What is Productivity Solutions Grant (PSG grant)
To encourage business to adopt information technology, Productivity Solutions Grant (PSG) grant is created. The scheme aimed to move local business a step closer to SMART city. However, investment in automation can be expensive and often outside the reach for a young business.
To speed up the adoption rate this grant is hence created to assist business into adopting small solutions. Information Technology in this era is important because it removes the mundane manual process from our daily activity.
Background of the Productivity Solutions Grant (PSG grant)
PSG grant is crafted as a replacement for Innovation and Capability Voucher (ICV). To refresh your memory, ICV voucher allows each registered business to utilise eight vouchers (worth $5,000 each) to strengthen their business core. It covers consultancy and purchase of small business solutions. However, the scheme ended in 2018 and all claims have to be submitted before 31 Dec 2018.
Government grants are one of the core investment to the economy and therefore it tends to be updated often to align with the business cycle and market conditions. Applicants would often encounter issues with their applications because they are unfamiliar with the procedure. It is therefore important to work with experienced digital business consultants. Contact us today for a discussion with Leoacle Consulting.
Back to PSG grant, solutions are pre-scoped by various government entities for different industries. It largely includes retail, food, precision engineering, construction and landscaping industries. The scheme funds purchase for up to 70% and SMEs could find out the list of solutions from Tech Depot.
SMEs can apply for PSG grant if they meet the following criteria:
- Registered and operating in Singapore
- Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore
- Have a minimum of 30% local shareholding (for selected solutions only)
5 things to take note before purchasing a software
This rule of the thumb applies in any situations so long as you are making a purchase. Do not jump into the bandwagon without evaluating the package. It is too late to regret once you made the payment.
- Most solutions are SaaS – This means the business would have to start paying for usage from the second year onwards.
- Limited features – Most solutions are designed for the need of a small business, and they might not enjoy advanced features. You might want to compare it with the freeware offered to evaluate the features before making a decision.
- It is created for small business – Please enquire on the user licensing before you made the purchase. Some solutions allow less than 5 users and might not be suitable for business.
- Ability to integrate with external software – Due to the fact that most of the features have to be standardised for approval. Vendors might not be willing to create an integration plugin and this resulted in the purchase to be a stand-alone software.
- Data might not be portable – As the business grow their need might change and hence they might want to move onto a new software. If you could not export the data, SME is literally locked into using the same software.
Conclusion on PSG grant scheme
The equipment support for the scheme is rather attractive because SME could always source for equipment that meets their needs. No doubt the software is from reputable vendors but the need for a business might evolve and change. You could refer to the main page to learn more about the development of government grants from Singapore government.
As a business consulting firm, we support the business to embrace information technology. Small business tends to have a low resource, PSG grant no doubt is a small but significant step. It is in our wishlist that the scheme could expand to include more industrial and solution providers.