PSG Grant Guide for Singapore SMEs (2026): Eligible Solutions and How to Apply

I've lost count of how many SME owners I've spoken to who built their website or app first, then discovered PSG afterwards. "Can I still apply?" The answer is almost always no — PSG requires pre-approval before you spend the money. That's SGD 10,000-20,000 in co-funding they walked away from because nobody told them to apply first.

The PSG covers up to 70% of eligible digital solution costs, capped at SGD 30,000 per solution. If you're spending money on digital transformation anyway — and you should be — this grant means the government picks up most of the tab.

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The Quick Version

Max Funding: Up to 70% of eligible costs (capped at SGD 30,000)

Eligibility: Annual turnover SGD 100M or less; minimum 30% local shareholding

Common Solutions: Custom websites, web apps, e-commerce, AI chatbots, automation tools

Critical Rule: Apply BEFORE you pay the vendor

Processing Time: 4-8 weeks after submission

Administered By: Enterprise Singapore (ESG) / IMDA (for ICT solutions)

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Who Qualifies

Basic Eligibility

• Annual turnover at or under SGD 100 million (SGD 200M for hotels, F&B, retail)
• Minimum 30% local shareholding (Singapore citizens or PRs)
• Registered and operating in Singapore
• Not already receiving equivalent government funding for the same solution

PSG is open to nearly all sectors — retail, F&B, professional services, manufacturing, logistics, healthcare. Some regulated industries face tighter restrictions. Check IMDA's eligibility checker before investing time.

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What PSG Covers

Websites and E-Commerce

• Custom website development (not DIY builders like Wix)
• E-commerce platforms for online sales
• Website performance optimisation
• Content management systems

Typical project: SGD 8,000-25,000. With PSG: SGD 2,400-7,500 out of pocket.

Web and Mobile Applications

• Custom web apps (booking systems, workflow automation)
• Mobile apps for customer engagement or operations
• API integrations

AI and Automation

• AI chatbots for customer support
• Robotic process automation for back-office tasks
• Machine learning for business intelligence
• Invoice automation and document processing

If you're considering an AI chatbot for your business, PSG can fund 50-70% of the build.

Cloud and Infrastructure

• Cloud migration (AWS, Azure, GCP)
• Cloud-based accounting, CRM, ERP
• Backup and disaster recovery

See our Cloud Migration Cost guide for realistic project costs.

Cybersecurity

• Security assessments and implementations
• PDPA-compliant data management
• Security audits and penetration testing

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How Much You Can Claim

PSG covers up to 70%, capped at SGD 30,000.

Example scenarios:

Custom website (SGD 15,000): PSG funds SGD 10,500. You pay SGD 4,500.

E-commerce + AI chatbot (SGD 50,000): PSG caps at SGD 30,000. You pay SGD 20,000.

Cloud migration (SGD 8,000): PSG funds SGD 5,600. You pay SGD 2,400.

Key insight: If your project exceeds SGD 42,857, you hit the cap. For larger projects, consider splitting into separate PSG applications ("Phase 1: Website" and "Phase 2: Automation") to maximize total funding.

What's Eligible

• Development and design fees
• Software licenses (first year)
• Hosting and domain (first year)
• Integration and testing
• Project management and consultation
• Training and documentation

What's NOT Covered

• Hardware
• Ongoing subscriptions beyond year 1
• In-house staff salaries
• Standalone marketing or content creation
• Vendor markup on third-party services

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Step-by-Step Application

Step 1: Register on PSG Portal

Visit PSG Portal (IMDA) and log in with your business registration credentials.

Step 2: Create Application

Include project title, problem statement, proposed solution, and expected outcomes. Be specific — "reduce order processing from 24 hours to 2 hours" beats "improve efficiency."

Step 3: Select Your Vendor

You can apply before selecting a vendor, but need quotes for final approval. PSG doesn't restrict you to pre-approved providers, but IMDA reviews credentials. Ensure your vendor has valid Singapore registration, detailed cost breakdowns, and understands PSG compliance.

At Adaptels, we structure project proposals specifically for PSG alignment — reach out if you need a quote.

Step 4: Get Pre-Approval (Critical)

Submit your application with vendor quotes BEFORE signing a contract. This pre-approval letter confirms IMDA will fund the project, locks in the co-funding rate, and prevents disputes about eligible costs later.

Processing: 4-8 weeks.

Step 5: Proceed with Development

Once pre-approved, sign the contract and begin work. Keep all invoices, receipts, and documentation.

Step 6: Claim Reimbursement

After delivery and sign-off, submit final invoices, proof of payment, acceptance certificate, and completion report.

Reimbursement: 2-4 weeks after submission.

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Realistic Timeline

Application preparation: 1-2 weeks

IMDA pre-approval: 4-8 weeks

Development: 8-16 weeks

Reimbursement: 2-4 weeks

Best case total: roughly 6 months

Typical: 9-12 months

If you need a solution by Q3 2026, start your PSG application in Q1.

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Common Mistakes

1. Applying after paying. The most expensive mistake. Apply and get pre-approval before any money changes hands.

2. Choosing ineligible solutions. Templates, commodity SaaS, and hardware don't qualify.

3. Underestimating scope. Pre-approval for SGD 15,000 when the project ends up costing SGD 25,000. Get multiple quotes and include 10-15% contingency.

4. Losing documentation. Invoices, receipts, sign-off forms — keep everything in a shared folder with your vendor from day one.

5. Applying in December. IMDA's queue backs up at year-end. Apply by mid-year for faster processing.

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Beyond PSG

Depending on your business, you might also qualify for:

• EDG: Broader transformation funding (up to 70%, SGD 300K cap)
• Digital Resilience Programme: Cybersecurity and data protection
• IMDA Digital Acceleration: E-commerce, digital marketing, logistics tech

See our Digital Transformation Checklist for the full funding landscape.

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Before You Apply: Checklist

• Your business meets eligibility (turnover, shareholding)
• Proposed solution is on IMDA's eligible list
• You have 2-3 vendor quotes
• You've calculated your 30% out-of-pocket cost
• Internal budget is approved
• You've registered on the PSG Portal
• You've allowed 6-12 months for the full timeline
• You have a designated point person for the application

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Key Takeaways

1. PSG funds up to 70%, capped at SGD 30,000. For most custom websites and web apps, this cuts your cost by more than half.

1. Apply for pre-approval before signing any vendor contract. This is the single most important rule.

1. Eligible solutions include custom websites, e-commerce, web apps, AI tools, automation, and cloud migrations. Off-the-shelf SaaS and templates don't qualify.

1. The full process takes 6-12 months. Plan ahead.

1. Documentation is everything. Organize from day one.

If you're exploring a digital solution, PSG turns it from a cost into a strategic investment where the government covers most of the bill. Start with a conversation about your vendor's PSG experience — agencies like Adaptels walk you through pre-approval and ensure your project is structured for maximum funding.

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Resources

• IMDA PSG Portal
• Enterprise Singapore Grants
• IMDA Eligible Solutions List

Questions about your specific project? Contact Adaptels for a no-obligation PSG consultation.

Sources

1. Enterprise Singapore — PSG
2. GoBusiness — PSG
3. IMDA — SMEs Go Digital