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).
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 pre-approved vendor can do for you:
By getting a PSG grant for your business, you can gain up to 70% funding support and access quality digital solutions starting 1 April 2022. 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 digital marketing grant 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.
In 2021, the funding for Productivity Solutions Grant increased even further from 70% to 80% until 31 March 2022 to provide more support for SMEs. Starting from 1 April 2022, the PSG grant support will revert to 70% except for the Food Services and Retail sectors for eligible pre-scoped solutions (Click here for the list of solutions eligible for 80% funding support until 31 March 2023). These industries are the only ones who can receive up to 80% funding support when they apply for the PSG grant under the Food Services & Retail Business Revitalisation Package until 31 March 2023.
This year, however, Singapore will set aside S$600 million in the next four years to further help SMEs with their operations and resolve digital marketing and e-commerce needs.
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 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
1. RECEIVE UP TO 70% OF FUNDING SUPPORT
You can receive up to 70% funding support 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.
The 70% funding support will take effect from 1 April 2022. The only sectors eligible to receive 80% grant support are those under Food Services & Retail Business industries that are only applicable for selected solution categories.
Solution categories applicable for Food Services are:
- Digital/ Online Ordering and Payment
- Automated Reservation
- B2B Marketplace/E-Procurement System
- Queue Management
- E-Loyalty/ Customer Relationship Management
- General Food Services Equipment
Solution categories applicable for the Retail sectors are:
- Enhanced Retail Management System
- Commercial Anti-Money Laundering (ML)/Countering the Financing of Terrorism (TF) Screening
- Retail Analytics
- E-Commerce – Online Shop (B2C)
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 e-commerce 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 70% 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 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
YTo apply for the grant, you need have 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 criteria, the next step is to submit your PSG grant application.
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?
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: Pre-scoped IT Solution, Pre-scoped Equipment, Pre-Scoped Consultancy Service, and Frequently Asked Questions. All of these are on the left side of your screen.
Apart from FAQs, you may choose either one of the three when you apply for a PSG grant to resolve your needs.
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 ‘Pre-scoped IT solution’, 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 solutions, click on the ‘Others section’. You can view a wide range of IT solutions from a pre-approved PSG vendor list.
Consider scrolling the page until you have found the solution you have been looking for. In the case of this SME owner, they are looking for digital marketing solutions.
All of the given IT and digital solutions are from every PSG 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 pre-approved vendor first before applying for the grant.
STEP 3. REQUEST A QUOTATION FROM A PRE-APPROVED VENDOR OR CONSULTANT
Whether for equipment or solutions, you need to request a quotation from a PSG 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 pre-approved vendor.
Once you have chosen a PSG pre-approved vendor, you will see the digital marketing packages they are offering under the PSG grant. In our case, here are the packages we are offering for our potential clients.
When you get a quote, make sure there should be a list of digital marketing services they will do for your ecommerce store. Once you have that, you can attach this document to your PSG 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?
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 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 70%.
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 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 2022 onwards, the maximum support level will be up to 70%. For eligible pre-scoped solutions, enhanced support level of up to 80% will be extended from 1 April 2022 to 31 March 2023 for Food Services and Retail sectors.
How do I claim the PSG grant?
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
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 70% 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 criterias 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
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.