PSG ecommerce grant: Funding your online store in Singapore

Building an ecommerce store in Singapore is a significant investment. For many founders, the cost of setting up a professional online store, integrating payment systems, and adopting the right digital tools can run into tens of thousands of dollars before the first sale is made. The Productivity Solutions Grant (PSG) is a Singapore government funding scheme designed to reduce that barrier for SMEs. It covers up to 50% of the cost of adopting pre-approved digital solutions, capped at SGD $30,000 per year.

For ecommerce businesses, the grant can be used to cover the cost of building or upgrading an online store, integrating payment systems, implementing inventory management, and adopting digital marketing tools.

What is the PSG ecommerce grant?

The PSG ecommerce grant is part of Singapore's Productivity Solutions Grant (PSG), administered by Enterprise Singapore. It funds up to 50% of the cost of adopting pre-approved ecommerce solutions, with the business covering the remaining amount.

The key requirement is that all solutions and vendors must be pre-approved by Enterprise Singapore and listed on the GoBusiness Gov Assist portal. Only pre-approved solution packages listed under the Digital Retail and Ecommerce Solutions category qualify for funding.

The PSG ecommerce grant does not cover ongoing hosting fees, maintenance subscriptions beyond initial implementation, delivery or installation charges, or third-party application fees. EnterpriseSG does not require any application fees to apply for the grant. Any fees quoted by individuals or firms offering grant application services are not endorsed by the government.

What the PSG ecommerce grant covers

The grant covers a broad range of ecommerce solutions, verified from the GoBusiness directory. The 7 main categories eligible for funding are:

• Ecommerce website development and online store setup: building or upgrading a business-to-consumer (B2C) or business-to-business (B2B) online store on a pre-approved platform. This is the most commonly funded category under the Singapore ecommerce grant
  
• Payment gateway integration: integrating a pre-approved digital payment system that supports multiple payment methods, including cards and local options like PayNow
  
• Customer relationship management (CRM) systems: implementing platforms that support marketing automation, customer segmentation, email campaign management, and analytics
  
• Inventory management systems: setting up real-time stock tracking, automated reordering, and order fulfilment integration with the online store
  
• Digital marketing tools: adopting search engine optimisation (SEO) platforms, social media management tools, and online advertising management systems
  
• Business intelligence and analytics: deploying reporting dashboards and analytics platforms to track store performance and customer behaviour
  
• Generative AI (GenAI) solutions: adopting pre-approved AI tools for marketing, sales, and customer engagement. These were added to the PSG approved vendor list on GoBusiness in late 2024
  

PSG ecommerce grant: funding amount

The grant covers up to 50% of eligible costs. The annual cap is SGD $30,000 per company, per financial year (April to March). Businesses may apply for multiple PSG solutions within the same year, provided the total funded amount does not exceed the annual cap.

Additional support through SFEC

Qualifying SMEs can also apply for the SkillsFuture Enterprise Credit (SFEC), a one-time SGD $10,000 credit that can be used alongside PSG to further reduce costs. To qualify, the employer must have employed at least 3 Singapore Citizens or Permanent Residents every month over the qualifying period and contributed at least SGD $750 in Skills Development Levy (SDL).

What the PSG ecommerce grant covers and excludes

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PSG ecommerce grant eligibility criteria

Businesses must meet the following criteria to be eligible for the PSG ecommerce grant:

• Business entity is registered and operating in Singapore
  
• At least 30% local equity is held directly or indirectly by Singapore Citizens or Permanent Residents, determined by ultimate individual ownership
  
• The business's group annual sales turnover does not exceed SGD $100 million, or its group employment size does not exceed 200 employees. Meeting either condition is sufficient.
  
• The IT solution purchased, leased, or subscribed to must be used in Singapore
  
• No payment or deposit has been made to the vendor before the application is submitted. This is a hard disqualifier and one of the most common reasons for rejection
  

Ineligible entities include charities, Institutions of Public Characters (IPCs), religious entities, Voluntary Welfare Organisations (VWO), government agencies and subsidiaries, and registered societies.

Sole proprietors and partnerships are also eligible to apply, as long as they meet the standard criteria. Each application must be submitted under a single company Unique Entity Number (UEN), with one application per solution. Group applications are not permitted.

How to apply for the PSG ecommerce grant: step by step

The PSG application follows an 8-step process. It is important to read through all steps before starting, as making any payment to the vendor before the application is submitted will disqualify the claim.

1. Identify the right solution Visit GoBusiness Gov Assist and browse the PSG directory under Digital Retail and Ecommerce Solutions. Select a pre-approved solution package that matches the business needs
   
2. Choose a pre-approved vendor and request a quotation Contact the pre-approved vendor for the selected solution and request a formal quotation. The quotation must match the specifications in Annex 3 of the approved solution package. It must be addressed to the company's registered name exactly as per ACRA Bizfile, as abbreviations and informal names are rejected. It must also include a clear cost breakdown
   
3. Prepare your documents These include company financial statements for the past 3 years (or management accounts if the company was incorporated less than 1 year ago), the vendor quotation, contact details for the main applicant and Letter of Offer addressee, a deployment location or tenancy agreement, and a brief description of expected business impact and productivity gains
   
4. Submit via the Business Grants Portal (BGP) Log in to apply.gov.sg/grants/business using a Corppass account, complete the application form, and upload all required documents. The applicant company must apply and manage the grant directly. Third-party applications are not permitted
   
5. Wait for approval Processing takes approximately 6 weeks. Enterprise Singapore may request clarifications via BGP. Application status can be tracked under 'My Grants' in the portal
   
6. Receive and accept the Letter of Offer If approved, a Letter of Offer will be issued specifying grant conditions, amount awarded, project qualifying period, and approved solution name. This must be accepted within the specified timeline. Payment to the vendor should only proceed after the Letter of Offer has been accepted
   
7. Implement the solution and submit your claim Purchase and deploy the solution as approved. The solution must be actively used for at least 30 days before a claim can be submitted. The claim should be submitted via BGP with the vendor invoice, proof of full payment, a usage report, and a photo of the software licence number
   
8. Receive disbursement Approved claims are disbursed via PayNow Corporate at approximately 14 working days after claim approval, or via GIRO in up to 8 weeks. Setting up PayNow Corporate with the company UEN through the bank ensures the fastest disbursement
   

Common mistakes to avoid

Four mistakes account for the majority of rejected or delayed PSG applications:

• Paying the vendor before applying Any payment or deposit made before the application is submitted permanently disqualifies the claim. This includes partial deposits. The sequence must be: apply first, receive the Letter of Offer, then pay
  
• Using a vendor or solution not on the approved list Only pre-approved vendors and solution packages listed on GoBusiness qualify. A vendor not on the list cannot be funded, regardless of the quality of their solution
  
• Quotation not matching the required format The quotation must match the specifications in the approved solution package and the vendor must address it to the company's registered name exactly as per ACRA Bizfile. Any discrepancy in company name or scope of work will result in rejection or delay. The approved solution package specifications can be accessed directly through the GoBusiness PSG directory
  
• Applying late in the financial year The annual cap of SGD $30,000 applies per company across all PSG solutions within the same financial year (April to March). Businesses that have already claimed PSG funding for other solutions earlier in the year may find their remaining cap insufficient to cover a new ecommerce solution
  

PSG and the upcoming EDGE grant

In Budget 2026, Enterprise Singapore announced that PSG, the Enterprise Development Grant (EDG), and the Market Readiness Assistance (MRA) grant will be consolidated into a single unified scheme called EDGE, which stands for Enterprise Development and Growth for Enterprises. EDGE is expected to launch in the second half of 2026.

Under EDGE, applications will be based on intended business activities, such as digitalisation, efficiency improvement, or international expansion, rather than requiring businesses to identify which of three separate grant schemes applies to their project. The annual funding cap under EDGE will be SGD $100,000 per year, and overseas expansion support for SMEs will increase to 70% co-funding, up from 50% under the current schemes.

What this means for ecommerce founders right now:

• PSG remains fully accessible until EDGE launches
  
• Projects already approved under PSG will continue to be honoured under their existing terms and will not be affected by the transition to EDGE
  
• Once EDGE launches, PSG, EDG, and MRA will be phased out. New applications after that point will be made under the EDGE framework
  

Managing ecommerce finances beyond the grant

The PSG ecommerce grant funds the setup of an online store, but grant funding covers the build, not the operations that follow. As the store goes live and transactions begin, founders quickly realise that managing supplier payments, tracking spend across channels, and staying on top of cash flow requires dedicated financial tools built for ecommerce. This is where a platform like Aspire's ecommerce solutions can help, bringing supplier payments, spend management, and accounting integrations together in one place.

Frequently asked questions about the PSG ecommerce grant

What is the PSG ecommerce grant?

The PSG ecommerce grant falls under Singapore's Productivity Solutions Grant (PSG), a government funding scheme administered by Enterprise Singapore for SMEs. It funds up to 50% of the cost of setting up pre-approved ecommerce solutions, with each SME eligible for a maximum of SGD $30,000 per year.

How much can I get from the PSG ecommerce grant?

The grant covers up to 50% of eligible costs, capped at SGD $30,000 per company per financial year (April to March). Businesses can apply for multiple solutions within the same year as long as the total remains within the annual cap. Qualifying SMEs can also apply for the one-time SGD $10,000 SkillsFuture Enterprise Credit (SFEC) to reduce costs further.

Who is eligible for the PSG ecommerce grant?

The business must be registered and operating in Singapore, have at least 30% local shareholding, not exceed SGD $100 million in group annual turnover or 200 employees, and use the funded solution within Singapore. No payment should have been made to the vendor before the application is submitted.

Can I use the PSG grant to build an ecommerce website?

Yes. Ecommerce website development and online store setup is a supported category under the PSG Digital Retail and Ecommerce Solutions section on the GoBusiness portal. The solution must be sourced from a pre-approved vendor on the portal.

How long does PSG grant approval take?

A complete application typically takes approximately 6 weeks to process. Enterprise Singapore may request clarifications through the Business Grants Portal during this period. Application status can be tracked under 'My Grants' in the portal.

What are pre-approved PSG vendors and where do I find them?

Pre-approved PSG vendors are solution providers vetted and approved by Enterprise Singapore. The PSG grant is applicable only when the solution is purchased from a vendor on this approved list. The full list is available on the GoBusiness Gov Assist portal at gobusiness.gov.sg under Productivity Solutions Grant.

Sources

1. PSG official programme page, Enterprise Singapore https://www.enterprisesg.gov.sg/financial-support/productivity-solutions-grant
   
2. FAQs, Enterprise Singapore https://www.enterprisesg.gov.sg/resources/all-faqs/productivity-solutions-grant
   
3. PSG directory, GoBusiness Gov https://www.gobusiness.gov.sg/productivity-solutions-grant/
   
4. EDGE grant announcement, Enterprise Singapore https://www.enterprisesg.gov.sg/-/media/esg/files/media-centre/media-releases/2026/march/mr00826_business-refresh-package_v2.pdf
   
5. PSG ecommerce grant guide, Equinet Academyhttps://www.equinetacademy.com/blog/psg-ecommerce-grant-all-you-need-to-know/