Eligibility Criteria of the PSG Grant

WLP Group

What is the PSG Grant?

The Productivity Solutions Grant (PSG) is an initiative spearheaded by the Singaporean government aimed at supporting businesses in their digital transformation journey. It provides funding for the adoption of IT solutions and equipment to enhance business processes, such as for Xero accounting software. Thus the PSG Grant can be seen as an accounting software grant in that context. However, to tap into this potentially transformative resource, companies must meet certain eligibility requirements that is set out by Enterprise SG.

In short, it is a business subsidy for SMEs in Singapore to transform their business operations and take advantage of new innovative IT solutions and products.

Your business must be incorporated in Singapore

Firstly, the business applying for the PSG must be operations and incorporated in Singapore as a private limited company. This stipulation is key in ensuring that the grant is channeled towards local businesses, fostering the growth and development of Singapore’s digital landscape.

Your business must be owned by Singaporeans or Singapore PRs

Secondly, the company must have a minimum of 30% local shareholding. The equity can be either directly or indirectly held by Singaporean citizen(s) or Singapore Permanent Resident(s). This condition seeks to ensure that the benefits of the grant are extended to businesses with significant local interests, promoting local entrepreneurship and innovation. The measure of local shareholding is based on the ultimate individual ownership.

Your business must be a SME

Your business must be considered a SME. Namely, your annual revenues must be less than SGD $100M and you must not have more than 200 employees employed. These criteria primarily focus on small and medium enterprises (SMEs), which often require more support in adopting new technologies due to resource constraints.

The PSG also lays down certain guidelines about the use of the grant. The IT solutions or equipment that are procured, leased, or subscribed to under this scheme must be utilised within Singapore. This requirement ensures that the impact of the grant is localised, which means that its purpose is to contribute to the technological advancement of Singapore’s business sector.

The PSG Grant is not for charities and others

While the PSG is wide-reaching, certain types of entities are excluded from applying. These include Charities, Institutions of Public Characters (IPCs), Religious Entities, Voluntary Welfare Organisations (VWOs), Government agencies and subsidiaries, and societies. These exclusions are designed to focus the grant’s resources towards commercial and entrepreneurial sectors, where they can stimulate innovation and productivity enhancements.

You may also be eligible for SkillsFuture Enterprise Credits

Companies that qualify for the SkillsFuture Enterprise Credit (SFEC) have the opportunity to gain additional subsidies under the PSG scheme. This linkage enables businesses to leverage multiple resources to fuel their digital transformation and workforce development strategies.

In conclusion, the PSG is a robust instrument for Singapore’s digital economy, providing support for businesses in need. Understanding its eligibility criteria is crucial for companies to tap into this resource and harness its potential to drive productivity and business growth.