The PSG Grant Guide for ERP in Singapore: What Is Covered and What Is Not

Your ERP implementation is going to cost S$80,000 to S$200,000. The Singapore government will pay up to 50% of that — if you use the right vendor, structure the project correctly, and apply before you sign any contracts. Most Singapore SMEs either do not know PSG applies to ERP, or they find out after they have already signed with a vendor who is not on the approved list. Here is how to not make that mistake.

What PSG actually is

PSG stands for Productivity Solutions Grant. It is administered by Enterprise Singapore and IMDA.

The idea is simple. The government maintains a catalogue of pre-vetted technology solutions. If your Singapore business adopts one of those solutions, the government co-funds part of the cost.

For ERP, the co-funding rate is currently up to 50% of qualifying costs.

That is not a rounding error. On a S$120,000 ERP project, that is S$60,000 back.

Who qualifies to apply

Your business must meet all of these criteria:

• Registered and operating in Singapore — must be a Singapore-incorporated entity
• Annual turnover not exceeding S$100M OR fewer than 200 employees — the SME threshold
• Minimum 30% local shareholding — the business must be majority Singapore or Singapore PR owned
• The solution must be new to your business — PSG does not fund upgrades to existing systems from the same vendor in most cases

If you are a subsidiary of a foreign company or a joint venture where the foreign partner holds more than 70%, you likely do not qualify. Check this before investing time in the application.

Which ERP vendors are PSG-eligible

This is the most critical point. PSG only covers ERP solutions from vendors pre-approved by IMDA on the Productivity Solutions catalogue.

The approved list is maintained on the Business Grants Portal (businessgrants.gov.sg). It changes. Vendors get added and removed. Always verify currency before you commit to a vendor based on their PSG eligibility claim.

As of 2026, the ERP vendor categories with significant Singapore representation on the approved list include:

• SAP Business One — multiple certified implementation partners are PSG-approved
• Sage 300 and Sage X3 — through approved Singapore partners
• Selected Odoo partners — Enterprise edition through IMDA-accredited implementations
• Various local and regional ERP vendors who have completed the IMDA accreditation process

Oracle NetSuite is notably absent from PSG approval in most configurations — it is priced and structured for a different tier. Verify the current status directly.

Custom ERP development does not qualify for PSG. PSG only covers pre-approved, standardised solutions. A bespoke development project does not fit the grant structure.

The single most expensive PSG mistake: signing a contract with an ERP vendor before checking if they are on the approved list. The grant application must be approved BEFORE you start the project. Retroactive claims are not accepted.

What is covered and what is not

PSG covers (qualifying costs):

• Software licensing fees for the first year or the subscription period specified in the pre-approved package
• Implementation services listed in the pre-approved package description
• Training services listed in the pre-approved package

PSG does not cover:

• Hardware (servers, computers, networking equipment)
• Customisation or bespoke development beyond what is defined in the pre-approved package
• Ongoing annual licensing fees after the initial grant period
• Internal staff time spent on the project
• Third-party integrations not included in the approved package
• Data migration services in most package definitions

This last point catches many businesses off guard. Data migration is almost always your largest hidden cost in an ERP implementation, and PSG typically does not cover it. Budget for it separately.

How to apply: the exact process

Step 1: Identify an IMDA-approved ERP vendor and solution that fits your requirements. Confirm their current PSG-approved status on the Business Grants Portal.

Step 2: Get a formal quotation from the vendor that breaks down costs into qualifying and non-qualifying components.

Step 3: Submit your PSG application on the Business Grants Portal before signing any contract or making any payment. Applications submitted after project commencement are rejected without exception.

Step 4: Wait for approval. Processing time is typically 4-6 weeks. Do not start the project during this period.

Step 5: Once approved, sign the contract and begin the project. Keep all invoices, payment records, and implementation milestones documented — you will need them for the claim.

Step 6: After project completion, submit your claim with supporting documents. Payment is made directly to your business bank account.

EDG for custom ERP: the alternative

If your ERP requirements point clearly to a custom build — differentiated processes, high user count, or packaged ERP simply cannot fit your operational model — PSG is not your path. EDG (Enterprise Development Grant) is.

EDG is administered by Enterprise Singapore and covers capability-building projects including technology adoption and process improvement. Custom ERP development has been funded under EDG when structured as a business process capability upgrade.

The application is more involved than PSG. You need a project scope tied to business outcomes, a qualified technology consultant, and Enterprise Singapore approval before committing. The grant quantum can be comparable to PSG for qualifying projects.

The honest advice: talk to Enterprise Singapore at the evaluation stage, not after you have chosen your solution. Grant eligibility should be a factor in your ERP decision, not an afterthought.

The common mistakes that get applications rejected

• Applying after signing the contract. The most common rejection reason. PSG approval must precede project commencement.
• Using a vendor not on the approved list. The vendor's own claim of PSG eligibility is not sufficient. Verify on the Business Grants Portal directly.
• Claiming ineligible costs. Hardware, excessive customisation, and costs outside the approved package scope get rejected at the claim stage.
• Incomplete supporting documentation. Keep every invoice, every payment receipt, and every project milestone document from day one.
• Missing the claim submission deadline. Claims must be submitted within the timeframe specified in your approval letter.

PSG for ERP is a meaningful co-funding mechanism that reduces real cost for Singapore SMEs. But it requires sequencing decisions correctly. Vendor first. Eligibility check second. Application third. Contract signing fourth. In that order.