Using the PSG Grant for ERP in Singapore

One conversation I get from many SMEs venturing into ERP: I already know your company has PSG to co-fund, someone's already done a quick search and came here expecting for 50% of the custom solution they are considering, and found out later that the PSG only grants pre-selected integrated package under a certain vendor-only range (no customization allowed), whereas what they really needed-integrating Manufacturing, Multi-Entity,CPFpayroll into an integrated solution under one configurated system-don't cover it. Addressing the reality of the PSG grant application seems important now.

What PSG actually funds, in plain terms

Administered by Enterprise Singapore through its Business Grants Portal (BGP), the PSG programme assists in the adoption of pre-scoped IT solutions, equipment and consultancy services from a list of pre-approved vendors. Businesses evaluating PSG Grant ERP Singapore options should first check whether the ERP solution and vendor are currently pre-approved under the PSG programme and whether the package matches their actual business requirements. In the case of IT solutions, it means software that has already passed scrutiny and been listed, not one custom-made around your existing company process. It provides up to 50% funding off qualifying costs, up to an annual cap of S$30,000 per UEN (unique entity number) – a limit that gets reset every 1st of April.

For companies to be eligible, they should ideally be registered and operating in Singapore, possess more than 30% local shareholding comprising of Singaporeans or Singapore permanent residents, and meet either of the criteria of group annual sales of up to S$100 million OR a group size of up to 200 employees. The solution has to be for the applicant’s own use – it cannot be implemented for a subsidiary or a sister company (which can be important if you operate through a group structure and assume one solution will cover everything across different business entities. It won’t.)

Where the PSG program gets complicated for applicants, is the "pre-scoped" element. PSG has absolutely no interest in custom built solutions. According to Enterprise Singapore, companies may only receive support for pre-scoped packages from pre-approved vendors, and that the equipment or software will have to conform strictly to at least pre-determined minimum standards. Standard package software such as general accounting, a packaged HR/Payroll system, or an off-the-shelf CRM system would be fine. However, bespoke systems customized to a manufacturer's assembly line needs or the specific multi-company consolidation demands of a regional headquarters, usually would not qualify.

Why "ERP" under PSG often means something narrower than expected

Where vendor lists approved by PSG mention ERP it's usually in the context of a standard off-the-shelf accounting and operations package, in effect a basic ERP or advanced accounting package incorporating stock and some operations functions. Not a full industry specific, fully configured ERP system. A few pre-approved vendors do offer recognized packages such as Microsoft Dynamics 365 Business Central or SAP Business One as pre-scoped package implementations –this enables a company to secure a genuine and funded access route to a proper ERP product- but the real customization work most of growing businesses need after initial setup, that's not what PSG would fund.

It's at this point where it becomes pragmatically rather than procedurally more important to distinguish between PSG and EDG. The latter is an older, much larger grant for "transformation projects" under Core Capabilities and Innovation & Productivity. It’s an older scheme. But more relevantly EDG would genuinely support an individually configured ERP implementation; the grant is designed for projects with a clearly defined scope, business case, and deliverables linked to business functions. This grant would fund 50% of qualifying project costs for SMEs (30% for non-SMEs) with no prescribed cap – it’s approved on a case by case basis and will require a much more involved application process and a proposal compared to standard PSG application.

Broadly, if all the need is for off-the-shelf (a basic ERP or accounting package with no significant adjustments), then PSG is the simpler and quicker route, and to try to stay below S$30k / year where possible. If some amount of configuration is genuinely required (multi-entity operations, integration, industry-specific functions etc.), it's more likely to be an EDG application.

A practical example of where this plays out

Think of a small, but expanding Singapore-based manufacturer ready to throw away spreadsheets, disjointed and siloed software for inventory, accounting and nascent HR. If a PSG eligible and pre- scoped ERP / Accounting solution already exists on the list that genuinely fits their bill, taking it up on the PSG scheme, with 50% subsidised up to a capped amount of $30,000 for that year (to be applied for before any payment / implementation), could represent a realistic “quick win.”

Now take a Singapore-based regional HQ with subsidiaries in both Malaysia and Vietnam, looking for a system which accommodates inter-company consolidation requirements, a CPF compliant payroll for Singaporeans, whilst also accommodating local tax requirements for each subsidiary. This would be a project with customisation and configuration, requiring an ERP system and not pre-scoped, and unlikely to be suitable for a simple adoption package under the PSG schemes. EDG (or indeed a wellscoped project undertaken in conjunction with a Singaporean localisation experienced partner) becomes a far more realistic funding mechanism.

Common mistakes worth avoiding

A few things that regularly cause PSG applications to stall or get rejected, based on how the grant is structured:

• Signing up or paying for services before the application has been approved By most measures the PSG applications have to be granted, typically a significant investment. You usually can't pay now and then apply for a grant. It’s rare that PSG will approve a claim after the event.

• If I could let a subsidiary or a related company also use that PSG-funded solution. You can’t. Every one of your companies that wants PSG support needs to make their own application and qualification.

• Purchasing a "PSG-approved" solution without seeing if it really solves the business problem. PSG pre-scoped packages only solved predefined or standardized solutions. If the business is to make it more bespoke, the outcome is paying money for an unsuitable system in order to be granted a subsidy. 

• Under estimating the S$30,000 annual limit. A large digital transformation (e.g. Implementing an POS system, an HR system and an ERP system together) would need to remain within this ceiling. This often results in the company breaking its purchase over several financial years instead of at once. 

The change worth knowing about before applying

It’s a detail that could be missed if you read earlier articles on this topic: in Budget 2026, Enterprise Singapore revealed it will combine PSG, EDG and the Market Readiness Assistance (MRA) grant under a new grant scheme, EDGE, which is slated for launch in the second half of next year. InEDGE, applicants will apply for support based on the specific activity, ie, in digital transformation, building capabilities, going overseas etc, instead of figuring out whether one of the three prior grant schemes applies. Grants will generally be capped at S$100,000 per annum and will be available to all Singapore-registered businesses (whether they are SMEs or not), a wider scope than the current PSG scheme which focuses only on SMEs.

At present, PSG, EDG and MRA are fully open and the existing grants should be utilized by companies needing the support without waiting for EDGE’s eventual release as there are no indications it will open sooner.

The exact opening in the second half of 2026 has yet to be finalized. In practical terms, a company serious about starting its ERP implementation does not necessarily need to delay its decision hoping EDGE will offer something better. However, do remember to check the Business Grants Portal or Enterprise Singapore’s website for the current status on these grants before making a submission, as the exact implementation timeline and application management once EDGE is launched is likely still under discussion.

What to check before applying, regardless of which grant fits

• Make sure to match the precise content of the pre-authorized deal as against what you need, not the way a vendor describes their deal.

• Also ensure on the Business Grants Portal if their current PSG pre-approved for example and these lists can change.

• And let's be honest - ascertain if your needs are truly out-of-the-shelf, or require significant customization for PSG or EDG. This answer will influence how you choose between those grants.

• Where there is more than one Singapore entity, work applications based on each entity as the PSG subsidy is not transferable between related companies.

• Talk to Enterprise Singapore and/or any registered grant consultant before signing on especially with the EDGE transition; and advice may change while clarification for new scheme details are made clear.

A simplified, standardized application is often simplest when working directly with a PSG-pre-approved vendor. When engaging an ERP implementation partner to help for a more complex, multi-entity or Singapore localized implementation including for CPF Payroll, GST reporting, multi-currency consolidation etc, it would be advisable to bring this partner in from Day 1, since this is a different type of scoping conversation than a typical PSG adoption. Vendor partners offering to do Singapore localization in platforms like Odoo for instance, and some like SerpentCS, are typically in this second category – configuration and localization that aligns well with an EDG style project, not the packaged PSG model, so clarify the correct grant route upfront.