The Productivity Solutions Grant (PSG) is a government initiative aimed at helping small and medium-sized enterprises (SMEs) in Singapore to adopt technology solutions and equipment that can enhance productivity and reduce business costs. However, the PSG support rate has recently dropped from 70% to 50%, and this has raised concerns among SMEs about the impact on their business operations.
The PSG was launched in 2018, and it has since supported SMEs in various industries, including manufacturing, retail, food and beverage, and logistics. The grant covers up to 70% of the cost of adopting pre-approved technology solutions and equipment. The remaining 30% is paid by the SME.
We wrote about enhanced PSG grant 80% support dropping back to 70% early in 2022 in this article: https://amcpro.asia/productivity-solutions-grant/
The reduction in PSG support to 50% (starting from 1 April 2023) means that SMEs will have to pay a larger share of the cost of adopting technology solutions and equipment. This can be a significant burden, especially for businesses that are already struggling to stay afloat due to the economic impact of the COVID-19 pandemic.
While the reduction in PSG support is a concern for SMEs, there are still several benefits to the grant. For example, the PSG provides SMEs with access to a range of pre-approved technology solutions and equipment that have been tested and proven to enhance productivity and reduce business costs. The grant also provides SMEs with expert advice and support in choosing and implementing technology solutions that are tailored to their specific needs.
Moreover, the reduction in PSG support does not mean that SMEs cannot access technology solutions and equipment. There are still many other government initiatives and grants that SMEs can apply for, such as the Enterprise Development Grant (EDG) and the Market Readiness Assistance (MRA) grant. SMEs can also explore other sources of funding, such as venture capital and angel investors.
In conclusion, while the reduction in PSG support from 70% to 50% is a concern for SMEs, it does not mean that SMEs cannot access technology solutions and equipment. The PSG remains a valuable resource for SMEs, providing them with access to pre-approved technology solutions and equipment and expert advice and support. SMEs can also explore other government grants and private sector investment opportunities to support their business growth and productivity.
If you intend to adopt any technology solutions, you have till end of March 2023 to submit your application to enjoy the 70% support. For those who have been contemplating Moneyworks for a while, you may want to submit your application first while you can still decide later.
Do feel free to contact us for further clarifications at +65 6589 8878.