In today’s fast-paced world, businesses must continuously innovate and improve to stay competitive. One way to achieve this is by leveraging technology and automation to enhance productivity and streamline processes. In Singapore, the Productivity Solutions Grant (PSG) offers a valuable opportunity for local Small and Medium Enterprises (SMEs) to do just that.
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What is PSG?
The Productivity Solutions Grant (PSG) is a government initiative in Singapore that supports local businesses in enhancing their productivity and automating existing processes through the adoption of Information Technology (IT) solutions and equipment. PSG was introduced to encourage business transformation and help companies emerge stronger from challenges such as the COVID-19 pandemic.
Under the PSG program, eligible companies can receive financial support to cover up to 50% of the eligible costs for adopting pre-scoped IT solutions and equipment. The grant provides businesses with the potential to receive up to $30,000, making it an attractive option for SMEs looking to improve their operations.
Eligibility for PSG Grants
To qualify for the PSG, your business must meet certain eligibility criteria:
- Business Entity: Your company should be registered and operating in Singapore.
- Local Equity: The company should have at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore Permanent Resident(s).
- Sales Turnover or Employment Size: Your company’s Group Annual Sales Turnover should not exceed $100 million, and the Group employment size should not exceed 200 employees.
- Use of Solutions in Singapore: The IT solutions or equipment purchased, leased, or subscribed to with the grant must be used in Singapore.
However, certain entities are not eligible for PSG, including charities, Institutions of Public Characters (IPCs), religious entities, voluntary welfare organizations (VWOs), government agencies and subsidiaries, and societies. Sole proprietorship businesses are also eligible for PSG.
It’s important to note that employers eligible for the SkillsFuture Enterprise Credit can qualify for additional subsidies under the scheme.
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Benefits of PSG Grant
The PSG provides businesses with a variety of benefits, including:
- Financial Support: PSG offers financial assistance, covering up to 50% of the eligible costs, with a cap of $30,000 per business.
- Sector-Specific and Generic Solutions: The grant supports both sector-specific and generic solutions that are pre-scoped solutions and pre-scoped packages. These solutions are pre-scoped by Enterprise Singapore, making it easier for businesses to choose the right tools to improve their operations.
- Enhanced Grant Support Levels: To address the challenges brought about by the COVID-19 pandemic, the PSG program extended its grant support levels for a limited time, providing an extra incentive for businesses to invest in technology and automation.
How to Apply for PSG Grant
Applying for the PSG is a straightforward process:
- Identify Relevant Solutions: First, identify the IT solutions or equipment that best suit your business needs. You can access a full list of pre-approved equipment and pre-scoped solutions on the GoBusiness Gov Assist website.
- Get Quotations: Depending on the type of solution, get quotations from vendors or consultants. Ensure that the quotation only covers the actual purchase/hire cost of the pre-approved solution, excluding other related administrative fees or charges.
- Grant Application Process: To apply for PSG, you need to visit the Business Grants Portal (BGP). Fill out the application form and provide all necessary details related to your business requirements.
- Submit Your Application: After completing the application, submit it through the Business Grants Portal (BGP). Be sure to follow the step guide provided for assistance.
- Prepare the Required Documents: Make sure you have all the necessary documents and information ready, including contact details, the main contact person, proposal details, vendor information, project cost, and a detailed description of the business impact.
- Processing Time: After submitting your application, the application outcome typically takes about 6 weeks. Be prepared for the wait and keep an eye on your application’s progress.
- Claims Submission: Once your application is approved, you can submit claim documents for reimbursement on the Business Grants Portal. Your solution should be purchased or subscribed as approved in the application, used for 30 days, and paid in full.
- Claim Disbursements: Claim disbursements can only be made after claims have been approved. The time for claims disbursement can vary, so it’s important to follow up on your claim status.
Streamlined Claim Process
One of the key aspects of PSG is the streamlined claim process. After your application is approved, the next step is to submit the necessary claim documentation. This documentation is essential to validate the expenses and ensure that your business complies with the grant’s requirements.
The PSG program encompasses a wide array of solutions, and your business can select from a comprehensive list of packages of vendors that have already been pre-scoped and are approved for funding. To get a better understanding of the potential costs involved in your project, you’ll need to obtain quotations from vendors.
These quotations play a critical role in estimating the financial outlay for your PSG project, and it’s vital to ensure that they cover only the actual purchase or hire costs, excluding other administrative fees or charges. These service standards ensure that the financial support is directed toward the core technology solutions and not additional, unnecessary expenses.
Ensuring Accuracy in Claims
Claim accuracy is paramount in the PSG process, and as a responsible applicant entity, it’s your duty to make sure that your claim documents are meticulous and accurate. Any discrepancies or incorrect equipment serial numbers can result in delays in claim approval.
To further facilitate this process and ensure that businesses maintain the highest standards, PSG has set service standards to guarantee prompt processing and efficient utilization of the grant. The PSG aims to encourage the seamless adoption of innovative technology solutions, and adherence to these standards is critical to the program’s success.
Monitoring Inactive Applications
In the realm of PSG, time is of the essence, and businesses need to be aware of the importance of monitoring their applications. Inactive applications that linger without action can potentially affect the program’s timelines and may lead to missed opportunities for enhancing business productivity.
To prevent this, PSG participants should actively track the status of their applications and promptly provide any additional information requested. PSG encourages businesses to stay engaged and responsive throughout the process to ensure the smooth flow of application and disbursement procedures.
Third-Party Vendor Collaboration
In some cases, businesses may choose to collaborate with a third-party vendor to implement PSG-approved solutions. These third-party vendors are critical partners in your PSG journey and can provide invaluable expertise to ensure that your chosen technology solutions align with your business objectives.
However, it’s essential to remember that the grant support is directed to the equipment or solutions eligible, and not the vendor’s services. Hence, it’s vital to clearly distinguish the costs associated with the approved solutions from any additional services provided by the vendor.
Monitoring Business Costs
Another crucial aspect of PSG is monitoring business costs. PSG aims to assist businesses in enhancing their operations and streamlining processes, but it’s equally important to maintain financial prudence. Claim approval is contingent on the accurate recording and validation of the costs associated with the PSG project.
By diligently tracking and monitoring your business costs throughout the project, you can ensure that your PSG funding is allocated efficiently, and the grant’s objectives are met. The PSG program strives to support businesses in their pursuit of growth and productivity improvements, and careful claim documentation plays a vital role in achieving these objectives.
The Productivity Solutions Grant (PSG) is a valuable resource for Singaporean businesses looking to boost productivity, streamline operations, and stay competitive in a rapidly evolving market. With generous financial support and a wide range of approved solutions, PSG makes it easier for SMEs to embrace technological advancements and drive business growth.
Remember to ensure that your submissions are complete and accurate, as incomplete submissions can lead to delays in processing. If your company meets the eligibility criteria, PSG could be the catalyst for your business’s transformation and success, allowing you to adopt supportable solutions and innovative digital solutions to improve your business processes. With PSG, you can access the financial support needed to enhance your annual grant, ultimately achieving a more competitive edge in the market, regardless of your business sector, and strengthening your relationship with vendors.
Furthermore, PSG provides a pathway for SMEs to benefit from a government grant, supporting their growth and productivity improvements, all within a reasonable holding period. PSG allows you to tailor a solution per deployment to meet your specific business goals, ensuring that you find the most suitable solution for your business operations while covering eligible supportable costs and supporting your business development and business productivity.
Ques 1. What is PSG, and how does it benefit businesses?
Ans. PSG, or the Productivity Solutions Grant, is a Singaporean government initiative that offers financial support to businesses for adopting pre-approved technology solutions and equipment. It provides up to 50% funding for eligible costs, with a cap of $30,000 per business, making it an attractive option for SMEs looking to enhance productivity.
Ques 2. Who can apply for PSG?
Ans. Businesses registered and operating in Singapore with at least 30% local equity held by Singaporean(s) and/or Singapore Permanent Resident(s) may apply for PSG. This initiative is available for businesses with an annual sales turnover not exceeding S$100 million or a group employment size not exceeding 200 employees. Sole proprietors are also eligible.
Ques 3. What are the pre-approved technology solutions available under PSG?
Ans.PSG offers a range of pre-approved technology solutions and equipment packages per solution category. These solutions are designed to cater to various business needs, covering a broad spectrum of sectors.
Ques 4. How long is the validity period for PSG applications?
Ans. The validity period for PSG applications is typically within the financial year in which the grant is sought. It is important to check the specific timelines on the Business Grants Portal (BGP) as they may vary.
Ques 5. How can I apply for PSG?
Ans. To apply for PSG, you can visit the Business Grants Portal (BGP) and complete the application form. Ensure you provide accurate information and the required financial statements.
Ques 6. What documents are required for a PSG application?
Ans. When applying for PSG, you will need to submit various documents, including financial statements, vendor quotations, and details of your proposed project, such as the chosen solution package and deployment location.
Ques 7. How long is the processing duration for a PSG application?
Ans. The processing duration for a PSG application is typically around 6 weeks after submitting all the necessary information. However, the actual processing time may vary based on factors like the completeness of your submission and the volume of applications being processed.
Ques 8. Can I apply for PSG through a third-party vendor or consultant?
Ans. No, third-party vendors or consultants are not allowed to apply for PSG on behalf of applicant companies. Businesses must apply directly through the Business Grants Portal (BGP).
Ques 9. How can I track the status of my PSG application?
Ans. You can monitor the status of your PSG application through the Business Grants Portal (BGP) to stay informed about its progress and any additional information or documentation required.
Ques 10. When and how are PSG grant disbursements made?
Ans. Disbursements are made after your claim application is approved. As of February 1, 2023, funds are disbursed through bank transfers via PayNow Corporate. You are encouraged to register for PayNow Corporate with your Unique Entity Number (UEN) through your respective banks to facilitate the disbursement process.
Ques 11. Are there any specific service standards for PSG applications?
Ans. Yes, PSG has established service standards to ensure the prompt processing of applications. These standards help in maintaining efficient timelines for application reviews and claim disbursements.
Ques 12. What is the role of pre-approved PSG vendors in the application process?
Ans. Pre-approved PSG vendors offer pre-scoped solutions that meet PSG requirements. Businesses can collaborate with these vendors to streamline the application process, ensuring that the chosen solutions are eligible for the grant.
Ques 13. Do I need to provide bank statements for my PSG application?
Ans. Yes, you may need to provide bank statements to support your PSG application. These statements can help validate the financial information provided and demonstrate your business’s capacity to meet its obligations under the grant.
Ques 14. Can sole proprietors apply for PSG?
Ans. Yes, sole proprietors are eligible to apply for PSG, provided they meet the program’s requirements and criteria.
Ques 15. What are the respective banks for PSG grant disbursements?
Ans. The respective banks for PSG grant disbursements are the financial institutions where businesses hold their accounts. The disbursements are made through bank transfers, and you are encouraged to register for PayNow Corporate to receive funds conveniently.