The Productivity Solutions Grant (PSG) remains one of Singapore’s most popular government grants — and in 2025, it got even more relevant. With the official expansion to include Generative AI (GenAI) solutions for marketing, sales, and customer engagement, the PSG now covers a broader range of digital tools than ever before.
Whether you are a retailer looking to automate your inventory management, a service business adopting a CRM system, or an SME exploring AI-powered customer engagement tools, the PSG provides up to 50% co-funding (capped at S$30,000) to make your digital transformation more affordable.
What Is the PSG Grant?
The PSG is jointly administered by Enterprise Singapore (EnterpriseSG) and the Infocomm Media Development Authority (IMDA). It provides eligible SMEs with co-funding to adopt pre-approved productivity-enhancing solutions — from accounting software to e-commerce platforms and now GenAI tools.
What makes the PSG straightforward to apply for is its pre-approved vendor model. You choose a solution from a curated list of endorsed vendors, apply through the Business Grants Portal (BGP) before making any payment, and once approved, proceed with the implementation and claim your reimbursement.
“The PSG is one of the cleanest grants to apply for — if you follow the process correctly. The biggest mistake we see is companies paying the vendor before their grant is approved. That single error disqualifies them entirely.”
— Augustin Lee, Founder, Supreme Solution Consultancy
What's New in 2025?
- GenAI solutions for marketing, sales, and customer engagement are now pre-approved under PSG — covering tools that use AI to generate content, automate outreach, and personalise customer interactions
- Grant Cap: PSG is capped at S$30,000. EDG has no fixed cap — it depends on the scale and scope of the project.
- Expanded list of pre-approved vendors across sectors including food services, retail, logistics, and professional services
- Digital solutions for cybersecurity and data protection have been strengthened on the approved list
- Increased focus on solutions that integrate with existing business systems for seamless adoption
Eligibility Criteria
- Business registered and actively operating in Singapore
- Minimum 30% local shareholding by Singapore Citizens or Permanent Residents
- Annual turnover of S$100 million or below, OR employment of 200 staff or fewer
- Solution must be purchased from a PSG pre-approved vendor
- No contract signed and no payment made to vendor prior to grant approval — this is critical
How to Maximise Your S$30,000
- Choose a solution that covers multiple business functions — e.g. a combined CRM, invoicing, and marketing automation platform counts as one solution but delivers multi-departmental value
- Check if your chosen solution is eligible under SFEC (SkillsFuture Enterprise Credit) to offset additional costs beyond the PSG cap
- Plan your implementation timeline carefully — claims must be submitted within the grant validity period
- Ensure your quotation and invoice clearly reflect the PSG-qualifying line items to avoid claims complications
