Singapore offers multiple grants to help businesses go digital — from basic IT adoption to advanced AI and IoT deployment. The right grant depends on your digital maturity, project complexity, and budget.
This guide is written for business operators who want clarity fast:
- Which grant matches your digitalization goal
- What it can fund (and what it won’t)
- The simple steps to apply without getting rejected
Best-Fit Grants for Digitalization
Start Here (Quick Pick)
- You need basic IT software (accounting, CRM, POS, e-commerce, HR/payroll) → PSG
- You’re running a custom digital transformation project (process redesign, automation, systems integration) → EDG
- You’re deploying advanced technology (AI, IoT, cloud infrastructure, data analytics, robotics) → ADS
- You’re investing in digital R&D (developing proprietary tech, prototyping new digital products) → EIS
- You want to upskill staff on digital tools (training courses for new software or digital workflows) → SFEC
Eligibility & Timing Rules
- Apply before you pay or sign. Deposits, invoices, or signed contracts before submission can make you ineligible.
- Use pre-approved solutions where required. PSG only funds solutions from the pre-approved catalogue.
- Company size matters. PSG and ADS target SMEs (under S$100M revenue, under 200 employees). EDG supports both SMEs and larger companies at different co-funding rates.
- No double-dipping. The same expense cannot be claimed under multiple grants, but different project components can use different grants.
- Tax deductions work differently from grants. EIS provides a tax deduction, not a cash reimbursement — you need taxable income to benefit.
Top Grants for Digitalization
1) Productivity Solutions Grant (PSG)
Use PSG when: you need pre-approved IT solutions for standard business functions — accounting, CRM, e-commerce, HR, inventory, or cybersecurity.
Good fit examples
- Accounting and invoicing software (Xero, QuickBooks, automated billing)
- CRM and sales management (customer relationship platforms, lead tracking)
- E-commerce and online retail (web storefronts, marketplace integrations)
- Inventory and supply chain management (stock tracking, warehouse systems)
- HR and payroll systems (leave management, time tracking, CPF integration)
- Cybersecurity solutions (endpoint protection, managed security services)
- POS and retail management (point-of-sale, queue management)
How much
- Up to 50% of eligible costs
- S$30,000 annual cap per company (1 Apr—31 Mar grant year)
When
- Apply before any payment or contract signing
- Processing time: approximately 4—6 weeks
How (fast path)
- Browse the pre-approved solutions catalogue on GoBusiness for your business need.
- Get a vendor quote addressed to your ACRA entity name (do not sign or pay).
- Submit via BGP (Business Grants Portal) with financials and quote.
- After approval, sign vendor contract and proceed with deployment.
- Submit claim with invoices and proof of deployment.
Where
- See more: Productivity Solutions Grant (PSG)
2) Enterprise Development Grant (EDG)
Use EDG when: you’re implementing a custom digital transformation project that goes beyond off-the-shelf software — process redesign, systems integration, automation, or building new digital capabilities.
Good fit examples
- Business process automation (workflow redesign, RPA implementation, eliminating manual data entry)
- Systems integration (connecting ERP, CRM, warehouse, and e-commerce into one workflow)
- Digital strategy consulting (digital transformation roadmap, technology assessment)
- Custom software development (bespoke platforms, proprietary tools for operations)
- Supply chain digitalization (end-to-end visibility, demand forecasting, supplier portals)
- Data infrastructure (data warehousing, business intelligence dashboards, reporting automation)
How much
- Up to S$500,000 funding support
- Typically 50—70% co-funding for SMEs
- Processing time: 8—12 weeks
When
- Apply before starting the project
- Requires a project plan with clear business outcomes and measurable KPIs
How (fast path)
- Define your digital transformation project and expected business outcomes (productivity gains, cost savings, revenue impact).
- Get vendor quotes for consultancy, technology, and professional services.
- Prepare a project plan showing current state, proposed changes, and expected results.
- Submit via BGP with business case and supporting documents.
- After Letter of Offer, begin project execution.
Where
- See more: Enterprise Development Grant (EDG)
3) Advanced Digital Solutions (ADS)
Use ADS when: you’re deploying advanced technologies that go beyond basic IT — artificial intelligence, Internet of Things, cloud-native infrastructure, or advanced data analytics.
Good fit examples
- Artificial intelligence (machine learning models, computer vision, natural language processing, predictive analytics)
- Internet of Things (IoT) (sensor networks, real-time monitoring, predictive maintenance)
- Cloud infrastructure (cloud migration, hybrid cloud architecture, containerized deployments)
- Advanced data analytics (big data processing, real-time dashboards, data-driven decision-making)
- Robotics and automation (autonomous systems, intelligent process automation)
- Cybersecurity operations (security operations centre, threat detection, zero-trust architecture)
How much
- Up to 70% co-funding for qualifying projects
- Project scope typically larger than PSG
When
- Apply before project commencement
- Requires demonstration of how the advanced solution addresses a specific business challenge
How (fast path)
- Identify the advanced technology that addresses your business challenge.
- Engage a qualified technology vendor or consultant with relevant expertise.
- Prepare a project proposal outlining the technology, implementation plan, and expected outcomes.
- Submit via BGP with technical documentation and vendor quotations.
- After approval, proceed with implementation and milestone reporting.
Where
- See more: Advanced Digital Solutions (ADS)
4) Enterprise Innovation Scheme (EIS)
Use EIS when: you’re investing in digital R&D — developing proprietary technology, prototyping new digital products, or conducting technical experimentation.
Good fit examples
- Software product development (building SaaS platforms, mobile apps, proprietary algorithms)
- AI/ML model development (training custom models, developing AI-powered features)
- Technology prototyping (proof-of-concept builds, MVP development, technical feasibility testing)
- Digital innovation projects (blockchain applications, edge computing research, new tech integration)
- Automation R&D (developing custom robotics, intelligent process solutions)
How much
- 400% tax deduction on the first S$400,000 of qualifying R&D expenditure
- Effectively reduces taxable income — the more you spend on qualifying R&D, the greater the tax benefit
- Applicable to staff costs, consumables, and outsourced R&D
When
- Claim during annual tax filing (no pre-approval required for existing R&D activities)
- Expenditure must be incurred in the relevant Year of Assessment
- Must maintain proper documentation of R&D activities and expenditure
How (fast path)
- Identify qualifying R&D activities (must involve technological uncertainty and systematic investigation).
- Track all eligible expenditure: staff costs, materials, and outsourced R&D fees.
- Maintain a project log documenting R&D objectives, methodology, and outcomes.
- Claim the enhanced deduction in your annual corporate tax return (Form C).
- Retain supporting documents for at least 5 years in case of IRAS audit.
Where
- See more: Enterprise Innovation Scheme (EIS)
5) SkillsFuture Enterprise Credit (SFEC)
Use SFEC when: you want to upskill employees on digital tools and technologies — training courses, certifications, and workforce development related to digitalization.
Good fit examples
- Digital skills training (data analytics, cloud computing, cybersecurity courses for staff)
- Software adoption training (vendor-provided training for new enterprise software)
- Technology certifications (AWS, Azure, Google Cloud, Salesforce certifications for employees)
- Digital transformation workshops (change management, digital literacy programmes)
- Automation and AI training (upskilling operations teams on new automated workflows)
How much
- S$10,000 credit per eligible employer
- Can be used to offset up to 90% of out-of-pocket costs for supportable courses
- Usable for SkillsFuture Singapore (SSG) funded courses
When
- Credit is automatically allocated to eligible employers
- Must be used within the validity period (check SSG for current expiry)
- Applies to courses with SSG funding support
How (fast path)
- Check your SFEC balance on the SkillsFuture for Enterprise portal.
- Identify SSG-supported courses relevant to your digitalization needs.
- Enrol employees in approved training programmes.
- SFEC credit is automatically applied to offset eligible course fees after SSG subsidies.
Where
- See more: SkillsFuture Enterprise Credit (SFEC)
Digitalization Scenarios & Which Grant to Use
| Business Scenario | Grant | Funding | Timeline |
|---|---|---|---|
| F&B business adopting POS and inventory software | PSG | Up to S$30K (50%) | 4—6 weeks |
| Retailer setting up e-commerce storefront | PSG | Up to S$30K (50%) | 4—6 weeks |
| SME implementing accounting and HR software | PSG | Up to S$30K (50%) | 4—6 weeks |
| Company integrating ERP, CRM, and warehouse systems | EDG | Up to S$500K (50—70%) | 8—12 weeks |
| Manufacturer redesigning production workflow with automation | EDG | Up to S$500K (50—70%) | 8—12 weeks |
| Logistics firm deploying IoT sensors for fleet tracking | ADS | Up to 70% co-funding | 8—12 weeks |
| Company implementing AI-powered demand forecasting | ADS | Up to 70% co-funding | 8—12 weeks |
| Tech company developing proprietary SaaS product | EIS | 400% tax deduction | Annual tax filing |
| Startup prototyping an AI/ML-based product | EIS | 400% tax deduction | Annual tax filing |
| SME training staff on new cloud-based tools | SFEC | S$10K credit | Ongoing |
| Company certifying IT team in cybersecurity | SFEC | S$10K credit | Ongoing |
Digitalization Pitfalls to Avoid
1. Choosing the wrong grant for your digital maturity
- PSG is for adopting standard IT solutions — do not apply for PSG if you need custom development
- EDG is for custom transformation projects — do not use EDG for off-the-shelf software that PSG already covers
- ADS is for advanced tech (AI, IoT, cloud) — basic CRM or accounting does not qualify
2. Starting before approval
- Do not sign vendor contracts, make deposits, or begin implementation before receiving your Letter of Offer
- Pre-committed expenses are not reimbursable under any of these grants
3. Picking a solution not on the PSG pre-approved list
- PSG only covers solutions in the GoBusiness catalogue
- If your preferred vendor is not listed, you cannot claim PSG for their product
- Check the catalogue first, then approach the vendor
4. Vague project plans for EDG
- EDG requires specific, measurable outcomes (e.g., “reduce order processing time by 40%”)
- Generic descriptions like “improve efficiency” or “go digital” lead to rejection
- Include current-state metrics, target-state metrics, and a realistic timeline
5. Confusing tax deductions with cash grants
- EIS gives a tax deduction, not a cash payout — you need taxable income for it to be useful
- A loss-making company does not benefit from EIS in the current year (though losses can be carried forward)
- PSG, EDG, and ADS provide direct co-funding of project costs
6. Overlooking the PSG annual cap
- PSG is capped at S$30,000 per grant year (1 Apr—31 Mar)
- If you need multiple IT solutions, plan across grant years or combine with EDG for larger projects
7. Not stacking grants strategically
- You cannot claim the same cost under two grants, but you can use different grants for different project components
- Example: PSG for CRM software, EDG for custom integration work, SFEC for staff training on the new system
- Plan your digitalization roadmap to maximise total funding across grants
8. Ignoring documentation requirements
- Keep records of all quotations, approvals, invoices, and deployment evidence
- For EIS, maintain a detailed R&D project log — IRAS may audit your claims years later
Related Guides & Resources
Grant Decision Guides
- PSG vs EDG Decision Matrix — pre-approved solutions vs custom projects
- PSG vs EDG vs ADS Comparison — side-by-side comparison for digitalization
- EIS vs DTD Decision Matrix — R&D tax deductions vs training support
Application Guides
- First-Time Application Checklist
- Common Grant Pitfalls
- Singapore Grants Glossary
- Corppass Setup Guide — how to set up BGP access
Starter Guide
- Digitalisation Starter Guide — beginner-focused overview for businesses new to grants
Scheme Details
- Productivity Solutions Grant (PSG)
- Enterprise Development Grant (EDG)
- Advanced Digital Solutions (ADS)
- Enterprise Innovation Scheme (EIS)
- SkillsFuture Enterprise Credit (SFEC)
Official Links
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