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What is the PSG Grant and Why You Need a Grant Consultant for It

What is the PSG Grant and Why You Need a Grant Consultant for It

In Singapore’s fast-paced and technology-driven business environment, staying competitive often means upgrading systems, automating processes, and embracing digital tools. However, the cost of implementing new technology solutions can be a significant burden for small and medium-sized enterprises (SMEs). That’s where the Productivity Solutions Grant (PSG) comes in.

The PSG Grant is one of the most practical and impactful government support schemes for SMEs that want to digitise and improve productivity. But while the benefits of the grant are clear, applying for it and getting the funds disbursed can be more complicated than it appears. That’s why many businesses turn to grant consultants — professionals who understand the intricacies of the application process and help ensure your proposal stands the best chance of approval.

In this article, we’ll explain what the PSG Grant is, what it supports, and why engaging a grant consultant might be the smartest move for your business.

What is the PSG Grant?

The Productivity Solutions Grant (PSG) is an initiative by the Singapore government, supported by agencies like Enterprise Singapore and the Infocomm Media Development Authority (IMDA). It aims to support local SMEs in adopting pre-approved IT solutions and equipment that enhance productivity and streamline business operations.

The grant covers up to 50% of the cost of these approved solutions, making it a highly accessible and affordable option for businesses looking to upgrade.

What Does PSG Cover?

Unlike other grants that support custom or broad-scope projects, the PSG Grant focuses specifically on pre-approved, off-the-shelf solutions that fall under industry-specific categories or business functions. These include:

✅ Business Function Solutions

  • Accounting software

  • HR and payroll systems

  • Inventory management

  • Customer relationship management (CRM)

  • E-invoicing

  • POS systems

✅ Sector-Specific Solutions

There are tailored solutions for industries such as:

  • Retail

  • F&B

  • Construction

  • Logistics

  • Precision engineering

  • Landscaping

✅ Equipment

Productivity-enhancing equipment is also supported under PSG for certain sectors, such as cleaning robots, kitchen automation tools, and packaging machines.

To qualify for the PSG, the solutions must be selected from a list of pre-approved vendors listed on the Business Grant Portal.

Why the PSG Grant is Popular Among SMEs

The PSG Grant is popular because it is simple, focused, and fast compared to other grants. It is designed for straightforward adoption of proven solutions that help SMEs automate routine tasks, reduce reliance on manpower, and improve operational efficiency.

The benefits include:

  • Lower upfront investment in business software or automation equipment

  • Faster implementation timelines since solutions are pre-approved

  • Improved productivity, accuracy, and business growth

However, despite the ease of access, many businesses still struggle with the application process — especially if they are unfamiliar with government portals or documentation requirements.

That’s where a grant consultant becomes a valuable asset.

Why You Need a Grant Consultant for PSG

While the PSG Grant seems straightforward, there are several potential pitfalls in the application and claim process. A grant consultant can help you avoid these, ensuring your project gets approved and your claims are reimbursed without delays.

Here’s how a grant consultant supports you throughout the PSG journey:

1. Recommending the Right Solutions

With hundreds of pre-approved solutions available, many businesses struggle to choose the one that best fits their needs. A grant consultant helps by:

  • Understanding your business operations

  • Recommending suitable pre-approved solutions

  • Matching your goals to the best-fit vendor

Instead of wasting time comparing solutions, a consultant helps you make an informed decision faster.

2. Eligibility Assessment

Not every company or solution is eligible. Some common issues include:

  • Applying for a solution you’ve already bought

  • Choosing a vendor that’s not pre-approved

  • Incomplete business records

A consultant ensures you meet all the key eligibility requirements, such as:

  • Being a Singapore-registered SME

  • Having at least 30% local shareholding

  • Using the solution in Singapore

This reduces the chances of rejection due to technicalities.

3. Preparing and Submitting the Application

The PSG application is done through the Business Grant Portal (BGP) and involves several components:

  • Company details

  • Justification for solution adoption

  • Cost breakdown

  • Vendor quotations

  • Implementation timelines

Many SMEs struggle with properly articulating the value of the solution or miss important supporting documents. A grant consultant:

  • Writes a compelling business case

  • Prepares all necessary paperwork

  • Ensures the application is error-free

  • Submits it on your behalf

This streamlines the process and improves your chances of approval.

4. Coordinating with Vendors

Sometimes vendors are unfamiliar with the claim process or are slow to provide the correct quotations. A grant consultant can liaise directly with the vendor to:

  • Ensure the quotation format is correct

  • Verify the vendor is on the approved list

  • Confirm delivery and training timelines match grant conditions

This ensures smooth communication and coordination between all parties involved.

5. Ensuring Timely Claims and Reimbursement

After your solution has been implemented, you’ll need to:

  • Make the full payment

  • Submit an invoice

  • Attach implementation proof (e.g., photos, training reports)

  • Complete a project report

  • Upload all documents to the BGP

A consultant guides you through the claims process, helps you compile the required evidence, and submits the final claim. They can also follow up with Enterprise Singapore to ensure your reimbursement is processed without unnecessary delays.

6. Avoiding Common Mistakes

Some frequent mistakes that delay or void PSG claims include:

  • Buying the solution before grant approval

  • Choosing a vendor not on the pre-approved list

  • Submitting incomplete claims

  • Missing deadlines

Grant consultants have gone through the process dozens (if not hundreds) of times. They know what works, what doesn’t, and how to avoid red flags that can cost you time and money.

7. Saving You Time and Headache

Applying for the PSG Grant can be time-consuming, especially if you’ve never done it before. Between running your business, managing staff, and serving clients, grant paperwork often gets pushed to the side — or rushed through.

With a grant consultant, you can:

  • Focus on your business

  • Get professional assistance

  • Have peace of mind that your application is in good hands

The result? Faster approvals and smoother claims, without the stress.

Conclusion

The Productivity Solutions Grant (PSG) is one of the most SME-friendly grants available in Singapore. It empowers businesses to adopt digital solutions and automation tools that boost efficiency and reduce reliance on manual processes. Whether you’re a retail shop implementing a POS system or a manufacturer adopting process automation, the PSG makes digitalisation more affordable.

But to truly benefit from the grant, you must navigate the application and claim process with care and precision. That’s where a grant consultant becomes not just helpful, but essential. With their guidance, you can choose the right solutions, submit a winning application, and receive your funding without unnecessary delays or stress.

If you’re looking to apply for the PSG Grant and want expert assistance, reach out to our team at GrantConsultant.sg — we’ll help you unlock your grant potential and transform your business with confidence.