PSG Grant Guide for Singapore SMEs (2026): Eligible Solutions and How to Apply

The Productivity Solutions Grant (PSG) is Singapore's primary co-funding scheme for SMEs adopting digital solutions. In 2026, eligible businesses can claim up to 70% of costs (capped at SGD 30,000 per solution) for custom websites, web applications, AI tools, and automation software. If your SME is spending money on digital transformation anyway, applying for PSG means you recover a significant portion—making the true cost of solutions like these substantially lower than listed prices.

This guide walks you through what's eligible, how much you can claim, and the application process.

---

Key Takeaway Box

| Aspect | Detail |

|--------|--------|

| Max Funding per Solution | Up to 70% of eligible costs (capped at SGD 30,000) |

| Eligibility Criteria | Annual turnover SGD 100M or less; minimum 30% local shareholding |

| Common Eligible Solutions | Custom websites, web apps, e-commerce platforms, AI chatbots, automation tools |

| Application Method | Apply before you pay the vendor (pre-approval strongly recommended) |

| Processing Time | 4–8 weeks after submission |

| Who Administers It | Enterprise Singapore (ESG) / IMDA (for ICT-focused solutions) |

---

What Is the PSG Grant and Who Administers It?

The PSG is Singapore's main co-funding initiative for SMEs implementing productivity-boosting solutions—from software to automation to custom digital tools. It's administered jointly by Enterprise Singapore (ESG) and the Infocomm Media Development Authority (IMDA), with specific solution categories managed by each agency.

For digital and web solutions, IMDA oversees the PSG programme, while ESG handles broader operational solutions. Both use the same cap structure: up to 70% co-funding, maxing out at SGD 30,000 per solution.

The scheme exists to reduce the financial barrier to digital adoption for SMEs—many businesses delay transformation because the upfront cost feels too high. The PSG cuts that effective cost by more than half.

---

Who Qualifies for PSG in 2026?

Basic Eligibility

To apply for PSG, your business must meet these criteria:

• Annual turnover ≤ SGD 100 million (or ≤ SGD 200 million if in the hotels, food services, or retail sectors)
• Minimum 30% local shareholding (Singapore citizens or permanent residents own at least 30% of the company)
• Registered in Singapore and operating a legitimate business
• Not already receiving equivalent government funding for the same solution

Sector-Specific Notes

PSG is open to almost all sectors—retail, F&B, professional services, manufacturing, logistics, healthcare, and more. However, some regulated industries (financial services, gambling) face tighter restrictions. Check the IMDA eligibility checker before investing time in your application.

---

Which Digital Solutions Are PSG-Eligible?

PSG covers a broad range of digital and technology solutions. For SMEs, the most commonly approved categories include:

Websites & E-Commerce Platforms

• Custom website development (not DIY builders like Wix or Shopify templates)
• E-commerce platforms for online sales
• Website performance optimisation (speed, SEO, mobile responsiveness)
• Content management systems (CMS) tailored to your business

Typical project cost in Singapore: SGD 8,000–SGD 25,000 for a professional custom website. With PSG, your out-of-pocket cost drops to SGD 2,400–SGD 7,500 (assuming 70% co-funding).

Web & Mobile Applications

• Custom web applications (e.g., project management, booking systems, workflow automation)
• Mobile apps (iOS/Android) for customer engagement or internal operations
• API integrations connecting your systems to third-party services

AI & Automation Tools

• AI chatbots for customer support or lead qualification
• Robotic process automation (RPA) for repetitive back-office tasks
• Machine learning models for business intelligence or predictive analytics
• Invoice automation and document processing systems

If you're considering an AI chatbot for your Singapore business, PSG can fund a significant portion of the build—often 50–70% of development costs.

Cloud & Infrastructure Solutions

• Cloud migration (moving on-premise systems to AWS, Azure, GCP)
• Cloud-based accounting, CRM, or ERP software (usually requires pre-approval)
• Backup and disaster recovery systems

For context on cloud migration budgets, see our Cloud Migration Cost Singapore guide to understand realistic project costs.

Cybersecurity & Compliance Tools

• Cybersecurity assessments and implementations (e.g., CSA Cyber Essentials)
• PDPA-compliant data management systems
• Security audits and penetration testing

---

How Much Can You Claim?

Funding Structure (2026)

PSG covers up to 70% of eligible costs, with a hard cap of SGD 30,000 per solution.

Example scenarios:

| Project | Cost | PSG Funding (70%) | Your Cost | Notes |

|---------|------|------|----------|-------|

| Custom website | SGD 15,000 | SGD 10,500 | SGD 4,500 | Below cap—full 70% applies |

| E-commerce + AI chatbot | SGD 50,000 | SGD 21,000 (capped) | SGD 29,000 | Hits SGD 30K cap |

| Cloud migration | SGD 8,000 | SGD 5,600 | SGD 2,400 | Below cap—full 70% |

| Web app + API integration | SGD 42,000 | SGD 21,000 (capped) | SGD 21,000 | Hits cap at SGD 30K |

Key insight: If your project exceeds SGD 42,857 in cost, you'll hit the SGD 30,000 cap and your reimbursement won't increase further. For larger projects, it's worth splitting the scope into separate PSG applications (e.g., "Phase 1: Core Website" and "Phase 2: Automation Tools") to maximize total funding.

What Costs Are Eligible?

• Development and design fees (core costs)
• Software licenses (first-year cost only, typically)
• Hosting and domain (first year)
• Integration and testing
• Project management and consultation
• Training and documentation (if part of the vendor scope)

What's NOT Covered?

• Hardware (servers, computers, equipment)
• Ongoing subscription or maintenance costs (beyond year 1)
• Staff salaries for in-house development
• Marketing or content creation (standalone)
• Vendor markup on third-party services (only pass-through costs)

---

The PSG Application Process: Step-by-Step

Step 1: Register or Log In to the PSG Portal

Visit PSG Portal (IMDA) and log in with your Singapore Business Registration number and ACRA account credentials.

Step 2: Create Your Application

• Project title: e.g., "E-Commerce Platform with AI Chatbot"
• Problem statement: Describe the business challenge (e.g., "Currently unable to process online orders, losing customer sales")
• Proposed solution: Outline the system you'll build
• Expected outcome: e.g., "Increase online sales by 40%, reduce customer inquiry response time by 80%"

Pro tip: Be specific about outcomes. Generic applications ("improve efficiency") are less competitive than quantified goals ("reduce order processing time from 24 hours to 2 hours").

Step 3: Select Your Solution Provider (Vendor)

You can apply before selecting a vendor, but you'll need to provide quotes before final approval. Adaptels builds custom digital solutions for Singapore SMEs—if you'd like a quote for a website, web app, or AI tool, contact us with your requirements.

When choosing a vendor, PSG doesn't restrict you to pre-approved providers, but IMDA reviews vendor credentials. Ensure your chosen agency:

• Has a valid Singapore business registration
• Can provide detailed cost breakdowns
• Understands PSG compliance and reporting requirements

Step 4: Submit Quotes & Get Pre-Approval (Recommended)

Before you sign a contract or pay the vendor, submit your application with vendor quotes to IMDA. This is called a Grant Pre-Approval Letter—it's critical because:

• It confirms IMDA will fund the project before you spend money
• It locks in the 70% co-funding rate
• It prevents disputes about eligible costs later

Processing: 4–8 weeks from submission to pre-approval.

Step 5: Sign Contract & Proceed with Development

Once you have the pre-approval letter, sign the contract with your vendor and begin the project. Keep all invoices, payment receipts, and project documentation.

Step 6: Submit Reimbursement Claim

After the solution is delivered and accepted (both parties sign off), submit:

• Final invoices from the vendor
• Proof of payment (bank statements or cheques)
• Acceptance certificate (vendor & SME sign-off)
• Project completion report

Reimbursement: typically processed 2–4 weeks after submission.

---

Timeline: From Application to Cash Back

| Stage | Duration | Notes |

|-------|----------|-------|

| Application preparation | 1–2 weeks | Gather quotes, define scope |

| Pre-approval by IMDA | 4–8 weeks | Start development only after approval |

| Development/Implementation | 8–16 weeks | Depends on project complexity |

| Reimbursement processing | 2–4 weeks | After project sign-off |

| Total (Best Case) | ~6 months | Fast-track projects possible |

| Total (Typical) | ~9–12 months | More realistic for custom solutions |

Bottom line: Plan your PSG application well in advance. If you need a digital solution in Q3 2026, start your PSG application in Q1 2026.

---

Adaptels & PSG: How We Help

Adaptels builds custom digital solutions for Singapore SMEs—websites, web applications, AI tools, and automation platforms. We work with clients applying for PSG funding, which means:

• Clear cost breakdowns aligned with IMDA's eligible categories
• PSG compliance documentation to accelerate pre-approval
• Realistic timelines so you can plan your reimbursement accurately
• Post-launch support to ensure your solution delivers measurable outcomes

If you're building a custom website, AI chatbot, or web application, we can help structure the project to maximize your PSG funding while delivering genuine business value.

---

Common PSG Mistakes (And How to Avoid Them)

1. Applying after paying the vendor

Mistake: Many SMEs build first, then apply for PSG. By then, it's often too late for pre-approval.

Solution: Apply before you sign the development contract.

1. Choosing an ineligible solution

Mistake: Thinking any software expense qualifies. (Templates, commodity SaaS, and hardware don't.)

Solution: Check the IMDA eligibility list or ask your vendor upfront.

1. Underestimating project scope

Mistake: Requesting pre-approval for SGD 15,000, then paying SGD 25,000 mid-project.

Solution: Get multiple quotes; allow a 10–15% contingency buffer in your pre-approval amount.

1. Missing documentation

Mistake: Losing invoices, payment receipts, or project sign-off forms.

Solution: Use a shared folder (Google Drive, Dropbox) with your vendor to track all documents in real-time.

1. Waiting too long to apply

Mistake: Submitting applications near the end of the calendar year when IMDA's queue backs up.

Solution: Apply by mid-year if you want a decision before year-end.

---

How PSG Fits Into Broader Digital Transformation

PSG is one piece of Singapore's digital support ecosystem. Depending on your business, you might also qualify for:

• Enterprise Development Grant (EDG): Broader transformation funding (up to 70%, SGD 300K cap) for strategic initiatives
• Digital Resilience Programme: Cybersecurity and data protection initiatives
• IMDA Digital Acceleration Programme: For e-commerce, digital marketing, and logistics tech

For a complete roadmap, see our Digital Transformation Checklist for Singapore SMEs in 2026—it covers funding, vendor selection, and implementation best practices.

If you're automating business processes, also review Automating Invoicing for Singapore SMEs to understand cost-benefit scenarios for common automation projects.

---

Final Checklist Before You Apply

• [ ] Your business meets PSG eligibility (turnover ≤ SGD 100M, 30%+ local shareholding)
• [ ] Your proposed solution is on IMDA's eligible list
• [ ] You have 2–3 vendor quotes in hand
• [ ] You've calculated your expected out-of-pocket cost (30% of project cost)
• [ ] You've cleared internal approval for the budget
• [ ] You've registered with the PSG Portal
• [ ] You've set aside 6–12 months for the full timeline (application to reimbursement)
• [ ] You have a dedicated point of contact to manage the application

---

Key Takeaways

1. PSG funds up to 70% of digital solution costs, capped at SGD 30,000. For most custom websites and web apps, this cuts your effective cost by more than half.

1. You must apply for pre-approval before signing a vendor contract. Applying retrospectively typically disqualifies the project.

1. Eligible solutions include custom websites, e-commerce platforms, web apps, AI tools, automation systems, and cloud migrations. Off-the-shelf SaaS and templates don't qualify.

1. The full process takes 6–12 months from application to cash reimbursement. Plan accordingly.

1. Documentation is everything. Keep invoices, payment proof, and project sign-off forms organized from day one.

If you're exploring a digital solution for your SME, the PSG can turn it from a discretionary expense into a strategic investment where the government covers most of the cost. Start with a conversation with your intended vendor about their PSG experience—agencies like Adaptels can walk you through the pre-approval process and ensure your project is structured correctly from the outset.

---

Resources

• IMDA PSG Portal
• Enterprise Singapore Grants
• IMDA Eligible Solutions List

Have questions about your specific project? Feel free to contact Adaptels for a no-obligation PSG consultation.

Sources

1. Enterprise Singapore — PSG
2. GoBusiness — PSG
3. IMDA — SMEs Go Digital