How Singapore SMEs Can Maximise the PSG Grant for Digital Transformation

How Singapore SMEs Can Maximise the PSG Grant for Digital Transformation

Digital transformation is no longer a luxury for businesses — it’s a necessity. In Singapore, the government actively supports local small and medium-sized enterprises (SMEs) in their digitalisation efforts through the Productivity Solutions Grant (PSG). With funding support of up to 50%, the PSG Grant is one of the most accessible and impactful ways for SMEs to adopt pre-approved digital tools and solutions.

But how do you ensure you’re not just applying for the grant, but maximising its full potential?

In this guide, we’ll explore how Singapore SMEs can strategically use the PSG Grant to supercharge their digital transformation journey — from choosing the right tools to avoiding common pitfalls and working with the right partners.

What Is the PSG Grant?

Launched by Enterprise Singapore, the Productivity Solutions Grant (PSG) supports local SMEs in adopting IT solutions, equipment, and consultancy services that improve productivity and streamline operations.

The PSG focuses on pre-approved solutions under various business categories such as:

• Accounting and finance

• Human resource management

• Customer relationship management (CRM)

• E-commerce platforms

• Digital marketing

• Cybersecurity

• Inventory management

• Point-of-sale (POS) systems

• Food and beverage (F&B) systems

The government will co-fund up to 50% of the cost for these solutions, helping SMEs overcome financial barriers and start digitising with ease.

To find out more or to get help with the PSG Grant, you can visit GrantConsultant.sg.

Why Digital Transformation Is Crucial for SMEs

The COVID-19 pandemic accelerated the need for businesses to go digital. Whether it’s enabling remote work, selling online, automating repetitive tasks, or analysing data, digital tools provide a competitive edge.

Benefits of digital transformation include:

• Increased operational efficiency

• Enhanced customer experience

• Better data for decision-making

• Scalability and growth potential

• Stronger business continuity

With the PSG Grant, even micro-businesses and startups can take their first steps into the digital future.

Step-by-Step: How to Maximise the PSG Grant

To get the most out of the PSG Grant, you need a strategy — not just a random solution. Here’s how to do it.

1. Assess Your Business Needs First

Before looking at any pre-approved solutions, take a step back and assess your current operations. Where are the inefficiencies? What areas of your business can benefit most from automation or digital tools?

Consider the following:

• Are you still managing finances manually?

• Is your customer data scattered across spreadsheets?

• Do you lack an online presence or digital storefront?

• Are your sales and inventory tracking out of sync?

Identifying your business’s digital gaps will help you prioritise solutions that deliver the most value.

2. Choose the Right PSG-Approved Solutions

Once you’ve identified your needs, explore the GoBusiness Gov Assist portal, which lists hundreds of pre-approved solutions eligible for PSG funding.

Here are a few examples:

• Retail Business: Adopt an integrated POS system with inventory tracking and CRM functions.

• F&B Business: Choose a self-ordering kiosk or mobile ordering system to reduce manpower cost.

• Professional Services: Get accounting software or HR management systems for back-office efficiency.

• E-Commerce Companies: Use a PSG-approved website development package with digital marketing add-ons.

Stick to pre-approved vendors listed under the PSG scheme. These vendors have been vetted for quality and reliability. For help narrowing down which solution is best for your industry, the team at GrantConsultant.sg can provide tailored recommendations.

3. Ensure Proper Documentation for Application

To secure PSG funding, you’ll need to prepare and submit key documents such as:

• ACRA BizFile profile (dated within the past 6 months)

• A formal quotation from a pre-approved vendor

• Use-case justification (how the solution helps your business)

• Financial documents or management accounts

• Any other supporting materials as requested

All this will be submitted via the Business Grants Portal (BGP) using your CorpPass.

Any missing or incorrect documents can delay your application or even lead to rejection. That’s why it’s helpful to work with professionals who are experienced in submitting successful PSG applications.

4. Plan Implementation and Claims Strategically

After your PSG Grant is approved, you’ll need to:

• Purchase the approved solution

• Implement it within the timeline

• Keep all receipts, invoices, and payment proof

• Submit a claim through the BGP to receive your reimbursement

Claims must be made within 6 months from the date of approval. Make sure your implementation partner also supports you with the necessary documentation to avoid missing out on the grant.

Pro tip: Include internal team training as part of your implementation so your staff can fully adopt the new system.

5. Track Results and Build on Your Momentum

Getting a PSG-funded solution is not the end — it’s the beginning of your digital journey.

Once the solution is in place, evaluate its effectiveness. Is it saving you time? Are your employees using it productively? Are your customers enjoying a better experience?

By tracking key performance indicators (KPIs), you’ll be able to measure ROI and make data-driven decisions for future digital investments. If the solution performs well, you may consider applying for another PSG solution or tapping into other grants like:

• Enterprise Development Grant (EDG): For consultancy and capability building

• Market Readiness Assistance (MRA): For expanding overseas

• SkillsFuture Enterprise Credit (SFEC): For employee training

Combining these grants can supercharge your transformation efforts.

Common Mistakes to Avoid

To truly maximise the PSG Grant, avoid these pitfalls:

• Choosing a solution just because it’s popular: Always choose based on your business’s specific needs.

• Paying vendors before approval: Any payment made before approval will disqualify your grant.

• Missing claim deadlines: All claims must be submitted within the claim window.

• Not preparing a proper use-case: Vague justifications reduce your chance of approval.

• Going it alone: DIY applications can lead to mistakes — get expert help if needed.

Let Experts Help You Maximise the PSG Grant

Applying for the PSG Grant may seem straightforward, but to maximise the benefits, it pays to work with a team that understands the process inside out.

At GrantConsultant.sg, we help Singapore SMEs:

• Identify the most suitable PSG-approved solutions

• Guide them through the documentation and application process

• Assist with claims submissions

• Ensure compliance and maximise funding

Don’t leave money on the table — get expert help to make the most out of your PSG application.

Final Thoughts

The PSG Grant is a powerful opportunity for SMEs in Singapore to embrace digitalisation without breaking the bank. But to truly maximise its impact, businesses need a thoughtful and strategic approach — one that aligns digital tools with business goals, tracks performance, and scales smartly.

With up to 50% funding support available, there’s never been a better time to transform your business.

Ready to take the next step?
Visit GrantConsultant.sg and let our consultants help you make the most of the PSG Grant today.