In Laymen Terms: Changes in Productivity Solutions Grant (PSG) from 1 April 2023
Posted by The Solutions Space
From 1 April 2023, the level of support given for the Productivity Solutions Grant (PSG) will drop from 70% to 50% for new grant applications submitted.
What is the PSG about?
The PSG is a scheme initiated by the Singapore government to support small and medium enterprises (SMEs) in adopting technology solutions to improve their business productivity. PSG provides funding support for eligible companies to implement pre-scoped IT solutions and equipment that automate existing processes and enhance productivity. PSG covers sector-specific solutions as well as cross-industry solutions, such as customer management, data analytics, financial management, and inventory tracking.
The support level for PSG varies, depending on the period and the sector of the solution. The enhanced grant support levels to 70% were extended to help businesses cope with the exceptional disruptions brought about by the COVID-19 pandemic and to encourage the transformation of the economy.
What is the change about?
After 1 April 2023, SMEs in Singapore can still apply for the PSG, but the support level given will only be up to 50%, which is lower than the enhanced support level of up to 70% for eligible pre-scoped solutions that was available from 1 April 2022 to 31 March 2023. This means that SMEs will still be able to receive funding support for adopting productivity-enhancing technology solutions, but the amount of funding will be reduced.
What can you expect now?
It is important to note that the PSG support funding levels and eligibility criteria may be subject to change over time, based on the government’s policies and economic conditions. SMEs should therefore expect to explore other sources of support, such as industry-specific grants, tax incentives, and loans, to complement their technology adoption efforts. Additionally, SMEs can seek guidance from business advisors or consult with relevant government agencies to identify the most appropriate support scheme for their specific needs and circumstances.
What to note when applying?
SMEs must meet the following criteria in order to apply for the PSG:
- Is a business entity registered and operating in Singapore
- Has at least 30% local shareholding
- Company’s Group annual sales turnover should not be more than S$100 million, or Company’s Group employment size should be no more than 200 employees
- Purchase / lease / subscription of the IT solutions or equipment must be used in Singapore
- Company does not fall under these categories: Charities, Institutions of Public Characters (IPCs), Religious Entities, Voluntary Welfare Organisation (VWO), Government agencies and subsidiaries, and societies.
Employers eligible for the SkillsFuture Enterprise Credits (SFEC) can also qualify for additional subsidies under the scheme.
You may refer to the step-by-step outline in the Enterprise Singapore website to apply for PSG.
References:
- Enterprise Singapore. (2023, March 24). Productivity Solutions Grant: Enterprise Singapore. Productivity Solutions Grant | Enterprise Singapore. Retrieved March 24, 2023, from https://www.enterprisesg.gov.sg/financial-assistance/grants/for-local-companies/productivity-solutions-grant
