The Productivity Solutions Grant (PSG) helps Singapore SMEs offset the cost of adopting pre-approved digital solutions and equipment. If you’ve been putting off upgrading your systems because of cost, this grant might cover more than you think. Here’s a plain-English breakdown of the top PSG categories worth knowing in 2026.
What Is the PSG, Exactly?
The PSG is a government co-funding scheme that supports SMEs adopting IT solutions and equipment to improve productivity. Instead of applying for a custom grant proposal, you choose from a list of pre-approved solutions and vendors, which makes the application process much simpler than other grants.
Eligible businesses can typically receive funding support covering a significant portion of the qualifying cost, up to a cap per solution category.
Top PSG Categories for SMEs
1. Accounting and Financial Management
Cloud accounting software that automates invoicing, expense tracking, and financial reporting. This is one of the most popular categories because almost every business needs proper bookkeeping, and manual accounting eats up hours every week.
2. Human Resource Management
Systems that handle payroll, leave management, and claims processing. For SMEs without a dedicated HR department, these tools cut down significantly on administrative work.
3. Customer Management and Sales
CRM systems that track leads, customer interactions, and sales pipelines. Useful for businesses that rely on repeat customers or longer sales cycles, like B2B service providers.
4. Inventory and Procurement Management
Digital inventory tracking helps retail and F&B businesses avoid overstocking or running out of key items. Real-time stock visibility across multiple outlets is a common feature under this category.
5. Data Analytics
Tools that turn your business data into usable insights — sales trends, customer behaviour, and performance dashboards. Increasingly popular as SMEs try to make decisions based on data rather than guesswork.
6. E-Commerce and Digital Marketing
Support for setting up or improving your online sales channels, including website development and digital marketing tools. This category has grown fast as more SMEs shift sales online.
7. Retail and F&B-Specific Solutions
Point-of-sale systems, queue management, and self-ordering kiosks tailored to retail and food and beverage businesses. Many hawker stalls, cafes, and small retailers have used PSG to fund POS system upgrades.
How to Apply
- Identify a pre-approved solution and vendor listed under the PSG scheme
- Confirm your business meets the eligibility criteria, including local shareholding requirements
- Apply through the Business Grants Portal using your CorpPass
- Wait for approval before purchasing the solution — approval typically needs to happen before you commit to the purchase
What no one tells you: if you purchase the solution before your grant application is approved, you generally won’t be able to claim funding for it retroactively. Always apply first.
Final Thoughts
The PSG is one of the more accessible grants for Singapore SMEs precisely because it’s pre-approved and vendor-matched, rather than requiring a custom proposal. If your business has been putting off digital upgrades because of cost, it’s worth checking whether your planned purchase falls under one of these categories before you buy anything.