PSG eCommerce Grant: All You Need to Know

What is the PSG eCommerce Grant?

The PSG eCommerce Grant forms part of Singapore’s broader Productivity Solutions Grant scheme, administered by Enterprise Singapore. This initiative specifically targets businesses seeking to establish or upgrade their digital commerce capabilities through pre-approved technology solutions.

It provides financial support for business owners to adopt pre-scoped IT solutions, equipment, and consultancy services to improve productivity. The programme focuses on solutions that have been thoroughly vetted and proven effective across various business contexts, ensuring recipients invest in reliable technology that delivers measurable results.

The grant operates on a co-funding model, where the government shares the cost of implementing digital solutions with businesses. This approach reduces the financial risk for companies while encouraging them to embrace technology that can significantly make their daily processes smoother.

How Much Can You Get with the PSG Grant?

Each company supported by EnterpriseSG is subjected to an annual grant cap of S$30,000 for solutions supported by EnterpriseSG, starting on 1 April and ending on 31 March the following year. This substantial funding amount can cover a significant portion of eCommerce implementation costs, making advanced digital solutions accessible to businesses that might otherwise find them financially prohibitive.

The funding typically covers between 30% to 50% of the total project cost, depending on the specific solution and business circumstances. For e-commerce platforms, this could translate to savings of tens of thousands of dollars on website development, payment gateway integration, inventory management systems, and digital marketing tools.

Businesses can apply for multiple PSG grants within the same financial year, provided they remain within the annual cap. This flexibility allows companies to implement comprehensive digital transformation strategies across different aspects of their operations, from customer relationship management to supply chain optimisation.

Additional Support – SFEC

Eligible SMEs may also tap on the SkillsFuture Enterprise Credit (SFEC), a one-time $10,000 credit, to further offset out-of-pocket costs for PSG-approved solutions and employee training.

To qualify for SFEC, employers must have employed at least three Singapore Citizens or Permanent Residents every month over the qualifying period and contributed at least S$750 in Skills Development Levy. The credit covers up to 90% of out-of-pocket expenses for training courses aligned to the Skills Framework, significantly reducing the financial burden on businesses investing in workforce development.

Enterprise Singapore notifies newly eligible employers via email, and qualified businesses can access their credit through the Business Grants Portal. This complementary funding can be strategically combined with PSG grants to create comprehensive digital transformation packages that address both technology implementation and essential staff training requirements, maximising the return on government support whilst building sustainable digital capabilities within organisations.

Eligibility Criteria for Singapore Businesses

The eligibility requirements for the PSG eCommerce Grant are designed to support legitimate Singapore businesses while ensuring effective use of public funds. Having a minimum of 30% local shareholding stands as one of the fundamental requirements for most solutions under the programme.

To qualify for the PSG eCommerce Grant, your business must meet these essential criteria:

• Business registration with the Accounting and Corporate Regulatory Authority
• Active operations within Singapore
• Solutions must be used exclusively within Singapore’s borders
• Minimum 30% local shareholding for most grant categories
• At least three local employees (for consultancy service solutions)

Small and medium enterprises form the primary target group for this grant, though larger businesses may also qualify under certain circumstances. The programme particularly welcomes businesses that can demonstrate how the proposed eCommerce solutions will enhance their productivity, efficiency, or competitive positioning in the market.

Companies applying for consultancy service solutions face an additional requirement of employing at least three local staff members at the time of application. This criterion ensures that businesses receiving support have sufficient local presence and contribute to Singapore’s employment landscape.

What Kind of eCommerce Solutions Can You Fund?

The PSG programme covers an extensive range of eCommerce solutions, each designed to address specific aspects of digital commerce operations. Website development and eCommerce platform implementation represent the most common applications, enabling businesses to establish professional online presences with integrated shopping capabilities.

The following categories of e-commerce solutions receive PSG funding support:

• Website development and eCommerce platform implementation
• Customer relationship management systems with marketing automation
• Digital payment solutions and secure gateway integrations
• Inventory management systems with real-time tracking
• Digital marketing tools, including SEO and social media management
• Business intelligence and analytics platforms
• Mobile commerce applications and progressive web apps

Since late 2024, businesses may apply for curated GenAI solutions under the PSG via the GenAI Sandbox initiative. However, support is limited to pre-approved vendors and solutions under Enterprise Singapore’s GenAI pilot list, and eligibility may vary based on the proposed use case. Availability of GenAI support may depend on use case eligibility under the sandbox pilot.

Customer relationship management systems receive substantial support under the programme, helping businesses manage customer interactions, track sales pipelines, and implement targeted marketing campaigns. These solutions often include automated email marketing, customer segmentation tools, and analytics dashboards that provide valuable insights into customer behaviour.

Digital payment solutions and gateway integrations are also covered, ensuring businesses can accept various payment methods securely and efficiently. This includes mobile payment options, international payment processing, and fraud protection systems that are essential for modern eCommerce operations.

Inventory management systems qualify for funding when they integrate with e-commerce platforms, providing real-time stock tracking, automated reordering, and warehouse management capabilities. These solutions help businesses avoid stockouts, reduce carrying costs, and improve order fulfilment accuracy.

Digital marketing tools, including search engine optimisation platforms, social media management systems, and online advertising management tools, are eligible for support. These solutions help businesses reach their target audiences more effectively and measure the return on their digital marketing investments.

Step-by-Step Guide to Applying for the PSG Grant

The application process for the PSG eCommerce Grant follows a structured approach designed to ensure proper evaluation and approval of funding requests. Businesses must first identify their specific needs and select appropriate solutions from the pre-approved vendor list maintained by Enterprise Singapore.

1. Initial preparation involves gathering necessary documentation, including business registration certificates, financial statements, and detailed project proposals. The proposal should clearly articulate how the chosen eCommerce solution will improve business productivity, efficiency, or competitiveness.

2. Engaging with approved vendors represents a crucial step in the process. These vendors have been pre-qualified by Enterprise Singapore and possess the necessary expertise to implement solutions that meet programme standards. Vendors typically assist businesses in preparing quotations and technical specifications required for the application.

3. The formal application submission occurs through the Business Grant Portal, where businesses provide detailed information about their operations, proposed solutions, and expected outcomes. Supporting documents must be uploaded in the specified formats, and all information must be accurate and complete to avoid processing delays.

The Business Grants Portal

4. Review and approval timelines typically range from four to eight weeks, depending on the complexity of the proposed solution and the volume of applications being processed. During this period, Enterprise Singapore may request additional information or clarification on specific aspects of the application.

5. Once approved, businesses receive formal notification and can proceed with solution implementation. The grant amount is typically disbursed in stages, with initial payments released upon contract signing and final payments made after successful project completion and verification.

Pre-Approved Vendors and Solutions

The pre-approved vendor system ensures businesses work with qualified service providers who have demonstrated competency in delivering PSG-supported solutions. These vendors undergo rigorous evaluation processes that assess their technical capabilities, track records, and ability to provide ongoing support.

Vendor selection should be based on specific business requirements rather than cost alone. Different vendors specialise in various types of e-commerce solutions, and businesses should evaluate their expertise in relevant areas such as platform integration, customisation capabilities, and post-implementation support.

The pre-approved solutions list undergoes regular updates to reflect technological advances and changing business needs. Recent additions to the programme include advanced analytics platforms, artificial intelligence-powered customer service tools, and mobile commerce solutions that reflect the growing importance of smartphone-based shopping.

Businesses must work exclusively with pre-approved vendors and implement only pre-approved solutions to qualify for funding. This requirement ensures consistency in solution quality and provides businesses with recourse through Enterprise Singapore if implementation issues arise.

Common Mistakes to Avoid

Many businesses encounter challenges during the PSG application process that could be easily avoided with proper preparation and attention to detail. One frequent mistake involves selecting solutions without thoroughly assessing business needs, resulting in implementations that fail to deliver expected benefits.

Businesses should avoid these common PSG application pitfalls:

• Choosing vendors based solely on price rather than expertise and track record
• Submitting incomplete documentation or poorly written project proposals
• Applying too late in the financial year, when funding may be exhausted
• Adding features during implementation that exceed approved grant amounts
• Failing to allocate a sufficient budget for staff training and change management

Inadequate vendor research represents another common pitfall. Businesses sometimes choose vendors based solely on price considerations, overlooking factors such as implementation experience, customer support quality, and long-term viability. This approach can lead to suboptimal outcomes and implementation difficulties.

Documentation errors cause significant delays in application processing. Common issues include incomplete financial statements, missing business registration documents, and poorly written project proposals that fail to clearly articulate expected benefits and implementation timelines.

Timing mistakes often result in businesses missing funding opportunities. The annual grant cap operates on a first-come, first-served basis, and late applications may exhaust available funding. Additionally, businesses should allow sufficient time for the approval process when planning implementation timelines.

Scope creep during implementation can lead to cost overruns that exceed approved grant amounts. Businesses should carefully define project requirements upfront and resist the temptation to add features or functionality that were not included in the original application.

Strategies to Get the Most Value from Your PSG Grant

Successful PSG recipients often share common strategies for maximising the value they derive from government funding. A comprehensive needs assessment before application ensures businesses select solutions that address their most pressing challenges and opportunities.

To maximise your PSG eCommerce Grant benefits, consider these proven strategies:

• Conduct a thorough needs assessment before selecting solutions
• Invest in comprehensive staff training and change management
• Plan for seamless integration with existing business systems
• Establish clear performance measurement metrics from day one
• Schedule regular system reviews and optimisation sessions

Staff training and change management represent critical success factors that are often overlooked. Even the most sophisticated eCommerce solutions will fail to deliver expected benefits if employees lack the skills or motivation to use them effectively. Allocating budget and time for proper training ensures sustainable adoption and long-term success.

Integration planning becomes crucial when implementing e-commerce solutions alongside existing business systems. Businesses should consider how new solutions will work with current processes, software applications, and data management practices to avoid operational disruptions.

Performance measurement systems should be established before implementation begins, enabling businesses to track the actual impact of PSG-funded solutions. Key performance indicators might include:

• Website traffic
• Conversion rates
• Average order values
• Customer acquisition costs
• Overall revenue growth

Ongoing optimisation efforts help businesses continue improving their e-commerce capabilities after initial implementation. Regular reviews of system performance, customer feedback analysis, and competitive benchmarking can identify opportunities for further enhancement.

Real-World Success Stories

Singapore businesses across various industries have achieved remarkable results through PSG-funded digital implementations, demonstrating the programme’s versatility and impact across different sectors.

Quan Shui Wet Market exemplifies how traditional businesses can leverage PSG support to modernise their operations. The wet market has successfully expanded its product range through digital solutions, connected with younger customers who prefer online interactions, and achieved significant revenue increases. This transformation shows how even heritage businesses can benefit from government-supported digital adoption.

Quan Shui Wet Market website

Moveon Technologies represents the manufacturing sector’s success with PSG initiatives. Having identified innovation and product design as their core strengths, this optical product maker has leveraged Enterprise Singapore’s support to develop sophisticated solutions for global multinational companies, including Samsung, Philips, and Mercedes-Benz. Their success demonstrates how PSG support can help local companies compete on the international stage.

Moveon Technologies

AME International showcases the long-term impact of strategic government support on business growth. Starting operations in 1996 with just two workers, chairman and managing director Steven Toy, and a welder, the homegrown engineering and manufacturing firm has transformed dramatically. Today, AME boasts a 170-strong workforce spanning diverse sectors from offshore and marine to aerospace, achieving $95 million in revenue last year. This remarkable growth trajectory illustrates how sustained support can help small enterprises evolve into major industry players.

AME International

What’s New and What’s Coming Next in PSG Support?

The PSG programme continues evolving to reflect technological advances and changing business needs. Recent updates have expanded support for artificial intelligence-powered solutions, reflecting the growing importance of automation in e-commerce operations.

Sustainability considerations are increasingly influencing solution selection, including carbon footprint analytics, waste reduction tools, and energy-efficient supply chain platforms. These tools are now part of the evolving PSG solution ecosystem. These developments align with Singapore’s broader environmental goals and business sustainability initiatives.

Mobile-first approaches are becoming more prominent in approved solutions, recognising that consumers increasingly prefer smartphone-based shopping experiences. This shift requires businesses to prioritise mobile optimisation and consider progressive web applications alongside traditional e-commerce platforms.

Integration capabilities receive greater emphasis in solution evaluation, as businesses seek to create seamless workflows across multiple software applications. Application programming interface quality and data portability have become important selection criteria.

Planning Your Application Strategy

Successful PSG applications require careful planning and strategic thinking about both immediate needs and long-term business objectives. Businesses should begin by conducting thorough assessments of their current digital capabilities and identifying specific areas where eCommerce solutions could deliver meaningful improvements.

Market research and competitive analysis help businesses understand industry best practices and identify solution features that could provide competitive advantages. This research should inform solution selection and help businesses articulate expected benefits in their applications.

Financial planning extends beyond the grant amount to consider ongoing operational costs, including hosting fees, transaction charges, maintenance costs, and staff training expenses. Businesses should ensure they can sustain their chosen solutions after the initial implementation period.

Risk assessment helps businesses identify potential challenges and develop mitigation strategies. Common risks include integration difficulties, staff resistance to change, customer adoption challenges, and technical support issues.

Implementation timeline development should account for business seasonality, staff availability, and potential disruptions to ongoing operations. Many businesses benefit from phasing implementation to minimise operational impact while ensuring thorough testing and staff training.

Summary

Understanding the PSG eCommerce Grant can transform your business approach to digital commerce implementation while significantly reducing financial barriers to technology adoption.

Here are the crucial points every Singapore business owner should know:

• Annual funding cap of S$30,000 provides substantial support for eCommerce implementation, with the government covering 50% of the total project costs
• Eligibility requires a minimum 30% local shareholding, business registration with ACRA, and exclusive use of solutions within Singapore’s borders
• Pre-approved vendor system ensures quality implementation, while application processing takes 4-8 weeks through the Business Grant Portal
• Comprehensive solution coverage includes website development, payment systems, inventory management, CRM systems, and digital marketing tools
• Common pitfalls include inadequate vendor research, incomplete documentation, late applications, and insufficient staff training allocation
• Strategic planning requires thorough needs assessment, integration considerations, performance measurement systems, and ongoing optimisation efforts
• Future programme developments focus on artificial intelligence integration, sustainability considerations, and mobile-first approaches to e-commerce

Final Thoughts: Is the PSG Grant Worth It for Your Business?

The PSG eCommerce Grant represents an exceptional opportunity for Singapore businesses to accelerate their digital transformation with substantial government support. The programme’s comprehensive coverage and significant funding amounts make advanced eCommerce solutions accessible to businesses that might otherwise find them financially prohibitive.

Success requires careful planning, thorough vendor research, and strategic thinking about long-term business objectives. The competitive nature of funding allocation means early application and proper preparation are essential for securing grants. However, businesses that successfully navigate the process often experience transformational improvements in productivity, customer reach, and operational efficiency.

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