Technology can mean a lot of things to numerous people; it could mean newly improved gadgets, provision of new facilities or appliances, and could also be a better working life with enhanced progress, which subsequently breeds productivity.
To promote digitalization in Singapore, the government launched the “Productivity Solutions Grant (PSG)” that offers up to 80% grants to local enterprise owners that are assiduous towards utilizing IT solutions and equipment in their business operations. In addition, PSG under Environmental Services (ES) and Industry Transformation Map (ITM) are fixed on advancing local business. They also aim to broaden the essentiality of Information Technology (IT) throughout Singapore.
What is Productivity Solutions Grant (PSG)?
The Productivity Solutions Grant (PSG) is a government grant in Singapore that allows local business owners to enhance the productivity of their business by adopting IT solutions and equipment. It is limited to sectors such as retail, food, transportation organizations, architecture, and landscaping companies. However, other than sector-specific solutions, it also supports solutions that cut across industries such as data interpretation, inventory optimization, customer administration, and financial administration.
The purpose of the grant is to upgrade and enhance businesses by instilling a massive adoption of technological solutions into their business operations. Apart from aiding SMEs financially, the grant also aims to integrate growth through an expansive and innovative technical method that subsequently improves productivity.
How Much is Cap for The Grant?
As of 1 April 2020, the funding support on the qualifying cost was changed from 70% to 80%, valid till 31 March 2022. Only the actual cost of the purchase, lease or hire cost of the pre-approved equipment or IT solution package qualifies for the grant unless stated. It excludes other related administrative charges, like delivery or installation fee.
While each company can apply for more than one solution under the PSG, they need to deploy the exact IT solution or equipment in different locations. The grant is capped at $30,000 per company supported by ESG per annum starting from 1 April to 31 March of the following year.
Who is Eligible to Apply for the Grant?
The following stated are qualified to apply for Productivity Solutions Grant (PSG);
- SMEs that are registered and currently functioning in Singapore.
- Enterprises that do not fall under the following categories – Government agencies and subsidiaries, Institutions of Public Characters (IPCs), Voluntary Welfare Organisations (VWO), Religious Entities, and Charities.
- IT solutions or equipment purchased, leased, obtained, or subscribed are used in Singapore.
- The SMEs should have no less than 30% local shareholding. (For selected solutions)
- The SMEs should have at least three local employees at the point of application. (For consultancy service solutions)
- If the SME is from a corporate group, the Company Group’s annual sales turnover must not be more than S$100 million, or the employment size must not be more than 200 workers (For selected solutions).
How to Apply for PSG?
The application for PSG registration is lengthy but must be conducted systematically for the enterprise to be qualified for the grant. To apply for PSG, you would require the following documents:
- A tender or unsigned contract from your supplier for the IT solutions or equipment. The tender or quotation must confirm the full name of the company registered name.
- Three years financial statement of the company or enterprise.
- Confirm your enterprise sector on ACRA Bizfile before submission of application.
The process to apply for the grant is straightforward, but one must be cautious while filing in the details to guarantee their chance of successfully getting the support.
- Go through all the supportable solutions applicable for your sector and select the best one that matches your business requirements. You can access the list from GoBusiness Gov Assist.
- Get a quotation from the pre-approved vendors for IT solutions and consultancy services. For equipment, you can source it first and then get the quote from the vendor.
- Once you have the requisite quotation, submit your application through the Business Grants Portal. Go through the required pages, select what is applicable, and fill in the correct details. For more step-by-step guides on this, you can visit this page.
- The approval usually takes about 4 to 6 weeks to come. This is why it’s advisable for companies to submit their applications upfront. Also, applicants can start purchasing IT solutions and equipment after applying.
- You can claim the disbursement of the approved funds after fully deploying the IT solution or equipment for at least one month. Then, the funds are transferred to the company’s bank account through GIRO. It usually takes 7-10 working days from the date of approval of the claim for the funds to be transferred.
If all processes and requirements are followed accordingly, then SMEs have the opportunity to gain support and resources through the integration of IT solutions and equipment. So don’t miss out on this chance and kick-start your technology journey today. Timcole can assist you in any grant application.
Check out other available Government Grants:
- Enterprise Development Grant (until 31 March 2022)
- P-Max Grant
- Invictus Fund for Social Service Agencies (until 30 July 2021)
- Senior Worker Early Adopter Grant and part-Time Re-Employment Grant (until 30 Jun 2023)