3 June, 2020
With an increased funding from 70% to 80% (valid till 31 Dec 2020), the PSG (Productivity Solutions Grant) is probably the most sought-after scheme this year for many SMEs. The PSG aims to boost the level of technology adoption amongst companies and to help businesses leap forward towards the digital economy.
aving assisted more than 400 businesses to apply for the PSG grant, we have compiled a list of the 7 most frequently asked questions for your reference.
Who is eligible for the Productivity Solutions Grant (PSG)?
Companies who meet the following criteria are eligible to apply:
- Minimum 30% local shareholding
- Registered and operating in Singapore
- Have a minimum 30% local shareholding with Company’s Group annual sales turnover less than S$100 million, OR less than 200 employees
What are the documents required for companies to apply for PSG successfully?
PSG applications are submitted online over the Business Grants Portal directly.
You will need to get ready the following documents when submitting your application:
- Quote from the PSG pre-approved solution vendor (unsigned or signed)
- Your company’s UEN, CorpPassID and password for login to the Business Grants Portal
- Latest financial statements available
- Key financial indicators (in SGD) such as Revenue, Net Profit before Tax, Overseas Sales (if applicable)
Please note that you may choose not to commit nor sign on your vendor’s quote at the point of application. After the application has been approved, you can then make the final decision whether to proceed with the project.
Can I purchase the IT solutions first before applying for the PSG?
This is a strict NO. Software services such as subscription, setup and training can only be done AFTER the application for PSG has been submitted. However, you may choose to implement the software solution first while waiting for the application’s approval. Even though there may be a risk of the application being unsuccessful, the risk is quite low. Having said this, if the solution is critical for your business operations, you should proceed to implement it regardless of the grant outcome.
When can I submit my claim for PSG?
Once you have received and accepted the offer for PSG, you will have 6 to 12 months to implement your project. Once you have made full payment to your vendor and completed the project, you may then proceed to submit your claim.
What is the maximum grant amount that I can claim?
There is an annual grant cap of $30,000 for each business entity between 1 April to 31 March of the following year. You can apply for more than one solution under the PSG but you will only be allowed to implement 2 different solutions concurrently. There is no limit to the number of PSG applications you can make, as long as the total grant amount does not exceed $30,000 over the 12-month period stipulated.
Can I request my vendor to customise my quote accordingly to my business needs?
We understand each and every business is unique and will require a customized solution to suit its needs. Unfortunately however, the pre-approved solutions under PSG cannot be changed or customised. Your vendor should have a variety of different packages to suit different needs. You can speak to them and find out which is the most suitable package for your business.
What can be supported under PSG?
PSG supports several types of software solutions such as accounting, human resource (HR), e-commerce, fleet management, inventory management etc. The eligible services may include software licenses, 12 months subscription, setup, implementation and training.
In view of the Covid-19 pandemic, IMDA has also expanded the scope of PSG to include relevant solutions, such as online collaboration, virtual meetings, queue management and temperature screening. Two laptop-bundled remote working solutions by M1 and Singtel were also introduced to help eligible SMEs embark on telecommuting during this difficult period. You may find out more about the laptop-bundled solutions here.
If you still have other questions about PSG applications that are related to the following categories, please feel free to contact our friendly consultants by using our live chat (It is human and not a robot).
- Accounting System
- HR & Payroll System
- Point-of-Sales (POS) System
- Inventory System
- E-Commerce System