Two of the best-known support schemes for local companies are the Productivity Solutions Grant (PSG) and the Enterprise Development Grant (EDG). If you have looked into PSG and EDG grants in Singapore, you have probably found a lot of jargon and not much plain explanation of which one fits your situation. This guide sets out what each grant is broadly for, how they differ, and how to approach an application, so you can decide whether to pursue one and where to get the current details.
Both grants are administered under Enterprise Singapore, and both are designed to help companies become more productive and capable. The key difference is scope. PSG helps you adopt ready-made solutions off the shelf, while EDG supports deeper, custom projects that change how the business operates.
What the PSG Is For
The Productivity Solutions Grant is the more accessible of the two. It supports the adoption of pre-approved, ready-to-use solutions, typically IT tools and equipment that improve productivity in a defined area of the business.
Think of it as help buying tools that already exist and are proven to work, rather than building something new. Common categories include:
- Accounting and bookkeeping software
- Inventory and point-of-sale systems
- Customer management and booking tools
- Digital marketing and e-commerce solutions
- Job-specific equipment in certain sectors
Because the solutions are pre-vetted and listed, the PSG is generally quicker and simpler to apply for than a large custom-project grant. You choose from an approved list, which removes much of the guesswork about whether a purchase qualifies. The current list of supported solutions, the level of support, and the application steps are published on the official Business Grants Portal and gov.sg channels, so check there for what is available now.
What the EDG Is For
The Enterprise Development Grant supports larger, more tailored transformation projects. Rather than buying an off-the-shelf tool, you are undertaking a project that develops the business in a meaningful way, often with the help of consultants or specialist providers.
EDG-supported projects generally fall into a few broad areas:
- Core capabilities. Strengthening the fundamentals of the business, such as strategy, financial management, or human resources.
- Innovation and productivity. Redesigning processes, adopting technology, or developing new products and services.
- Market access. Preparing to expand overseas or enter new markets.
Because these projects are bespoke and larger in scale, the EDG involves more scrutiny. You typically need a clear project plan with defined outcomes, and applications are assessed on the project’s merits and expected impact on the business. This is not a grant for routine spending; it is for genuine, planned change.
PSG and EDG at a Glance
The table below compares the two at a broad level. The specifics, including support levels and eligibility, are set by Enterprise Singapore and change over time, so confirm the current terms on the official source before you rely on anything here.
| Feature | Productivity Solutions Grant (PSG) | Enterprise Development Grant (EDG) |
|---|---|---|
| Best for | Adopting ready-made tools | Custom transformation projects |
| Scope | Pre-approved solutions list | Tailored, project-based |
| Complexity | Simpler, faster | Detailed, assessed on merit |
| Typical use | Software, equipment, e-commerce | Strategy, process redesign, market entry |
| External help | Usually not required | Often involves consultants |
| Where to apply | Business Grants Portal | Business Grants Portal |
A simple way to choose: if you know exactly which tool you want and it is on the approved list, PSG is likely the route. If you are trying to solve a broader problem or reshape part of the business, EDG is the one to explore.
Who Can Apply
Eligibility criteria are set by Enterprise Singapore and can differ between the two schemes, so treat the following as general principles and verify the current rules on the official site. Broadly, applicants are usually expected to be:
- Registered and operating in Singapore. The business must be a going concern based here.
- Locally held to a required extent. There is typically a local ownership condition.
- Financially viable. The business should be in a position to take on and complete the project.
Beyond the baseline, EDG projects are assessed on whether the project is sound and whether the business can see it through. There is no automatic entitlement; a viable proposal with clear outcomes stands a better chance. Do not commit to a purchase or sign a contract before your application is approved, as spending made too early may not be supported. Always confirm the sequence on gov.sg or the Business Grants Portal first.
How to Apply Without Wasting Effort
A little preparation saves a lot of back-and-forth. The application runs through the Business Grants Portal, which you access using your business’s corporate login.
- Define the outcome first. Be clear about what problem you are solving and what better looks like. This matters most for EDG.
- Check current eligibility and support. Read the official scheme pages so you apply for the right grant with the right expectations.
- Prepare your documents. Financials, quotations, and for EDG a project plan with measurable outcomes.
- Apply before committing. Submit and secure approval before you buy or sign, following the official sequence.
- Keep records. Retain quotations, invoices, and proof of the completed work for claims and any review.
If your accounts are messy, sort them out first; clean records make eligibility and claims far easier. Our guide on accounting and bookkeeping covers the basics, and getting your business banking in order helps too.
Deciding Whether a Grant Is Worth It
Grants are helpful, but they are not free money in the sense of no effort. Weigh the value honestly.
- The solution must be worth it on its own. A tool you would not buy without support is rarely a good buy even with support. The grant should sweeten a good decision, not create a bad one.
- Factor in your time. Applications, especially for EDG, take real effort. Make sure the payoff justifies it.
- Mind the sequence and conditions. Applying too late, or spending too early, can cost you the support entirely.
Used well, PSG and EDG can meaningfully lower the cost of becoming a stronger, more productive business. The trick is to start from a genuine business need, then find the grant that fits, rather than hunting for something to spend a grant on.
This article is general information and does not reflect your specific circumstances. Grant scope, support levels, and eligibility are set by Enterprise Singapore and change over time, so verify current details on the Business Grants Portal, the Enterprise Singapore website, or gov.sg before deciding. It is not personalised financial advice.
Explore more
For the wider picture on non-repayable funding, read our guides on business grants in Singapore and government startup grants. If a grant does not cover your need, compare it with business loans and financing, and see how tools funded by PSG link to broader productivity and automation for SMEs.