Singapore’s competitive business landscape requires companies to embrace innovative solutions to stay ahead of the curve. However, this adoption can cost a lot, making it hard for small and medium-sized businesses to remain innovative. Ensuring affordability for businesses to go digital, this grant effectively amplifies efficiency. Continue reading to learn how the PSG e-commerce grant helps transform businesses.
Productivity Solutions or PSG E-commerce Grant
As per the IMDA Digital Economy Report of 2023, Singapore’s digital economy accounts for 17.3% of its GDP. The growing technological advancement in the country has compelled the government to design effective policies and initiatives to facilitate economic growth built on technology and innovation. PSG e-commerce grant is a crucial initiative of the Singapore government as a part of its economic developmental plan.
Launched in April 2018, this economic grant aims to help businesses enhance their technological processes, specifically the low-scaled businesses. It delivers financial support to help business owners adopt IT solutions and digital equipment to enhance their services. By keeping it aligned with an industrial roadmap, the PSG e-commerce grant is driving businesses toward digitalization and growth.
It allows SMEs to apply for 50% subsidies for pre-approved digital solutions or equipment to enhance business productivity. In order to qualify for the grant, SMEs must connect with pre-approved vendors and solutions listed under it.
Eligibility Criteria
Businesses wishing to apply for the grant must fulfill the below-mentioned criteria:
- Must be operating in Singapore with a legal registration
- Must have a minimum of 30% domestic shareholding for specific solutions
- Purchased or leased IT solutions, consultancy services, or equipment must be used in Singapore only
- A minimum of three local employees should be appointed while filing the application
Types of Productivity Solutions
PSG e-commerce grant encompasses two types of PSG solutions-
1) Generic Solutions
These solutions apply to all companies across various business sectors intending to improve productivity. Generic PSG solutions help in enhancing general business operations and functions. Such solutions include- Human Resource Solutions, ERP, digital marketing solutions, Fleet management systems, e-commerce solutions, and many more.
2) Sector-Specific Solutions
These solutions, as the name implies, involve specially crafted digital solutions for specific sectors only. For example, advanced manufacturing, logistics, building and construction, estate agency, food, and other solutions.
How to Apply for the PSG E-commerce Grant?
Application for this grant is done through the official website of “GoBusiness Gov Assist.” First of all, businesses must go to the option “Productivity Solutions Grant” under the Government Assistance tab. Following that, one can select the required solution for one’s business under the “All PSG solutions” tab.
Prior to applying for the grant, a quotation must be obtained from a PSG pre-approved vendor for the required solutions. The final stage includes submission of the application through the Business Grants Portal. After submission, the application status can be tracked on the portal, and an appointment letter is offered after selection. The PSG E-commerce grant helps set up an online business effectively.
Benefits of PSG E-commerce Grant
Strengthening the online presence has become crucial for SMEs in today’s digitalized world. With the PSG e-commerce grant, SMEs in Singapore are empowered to accelerate digital transformation and open doors for new opportunities. Here are some of the benefits of the PSG e-commerce grant:
i) Financial Support and Reduced Costs
The biggest advantage of this grant is that it reduces financial barriers for SMEs to import into a digital world. Through this grant, SMEs can cover up to 50% of the project costs, overcoming their struggle of implementing digital projects and reducing the implementation costs.
ii) A Strong Online Presence
PSG e-commerce grant unlocks long-term business growth with a strong online presence. Building a robust digital infrastructure secures the future of a business in the long run. With PSG grant, SMEs can strengthen their online presence to penetrate a new market, increase brand visibility, and enhance capabilities.
iii) Access to Pre-Approved Vendors
PSG grant offers access to a list of competent and well-established IT vendors or consultants for businesses to choose the right solutions for them. The network of vendors is curated as per various industry standards, with a proven reputation as a solution provider. Access to these vendors allows businesses to build e-commerce platforms, streamline operations, and amplify their digital marketing capabilities.
Businesses like Bake Mission, PAMA, Ritzhouzz, and more have leveraged the benefits of the PSG e-commerce grant and embarked on their journey to the digital world. Their success stories validate the PSG grant’s effectiveness in driving sustainable business and economic growth in Singapore.