PSG and EDG are the two most common grants for business upgrades, but they serve different needs. Use this guide to quickly decide which one fits your project.
Read This First
- PSG is for pre-approved solutions: you pick from a catalogue of IT solutions or equipment packages that are already vetted.
- EDG is for custom projects: you design your own transformation project (strategy, innovation, or market access).
- Don’t “start” before applying: no deposits, signed contracts, or purchase orders for the scope you’re claiming.
- Acronyms:
- PSG = Productivity Solutions Grant (pre-approved IT/equipment)
- EDG = Enterprise Development Grant (custom transformation projects)
How do you decide?
Step 1: Is your solution on the PSG catalogue?
Can you find your IT solution or equipment on the PSG pre-approved list at GoBusiness?
Quick Decision Matrix
| PSG | EDG | |
|---|---|---|
| Pre-approved IT solution (POS, CRM, accounting) | ✓ | — |
| Pre-approved equipment package | ✓ | — |
| Custom digital transformation project | — | ✓ |
| Strategy / business model redesign | — | ✓ |
| Overseas market entry project | — | ✓ |
| Process redesign / productivity improvement | — | ✓ |
| Need vendor not on PSG list | — | ✓ |
| Project exceeds S$30k | — | ✓ |
Legend: ✓ = Use this grant | — = Not applicable
At a Glance
| PSG | EDG | |
|---|---|---|
| Funding cap | S$30K/year per UEN | No cap |
| Support rate | Up to 50% | Up to 50% (70% for sustainability) |
| Processing time | 4-6 weeks | 8-12 weeks |
| Solution type | Pre-approved list only | Custom projects |
| Consultant required | No | Yes (TR 43/SS 680 certified) |
| Company size limit | ≤S$100M turnover OR ≤200 staff | No limit |
| Internal manpower | Not covered | Covered |
| Local shareholding | 30% minimum | 30% minimum |
Common Scenarios
- “I want to adopt a cloud accounting system” → PSG (if the solution is on the PSG catalogue)
- “I need a custom ERP system tailored to my business” → EDG (custom solution, not pre-approved)
- “I want to automate my F&B kitchen with pre-approved equipment” → PSG (equipment package)
- “I’m redesigning my entire supply chain process” → EDG (transformation project)
- “I want to expand overseas and need market research” → EDG (Market Access pillar)
- “My project costs S$80,000” → EDG (exceeds PSG annual cap of S$30k)
- “F&B owner wanting kitchen automation” → PSG (pre-approved F&B equipment packages on GoBusiness)
- “Consulting firm building a custom CRM” → EDG (bespoke software, not on PSG list)
- “Retail chain upgrading 5 outlets with POS systems” → PSG (pre-approved POS, apply per outlet if needed)
- “Manufacturing SME redesigning production workflow” → EDG (productivity improvement project)
Before You Apply
- Check the PSG catalogue first at the Business Grants Portal — if your solution is there, PSG is faster
- Don’t start work before submitting your application
- One UEN, one active PSG application at a time
- Quotations must match your ACRA entity name exactly
Decision Tree
Can I Apply for Both?
Yes, but not for the same project costs.
You can strategically combine PSG and EDG:
- Use PSG for standard IT solutions (≤S$30K) — e.g., accounting software
- Use EDG for custom transformation work — e.g., business strategy consulting
Important: Ensure no overlap between the two grants for the same costs. Double-claiming is not allowed.
Frequently Asked Questions
What’s the main difference between PSG and EDG?
PSG provides up to S$30,000/year for pre-approved IT solutions with 4-6 week approval and no consultant required. EDG has no funding cap for custom transformation projects but takes 8-12 weeks and requires certified consultants for consultancy work. Choose PSG for speed and simplicity; choose EDG for larger, custom projects.
Which grant has faster approval?
PSG is faster at 4-6 weeks. EDG takes 8-12 weeks. If you need funding quickly and your solution is on the pre-approved list, PSG is the better choice.
My project costs S$50,000. Which grant should I use?
If it’s a custom project, use EDG (no cap). If it’s pre-approved solutions, you can either:
- Apply S$30K to PSG in 2026, then S$20K to PSG in 2027 (split across years)
- Use EDG for the full S$50K (if you can wait 8-12 weeks)
Do I need a consultant for PSG?
No. PSG does not require certified consultants. You work directly with pre-approved vendors. EDG requires TR 43 or SS 680 certified consultants for management consultancy projects.
Can I claim staff salaries under PSG?
No. PSG does not cover internal manpower costs. EDG is the only Singapore grant that covers internal staff time dedicated to the project.
My company turnover is S$120 million. Can I apply for PSG?
No. PSG has SME size limits (≤S$100M turnover OR ≤200 employees). Apply for EDG instead, which has no company size restrictions.
Is this comparison right for you?
This guide covers the two most common grants: PSG (pre-approved IT/equipment) and EDG (custom transformation). Use this guide if you are a Singapore SME deciding between a catalogue solution and a custom project.
Not what you need?
- Considering energy efficiency upgrades? → EEG vs PSG
- Comparing all three digital grants? → PSG vs EDG vs ADS
- Expanding overseas? → MRA vs EDG for Overseas
- Need a grant consultant? → Grant Consultant vs DIY
Related Guides
- How to Choose? PSG vs EDG vs ADS — comprehensive 3-way comparison including advanced digital solutions
- Grant Pitfalls Guide - Common pitfalls to avoid when applying for PSG or EDG
- How to Choose? EDG vs PSG vs EEG — if you’re also considering energy efficiency
- How to Choose? EEG vs PSG - Use this matrix to choose between EEG and PSG
- Productivity Solutions Grant (PSG) — full eligibility and application details
- Enterprise Development Grant (EDG) — full eligibility and project scope
- Corppass Setup Guide - Step-by-step guide to set up Corppass for BGP access
- Singapore Grants Glossary
- How to Choose? PSG vs EDG vs MRA — 3-way comparison including overseas expansion
- Grant Consultant vs DIY — do you need a consultant for your application?
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