Government reduces support level for PSG and EDG
Last updated on 5 April 2023
With effect from 1 April 2023, the government will be reducing the support level for the Productivity Solutions Grant (PSG) and Enterprise Development Grant (EDG).
Productivity Solutions Grant (PSG)
The PSG was implemented to assist SMEs in implementing technological solutions that will raise their operational productivity and efficiency. Cloud accounting services, inventory management, customer relationship management and human resource management are among the solutions supported.
For companies that applied for PSG from 1 April 2022 to 31 March 2023, the grant support level will be 70% (80% for pre-scoped solutions in the Food Services and Retail sectors) on qualified expenditures. For applications received on or after 1 April 2023, the support level will be reduced to 50%.
Enterprise Development Grant (EDG)
The EDG was rolled out to assist SMEs in market access, innovation and productivity, and human capital development. Eligible projects include the creation of new products or services, the implementation of new or cutting-edge technology, or the market expansion into untapped areas.
For applications received on or after 1 April 2023, SMEs can receive up to 50% support for EDG (down from 70%). However, sustainability-related projects may be supported at up to 70% from 1 April 2023 to 31 March 2026. This is in line with Singapore’s Green Plan 2030 to encourage the adoption of sustainable solutions.
Even though the level of support has been reduced, companies looking to adopt new technologies to prepare for the uncertain future should still go ahead with their plans. For companies unsure how to proceed or where to start, accounting services Singapore companies with grant assistance experience is an excellent resource to tap.
