PSG Grant Singapore 2025: What Small Businesses Need to Know
Want to boost your small business’s productivity and save money at the same time? The PSG grant gives Singapore SMEs up to $30,000 in financial support. You can get up to 50% coverage for solutions that enhance productivity.
The Productivity Solutions Grant (PSG) helps local businesses optimize their processes through automation. The Singapore government created this powerful initiative. Enterprise Singapore and the Infocomm Media Development Authority support this program. Your company needs to meet specific requirements to qualify for the PSG grant. You must register your business in Singapore with a local shareholding of at least 30%. Your company should have an annual turnover below S$100 million or employ fewer than 200 people.
The PSG grant’s value for Singapore businesses has grown significantly in 2025. The program now supports GenAI-based solutions for marketing, sales, and customer engagement. PSG digital marketing support remains popular among businesses that want to build a stronger online presence.
This piece will show you everything about PSG grants in 2025. You’ll learn about eligibility requirements, application steps, and supported solutions.
Who is eligible for the PSG Grant in 2025?
Your business needs to meet specific eligibility requirements to get the productivity solutions grant in 2025. Let’s explore what you need to qualify for this support.
Simple eligibility criteria for SMEs
Your business must be registered and operating in Singapore to qualify for the psg grant. We designed this funding for small and medium enterprises that have at least 30% local shareholding [1]. Your company should meet one of these size requirements: your group annual sales turnover should not exceed SGD 134.21 million, or you should employ no more than 200 workers [1][2].
The solutions or equipment you purchase through the grant must stay within Singapore [1]. You cannot make payments or sign contracts with vendors before submitting your application. This would make your application retrospective and ineligible [3].
Who is excluded from the grant?
The psg grant singapore program has broad accessibility, but some organizations cannot benefit from it. All but one of these groups are excluded: Charities, Institutions of Public Character, Religious Entities, Voluntary Welfare Organizations, Government agencies and their subsidiaries, and societies [1]. This restriction helps the productivity solutions grant support commercial enterprises.
What counts as local shareholding?
Local shareholding requirements are the foundations of psg grant eligibility. Singaporean citizens and/or Permanent Residents must hold this 30% either directly or indirectly [1]. Authorities look at who controls the business rather than just immediate shareholders to determine ultimate individual ownership.
New rules for consultancy services
The productivity solutions grant has special provisions for consultancy services in 2025. Your business needs three local employees when applying for consultancy services solutions [4]. SMEs can get funding up to 50% while non-SMEs can receive up to 30%, with a cap of SGD 40,262.41 per enterprise [5].
Each business can submit multiple PSG applications within this overall grant cap using their Unique Entity Number [5]. The funding works through reimbursement – you complete the project first and claim your grant money later [5].
What solutions are supported under PSG?
The PSG grant gives Singapore businesses access to many pre-approved digital tools that improve efficiency. You should know your options to get the most value from this funding.
Generic vs sector-specific solutions
PSG solutions come in two main categories. Generic solutions help businesses in any discipline manage their basic operations [4]. Every company needs these digital tools whatever their sector. Sector-specific solutions work only for companies in particular industries [4]. These specialized tools help solve unique challenges that businesses face in retail, food services, and logistics [6].
Popular categories: IT, HR, POS, and more
The PSG grant supports many tools that boost productivity. Here are the key categories:
- IT solutions and equipment for automation [1]
- Human resource management systems [6]
- Point-of-Sale (POS) systems [7]
- ERP and standalone solutions [8]
- Document management systems [6]
- Cybersecurity solutions [8]
- Fleet management systems [6]
These solutions help streamline business processes and reduce manual work to improve operations. To name just one example, POS systems help retail businesses track inventory with live updates while providing valuable sales data [9].
PSG digital marketing support explained
Digital marketing stands out as one of the most popular PSG grant categories. The program helps with services like search engine optimization (SEO), search engine marketing (SEM), social media marketing, and content marketing [6]. SMEs can get up to 50% support when they use pre-approved digital marketing packages [10]. Small businesses can now afford to build their online presence.
New GenAI solutions added in 2025
The PSG grant Singapore program now includes generative AI solutions for marketing, sales, and customer engagement [9]. EnterpriseSG and IMDA tested these innovative tools through their GenAI Sandbox for SMEs program [11]. Qualified businesses can get up to 50% grant support for these innovative AI technologies by year-end [11].
How to apply for the PSG Grant step-by-step
The PSG grant application follows a clear path to success. Let me walk you through each step you need to take to get funding for your productivity solutions.
Step 1: Choose a pre-approved solution
Browse through all pre-approved PSG solutions on the GoBusiness Gov Assist portal. Pick options that match your business needs and goals. Read the solution details carefully before you proceed.
Step 2: Get a valid quotation
Reach out to your selected pre-approved vendor for an official quotation. Remember not to sign any contracts or make payments before you submit your application – this will make you ineligible for the productivity solutions grant.
Step 3: Prepare required documents
You’ll need these documents ready:
- Valid quotation from the pre-approved vendor
- Latest ACRA business profile
- Company’s financial statements from the last 3 years
- Deployment location proof or tenancy agreement
- Relevant licenses (if applicable)
Step 4: Submit via Business Grants Portal
Access the Business Grants Portal (www.businessgrants.gov.sg) with your CorpPass. Choose “Productivity Solutions Grant” and fill out all required fields. Most applications take 4-6 weeks to process.
Step 5: Accept the Letter of Offer
Your approval comes with a Letter of Offer that shows the grant amount, approved solution, and claim deadline. Only CorpPass users who have “Acceptor” status can accept this offer.
Step 6: Complete project and submit claims
Put your solution to work and use it for at least 30 days. Submit your claim through the Business Grants Portal and include proof of full payment, invoice, and usage evidence before your deadline.
What happens after you apply?
The waiting begins after you submit your PSG grant application. A clear understanding of the next steps will help you plan your project timeline better.
How long does approval take?
A complete productivity solutions grant application typically takes about 6 weeks to process [1]. The timeline might stretch a bit during busy periods [12]. You should submit your application early before your planned project start date.
Tracking your application status
You can easily check your application progress. Just log into the Business Grants Portal and check the ‘My Grants’ section to see your current status [1]. You’ll get email updates as your application moves through different stages [3]. The assessors might ask for more details by sending back your application with specific requests.
Receiving your disbursement
The disbursement starts right after your claim gets approved. PayNow Corporate users receive their funds within 14 working days [1]. GIRO transfers take longer – up to eight weeks after claim approval [1]. Businesses should sign up for PayNow Corporate to get their money faster.
Common mistakes to avoid
Many applications get delayed or rejected because of simple errors. Here are the main ones:
- Submitting incomplete information
- Missing claim deadlines after approval
- Paying vendors before receiving the Letter of Offer
- Slow responses to requests for clarification [13]
Your grant experience will be smoother if you pay attention to these details.
Conclusion
The PSG Grant gives Singapore SMEs a great chance to modernize their operations without breaking the bank. Small businesses can now get substantial financial backing that covers half their investment in tools that boost productivity. The 2025 version of the grant now includes state-of-the-art solutions like generative AI applications among other options such as digital marketing, IT systems, and HR management tools.
Most legitimate small businesses in Singapore can easily qualify for the grant by meeting basic criteria. The requirement for 30% local shareholding keeps benefits within Singapore’s business ecosystem while staying available to many enterprises.
Our roadmap above shows you exactly how to move from picking your solution to getting reimbursed. Your timing needs to be right – you must make payments after submitting your application and file claims within the given deadlines.
The PSG Grant stands out as one of Singapore government’s most practical ways to help small businesses thrive in today’s digital world. Smart business owners should use this chance to implement solutions they might find too expensive otherwise.
Take time to evaluate your business needs. Find qualifying solutions that tackle your specific challenges and submit your application soon. These implementations usually deliver value nowhere near the original investment, especially when the government pays half. The PSG Grant isn’t just financial help – it’s a mutually beneficial alliance with the government to make your business future-ready.
Key Takeaways
Singapore’s PSG Grant offers SMEs up to $30,000 in funding (50% cost coverage) for productivity solutions, making business digitalization more affordable and accessible.
• Eligibility is straightforward: Register in Singapore with 30% local shareholding and either <$100M turnover or <200 employees • 2025 expansion includes GenAI solutions: New generative AI tools for marketing, sales, and customer engagement join traditional IT and digital marketing options • Never pay before approval: Making payments or signing contracts before application submission automatically disqualifies your grant eligibility • Application takes 6 weeks: Use Business Grants Portal, prepare required documents, and expect disbursement within 14 days via PayNow Corporate • Strategic investment opportunity: Government partnership covers half your digitalization costs while delivering long-term productivity gains
The PSG Grant represents more than financial assistance—it’s a government partnership to help small businesses compete effectively in Singapore’s digital economy while managing implementation costs.
FAQs
Q1. What are the key eligibility requirements for the PSG Grant in Singapore? To qualify for the PSG Grant, your business must be registered and operating in Singapore, have at least 30% local shareholding held by Singaporean citizens or Permanent Residents, and meet one of these criteria: annual sales turnover below S$100 million or employ fewer than 200 workers.
Q2. What types of solutions are covered under the PSG Grant? The PSG Grant supports a wide range of pre-approved digital solutions to enhance productivity, including IT systems, human resource management tools, point-of-sale systems, document management, cybersecurity, fleet management, and more. In 2025, generative AI solutions for marketing, sales, and customer engagement were added.
Q3. Can I apply for the PSG Grant multiple times? Yes, businesses can submit more than one PSG Grant application per year based on their needs. However, funding can only be provided for one solution package per category and per deployment location.
Q4. What is the application process for the PSG Grant? The key steps are: 1) Choose a pre-approved solution, 2) Get a valid quotation, 3) Prepare required documents, 4) Submit via Business Grants Portal, 5) Accept the Letter of Offer, and 6) Complete the project and submit claims.
Q5. How long does it take to receive the grant disbursement? After your claim is approved, you can expect to receive the grant disbursement within 14 working days if you have registered for PayNow Corporate. GIRO transfers may take up to 8 weeks.
References
[1] – https://www.enterprisesg.gov.sg/financial-support/productivity-solutions-grant
[2] – https://choco-up.com/en-sg/blog/grants-for-businesses-in-singapore-a-complete-guide-2025
[3] – https://www.enterprisesg.gov.sg/resources/all-faqs/productivity-solutions-grant
[4] – https://grants.gobusiness.gov.sg/support/productivity-solutions-grant
[5] – https://www.wsg.gov.sg/home/employers-industry-partners/workforce-development-job-redesign/support-for-job-redesign-under-productivity-solutions-grant
[6] – https://2stallions.com/blog/psg-grant-eligibility-application-guide/
[7] – https://www.epos.com.sg/psg-grant-supports-pos-system-upgrades/?srsltid=AfmBOor5_8BaFWlzxHJCBGx9kRgKKyU9wtuBGWLMQZcTcg6ilMLN6HSg
[8] – https://3dbrandagency.com/productivity-solutions-grant-psg/
[9] – https://clooudconsulting.com/2025/06/07/what-is-the-productivity-solutions-grant-psg/
[10] – https://mediaplus.com.sg/digital-marketing-psg-grant/
[11] – https://www.businessgo.hsbc.com/en/article/productivity-solutions-grant-psg-singapore
[12] – https://www.mswebinternational.com/blogs/blogs/top-reasons-for-psg-application-rejection-and-how-to-fix-them
[13] – https://grantconsultant.sg/common-mistakes-to-avoid-when-applying-for-the-psg-website-grant/