The Productivity Solutions Grant is without a doubt one of the most frequently discussed grants available in Singapore for Singapore SMEs. Many businesses are interested in the Productivity Solutions Grant, and there have been several claims on PSG during the 2020 pandemic. The PSG laptop claim, which expired in December 2020, was the most common.

Most SMEs or businesses in Singapore who are looking to buy a laptop or build an eCommerce website are aware of the PSG grant accounting process, which funds up to 80% of the qualifying amount.

PSG grant accounting platform has a plethora of other options that SMEs or companies in Singapore can potentially claim for, with up to 80% funding support. Here are a few examples:

• Hubspot is a software company that provides customer relationship management and marketing automation.
• Xero PSG grant is a financial accounting program.
• Google Workplace is a service that allows you to manage your emails and job suites.

#1 What exactly is a Productivity Solutions Grant (PSG)?

The Productivity Solutions Grant is intended to encourage the use of internet technology solutions in a variety of industries. Retail, banking, logistics, engineering, food, and landscaping are among them. Productivity Solutions Grant (PSG) combines three current grants: the National Parks Board’s landscape grant, the Spring Singapore Innovation Voucher, and the Media Development Authority’s SMEs Digital initiative.

In a nutshell, it is digital solutions for your industry or sector that you can demand up to 80% of the qualified sum of government funding.

#2 Why isn’t the final claim 80% of the claimed price?

The primary word for the majority of government grants is “up to.” Most grants are subject to approval, and you must apply your application through the Business Grant Portal for the appropriate officer to accept before proceeding with the grant claims. In certain cases, the company is ineligible for the grant, and we encourage SMEs to apply first before moving forward with the project.

Another thing to keep in mind is that the difference between the real price you pay and the value claimed might not be 80 percent because the claims exclude costs such as Government Service Tax (GST), etc.

#3 Who should apply for PSG Grants?

This grant is available to the vast majority of Singapore’s SMEs.
The following is the stated criteria as stated on the Enterprise Singapore website:

• Singapore is where the company is registered and operates.
• IT solutions or equipment must be purchased, leased, or subscribed to in Singapore.
• Have a minimum of 30% local shareholding, and have a Group annual revenue turnover of less than S$100 million or less than 200 employees (for selected solutions only)
• Will your startup be eligible? You may apply via the Business Grant site, and the accessing officer may decide whether to accept or deny your application.

#4 Is there a limit to the number of applications accepted?

Unlike the business readiness grant, there is no limit on the number of applications accepted per year. The PSG allows you to apply for more than one solution, but you can only apply for one solution at a time. As a result, before submitting an application for approval, SMEs should understand how the PSG grant accounting process works and which PSG-approved vendor they want to work with.

There is also a grant limit of $30,000 for each business organization for applications funded by Enterprise Singapore (ESG) between 1 April and 31 March of each year. The PSG grant, as announced in Budget 2021, will finance up to 80% of eligible expenditure until March 31, 2022.

#5 PSG Grant is too time-consuming; is there a prototype available, or can the vendor do it for me?

No, as much as we would like to, the answer is no. The client must apply the claims as well as the request for approval through the business grant portal. The client will be forced to log in through Corpass, which means that an external provider will be unable to do so.

As with other government grants, it will be up to the recipient to demonstrate to the government how the solution will efficiently increase the efficiency of their activities, which will vary depending on the customer.

PSG is, in our opinion, one of the most straightforward grant applications. Laptops and financial applications such as Xero PSG grant or Quickbooks are some of the popular solutions that many SMEs say.

#6 What are PSG’s payment terms?

It is similar to the majority of government grants. That would be a refund arrangement. As a result, the consumer must pay in full before sending the request to the business grant site for reimbursement.

In certain instances, you will be required to include evidence of use and how this solution benefits your company in order to qualify for PSG grant accounting platforms. The standard words are that you must use the software/solution for at least a month before submitting claims.

Payment conditions for various solution providers’ projects vary. It is best to inquire about payment terms with each solution provider.

#7 May I request changes or cashback from the solution provider to reduce my costs?

Regrettably, the answer is no. PSG refers to pre-approved solutions. Every solution provider has sent their specifications to Enterprise Singapore, which are being reviewed by officers. It comes in the form of a pre-approved kit, and only what is included in the pre-approved package is claimable. Customers, on the other hand, are free to pay for the extra change on their own. For all government grants, cashback is strictly prohibited.

#8 How long would it take to apply for the PSG Grant?

It might take up to six weeks. When you apply for the award, it is usually determined by the amount of work at Enterprise Singapore. It also depends on the solution you’re looking for.

Another criterion is whether or not all of the documentation and plan are in order; if so, approval can be obtained in a relatively short period of time, i.e. 3-4 weeks.

Apply for a PSG grant today

Aside from company incorporation in Singapore, WLP Group also provides Xero PSG grant fundings. We recommend that you contact us to learn more about the PSG grant solutions that may be of assistance to your company. Your business will benefit from Xero PSG grant accounting software. For more details, contact us right away.