Your Guide to the Apply For PSG Grant for Singapore SMEs

In Singapore’s dynamic online marketplace, a robust e-commerce presence is no longer a luxury – it’s a necessity. For Small and Medium-sized Enterprises (SMEs) and B2B companies looking to scale and excel, a well-designed and high-performing e-commerce website is paramount for reaching more customers, boosting satisfaction, fostering loyalty, and ultimately driving sales. Singapore’s digitally savvy consumers offer tremendous potential. Still, the initial investment in a online business platform like Shopify Plus can be a hurdle.

Fortunately, through Enterprise Singapore, the Singapore government offers the Productivity Solutions Grant (PSG) – a valuable initiative designed to empower SMEs in their digital transformation journey. This digital programme provides financial support for SMEs to adopt ecommerce solutions, enhancing their web design and digital capabilities. This grant provides a unique opportunity for local businesses to secure funding for developing their e-commerce platforms and compelling solutions like Shopify Plus, enabling them to fully capitalise on the online market and gain a significant competitive edge.

What is the PSG Grant?

The Productivity Solutions Grant (PSG) is a government initiative to support Small and Medium-sized Enterprises (SMEs) in Singapore in their journey to adopt digital productivity solutions. Administered by Enterprise Singapore, the PSG grant provides financial support to help businesses streamline business processes, enhance productivity, and maintain a competitive edge in the market. The grant empowers SMEs to embrace digital transformation and improve their operational efficiency by offering funding for a range of pre-approved digital solutions.

Power up your Shopify store: Understanding the PSG grant in Singapore

The PSG grant funds easily deployable e-commerce solutions, making it an excellent option for businesses looking to take advantage of Shopify Plus's advanced features. This includes funding for:  

• Creation and setup of a complete Shopify store: Establishing your foundational e-commerce platform.
• Custom Shopify Theme Design and Development: Ensuring unique web design and on-brand online experience for your customers on Shopify Plus.
• Implementation of Advanced e-commerce features on Shopify Plus: Setting up sophisticated product catalogues, advanced shopping cart functionalities, personalised user accounts, and more within the Shopify Plus environment.

What the PSG grant does not cover for your Shopify store in Singapore

Singaporean SMEs should note that the PSG grant typically does not cover the following ongoing costs associated with their online business:

• Recurring Operational Expenses: These include your Shopify subscription fees, domain name registration and renewal fees, and website hosting and maintenance fees beyond the initial setup.
• Content Creation: Costs associated with content writing (product descriptions, blog posts, website copy) and professional photography or videography for your Shopify store are generally not covered.
• Ongoing Transaction Fees: The transaction fees charged by payment gateways for each sale made through your Shopify store are not eligible for the grant.
• Parcel Delivery Charges: The PSG grant does not cover the actual costs of shipping products to your customers.
• Marketing and Advertising Expenses: Costs related to your Shopify Plus store's online advertising, social media marketing, and other promotional activities are typically excluded.
• Advanced Customizations and Integrations Beyond Initial Setup: While the initial setup of integrations might be covered, extensive or ongoing custom Shopify B2B development and integration work on your Shopify Plus store may not be.
• Training Costs Beyond Basic Setup: The vendor might include some initial training on using the Shopify platform in its package, but comprehensive or ongoing training programs are usually not covered.
• Administrative Fees: Other administrative fees, such as delivery and installation charges for the chosen IT solution, might also be excluded in some cases.

Understanding these exclusions will help Singaporean SMEs budget accurately for their Shopify Plus venture with the PSG grant.

Leverage pre-approved Shopify solutions with the PSG grant

Businesses can choose from a carefully curated list of pre-approved offerings and vendors that EnterpriseSG and other participating agencies have vetted. For Singaporean SMEs looking to establish or enhance their online sales channels, the PSG offers a dedicated pathway through the "E-Commerce - Online Shop (B2C)" solution category, which falls under the broader umbrella of IT Solutions.

By selecting a pre-approved vendor offering solutions within this category, businesses can access the financial support of the PSG to significantly offset the costs associated with developing their e-commerce websites, including Shopify development.

PSG grant funding details for Shopify projects in Singapore

Currently, the PSG grant provides a support level of up to 50% of the qualifying costs for adopting these pre-approved solutions. However, a survey of the packages reveals that agencies offer a wide range of project costs. Still, the maximum qualifying cost is $5,600, meaning businesses can receive up to $2,800 in subsidies.

EnterpriseSG also has an annual grant cap of S$30,000 per company (April 1 to March 31). While multiple PSG grants can be applied for, the total funding is subject to this cap, and each application is for one type of solution. This is important to consider when planning your Shopify strategy and PSG grant application.

Are you eligible? Key criteria for the PSG ecommerce grant in Singapore

To be eligible for the PSG grant for your e-commerce venture, including Shopify, your Singaporean business must meet the following key criteria:

• Registered and operating in Singapore: Your business must be officially registered with ACRA and actively conducting business operations within Singapore.
• Have at least 30% local shareholding: A minimum of 30% of your company's shares must be held by Singaporean citizens and/or Singapore Permanent Residents.
• Have annual revenue of less than SGD 100 million or fewer than 200 employees: Your company must meet the annual revenue or the employee count threshold to qualify as an SME.
• Purchase solutions exclusively for use within Singapore: The e-commerce solutions and any related services you apply for must be intended for use within Singapore.
• Ensure no payments or deposits have been made to the vendor before submitting the PSG application.
• Entities such as Charities, Institutions of Public Characters (IPCs), Religious Entities, Voluntary Welfare Organisation (VWO), Government agencies and subsidiaries, and societies are not eligible for this grant.
  

Review these criteria carefully to ensure eligibility before applying for funding for your Shopify project.

Documents Required for the PSG Grant Application

To apply for the PSG grant, businesses need to prepare and submit a comprehensive set of documents. These include:

• A completed application form: This form captures essential details about your business and the digital solution you intend to adopt.
• A project proposal: This should outline the digital solution, its benefits, a budget breakdown, and a project timeline.
• Quotations from pre-approved vendors: Ensure you obtain detailed quotations from vendors listed on the Business Grants Portal.
• A budget breakdown: Provide a clear financial plan for the project, detailing all expected costs.
• A project timeline: Outline the key milestones and expected completion dates for the project.
• Company registration documents: Include a copy of your company’s registration with ACRA.

Financial statements: Submit your company’s financial statements from the last three years to demonstrate financial health and eligibility.

Navigating the application process: A step-by-step guide for Singaporean SMEs

Applying for the PSG grant for e-commerce website development involves a structured process that Singaporean SMEs should follow carefully to maximise their chances of success.

Step 1: Identify your business needs and choose a solution:Start by reviewing your existing e-commerce setup and establishing clear goals for your new or upgraded website. Consider whether Shopify fits your business requirements. Once your objectives are outlined, head to the GoBusiness Gov Assist portal and browse the "E-Commerce - Online Shop (B2C)" category to find pre-approved solutions.

Step 2: Select a suitable PSG-Approved vendor: Explore the curated list of pre-approved vendors on the GoBusiness Gov Assist portal. Pay special attention to providers with expertise in Shopify or other relevant e-commerce platforms that align with your business strategy.

Step 3: Obtain a quotation from the vendor: Reach out to your selected vendor and request a detailed quotation for the e-commerce solution. Ensure the quote is addressed to your company’s full registered name (as per ACRA BizFile) and corresponds to the approved solution package, especially if you opt for Shopify.

Step 4: Submit your application via the Business Grants Portal: Prepare all the required documents, which typically include your company’s ACRA BizFile, financial statements from the last three years, the vendor quotation, business contact details, and, if applicable, your tenancy agreement. Log in to the Business Grants Portal with your registered Corppass account and choose “Productivity Solutions Grant.” Complete the application form detailing your e-commerce solution selected and upload all supporting documents. Explain the anticipated impact on productivity and business performance.

Step 5: Await application outcome: The application review generally takes between four to six weeks. You’ll receive an email notification with the outcome, and you can also monitor the status on the Business Grants Portal dashboard. If your application is successful, a Letter of Offer (LOF) outlining the grant terms will be issued. Be sure to accept the LOF via the Business Grants Portal within the specified deadline.

Step 6: Implement the E-commerce solution and make full payment: Begin the e-commerce project with your chosen vendor, adhering closely to the agreed-upon scope and the LOF terms—especially if Shopify is your platform of choice. Upon completion, ensure full payment is made.

Step 7: Submit your claim for reimbursement: Return to the Business Grants Portal to initiate your claim. Prepare the necessary claim documents, including the vendor’s invoice, proof of payment, and evidence of the completed website (e.g., a live Shopify store), then submit for review.

Step 8: Receive grant disbursement: Effective February 1, 2023, once your claim is approved, the PSG grant will be disbursed through PayNow Corporate.

Empowering your ecommerce journey in Singapore with the PSG grant

The PSG grant offers more than financial support—it's a strategic enabler for Singaporean SMEs ready to embrace digital transformation. Whether you're laying the foundation for your first online store or scaling an existing e-commerce presence, this grant can be pivotal in accelerating your progress. When paired with flexible, powerful platforms like Shopify, the PSG grant empowers you to reach your business goals faster, more efficiently, and with greater confidence in the digital space.

Last updated 4 January 2025.