For several years, Singapore remained as one of the world’s most technologically advanced countries. To guarantee Singapore will continue to be a key player in technology and innovations, support is given to small to medium-sized enterprises (SMEs).
This support exists to encourage the adoption of IT solutions, equipment, and consultancy services for digitalisation. To assist businesses in their digital transformation journey, the government introduced the Productivity Solutions Grant (PSG) in Singapore.
WHAT IS THE PRODUCTIVITY SOLUTIONS GRANT (PSG)?
The Productivity Solutions Grant (PSG) is a grant that supports companies and enterprises looking to adopt technology solutions and equipment to improve their operations.
It covers sector-specific solutions to assist businesses from different industries, such as food, engineering, logistics, construction and landscaping, retail and e-commerce. You can choose from a wide range of industries-based digital solutions for your business.
Listed below are some examples of digital solutions that a PSG grant pre-approved vendor can do for you:
By getting a PSG grant for your business, you can gain up to 50% funding support and access quality digital solutions starting 1 April 2023. It is an ideal option to digitally transform your workplace, especially if you have little to no knowledge of digitalisation, such as digital marketing.
In 2020, the Monetary Authority of Singapore (MAS) launched a S$35 million PSG grant for the financial services industry to support small financial institutions. It was a part of MAS’ initiative so they could drive the improvement of productivity for financial organisations.
Besides the financial services sector, businesses from other industries can also benefit from the digital marketing Productivity Solutions Grant. The funding aid, PSG grant, from MAS is beneficial for SMEs to optimise productivity and efficiency.
As digital solutions become more widespread and commonplace, it is only a matter of time before every business uses at least one type of digital software or tool. With around 90.83% of Singaporeans having Internet access, brands can interact, connect, and communicate with their customers online in Singapore by going digital.
The PSG grant for digital marketing exists to provide funding support for local businesses from different sectors to purchase the tools and solutions they need for their business growth and expansion.
Nowadays, you have to gain the upper hand over your competitors by using the latest technology. With the help of a government-provided grant,startups and SMEs have more opportunities to go-digital and stay competitive by engaging a digital agency who is a pre-approved vendor for the solution.
Starting from 1 April 2023, SMEs can receive up to 50% funding support when their PSG application get approved.
You can view the updated budget for PSG digital marketing grant, along with other grants, from EnterpriseSG.
PART 1 – UNDERSTANDING THE PRODUCTIVITY SOLUTIONS GRANT (PSG)
As the COVID-19 pandemic continues, it is now the best time to rethink your business and go digital with the help of a digital marketing PSG grant. Besides outsourcing your services to a digital marketing agency, the Productivity Solutions Grant has solutions you need to help your business to go digital.
Hence, when you apply for a PSG grant for your digital marketing needs, check your PSG grant eligibility, select the appropriate digital solutions, and prepare the necessary documents for submission.
Here are the benefits of the Productivity Solutions Grant.
THE BENEFITS OF THE PRODUCTIVITY SOLUTIONS GRANT
The Benefits Of The
Productivity Solutions Grant
- Receive Up To 50% Of Funding Support
- Access High-Quality Digital Solutions
- The Grant Is Applicable To Most Industries
- Have A Good Head Start
1. RECEIVE UP TO 50% OF FUNDING SUPPORT
You can receive up to 50% funding support starting 1 April 2023 if you apply for a digital marketing PSG grant. It is a substantial amount of funds for businesses to deal with small-term challenges or use it to invest in long-term digital technologies and resources.
2. ACCESS HIGH-QUALITY DIGITAL SOLUTIONS
One of the main reasons business owners apply for the PSG grant is to gain vast access to high-quality digital marketing solutions. All of which are beneficial for any business from different industries, especially for e-commerce businesses that need to maintain high search engine rankings for their websites.
Whether you are looking to expand your website’s online presence or invest in digital marketing technologies, a digital marketing PSG grant can provide you with access to essential solutions, tools, and equipment. To find the right tool or solution for your business, make sure to get in touch with a suitable Productivity Solutions Grant vendor.
For example, if you plan to reach out to more customers, build brand awareness, and promote your products and services, you should contact a pre-approved digital marketing company like OOm.
On the other hand, if you need to manage sales and inventory, get in touch with a management software provider. They shall provide you with a tool you need to operate your transactions more efficiently.
Choose the appropriate Productivity Solutions Grant vendor for your business, and define your objectives beforehand. Doing so should provide you with the best and most appropriate solutions depending on your needs.
3. THE GRANT IS APPLICABLE TO MOST INDUSTRIES
The Productivity Solutions Grant supports companies and enterprises that want to adopt digital solutions to improve their operations. Hence, the businesses that can apply for a PSG grant for their digital marketing or e-commerce needs from the following industries:
- Food and beverage
- Precision Engineering
- Retail to Wholesale Seller
And besides these sector-specific businesses, Productivity Solutions Grant also covers the adoption of solutions across industries, but as long as they are all about customer management, data analytics, financial management and inventory tracking.
4. HAVE A GOOD HEAD START
One of the challenges that SMEs may face when they go-digital is that they have to compete with tons of businesses that have been in the e-commerce industry for a long time.
Besides the lack of funds, most SME owners barely know what they need to do to reach out to their potential customers more efficiently and have a smooth operation online.
The good news is that with 50% of funding from a PSG digital marketing grant, SMEs can have a good headstart to resolve such matters and stand out against their competitors.
Even though the said support is a one-time claim per solution, as long as they reach out to the right PSG grant pre-approved vendor, an SME owner can expect great results and positive change in their e-commerce.
PART 2 – APPLYING FOR THE PRODUCTIVITY SOLUTIONS GRANT (PSG)
To apply for the grant, you need to be eligible and qualified based on the given criteria to apply for the PSG grant.
Who Is Eligible?
Before applying, you need to ensure that your business is part of government-approved industries for the Productivity Solutions Grant. These industries include but are not limited to food, retail to wholesale trade, construction, landscaping, precision engineering, logistics, and landscaping.
For starters, your business has to be registered and operating in Singapore. Any SME outside the country does not qualify for a PSG digital marketing grant.
Most importantly, you have to utilise all of your digital solutions and tools in Singapore. Any purchase, lease, and subscription outside the country will make your business ineligible to apply for the Productivity Solutions Grant.
Once you have ensured that your business is a registered entity in Singapore, the last step is to decide on the solution you wish to apply. After passing the PSG grant eligibility criteria, the next step is to submit your PSG grant application.
PSG Eligibility Criteria For SMEs
- Registered and operating business in Singapore
- Purchase/lease/subscription of the IT solutions or equipment will be use in Singapore
- A minimum of 30% of local shareholding; with the company's group annual sales turnover of not more than S$100 million, OR employee size of not more than 200 works (for selected solutions only)
In doing so, you are giving your business the boost it needs to grow. Here is a step-by-step guide you can refer to when applying for the PSG digital marketing grant in Singapore.
HOW TO APPLY FOR THE PRODUCTIVITY SOLUTIONS GRANT (PSG)?
How To Apply For The Productivity
Solutions Grant (PSG)
Visit GoBusiness Gov Assist
Choose A Solution For You
Request A Quotation From A Pre-Approved PSG Vendor or Consultant
Visit GoBusiness Gov Assist
STEP 1: VISIT GOBUSINESS GOV ASSIST
Click on the ‘Productivity Solutions Grant’ under ‘Government Assistance’ section
Going to the GoBusiness website is the first step when applying for a PSG digital marketing grant or e-commerce PSG grant. Once you are on their homepage, look for the ‘Government Assistance’ box.
Inside, you will see a list: Budget 2022, eAdviser: Find eligible schemes, Productivity Solutions Grant, Business Grants Portal.
However, since your concern is to get a PSG grant, you should go to the PSG grant portal. You can go there by clicking on the ‘Productivity Solutions Grant’ text, which will direct you to the overview page of the Productivity Solutions Grant.
On the overview page of the Productivity Solutions Grant or PSG grant portal, you will see another list: All PSG Solutions, and Frequently Asked Questions. Both are on the left side of your screen.
Click on ‘All PSG solutions’ when you want to apply for a PSG grant for website development to improve your operations.
STEP 2: CHOOSE A SOLUTION FOR YOUR BUSINESS
When choosing a solution for your business, you should weigh which one you need the most: IT solutions, equipment or consultancy. If you determine your business need help with IT solutions, here are your options:
Under the ‘Solutions For All Sectors’, choose the industry and select a suitable solution for your business. For example, if you want to apply for a PSG grant for digital marketing, click on the ‘Digital Marketing solutions’. You can view a wide range of Digital Marketing Packages from a PSG grant pre-approved PSG vendor list. Consider scrolling the page until you have found the solution you have been looking for.
This GIF shows all the available E-Commerce – Online Shop (B2C) packages under the E-Commerce solutions
All of the given e-commerce solutions are from every PSG grant pre-approved vendor and consultant. It is not applicable to get a solution from a non-approved vendor and still apply for the Productivity Solutions Grant. Make sure that you choose a solution provided by a PSG grant pre-approved vendor first before applying for the grant.
STEP 3. REQUEST A QUOTATION FROM A PSG GRANT PRE-APPROVED VENDOR OR CONSULTANT
Whether for equipment or solutions, you need to request a quotation from a PSG grant pre-approved vendor or consultant first. Contact your preferred vendor or consultant, then ask for a quote from them before submitting your application for the PSG digital marketing or e-commerce grant.
For example, if you own an e-commerce store and have digital marketing needs, you need to get a quote from a digital marketing company about the services you need from the PSG grant pre-approved vendor.
Once you have chosen a PSG grant pre-approved vendor, you will see the digital marketing packages they are offering under the PSG grant. In our case, OOm is offering one e-commerce solution for our potential clients.
When you get a quote, make sure there should be a list of e-commerce services they will do for your e-commerce store. Once you have that, you can attach this document to your PSG grant application, along with the rest of the required documents.
STEP 4: SUBMIT YOUR APPLICATION
Once you have completed the three steps above and received a quotation from your chosen PSG pre-approved vendor, the next step is to submit your PSG application on the Business Grants Portal. Before submitting, ensure that you have a registered Corppass to apply for the grant.
The Business Grants Portal has the information you need to know regarding the PSG grant application. Complete the PSG application form by filling in the required information. Once you finish your application, you can keep track of your progress and wait for its approval until you receive a Letter of Offer and Appointment.
What Are The Required Documents For Applying?
What Are The Required Documents
For Applying ?
- An Invoice
- A screenshot of your business's name with the name of your chosen IT solution
- The license number of the OT solutions (with indication of at least month's usage)
- A bank statement indicating payment to the PSG grant pre-approved vendor
- A purchase order
Being eligible for the PSG grant to enhance your digital marketing is just the beginning. To apply for the Productivity Solutions Grant, you need to possess all the documents necessary for the PSG grant application.
Before you apply, prepare all of your required documents, such as:
- A purchase order
- A bank statement indicating payment to a PSG grant pre-approved vendor
- The licence number of digital solutions (with an indication of at least one (1) month’s usage)
- An invoice
- A screenshot of your business’s name with the name of the solution
Do take note that there is a waiting period before approval. If any issues arise about the PSG grant application, a government agency will contact and notify you.
PART 3 – OTHER BUSINESS GRANTS TO CONSIDER
1. Market Readiness Assistance (MRA)
For SMEs that want to take their efforts abroad for the first time, go for the Market Readiness Assistance (MRA) grant. Business owners who apply for this grant can obtain a support level of up to 50% until 31 March 2025.
Solutions associated with the MRA grant revolve around digital marketing and public relations (PR) for overseas marketing. The downside of this grant is that you are limited to only one activity in a single overseas market.
2. Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) is another grant related to overseas expansion and marketing. It helps companies in Singapore grow and transform outside the country.
The EDG enhances business based on three pillars:
- Core Capabilities – For projects under core capabilities, the EDG grant helps businesses grow by focusing on primary functions, such as accounting and sales.
- Innovation and Productivity – Explore areas where your business can grow. This pillar aims to support companies by utilising automation and technology to enhance efficiency.
- Market Access – Projects under this pillar are for businesses willing to venture into a foreign country. With the EDG grant, you can analyse some of the costs of expanding overseas.
Grants for Companies in Singapore | Table Comparison (PSG vs EDG vs MRA)
Understanding and navigating government grants such as Productivity Solutions Grant can be a tedious and challenging process. It is perfectly normal for uncertainty and questions to arise while applying for such grants. Therefore, we tackle some of the frequently asked questions surrounding the PSG digital marketing grant below for greater clarification and to empower a smooth and seamless application process.
From 1 April 2023 onwards, the maximum support level will be up to 50%.
Firstly, eligible companies can apply for the digital marketing grant in Singapore by selecting from a list of pre-approved PSG vendors. Once applications have been approved and service rendered has been completed, companies can claim up to 50% support under the PSG grant. Disbursement of the PSG grant will be credited directly to the company’s bank account via GIRO after the GIRO form has been filled in and verified.
Yes, sole proprietors can apply for PSG digital marketing as long as the following criteria are met:
- Is a business entity registered and operating in Singapore;
- Have a minimum of 30% local shareholding; AND
- Company’s Group annual sales turnover should be not 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
For the PSG grant, each company is subject to a yearly grant maximum of S$30,000, which begins on April 1, and ends on March 31.
There can only be one claim per approved application. Disbursements can only be made after the claims have been approved.
There can only be one claim per approved application. Disbursements can only be made after the claims have been approved.
For claims submission, the company needs to ensure:
- Claimant has purchased/leased/subscribed to the solution as approved in the application; and
- Claimant has used the solution; and
- Claimant has paid for the solution in full; and
- Claimant has submitted all claim documentation
After your chosen PSG grant pre-approved vendor has implemented and completed the solution, you should submit your claims with documentation demonstrating usage for at least a month. Delays will be experienced for incomplete submissions.
Once submitting the PSG grant claims, the fund disbursement will be distributed in as little as 14 working days from the day that your company has submitted your GIRO (General Interbank Recurring Order) form.
The PSG grant will be disbursed directly to the company’s bank account via GIRO. Before submitting a claim request, the completed GIRO form must be verified by the company’s bank and submitted to EnterpriseSG. The GIRO form is only required during the first claim submission in the case of multiple claims.
If there are any changes to the company’s account details, a new GIRO form must be submitted. You can submit your company’s GIRO information using the EnterpriseSG GIRO form.
The Enterprise Development Grant (EDG) helps Singapore companies grow and transform. This grant supports projects that help you upgrade your business, innovate or venture overseas under three pillars: Core Capabilities, Innovation & Productivity and Market Access.
Each application is limited to one activity in a single overseas market.
The PSG digital marketing grant applications are processed about 6 weeks from the submission of all required information. Companies are strongly encouraged to submit their applications ahead of time to account for the application outcome and/or processing duration required.
The digital marketing PSG is not considered a taxable income as it is given to offset business costs. However, companies may be required to pay taxes on any profits made from the project funded by the PSG grant.
For more information about this, please refer to the IRAS website.
The acceptor of a company can login to the company’s Business Grants Portal account. Click on the ‘Updates Required’ tab on ‘My Grants’ page. Click on the ‘Letters And Documents’ section to access the Letter Of Offer (LOF). Download and read the LOF, then click ‘Accept’ to accept the terms of the digital marketing PSG grant.
Yes, the PSG grant digital marketing package is still available.
Each solution is only eligible for a one-off support, but multiple solutions can be applied simultaneously.
The future of Singapore looks promising, thanks to the abundance of grants provided by the Singaporean government. Take your time to research and choose the best grant for your business.
Consider applying for PSG to improve your digital marketing today! If you want to learn more about digital marketing and e-commerce PSG grant solutions, contact our award-winning digital marketing agency at 6391-0930.