it!
Why does the government help small businesses?
Digital marketing is costly, especially here in Singapore. Singapore government understands this. So, Productivity Solutions Grant (PSG) was launched to help businesses in Singapore adopt technological solutions to gain a competitive edge. The least you could do is take advantage of the little support they’re giving to technological-driven businesses in the country.
What is digital transformation?
Digital transformation is the process of using digital technologies to create new or modify existing business processes. Productivity Solutions Grant (PSG) is introduced to help you boost digital transformation.
Why is digital transformation important?
The most likely answer for this question is very simple: to survive. Especially in the wake of the pandemic, an organization’s ability to adapt quickly to supply chain disruptions, time to market pressures, and rapidly changing customer expectations has become critical. That’s why you should grab the chance to go digital with PSG. Let us help you on this.
Can the pre-approved vendor submit the application for me?
We would love to but regrettably, all submissions must be made by the organisation themselves. Not to worry, our sales representatives are more than happy to guide you through the process.
Hopefully, some of your questions were answered above. If not, feel free to contact our sales team to inquire whether you’re eligible for this grant.
As an IMDA-approved eCommerce website design agency ourselves, we’re confident that we can support your business needs for the best value at a subsidised rate. We’ve got more resources to ease your worries to get through the claiming back process.
Refer to our PSG Grant article for more details!
