As the world is feeling the pinch—or to some, the punch—of the Covid-19 pandemic, SME owners are left looking for ways to improve their existing processes while keeping their heads above water. Everyone is riding the same storm out, just in different boats.
Thankfully, SME owners aren’t sitting in their boats alone as the Singapore government is right beside them equipping them with the tools and support to get through this.
There are many different grants that the Singapore government is able to give to SMEs to help them navigate trying times. These grants include the likes of the Capability Development Grant (CDG), the Innovation & Capability Voucher (IVC), the Productivity-Max (P-Max) Programme, and the topic of today’s article: The Productivity Solutions Grant PSG.
Today we’ll be discussing what the PSG grant is, its eligibility requirements, how to apply for it as well as providing the answers to some frequently asked questions. If this sounds like something you may be interested in, we urge you to keep reading so you can find out how this grant can help your business.
What is Productivity Solutions Grant (PSG)?
The Productivity Solutions Grant, also known as the PSG, is a grant that enables companies to adopt IT solutions and equipment with the aim of increasing their company productivity & streamline their processes.
A range of solutions to help better your business are on offer. These solutions can be applied to all sorts of industries and all kinds of areas including but not limited to customer management, quality assurance, data analytics financial management, HR management & more.
Here’s a shortlist of some of the supportable solutions at your disposal:
- Temperature screening solutions
- Virtual meeting and telephonic tools
- Online collaboration tools
- Logistics management tools
- Inventory Tracking Systems (ITS)
- Marketing management systems
All solutions have been pre-scoped by the National Environmental Agency (NEA), Singapore Tourism Board (STB), as well as Enterprise Singapore and various other governmental agencies.
What makes this grant in particular so popular is that it has a maximum funding support level of 80%. The start and end date for this grant are from 17 April up until 31 December 2020 initially. But it was recently been extended from 30 September 2021 to 31 March 2022.
What are the Requirements for Productivity Solutions Grant (PSG)?
For the most part, the eligibility requirements for the Productivity Solutions Grant are fair and easy to meet. Any business that is registered and operating in Singapore that intends to purchase, lease, or subscribe IT solutions or equipment within Singapore is eligible.
For selected solutions, only SMEs with a minimum percentage of 30 local shareholding and a Group annual sales turnover of S$100 million or less or less than 200 employees will be eligible.
Remember that TWM is a pre-approved PSG grant vendor for both IT solutions as well as equipment, so we’ll be able to answer your questions and provide assistance in every step of your technology journey.
Do contact us if you need PSG grant for your business.
How to Apply for Productivity Solutions Grant (PSG) for my Business?
If your business meets the specified requirements and it sounds like the Productivity Solutions Grant is the logical next step for your business to take, you’ll need to know how to apply. Unlike applying for other grants, the Productivity Solutions Grant application process is straightforward. Here’s what you need to know.
Firstly, you’ll need to identify relevant solutions that are able to satisfy your business needs by browsing through the list of supportable solutions.
Once you’ve identified the solutions that you’d like to take advantage of you’re required to submit a quotation request to vendors that provide the equipment and IT solutions you need. Get the quotation from the vendor and move on to the next step.
Finally, you’ll need to register your company and set up a CorpPass account in order to apply for the grant. The registration process is quick and easy, simply state whether you’re the Registered Officer, the Admin or the User & follow the prompts.
After registering, follow these five simple steps on the Business Grant Portal (BGP).
- Step 1: Click on the “Get New Grant” button.
- Step 2: Answer three questions pertaining to your project.
- Step 3: Fill out the application form and click on the “Submit” button.
- Step 4: Track the status of your application.
- Step 5: Accept the Letter Of Offer.
If your company is one of the companies keen to embrace technology and reap the rewards, you should seriously consider applying for the Productivity Solutions Grant as so many other businesses have done.
Fill in the simple online application, submit it, and get the funding you need to take your business to new heights. We are living in the digital era and our businesses need to take advantage of the relevant solutions that best suit and work for our needs.
Add “business transformation” to the top of your to-do list by applying for your PSG grant today or risk being left behind in the dust of your competitors.
We hope you found this article informative and that your next steps are evident. Don’t forget to share this information with others who may also find it helpful.
FAQs about IMDA PSG Grant
1) Can non-SMEs be supported under PSG?
Applicants applying for ESG’s PSG have to be SMEs, non-SMEs will not be supported.
2) How do we determine if an applicant is “local”?
30% of ordinary shares (ultimate individual ownership) has to be held directly or indirectly by Singaporeans/PRs.
3) Does the applicant have to be registered in Singapore?
Yes, the applicant has to be registered in Singapore to be eligible for PSG.
4) Can companies apply for PSG after signing a contract with the vendor, or making payment?
No, please note that applicants must apply for PSG before they have:
– Made any payment to a supplier, vendor or third party in relation to the purchase/lease/subscription of the IT solution or equipment
– Signed any contract with a supplier, vendor or third party in relation to the purchase/lease/subscription of the IT solution or equipment Otherwise, the application will be rejected.
5) Is there a cap to the PSG approved grant available to companies?
For applications supported by ESG, there is a grant cap of $30,000 per entity per year (1 April to 31 March). Example: If an applicant utilises $30,000 in PSG grant monies by Dec. 2018, the applicant would only qualify for PSG again from 1 April 2019. The equipment or IT solution may be subjected to further cost caps.
6) What are the supportable cost?
Unless otherwise stated, only the actual purchase/lease/hire purchase cost of the equipment or IT solution is supportable, and excludes other related administrative fees/charges, e.g. delivery fees, installation.
7) How many PSG grants can a company apply for?
Supportable applications are:
– the FIRST purchase of the Solution by the applicant (single device/unit or multiple devices/units);
– subsequent purchase of the Solution to be deployed at a different location This means that if the applicant applies subsequently (i.e. after the first application) for the same solution to be deployed at the same location, this application will be rejected.
8) Can an applicant apply for multiple solutions?
There may be 2 ways to interpret this query:
a) Multiple types of solutions
Each application in the Business Grant Portal (BGP) for PSG is only for one type of solution. If an applicant would like to apply for multiple types of solutions e.g. fleet management IT Solution and enhanced POS IT Solution, the applicant would have to submit an application per solution type.
b) Multiple devices/units/packages of the same solution
Each quotation submitted by the solution vendor to the applicant should indicate if the cost of the package is for 1 device/unit, or 5 devices/units, or 10 devices/units etc. If an applicant would like to apply for multiple devices/units:
For IT Solutions, applicants would not be able to indicate in the application form the number of solutions to be purchased. Applicants would have to indicate this via the total cost (e.g. number of solutions to be purchased multiplied by the cost of 1 solution). The quotation from the solution vendor should also indicate the number of devices/units the quotation is applicable for.
For equipment, applicants would be able to indicate the number of pieces of equipment to be purchased, if applicable.
Note that if the package is for 5 devices/units, the applicant would only be able to purchase 5/10/15 etc. devices/units, i.e. in multiples of 5. The applicant would not be able to prorate the cost of the package or package support for 4 devices/unit.
9) Can applicants qualify for PSG if they indicate “yes” to the question “does your business currently have this solution”?
The application would be rejected if the current solution has been supported under PSG to the same location. Deployment to a new location is allowed.
10) Can applicants opt for IT solutions or Equipment other than the pre-approved solutions?
This is not allowed for applications to ESG. Applicants have to select their solutions/equipment (and solutions vendor for IT Solutions) from pre-approved lists.
11) Can applicants purchase Equipment from a vendor online via e-commerce platforms both locally or overseas?
Yes, this is allowed. However, applicant should ensure that the equipment meets the required specifications and purchase is not made prior to the application. Approval is subjected to assessment. Proper claim documentation such as the certificate of origin, invoice, receipt, delivery order, and any other supporting documents should be furnished at point of claims.
12) Can applicants switch solution vendor?
No, this is not allowed. If an applicant intends to change the solution vendor, they would need to withdraw the previous application and submit a new one.
13) Can the Equipment or IT Solution be used overseas?
The applicant’s purchase/ lease / subscription of the Equipment or IT Solution must be used in Singapore.
14) How long must the purchased solution be held for?
The holding period for the equipment or IT Solution is 1 year from the date of final claim disbursement.
As of 2 April 2018
15) How many claims can a company submit per application? Can claims be disbursed before the project has been completed?
There can only be one claim per application. Disbursements can only be made after all the following have been achieved:
a) Claimant has purchased/leased/subscribed to the solution; and
b) Claimant has used the solution; and
c) Claimant has paid for all expenses claimed; and
d) Claimant has submitted all claim documentation
16) How long will it take for an applicant to receive the outcome of their application?
It will take approximately 4-6 weeks, provided that all the required information has been provided at the point of application.
17) How long will it take for an applicant’s claims to be processed?
It will take approximately 4-6 weeks, provided that all the required information has been provided at claims submission.
18) Can applicants submit concurrent applications?
Yes, it is allowed.
19) What is the process for applying for PSG?
An example of the application flow would be as follows:
a. Explore solutions
b. Get quotations (unsigned)
c. Apply for PSG via BGP (upload all necessary documents)
d. Await Approval (for assurance before commencing project)
e. Awarded PSG
f. Purchase solution and implement project
g. Used the solution, paid for all expenses
h. Submit claim (with necessary documents)