Thinking about digitally transforming your business? Worried about how you’ll pay for it?
It’s one of the biggest obstacles that stop SMEs investing in new technology. Don’t let that happen to you.
The government has enabled digital transformation funding to ensure small businesses can compete with the big end of town. Grants will cover up to 50% of solution costs so your transformation has never been so affordable.
Also with 92% of SMEs saying digital transformation is extremely or very important to the growth of their business…
There is no question if you should digitally transform, but how will you fund it?
Here’s what we cover:
- Why Funding Digital Transformation Is Important
- What Is the PSG Grant?
- Benefits of Working With A Pre-approved PSG Vendor
- Solutions Covered Under The PSG Grant
- Steps to Apply for the PSG Grant
Why Funding Digital Transformation Is Important
Think about the businesses you consider your competitors.
They probably already have automated systems to handle day-to-day tasks. Maybe they use cloud ERP software to connect every department.
They have staff analysing their data. Figuring out ways to save time and money.
Meanwhile you’re still manually processing invoices and worrying where the next contract is coming from.
It’s no secret digital solutions can give you an advantage over smaller businesses. They’re why large corporations dominate their industries.
Unless… you use those same digital solutions to take on the big guys.
Government grants such as the Productivity Solutions Grant were established to help SMEs fund technology solutions.
And pre-approved PSG vendors make applying for those grants even easier. Their solutions are already pre-approved by the government. This saves you time guessing which applications will be accepted.
Take ERP software for example. Instead of researching which ERP software is best for your business, work with an experienced ERP vendor that understands the grant process.
Recommended: Here’s a comprehensive ERP solution covering the essential modules: psg grant sap business one.
What Is the PSG Grant?
Launched by the Singapore government, the Productivity Solutions Grant (PSG) helps SMEs buy IT solutions.
Whether that’s new hardware, software solutions or consultancy services. The grant will cover up to 50% of your cost (maximum of S$30,000 per year).
Enterprise Singapore (previously SPRING) has pre-approved vendors selling solutions across many business categories. Buying from them automatically qualifies you for the grant.
There’s no need to demonstrate your solution is viable. Nor do you have to jump through hoops to get approved. Someone else has already done that work for you.
Your business must:
- Be registered and operating in Singapore
- Have at least 30% local shareholding
- Turnover is less than S$100 million OR Have fewer than 200 employees
- Not entered into a contract nor made any payment before application approval
Simple right? Let’s take a look at pre-approved vendors.
Benefits of Working With A Pre-approved PSG Vendor
Cutting to the chase. If you’re going to apply for the PSG. Using a pre-approved vendor is your best option.
Here’s why:
Pre-approved vendors have been assessed by the government. Their solutions qualified for the grant. In other words, they know what they’re talking about.
Partnering with a pre-approved vendor gives you:
- Faster application processing – The solution is already certified so your application will be processed quicker.
- Less risk – You know the solution works. There’s no gamble if you’ll see a return on your investment.
- Guidance from the grant process – Vendor familiar with PSG will save you time navigating their portal.
- Implementation support – Pre-approved vendors won’t just leave you high and dry. They’ll assist with onboarding and training.
Versus going it alone and hoping your solution gets approved.
It’s going to take you much longer. And may still not meet the qualifying criteria.
Solutions Covered Under The PSG Grant
PSG funded solutions cover pretty much every department of your business.
Here are some of the categories that apply to SMEs:
Accounting & Finance – Cloud accounting software for invoice management, expense tracking and automated financial reports.
Customer Relationship Management – Manage customer interactions, sales pipelines and execute targeted marketing campaigns.
Enterprise Resource Planning – Connect every department of your business. From finance to inventory, sales to operations.
Human Resource Management – Streamline payroll, leave management, and employee records.
Inventory Management – Real-time visibility into your stock levels and inventory forecast.
Digital Marketing – From SEO tools to social media management. Automate your lead generation and online sales with e-commerce platforms.
There are a tonne more categories. With hundreds of software options under each category.
Focus on the pain points your business is facing first. Then look for software solutions to address them.
Steps to Apply for the PSG Grant
Okay. You’re ready to apply. Follow these simple steps…
Step 1: Identify Solutions You Want/Need
Take stock of your business. What do you need to run more effectively?
Is there too much manual data entry? Are your sales managing invoices and payments?
Knowing where your weak spots are helps you identify suitable solutions.
Step 2: Search For A Pre-approved PSG Vendor
Visit GoBusiness Gov Assist portal and search for PSG approved solutions and vendors.
Once you’ve found solutions that match your requirements. Compare vendor profiles, pricing and read customer reviews.
Compile a shortlist of vendors you wish to obtain quotations from.
Step 3: Request For Quotations (RFQ)
Contact vendors on your shortlist. Ask each of them to provide you with detailed quotations.
Be sure to include what is and isn’t included in their quote.
Important: Do NOT sign any agreements or make payments to the vendor.
Your application will be disqualified if you do.
Step 4: Submit Your Application to gov.sg
Using your CorpPass create an account on the Business Grants Portal.
Follow their step-by-step guide to add documents to your application.
Documents you’ll need to submit:
- Registration document to evidence your company is registered in Singapore.
- Copy of vendor quotation.
- Project overview and estimated timeline.
Step 5: Sit Back, Relax and Wait…
Your application will normally be processed within 4-6 weeks.
Once approved. You can then proceed to sign the contract and pay for the solution.
Step 6: Implement Your Solution & Claim
Your vendor will work with you to implement the solution. Once completed and you’ve agreed everything is working..
Head back to the portal and claim your funds.
Digital Transformation ROI
Still thinking about it?
Digital solutions such as AI are already helping businesses save money.
SMEs who used PSG funded AI solutions saw cost savings of 52% on average in 2024.
It’s no secret that investing in new technology pays off. Especially if that technology is going to save your business time and money.
Small businesses have the advantage of being able to implement solutions quicker.
Big business takes time to roll out digital transformation because of how large they are.
You’re an SME. That means you’re agile. Digital transformation for small businesses can happen quickly.
Don’t get left behind. Start your journey today.
Wrapping Things Up
Digital transformation doesn’t have to break the bank.
PSG grants allow you to upgrade your businesses systems at a fraction of the cost. Pre-approved vendors take the guesswork out of which solutions qualify.
Let’s recap:
- PSG covers 50% of cost up to $30,000 per year.
- Pre-approved vendors have already been checked by the government.
- Application process takes 4-6 weeks if you have all the documents ready.
- Never pay a vendor before your application is approved.
- You can apply for multiple solutions per year.
Small businesses that start their digital transformation journey now will leave competitors behind.
Digital solutions grant funding is available. Pre-approved solutions have been tried and tested by hundreds of businesses.
You just need to decide… when will YOU start your journey?
Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications. He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. Peyman has worked with international organizations to improve digital transformation strategies and data-gathering strategies that help identify customer touchpoints and sources of data that tell the story of what is happening. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.
