The Productivity Solutions Grant (PSG) is a Singapore government grant, administered by Enterprise Singapore, that funds up to 50% of the cost of pre-approved digital and automation solutions for local SMEs. For Singapore business owners weighing the cost of AI automation — chatbots, invoice processing, HR onboarding workflows, or CRM automation — PSG is usually the fastest and simplest grant to tap, because it works off a pre-approved vendor list rather than requiring a full project proposal like the Enterprise Development Grant (EDG).
This guide covers what PSG funds, who qualifies, what it costs after funding, how to apply step by step, how it compares to EDG, and what’s changing when Enterprise Singapore’s new EDGE grant framework launches later this year.
“PSG applications must be submitted before any contract is signed or payment made — there is no retroactive funding.”
What Is the Productivity Solutions Grant (PSG)?
PSG is a Singapore government co-funding scheme that helps SMEs adopt pre-scoped, off-the-shelf digital solutions — including AI-powered automation tools — without having to write a custom project proposal. Instead of assessing a bespoke project (as EDG does), PSG works from the GoBusiness Tech Depot: a curated list of solutions from approved vendors, each pre-assigned a maximum fundable cost. This makes PSG the more accessible entry point for SMEs that want to automate a specific, well-defined function — such as WhatsApp customer service, invoice processing, or appointment scheduling — rather than a full agentic AI system spanning multiple departments.
Is Your Business Eligible for PSG?
Enterprise Singapore sets five core eligibility criteria for PSG applicants:
| Criterion | Requirement |
|---|---|
| Registration | Registered and operating in Singapore |
| Local equity | At least 30% held by Singaporean citizens and/or PRs, direct or indirect |
| Company size | Group annual turnover under S$100 million OR group employment under 200 employees |
| Solution use | The IT solution must be deployed and used in Singapore |
| Sequencing | No contract signed and no payment made to the vendor before the PSG application is submitted |
One detail trips up more applicants than any other: PSG applications must be submitted before any contract is signed or payment made. If a business engages a vendor first and applies for PSG afterward, Enterprise Singapore will reject the application automatically — there is no retroactive funding.
What Can PSG Fund for AI Automation?
PSG funds a wide range of pre-approved categories relevant to Singapore SMEs pursuing automation, including customer management and CRM systems, HR and payroll automation, accounting and invoicing automation, inventory and procurement systems, and increasingly, AI-powered chatbot and workflow automation tools listed under the digital solutions categories. The table below summarizes the funding mechanics.
| Item | Detail | Notes |
|---|---|---|
| Funding level | Up to 50% of qualifying costs | For pre-approved solutions on the PSG Tech Depot |
| Annual cap | S$30,000 per company, per financial year | Across all PSG applications combined |
| Eligible spend | Pre-approved IT solutions and equipment | Must be selected from the GoBusiness Tech Depot listing |
| Application timing | Before signing any vendor contract or making payment | Applying after a contract is signed leads to automatic rejection |
| Processing time | Typically 4-6 weeks | Via the Business Grants Portal (BGP) |
In practice, this means a Singapore SME automating, for example, WhatsApp-based customer enquiries and appointment booking could have up to half the solution cost covered by PSG, up to the S$30,000 annual cap — with the remaining cost potentially eligible for the Enterprise Innovation Scheme’s 400% tax deduction on top.
How to Apply for PSG: Step-by-Step Process
- Identify a pre-approved solution on the GoBusiness Tech Depot that matches your automation need, or work with a vendor who can help scope one.
- Obtain a formal quote from the vendor — do not sign a contract or make any payment at this stage.
- Log in to the Business Grants Portal (businessgrants.gov.sg) using CorpPass.
- Submit the PSG application with the vendor quote and required company information attached.
- Wait for approval — typically 4 to 6 weeks — and receive a Letter of Offer.
- Accept the Letter of Offer within the stated deadline, then engage the vendor and begin deployment.
- After deployment, file a claim through the BGP with invoices, proof of payment, and deployment confirmation.
- Receive the 50% reimbursement into your nominated company bank account.
PSG vs. EDG: Which Grant Fits Your AI Automation Project?
SMEs evaluating AI automation often ask whether to apply for PSG or EDG — the two are not interchangeable, and the right choice depends on project scope:
- Choose PSG when the automation need maps to a pre-approved, off-the-shelf solution — a single-function tool like a chatbot platform, invoicing system, or scheduling automation. Faster approval, simpler application, lower funding cap.
- Choose EDG when the project is a custom, multi-function agentic AI system built around your specific processes — EDG funds up to 50% (and in some cases higher) of bespoke consultancy and development costs with a higher overall ceiling, but requires a fuller project proposal.
- Some Stack AI engagements qualify for a blended approach — a pre-approved component under PSG alongside a custom-scoped component under EDG — though this needs to be structured carefully with Enterprise Singapore’s guidelines in mind.
Important: The EDGE Grant Is Coming in Late 2026
Enterprise Singapore has announced a new consolidated grant framework called EDGE, expected to launch in the second half of 2026, which will merge EDG, PSG, and the Market Readiness Assistance (MRA) grant into a single application through the Business Grants Portal. Until EDGE launches, PSG, EDG, and MRA all remain fully accessible under their current rules — businesses with a project ready to go do not need to wait. SMEs currently planning an AI automation project should treat this as a reason to move sooner rather than later: applying under the existing PSG rules now avoids any uncertainty around how eligibility, caps, or the application process may change once EDGE takes effect. Stack AI is tracking the EDGE rollout closely and will update grant guidance as details firm up.
Frequently Asked Questions
Can PSG fund an AI chatbot or WhatsApp automation system?
Yes, if the solution is listed on the GoBusiness Tech Depot or offered by a vendor whose relevant solution has been pre-approved under a PSG category such as customer management or digital solutions. This covers many AI-powered chatbot and customer service automation tools.
How much can my business actually receive from PSG?
Up to 50% of the qualifying solution cost, capped at S$30,000 per company per financial year across all PSG applications combined. The exact per-solution cap depends on the maximum fundable amount listed for that specific solution on the Tech Depot.
Can I apply for PSG after I’ve already started using a solution?
No. PSG requires the application to be submitted, and typically approved, before any contract is signed or payment is made to the vendor. Starting first and applying for reimbursement afterward is not permitted.
Can PSG and EDG be used on the same project?
They generally fund different cost categories — PSG for pre-approved off-the-shelf solutions, EDG for custom consultancy and development — so a single large automation project can sometimes combine both, but this requires careful scoping with Enterprise Singapore’s current guidelines and is best discussed directly with a grant-experienced vendor.
Will PSG still exist once the EDGE grant launches?
Enterprise Singapore has stated that EDG, PSG, and MRA will be consolidated into EDGE when it launches in the second half of 2026. Businesses should expect PSG as a standalone grant to be phased out at that point, replaced by a single EDGE application covering the same funding areas.
Get Grant-Funded AI Automation Done Right
Stack AI helps Singapore SMEs scope, apply for, and deploy AI automation projects that qualify for PSG, EDG, TSS, and the Enterprise Innovation Scheme’s 400% tax deduction — so more of the automation budget is government-funded, not out of pocket. Book a free call to find out which grant fits your project.
