- How To Decide When To Refinance Or Reprice For Your Loans
- Why Open A Business Account With A Bank?
- Guide to Incorporating A Business And Setting Up A Business Account
- The Best SME Business Account In Singapore 2023
- Who's Liable For Your Debt After You Pass On?
- Guide To Home Office Scheme In Singapore
- You've Heard It Before: Charitable Donations Can Help Your Business With Your Taxes. But How?
- Can Directors be Liable for Company Debts in Singapore?
- Complete Guide to Hiring Property Conveyancing Lawyer In Singapore
- Who Acts As A Guarantor In A Business Loan? A Detailed Legal Advice Before You Become a Loan Guarantor!
COVID-19: Productivity Solutions Grant (PSG) For Companies Embracing IT Solutions in 2020
The Productivity Solutions Grant (PSG) supports companies in the adoption of pre-scoped IT solutions and equipment that enhances productivity and business processes. PSG has been enhanced to encourage enterprises to continue their digitalization and productivity upgrading efforts, as announced during the Supplementary Budget 2020.
PSG covers sector-specific solutions including the retail, food, logistics, precision engineering, construction and landscaping industries. Other than sector-specific solutions, PSG also supports adoption of solutions that cut across industries, such as in areas of customer management, data analytics, financial management and inventory tracking.
With the Covid-19 pandemic and “Circuit Breaker” measures put in place, many companies have become highly reliant on digital solutions to be able to continue with business without putting a stop in operations. Hence, in view of the Covid-19 situation, the maximum funding support level has been raised to 80% from 1st April 2020 till 31st December 2020.
Companies that have previously been reluctant or hesitant at the idea of digital transformation should also start looking at going digital now. Even when the “Circuit Breaker” measures are lifted from 1st June 2020 onwards, businesses are unlikely to resume as normal, i.e. Pre-Covid situation.
The scope of Generic solutions will also be expanded to help companies implement COVID-19 business continuity measures:
- Online collaboration tools
- Virtual meeting and telephony tools
- Queue management systems
- Temperature screening solutions
In partnership with Infocomm Media Development Authority, the scope of PSG has been enhanced to include Laptop-Bundled Remote Working Solutions for eligible companies from 17th April 2020 till 31st December 2020.
FAQs for Productivity Solutions Grant
Companies can apply for PSG if they meet the following criteria:
- Registered and operating in Singapore
- Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore
- (Selected solutions only) An SME with minimum 30% local shareholding; AND Company's Group annual sales turnover less than S$100 million, OR less than 200 employees
To apply for the PSG, companies will have to:
- Visit Tech Depot to access the list of supportable solutions and identify relevant solutions that they may want to procure
- Obtain quotations from vendor (unsigned). IT solutions and vendors must be pre-qualified under the grant
- Company should not have signed any contract or made any payment before submitting the PSG application
- Submit an application on the Business Grants Portal (BGP) at www.businessgrants.gov.sg. Companies will need to have a CorpPass account to transact on the BGP
Can unlisted IT solutions or vendors who are not pre-approved be supported?
No, companies can only be supported on pre-scoped packages by pre-approved vendors. For equipment, there is no pre-approved vendor but the equipment must minimally meet the specifications provided.
What are the supportable costs of adopted equipment/IT solutions?
Unless otherwise stated, only the actual purchase/lease/hire cost of the pre-approved equipment or pre-approved IT solution package is supportable. This excludes other related administrative fees/charges, e.g. delivery fees, installation.
Can the equipment or IT solution be used for the company’s subsidiary or related party?
No, the equipment or IT solution should only be used by the applicant entity and not by a related party.
How long must the purchased equipment or IT solution be held for?
The holding period for the equipment or IT solution is one year from the date of final claim disbursement.
How many PSG grants can a company apply for?
Companies can put in more than one PSG application depending on business needs. However, support can only be extended for one package per solution category per deployment location.
Supportable applications are:
- The purchase of one unit of either an equipment/IT solution per deployment;
- Subsequent purchase of the IT solution to be deployed at a different location
This means that if the Applicant applies subsequently (i.e. after the first application) for the same IT solution to be deployed at the same location, this application will be rejected.
Can a company submit concurrent applications?
Yes, this is possible.
Can a company engage a related associate as the third-party vendor?
The Applicant shall ensure that the vendors selected do not have any relationship, connection, associated or dealings with the Applicant or its related companies or their directors and common shareholders. Applicant will be required to declare any relationship with vendors.
What is the annual grant cap for PSG?
Each company supported by ESG is subjected to an annual grant cap of S$30,000 for solutions supported by ESG, starting on 1 April and ending on 31 March the following year.
What happens when the grant cap is fully utilised?
Companies that have fully utilised their grant caps will not be eligible for further support within the validity period of the grant cap, and may then apply for new solutions at the next period when the grant caps are refreshed. Companies are encouraged to plan the use of the PSG for their purchases.
What is the processing time for applications?
Applications are processed within 4-6 weeks from the submission of all required information.
Companies are strongly encouraged to submit their applications ahead of time to account for the application outcome and/or processing duration required.
What is the processing time for claims disbursement?
Claims are processed within 4-6 weeks from the submission of all required information.
Companies are encouraged to submit their claims after they have fully deployed, providing documents to show use of the solution for at least one month. Incomplete submissions will result in delays.
How will the PSG grant disbursement take place?
Disbursement of the PSG grant will be credited directly to the company’s bank account through GIRO. The completed GIRO form must be verified by the company’s bank and submitted to ESG before the company’s claim request. For multiple claims, the GIRO form is only required during the submission of the first claim.
The company will need to submit a new GIRO form if there are changes to the company’s account details.
How will I be notified of the claims disbursement?
An email will be sent to the email address stated on the BGP to confirm the transaction.