Most small-medium enterprises (SMEs) in Singapore looking for IT solutions will or would already have come across the Productivity Solutions Grant (PSG), especially those looking for eCommerce solution providers. However, with so many sites offering different information, it can be confusing for any SME business owners in approaching this topic.
With up to 70% funding support, PSG serves as an avenue for companies to support companies keen on adopting IT solutions and make long-term technology investments to enhance business processes.
Other than sector-specific solutions, PSG also supports the adoption of solutions that cut across industries, such as in areas of customer management, data analytics, financial management, inventory tracking, and most importantly, eCommerce solutions in Singapore.
As part of our duty in becoming an IMDA-approved vendor for PSG grant, we’ve decided to help SMEs in Singapore to better understand this additional support from the local government.
Without further ado, here are 7 of the most frequently asked questions under the Productivity Solutions Grant (PSG):
Q1: What are the documents required for companies to be able to apply for the Productivity Solutions Grant (PSG) successfully?
Every official application requires supporting documents. For the PSG application, you’ll require the following documents: (i) a Purchase Order or signed acceptance of Quotation/ Contract, (ii) an invoice, (iii) screenshots showing the company’s name and the name of IT solution, (iv) licence number(s) of software with a minimum of one-month usage report, (v) receipt or copy of cheque payment and (vi) bank statement showing the payment.
Q2: Can I claim for IT solutions before the application date under the Productivity Solutions Grant (PSG)?
Sadly, no. Any IT solutions claimable under the Productivity Solutions Grant must only be paid after the application date. The application must be made before the signing of the invoice/quotation/engagement letter with the solutions provider, payment to the solutions provider and commencing of any work for the project.
Q3 Who is eligible under the Productivity Solutions Grant (PSG)?
If you’re an SME registered and operating in Singapore with a minimum of 30% local shareholding and looking for IT solutions such as our eCommerce website development, you’re in luck! You’re eligible for the PSG.
For start-ups with less than 6 months of operating period, you can still apply for the PSG but it will be subjected to the Enterprise Singapore (ESG)’s assessment.
Q4: What are the payment terms accepted? When can I claim my expenses under the PSG?
A: Most of the usual business payment terms are accepted for the PSG claims, such as cheque and bank transfer.
For credit card payments, the owner of the card has to be the sole proprietor, or in the case of corporate entities, there has to be an official document stating that the expenses incurred were by the company and not of a personal nature. Reimbursements to the director/individual who has paid using their credit card will have to be shown as well.
The claims must be submitted after the solutions are used and expenses are fully paid for; and before the 13th-month mark after approval for purchases and 7th-month mark after the approval for hire purchases, subscriptions or leases.
Q5: Is there a cap to the number of packages or applications for each SME?
You can apply for more than one solution under the PSG but the deployment location of each solution must differ.
For applications supported by Enterprise Singapore (ESG), there is also a grant cap of $30,000 for each business entity between 1 April to 31 March of every year.
Be sure of the solutions you need each year before you jump into it!
Q6: Can the quotations from vendors be modified to add or include extra complimentary items/services?
Unfortunately no. As much as we love to customise the quotation to fit every customer, the quotation may not differ from the packages we submitted for the Productivity Solutions Grant (PSG). Differing non-approved quotations will be rejected.
Additional items must be quoted separately and amendments to the packages must be approved again by the IMDA.
Q7: Can the pre-approved vendor submit the application for me?
We would love to but regrettably, all submissions must be made by the organisation themselves.
Not to worry, our sales representatives are more than happy to guide you through the process.
Hopefully, some of your questions were answered above, if not feel free to contact our sales team to inquire whether you’re eligible for this grant.
As an IMDA-approved eCommerce website design agency ourselves, we’re confident that we can support your business needs for the best value at a subsidised rate.