The Productivity Solutions Grant (PSG) is one of the most underused benefits available to Singapore SMEs. It subsidises up to 50% of the cost of pre-approved software solutions — including accounting and invoicing tools — and it's available to most registered Singapore businesses.

The reason most SMEs don't use it isn't eligibility. It's awareness. Many business owners simply don't know it exists, or assume the application process is too complex to be worth it.

This guide covers everything you need to know.

What the PSG Grant Covers

The PSG supports the adoption of pre-approved IT solutions that improve business productivity. For accounting and finance, this includes:

• Cloud accounting software
• Invoicing and billing systems
• Payroll software
• Inventory management tools
• Point-of-sale systems with accounting integration

The grant subsidises up to 50% of qualifying costs. This includes software subscription fees, implementation fees, and in some cases, training costs.

Who Is Eligible

To apply for PSG, your business must:

• Be registered and operating in Singapore
• Have a minimum of 30% local shareholding
• Have a group annual sales turnover of not more than SGD 100 million, OR less than 200 employees

Most SMEs qualify. Sole proprietorships, partnerships, and private limited companies are all eligible as long as they meet the above criteria.

There is no minimum age for the business — newly incorporated companies can apply.

How the PSG Application Works

Step 1: Identify a pre-approved solution. Not all software qualifies for PSG — only solutions that have been assessed and pre-approved by Enterprise Singapore. The vendor must be registered on the Business Grants Portal (BGP) as a PSG pre-approved vendor.

Step 2: Get a quotation from the vendor. Before applying, you need a formal quotation from the software vendor. This quotation is submitted as part of your application.

Step 3: Apply on the Business Grants Portal. Applications are made at businessgrants.gov.sg. You'll need your Corppass login. The application asks for basic business information, the solution you're adopting, and the vendor quotation.

Step 4: Receive approval before purchasing. This is the most commonly misunderstood requirement. You must receive PSG approval BEFORE paying for the software. If you purchase the software first and then apply, you won't be reimbursed.

Step 5: Deploy and claim. After deployment, you submit a claim with proof of implementation. The grant is disbursed as a reimbursement.

Common Mistakes That Disqualify Applications

Buying before applying. The single most common mistake. If you're considering PSG, get approval first.

Using a vendor not on the pre-approved list. Only designated PSG vendors qualify. Check the BGP before committing to any software.

Applying for the wrong SIC code. Your business must be applying for a solution appropriate to your industry classification. Some solutions are restricted to specific industries.

Not completing implementation before claiming. The claim requires evidence of actual deployment and use, not just purchase.

Why PSG Matters for Software Decisions

For many Singapore SMEs, PSG eligibility is the deciding factor in software choice. One commenter on askSingapore put it directly: "MYOB is popular in SG because of PSG grant given to businesses."

At 50% subsidy, a SGD 80/month software subscription becomes SGD 40/month. Over two years, that's SGD 960 back in your pocket. For a three-user ABSS licence at SGD 2,500, the grant covers SGD 1,250.

This changes the economics of software adoption significantly. Tools that might seem expensive without the subsidy become cost-effective with it.

ArcPay and PSG

ArcPay is pursuing PSG pre-approval with Enterprise Singapore. Pre-approval requires the vendor to be incorporated as a Singapore entity — which ArcPay is in the process of completing.

Once pre-approved, ArcPay users will be able to apply for PSG to cover up to 50% of their subscription cost. A Base plan at SGD 29/month would cost SGD 14.50/month after subsidy. A Pro plan at SGD 79/month would cost SGD 39.50/month.

If you're considering ArcPay and want to wait for PSG eligibility, join the waitlist. We'll notify you when pre-approval is confirmed and walk you through the application process.

Join the PSG waitlist →

We'll notify you the moment PSG pre-approval is confirmed.