Do Singapore Businesses Need a PSG Pre-Approved Vendor? How to Verify

The Productivity Solutions Grant (PSG) can help eligible Singapore SMEs reduce the cost of adopting approved digital solutions, equipment, and productivity tools. With support of up to 50% of eligible costs for local SMEs, PSG can make digital transformation considerably more accessible, particularly for businesses investing in technology and approved productivity solutions.

However, one of the most important things businesses need to understand is that PSG funding is not simply a reimbursement scheme for any digital service purchased from any vendor.

For supported IT solutions and pre-scoped packages, the solution and vendor must meet the relevant PSG requirements. Enterprise Singapore states that companies can only be supported for pre-scoped packages offered by pre-approved vendors, and that unlisted IT solutions or vendors who are not pre-approved are not supported under this category.

This distinction matters because a business can potentially meet the general PSG eligibility criteria and still find that a particular purchase is not claimable.

The timing also matters. A company that makes payment or pays a deposit to a supplier, vendor, or third party before submitting its PSG application may be making a retrospective application, which Enterprise Singapore does not support.

In other words, choosing the right vendor and verifying the relevant PSG-approved solution before committing to the project are essential steps.

This guide explains what Singapore businesses should know about PSG vendor pre-approval, how to verify a vendor, what to check before signing or paying, and what mistakes can put a grant claim at risk.

What Is the Productivity Solutions Grant?

The Productivity Solutions Grant, commonly known as PSG, is a Singapore government grant designed to help businesses adopt technology and productivity solutions.

Enterprise Singapore describes PSG as a programme that supports local SMEs in improving productivity and automating existing processes through IT solutions and equipment. The grant supports sector-specific and generic solutions that have been pre-approved by Enterprise Singapore and participating agencies.

For eligible local SMEs, PSG provides support of up to 50% of eligible costs, subject to the relevant conditions, caps, and approved solution packages. Enterprise Singapore currently states that companies supported by EnterpriseSG are subject to an annual PSG grant cap of S$30,000 for solutions supported by EnterpriseSG, with the grant year running from 1 April to 31 March.

That makes PSG potentially valuable for businesses that are planning investments in digitalisation.

But there is an important point that businesses should not overlook:

PSG support applies to qualifying solutions and services under the relevant approved framework. It does not mean that every digital marketing agency, software provider, consultant, or technology company can automatically provide a PSG-claimable service.

The vendor, solution, scope, quotation, application, payment timing, and final claim all need to align with the applicable PSG requirements.

Does a Business Need a PSG Pre-Approved Vendor?

For PSG-supported IT solutions and pre-scoped packages, yes, businesses generally need to engage the relevant pre-approved vendor associated with the approved solution package.

Enterprise Singapore’s PSG FAQ specifically states that unlisted IT solutions or vendors who are not pre-approved cannot be supported under the PSG IT Solutions category. Companies are supported only on pre-scoped packages offered by pre-approved vendors.

This means that businesses should not assume they can:

1. Choose any agency they like.
2. Purchase a service.
3. Apply for PSG afterward.
4. Claim part of the expense from the government.

That is not how the scheme works.

Instead, the business should first identify a relevant PSG-supported solution, confirm the vendor associated with that solution, obtain the appropriate quotation, and submit the application before making payment or a deposit.

The relationship between the vendor and the approved solution package is particularly important.

A company may find a vendor that advertises itself as “PSG approved” or “PSG supported,” but that statement alone should not be treated as sufficient verification.

Businesses should verify that the specific solution or service being proposed is actually listed under the relevant PSG programme and that the vendor is the approved vendor for that package.

Why Vendor Verification Matters

Vendor verification is important because PSG eligibility is not simply based on whether a company has a Singapore registration or qualifies as an SME.

There are several layers to the process.

First, the applicant company needs to satisfy the PSG eligibility requirements.

Second, the solution or service needs to be one that is supported under PSG.

Third, where applicable, the vendor needs to be pre-approved for that solution.

Fourth, the quotation and scope of work need to correspond to the approved package and application.

Finally, the company needs to complete the project and submit the required documentation within the conditions stated in its Letter of Offer.

A mistake at any of these stages can create problems later.

This is why businesses should not treat PSG as something to think about after the marketing campaign, software implementation, or digital transformation project has already started.

The grant process needs to be considered before the financial commitment is made.

What Are the Main PSG Eligibility Requirements?

Enterprise Singapore currently lists several eligibility requirements for companies applying for PSG.

The business must generally:

• Be registered and operating in Singapore.
• Have at least 30% local shareholding held directly or indirectly by Singapore citizens and/or Singapore PRs, based on ultimate individual ownership.
• Have group annual sales turnover of not more than S$100 million, or group employment size of not more than 200 employees.
• Use the purchased, leased, or subscribed IT solution or equipment in Singapore.
• Not have made payment or a deposit to the supplier, vendor, or third party before submitting the PSG application.

There are also categories of organisations that are excluded from PSG, including charities, Institutions of a Public Character, religious entities, voluntary welfare organisations, government agencies and subsidiaries, and societies.

Importantly, these requirements need to remain satisfied through the relevant claims process. Enterprise Singapore’s FAQ notes that eligibility criteria must be met until claims disbursement has been successfully processed.

This means eligibility is not simply a box that gets checked once at the beginning.

PSG Vendor Pre-Approval vs General Company Eligibility

One of the most common areas of confusion is the difference between being eligible for PSG and using a PSG-supported solution from an approved vendor.

These are two different questions.

For example, imagine a Singapore SME that meets the general PSG requirements.

The company is incorporated in Singapore.

It has sufficient local shareholding.

Its group turnover is within the applicable threshold.

Its employees are within the relevant limit.

The company operates in Singapore.

That does not automatically mean every digital marketing service it purchases will qualify for PSG.

The business still needs to select a supported solution or service and, where required, obtain it from the appropriate pre-approved vendor.

Think of it this way:

Your company’s eligibility does not automatically make every purchase eligible.

The business, solution, vendor, scope, application and transaction must all satisfy the relevant requirements.

How Can You Verify a PSG Pre-Approved Vendor?

The safest approach is to verify the vendor through the official government resources rather than relying solely on the vendor’s own website or marketing materials.

Enterprise Singapore directs businesses to GoBusiness Gov Assist to access the list of supportable solutions and identify relevant solutions and vendors.

Before committing to a vendor, businesses should therefore check the following.

1. Check the Official PSG Directory

Start with the official government-supported directory.

Search for the relevant solution category and identify the vendor associated with the approved package.

Do not rely solely on statements such as:

“PSG approved agency.”

“PSG eligible service.”

“PSG grant available.”

“Government-supported marketing.”

Instead, verify the vendor and solution through the appropriate official listing.

The objective is to confirm that the vendor is associated with the actual PSG-supported package you intend to purchase.

2. Verify the Specific Solution

Vendor approval and solution approval should be considered together.

A vendor may offer multiple services, but that does not necessarily mean every service offered by the vendor is PSG-supported.

For example, an agency might provide SEO, Google Ads management, social media management, website development, branding, content production, consulting, analytics and other services.

The fact that one of its packages is PSG-supported does not automatically mean every service on its price list qualifies.

Ask the vendor:

“Which specific PSG-approved solution package does this quotation relate to?”

The answer should be clear and supported by the relevant PSG listing.

3. Check the Quotation

The quotation is an important part of the application process.

Enterprise Singapore states that quotations must be addressed to the grant applicant’s registered company name as reflected in its ACRA Bizfile. Shortened names or alternative names may not be accepted.

The quotation should also clearly explain the scope of services and cost breakdown.

For IT solutions, the items and costs should correspond with the applicable approved package requirements.

A vague quotation can create unnecessary issues during the application or claims process.

Before submitting the application, review:

• Your company’s registered name.
• Vendor’s name.
• Approved solution name.
• Scope of work.
• Cost breakdown.
• Applicable package details.
• Relevant supporting documents.

4. Check That the Vendor on the Application Matches the Vendor on the Claim

Vendor consistency is important.

Enterprise Singapore states that businesses cannot simply change the vendor or solution package after an application has been approved. If a company wants to change the vendor, it should terminate the application and submit a new one before proceeding with the project and making payment to the new vendor.

This is why businesses should not treat the initial vendor selection as a minor administrative step.

The vendor you select should be the vendor you intend to work with for the approved project.

Do Not Pay Before Submitting the PSG Application

This is one of the most important PSG rules for businesses to understand.

Enterprise Singapore states that retrospective applications are not supported. A retrospective application includes situations where the company has made payment, including an initial deposit, to the third-party vendor before submitting the PSG application.

That means businesses should be careful about signing or paying for a project before completing the PSG application.

The safest process is to establish the intended project and quotation first, submit the PSG application, and follow the applicable rules regarding when the project can commence and when payment can be made.

Enterprise Singapore notes that companies can commence the project after submitting the application via the Business Grants Portal, but if the application is unsuccessful, the company will not subsequently be able to claim the support.

This is an important distinction.

Submitting an application is not the same as receiving approval.

Businesses should understand the financial risk before deciding to proceed before receiving the Letter of Offer.

What Happens After the PSG Application?

The PSG application is submitted through the Business Grants Portal using Corppass.

Enterprise Singapore states that complete applications usually take around six weeks to process.

Once the application is approved, the business receives a Letter of Offer containing important information such as:

• Conditions of support.
• Approved grant amount.
• Project qualifying period.
• Approved equipment or IT solution.

The company then needs to accept the Letter of Offer within the specified timeline.

This document should be treated as an important project reference.

Businesses should make sure that the implementation remains aligned with what was approved rather than assuming that any variation will automatically qualify.

What Happens During the Project?

After approval, the business needs to complete the project according to the approved scope.

For PSG IT solutions and equipment, Enterprise Singapore states that the solution or equipment must be purchased or subscribed to as approved in the application, deployed and installed for at least 30 days, and paid in full before the relevant claim requirements can be satisfied.

This is another reason why documentation matters.

Businesses should retain relevant invoices, payment records and project documentation throughout the engagement.

Waiting until the end of the project to reconstruct the paperwork can create unnecessary problems.

What Documents Are Needed for the Claim?

When submitting a PSG claim, Enterprise Singapore requires supporting documents.

These include an invoice for the approved IT solution or equipment package and proof of full payment. The invoice should correspond to the approved package and be billed by the approved vendor stated in the Letter of Offer.

Payment documentation should show information such as:

• Grant applicant name.
• Vendor name.
• Payment date.
• Payment amount.
• Transaction status.

This is why the name appearing on your quotation, Letter of Offer, invoice and payment records should be carefully checked.

A small administrative inconsistency can create avoidable questions during the claims process.

What Mistakes Can Put a PSG Claim at Risk?

Businesses often focus on whether they qualify for the grant but pay less attention to the details of the transaction.

Several common mistakes can create problems.

Choosing a Non-Approved Vendor

The most obvious mistake is selecting a vendor that is not approved for the relevant PSG-supported solution.

If the solution requires a pre-approved vendor, using a different agency simply because it offers a lower price does not make the purchase eligible.

Paying a Deposit Too Early

Another major mistake is paying a deposit before submitting the PSG application.

Even if the company later qualifies, the transaction may be considered retrospective.

Assuming Every Service From an Approved Vendor Is Claimable

A vendor’s approval does not mean every service it sells is automatically supported.

Always confirm the exact solution and package.

Changing Vendors After Approval

Enterprise Singapore states that vendor or solution package changes are not permitted after approval. Businesses should terminate and resubmit the application before proceeding with a new vendor if a change is necessary.

Using the Wrong Company Name

The quotation and invoice should use the applicant’s registered company name.

For example, if the registered entity is “ABC Global Pte Ltd,” using only “ABC Global” may not satisfy the required documentation format. Enterprise Singapore specifically highlights this requirement.

Adding Unapproved Expenses

Businesses should not assume that every expense associated with the project is claimable.

Enterprise Singapore notes that only the actual purchase, lease or subscription cost of the relevant pre-approved solution package is supported unless otherwise stated. Related administrative costs such as delivery and installation may be excluded.

The safest approach is to review the approved scope before agreeing to additional services or costs.

PSG and Digital Marketing Services

Digital marketing is an area where businesses should pay particular attention to the distinction between an agency’s general services and its approved PSG packages.

A digital marketing agency may offer services such as:

• Search engine optimisation.
• Search engine marketing.
• Google Ads management.
• Social media marketing.
• Paid advertising.
• Content marketing.
• Analytics.
• Audience targeting.
• Marketing strategy.
• AI-powered audience analysis.

However, businesses should not assume that the entire service catalogue is automatically PSG-supported simply because the agency participates in PSG.

The specific package being purchased needs to be checked.

For businesses considering digital marketing under PSG, the first conversation with a vendor should therefore include questions such as:

What PSG solution are you approved for?

Is the specific service I am purchasing included in the approved package?

Can you provide the PSG quotation required for my application?

Does the quotation match the approved scope?

What documentation will I need for the claim?

A reputable PSG vendor should be able to explain the process clearly.

How Audience Intelligence Asia Supports PSG Digital Marketing

Audience Intelligence Asia provides digital marketing services to Singapore businesses and promotes PSG-supported digital marketing packages covering areas such as SEO, SEM and social media marketing. Its website states that it is an IMDA pre-approved digital marketing vendor and that its packages are listed under the relevant PSG digital marketing category.

For businesses considering PSG-supported digital marketing, the process can begin with an assessment of the company’s current marketing position.

Instead of starting with a generic package, the objective is to understand where the business currently stands and identify the areas where digital marketing investment could have the greatest impact.

This can include reviewing:

• Organic search visibility.
• Search engine rankings.
• Paid search performance.
• Social media activity.
• Website performance.
• Conversion tracking.
• Audience behaviour.
• Existing marketing campaigns.
• Analytics implementation.
• Competitive positioning.

The resulting strategy can then be aligned with the relevant PSG-supported service package where applicable.

Why Businesses Should Start With a Marketing Audit

A PSG grant can reduce the cost of an eligible investment, but the grant itself should not be the reason for making the investment.

The more important question is:

Will this project solve a real business problem?

For example, a company may have strong website traffic but weak conversion rates.

Another business may have good products but very little organic visibility.

A third business may be spending heavily on Google Ads but lack proper conversion tracking.

Another may have social media activity but no clear connection between campaigns and business outcomes.

These businesses may all need different solutions.

A marketing audit can help identify the gap before the company commits to a programme.

This approach can make the PSG investment more strategic because the business is not simply buying a subsidised service. It is investing in a defined business objective.

PSG Should Be Part of the Planning Process

Businesses sometimes discover PSG only after they have already chosen a vendor and started discussing implementation.

That can be too late.

The better approach is to consider PSG during the procurement stage.

A practical sequence is:

Identify the business problem → identify the appropriate PSG-supported solution → verify the vendor → obtain the quotation → submit the application → follow the approval conditions → implement the project → retain documentation → submit the claim.

This approach helps reduce the risk of making a payment or committing to a vendor before understanding whether the project is eligible.

A Simple PSG Vendor Verification Checklist

Before committing to a PSG-supported project, Singapore businesses should review the following:

• Confirm that the company meets the PSG eligibility requirements.
• Identify the relevant PSG-supported solution.
• Check the official government directory for the solution and vendor.
• Confirm that the vendor is approved for the specific package.
• Ask for a detailed quotation.
• Make sure the quotation uses the company’s exact registered name.
• Confirm that the proposed scope matches the approved package.
• Do not make a payment or deposit before submitting the PSG application.
• Submit the application through the Business Grants Portal.
• Review the Letter of Offer carefully if the application is approved.
• Do not change vendors or solution packages without following the required process.
• Keep invoices and proof of payment.
• Ensure the final project remains aligned with the approved scope.
• Submit the claim with the required documentation.

These steps may appear administrative, but they can make a significant difference.

The cost of checking eligibility before starting a project is small compared with the potential cost of discovering afterward that the expenditure cannot be claimed.

Is PSG the Same as a Guaranteed 50% Discount?

No.

This is another important distinction.

PSG can provide support of up to 50% of eligible costs for local SMEs, but businesses should not interpret this as an automatic 50% discount on every invoice.

The amount supported depends on the applicable PSG rules, approved solution, eligible costs, grant cap and other conditions.

For example, if a vendor quotes a package at S$20,000, the business should not automatically assume that it will receive S$10,000 from the government.

The business should first determine:

1. Whether it is eligible.
2. Whether the solution is supported.
3. Whether the vendor is approved.
4. Which costs are eligible.
5. Whether the project falls within the relevant grant cap.
6. Whether the application is approved.
7. Whether all claim conditions are satisfied.

The final support amount is therefore subject to the applicable grant requirements.

Can a Company Apply for PSG More Than Once?

Companies can submit more than one PSG application depending on their business needs and the relevant solution rules.

However, Enterprise Singapore notes that support limitations can apply to particular IT solutions, and businesses should also consider the annual PSG grant cap.

Companies should therefore plan their digitalisation investments rather than assuming they can claim every eligible project independently without limit.

A business that is considering multiple digital transformation projects may benefit from reviewing its priorities before using its available grant support.

What If a Company Is Unsure Whether a Vendor Is Approved?

If there is uncertainty, do not rely solely on verbal assurances.

Ask the vendor for:

• The exact PSG solution name.
• The relevant approved package.
• Evidence of the vendor’s listing.
• The scope covered under the package.
• A quotation matching the approved scope.
• An explanation of the application process.

Businesses can also check the relevant government resources directly.

The official Enterprise Singapore PSG page explains the eligibility requirements, application process and documentation requirements, while GoBusiness Gov Assist provides access to the list of supportable solutions.

This is particularly important when a vendor uses broad marketing language such as “PSG-supported digital marketing.”

The question should always be:

“Which exact PSG-approved solution does this purchase fall under?”

Frequently Asked Questions

How does Audience Intelligence Asia help with this topic?

Audience Intelligence Asia is a PSG-supported digital marketing agency serving Singapore businesses, with packages covering areas such as SEO, SEM and social media marketing. Its website states that it is an IMDA pre-approved digital marketing vendor and that its PSG digital marketing packages are listed under the relevant PSG category.

The agency works with businesses on digital marketing strategy, search engine optimisation, search engine marketing, social media marketing, analytics and data-driven audience strategies.

Businesses can begin with a consultation and marketing assessment to understand their current digital position and identify potential opportunities.

Is PSG grant funding available for digital marketing services?

PSG support may be available for qualifying digital marketing solutions where the relevant service and vendor meet the applicable PSG requirements.

Audience Intelligence Asia currently promotes PSG-supported packages for SEO, SEM and social media marketing.

However, businesses should verify their own eligibility and the exact approved package before making any payment or commitment.

PSG funding is subject to government approval and the applicable terms and conditions. It should not be treated as an automatic reimbursement.

Does every Singapore SME qualify for PSG?

No.

Businesses need to satisfy the applicable PSG eligibility requirements.

Enterprise Singapore currently states that eligible applicants generally need to be registered and operating in Singapore, have at least 30% local shareholding, meet the applicable group turnover or employment threshold, use the supported solution or equipment in Singapore, and not have made payment or a deposit before submitting the application.

Additional conditions may apply depending on the solution.

Can I choose any digital marketing agency and claim PSG afterward?

No.

For PSG-supported IT solutions and pre-scoped packages, the solution and vendor must meet the applicable pre-approval requirements. Enterprise Singapore states that unlisted IT solutions and vendors who are not pre-approved are not supported under the PSG IT Solutions category.

Always verify the relevant vendor and solution before proceeding.

Can I pay the vendor first and apply for PSG later?

Generally, no.

Enterprise Singapore does not support retrospective applications where payment or a deposit has already been made to the supplier, vendor or third party before the PSG application is submitted.

This is one of the most important timing requirements to understand.

Can I change vendors after my PSG application is approved?

Enterprise Singapore states that changes to the vendor or solution package are not allowed after approval. If a change is necessary, the existing application should be terminated and a new application submitted before proceeding with the new vendor and making payment.

For this reason, businesses should select their vendor carefully from the beginning.

How long does PSG approval take?

Enterprise Singapore states that complete PSG applications usually take about six weeks to process.

Businesses should therefore plan ahead rather than waiting until they need the digital solution immediately.

What happens if my PSG application is rejected?

Businesses should not assume that an unsuccessful application can simply be converted into a reimbursement later.

Enterprise Singapore notes that companies may proceed with a project after submitting an application, but if the application is unsuccessful, the company will not be able to claim the grant subsequently.

Businesses should therefore understand the risk before proceeding before the application outcome is known.

How do I get started with Audience Intelligence Asia?

You can contact Audience Intelligence Asia to discuss your business requirements and potential PSG-supported digital marketing options.

The agency can assess your current marketing position, identify opportunities across channels such as SEO and SEM, and discuss the relevant PSG process for qualifying services.

Contact Audience Intelligence Asia at +65 8313 1199 or visit its website for more information about its services and consultation options.

Final Thoughts: Verify Before You Commit

PSG can be a valuable tool for Singapore SMEs looking to invest in digital transformation without carrying the entire cost themselves.

But the key to using PSG effectively is understanding that eligibility is not simply about being a Singapore SME.

The business must meet the relevant eligibility requirements.

The solution must be supported.

Where applicable, the vendor must be pre-approved for the relevant package.

The quotation must accurately reflect the approved scope.

The business must apply before making the relevant payment or deposit.

The project must then be implemented according to the approved conditions, with the required invoices and payment documentation retained for the claim.

The biggest lesson is simple:

Do your PSG verification before you commit, not after the project is completed.

If a business waits until the end of a marketing campaign, software implementation or digital transformation project to ask whether the expense is claimable, there may be little that can be done if the purchase did not satisfy the scheme’s requirements.

On the other hand, businesses that verify the vendor, solution, scope and application requirements at the beginning can make better-informed decisions and reduce unnecessary grant-related risks.

For Singapore SMEs considering digital marketing investment, PSG can potentially make services such as SEO, SEM and social media marketing more accessible when the relevant service package qualifies under the scheme.

The grant should not be the only reason to invest, however.

The strongest approach is to start with the business objective, identify the marketing problem, select an appropriate solution, verify PSG eligibility and vendor approval, and then proceed with a structured programme designed to generate measurable business results.

Before signing, paying, or starting the project, verify the PSG requirements first.

Ready to Grow Your Singapore Business With AI-Powered Digital Marketing?

Audience Intelligence Asia provides data-driven digital marketing solutions for Singapore businesses, with PSG-supported packages promoted across SEO, SEM and social media marketing.

If you are considering PSG-supported digital marketing, start with an assessment of your current marketing performance and identify where additional investment could have the greatest impact.

Audience Intelligence Asia
60 Paya Lebar Road #07-54
Paya Lebar Square
Singapore 409051

📞 +65 8313 1199
🌐 www.audienceintelligence.asia
📧 wohlstand@audienceintelligence.asia

👉 Free consultation: www.audienceintelligence.asia/contact

PSG support is subject to eligibility, approval and the applicable terms and conditions of Enterprise Singapore and relevant participating agencies. Businesses should verify the current approved solution, vendor and funding conditions before making any payment or commitment.