Two of Singapore’s most widely used government grants — the Enterprise Development Grant (EDG) and the Productivity Solutions Grant (PSG) — are often confused with each other. Both are administered by Enterprise Singapore. Both provide co-funding of up to 50%. But they serve very different purposes, and applying for the wrong one can waste time, delay your projects, and result in rejection.
In this guide, we break down the key differences between EDG and PSG so you can make an informed decision — or better yet, understand when you might use both.
The Core Difference
The simplest way to understand the difference is this: the PSG funds the adoption of specific, pre-approved off-the-shelf technology solutions from a government-endorsed vendor list. The EDG, on the other hand, funds broader, custom strategic projects — including capability building, process innovation, and overseas market expansion — that are tailored to your company’s unique goals.
PSG is transactional and process-driven. EDG is strategic and scope-driven. If you are buying a pre-approved software solution, you want PSG. If you are engaging a consultant to redesign your business strategy,
“PSG is about adopting proven solutions. EDG is about building something new. The right grant depends entirely on what you are trying to achieve — not just what your budget looks like.”
— Augustin Lee, Founder, Supreme Solution Consultancy
Side-by-Side Comparison
- Funding Level: Both offer up to 50% co-funding for qualifying SMEs. EDG offers up to 30% for non-SMEs.
- Grant Cap: PSG is capped at S$30,000. EDG has no fixed cap — it depends on the scale and scope of the project.
- Solution Type: PSG covers pre-approved, off-the-shelf solutions only. EDG covers custom, strategic projects with third-party consultants, software, equipment, and manpower.
- Application: Both are submitted through the Business Grants Portal (BGP). EDG applications require a more detailed project proposal.
- Timeline: PSG approvals are typically faster. EDG involves a more comprehensive assessment by EnterpriseSG.
When to Use PSG
- You want to adopt a specific pre-approved IT solution or digital tool
- Your priority is productivity improvement through technology adoption
- You want a straightforward, faster grant process with clear pre-approved vendor options
- Your project cost is within the S$30,000 cap
- You are new to government grants and want a simpler entry point
When to Use EDG
- You are engaging a management consultant or strategic advisor
- Your project involves building new business capabilities, redesigning processes, or developing new products
- You are planning to expand into overseas markets and need feasibility or business development support
- Your project scope and cost exceeds what PSG covers
- You want to combine capability building with technology adoption across multiple workstreams
