Singapore offers multiple grants to help businesses improve productivity — from adopting pre-approved IT solutions to larger transformation projects and energy-efficient equipment. The right grant depends on your business need, project scale, and whether you want cash funding or tax benefits.
This guide is written for business operators who want clarity fast:
- Which grant matches your productivity goal
- What it can fund (and what it won’t)
- The simple steps to apply without getting rejected
What Are the Best-Fit Grants for Productivity?
Start Here (Quick Pick)
- You need standard IT software (accounting, CRM, POS, e-commerce, HR/payroll) → PSG
- You’re running a custom productivity transformation project (process redesign, automation, systems integration) → EDG
- You’re upgrading to energy-efficient equipment (air-conditioning, refrigeration, motors, lighting) → EEG
- You’re investing in R&D to improve productivity (developing proprietary tools, automation R&D, AI experiments) → EIS
- You want to upskill staff for productivity gains (training courses for new software or 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. EEG only covers equipment on the approved list.
- Company size matters. PSG and EEG 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.
What Are the Top Grants for Productivity?
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)
- POS and retail management (point-of-sale, queue management)
- AI-enabled solutions — Budget 2026 expands PSG to cover more AI tools (wider AI solutions expected at COS 2026, ref C-1 E)
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 productivity transformation project that goes beyond off-the-shelf software — process redesign, automation, lean operations, or building new operational capabilities.
Good fit examples
- Business process automation (workflow redesign, RPA implementation, eliminating manual data entry)
- Lean operations consulting (value stream mapping, waste reduction, productivity benchmarking)
- Systems integration (connecting ERP, CRM, warehouse, and operations into one workflow)
- Custom software development (bespoke productivity tools, proprietary operational platforms)
- Supply chain optimisation (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 productivity transformation project and expected business outcomes (time savings, cost reduction, throughput increase).
- 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) Energy Efficiency Grant (EEG)
Use EEG when: you’re upgrading to energy-efficient equipment that improves both operational productivity and energy consumption — particularly relevant for food services, retail, manufacturing, and logistics.
Good fit examples
- Commercial refrigeration (energy-efficient display chillers, walk-in cold rooms)
- Air-conditioning systems (high-efficiency HVAC units, variable refrigerant flow systems)
- Cooking and food preparation equipment (energy-efficient ovens, induction hobs, steamers)
- Lighting systems (LED retrofits, smart lighting controls)
- Motors and drives (high-efficiency motors, variable speed drives for manufacturing)
- Water heating (heat pump water heaters, solar-assisted systems)
How much
- Up to 70% co-funding for qualifying equipment
- S$30,000 base tier per category
- Equipment must be from the approved list
When
- Apply before purchasing or installing equipment
- Processing time: approximately 4—6 weeks
How (fast path)
- Check the EEG pre-approved equipment list for your industry category.
- Get a vendor quote for the qualifying equipment (do not purchase or sign).
- Submit via BGP with equipment specifications and quote.
- After approval, proceed with purchase and installation.
- Submit claim with invoices, delivery orders, and proof of installation.
Where
- See more: Energy Efficiency Grant (EEG)
4) Enterprise Innovation Scheme (EIS)
Use EIS when: you’re investing in R&D to develop proprietary productivity solutions — automation tools, process innovations, or AI-powered systems that don’t exist off the shelf.
Good fit examples
- Automation R&D (developing custom robotics, intelligent process solutions)
- AI/ML model development (training custom models for demand forecasting, quality control, predictive maintenance)
- Process innovation (developing proprietary manufacturing techniques, workflow optimisation algorithms)
- Technology prototyping (proof-of-concept builds, MVP development for productivity tools)
- AI experimentation — Budget 2026 introduces a new 400% deduction on the first S$50,000 of AI-related expenditure (ref C-1 D), making small-scale AI productivity experiments more accessible
How much
- 400% tax deduction on the first S$400,000 of qualifying R&D expenditure
- New AI activity: 400% deduction on first S$50,000 of qualifying AI spend (from Budget 2026, ref C-1 D)
- 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)
- See also: Budget 2026: AI & Innovation Grant Changes
5) SkillsFuture Enterprise Credit (SFEC)
Use SFEC when: you want to upskill employees on productivity tools and workflows — training courses, certifications, and workforce development related to operational improvement.
Good fit examples
- Operations training (lean management, Six Sigma, process improvement courses)
- Software adoption training (vendor-provided training for new enterprise software)
- Automation and AI training (upskilling operations teams on new automated workflows)
- Digital skills training (data analytics, cloud computing courses for staff)
- Productivity certifications (project management, quality management certifications)
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 productivity 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)
Which Productivity Grant Fits Your Scenario?
| Grant | Funding | Timeline | |
|---|---|---|---|
| F&B business adopting POS and inventory software | PSG | Up to S$30K (50%) | 4--6 weeks |
| Retailer implementing CRM and e-commerce platform | PSG | Up to S$30K (50%) | 4--6 weeks |
| SME adopting accounting and HR/payroll software | PSG | Up to S$30K (50%) | 4--6 weeks |
| Company redesigning warehouse workflow with automation | EDG | Up to S$500K (50--70%) | 8--12 weeks |
| Manufacturer integrating ERP, CRM, and production systems | EDG | Up to S$500K (50--70%) | 8--12 weeks |
| Restaurant upgrading to energy-efficient kitchen equipment | EEG | Up to 70% co-funding | 4--6 weeks |
| Retail chain replacing HVAC with high-efficiency systems | EEG | Up to 70% co-funding | 4--6 weeks |
| Manufacturer upgrading to high-efficiency motors | EEG | Up to 70% co-funding | 4--6 weeks |
| Tech company developing custom AI productivity tool | EIS | 400% tax deduction | Annual tax filing |
| SME experimenting with AI for quality control | EIS (AI) | 400% on S$50K AI spend | Annual tax filing |
| Company training staff on new ERP system | SFEC | S$10K credit | Ongoing |
What Productivity Pitfalls Should You Avoid?
1. Choosing the wrong grant for your project type
- PSG is for adopting standard IT solutions — do not apply for PSG if you need custom development or equipment upgrades.
- EDG is for custom transformation projects — do not use EDG for off-the-shelf software that PSG already covers.
- EEG is for energy-efficient equipment only — it does not cover software, consultancy, or process redesign.
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 pre-approved list
- PSG only covers solutions in the GoBusiness catalogue. EEG only covers equipment on the approved list.
- If your preferred vendor or equipment is not listed, you cannot claim the grant for it.
- 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 productivity” or “upgrade operations” 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 EEG provide direct co-funding of project costs.
- Note: all companies receive a 40% CIT rebate under Budget 2026 (ref B-1 A), which stacks with grant funding. See Budget 2026: CIT Rebate & Cash Grant.
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, EEG for equipment upgrade, SFEC for staff training on the new system.
- Plan your productivity 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.
- For EEG, retain equipment specifications and proof of installation.
Where Can You Find Related Guides & Resources?
Grant Decision Guides
- PSG vs EDG Decision Matrix — pre-approved solutions vs custom projects
- EEG vs PSG Decision Matrix — equipment vs IT solutions
- EIS vs DTD Decision Matrix — R&D tax deductions vs training support
- AI Adoption: PSG vs EDG Decision Matrix — choosing between PSG and EDG for AI
Application Guides
- First-Time Application Checklist
- Common Grant Pitfalls
- Singapore Grants Glossary
- Corppass Setup Guide — how to set up BGP access
Budget 2026 Updates
- Budget 2026: AI & Innovation Grant Changes — PSG AI expansion, EIS AI activity
- Budget 2026: CIT Rebate & Cash Grant — 40% CIT rebate for all companies
Scheme Details
- Productivity Solutions Grant (PSG)
- Enterprise Development Grant (EDG)
- Energy Efficiency Grant (EEG)
- Enterprise Innovation Scheme (EIS)
- SkillsFuture Enterprise Credit (SFEC)
Official Links
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