What is PSG?
The Productivity Solutions Grant (PSG) is a new government initiative to assist businesses in their transformation journey. An initial S$110 million will be set aside over the next three years (until 2020) for PSG to support selected productivity solutions in line with the Industry Transformation maps (ITMs).
PSG will cover sector-specific solutions in retail, food, logistics, precision engineering, wholesale and landscaping industries, as well as broad-based solutions that cut across industries, such as in areas of human resource management systems, among others.
As businesses transit into the next phase of transformation, more substantial investments and longer-term commitments may be required. Thus, PSG will support in the following manner:
Funding of up to 80% of the cost.
Pre-scoping of IT solutions and equipment with pre-qualified vendors
(for IT solutions).
Simplified grant processes.
Are You Eligible?
Businesses who meet the following criteria can apply for PSG:
Registered and operating in Singapore
Purchase/subscription of IT solutions or equipment must be used in Singapore
Have a minimum of 30% local shareholding (for selected solutions only)
How To Apply?
Here are the steps you can take when applying for PSG:
- 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 Grant Portal (BGP). You will need to register for a CorpPass account to transact on the portal.
1. Does the applicant have to be registered in Singapore?
Yes, the applicant has to be registered in Singapore to be eligible for PSG.
2. How do we determine if an applicant is “local”?
30% of ordinary shares (ultimate individual ownership) has to be held directly or indirectly by Singaporeans/PRs.
3. What is a supportable cost?
Unless otherwise stated, only the actual purchase/lease/hire purchase cost of the equipment or IT solution is supportable and excludes other related administrative fees/charges, e.g. delivery fees, installation.
4. How long must the purchased solution be held for?
The holding period for the equipment or IT Solution is 1 year from the date of final claim disbursement.
5. Can applicants submit concurrent applications?
Yes, it is allowed.
6. How long will it take for an applicant to receive the outcome of their application?
It will take approximately 4-6 weeks, provided that all the required information has been provided at the point of application.
7. How long will it take for an applicant’s claims to be processed?
It will take approximately 4-6 weeks, provided that all the required information has been provided at claims submission.
8. How many claims can a company submit per application? Can claims be disbursed before the project has been completed?
There can only be one claim per application.
Disbursements can only be made after all the following have been achieved:
a) The claimant has purchased/leased/subscribed to the solution; and
b) The claimant has used the solution; and
c) The claimant has paid for all expenses claimed; and
d) The claimant has submitted all claim documentation
9. What is the process for applying for PSG?
An example of the application flow would be as follows:
i. Explore solutions
ii. Get quotations (unsigned)
iii. Apply for PSG via BGP (upload all necessary documents)
iv. Await Approval (for assurance before commencing project)
v. Awarded PSG
vi. Purchase solution and implement project
vii. Used the solution, paid for all expenses
viii. Submit claim (with necessary documents)