Singapore is widely known for its advanced technology. In order to keep up with the title, the Singapore government introduced the Productivity Solutions Grant (PSG) in April 2018 to support small to medium-sized enterprises (SMEs). PSG funds provide financial support for SMEs to adopt IT solutions, equipment, and consultancy services. While SMEs play a key role in assisting Singapore’s economic growth, they struggle to keep up with technologies, in this case, digital solutions. Various integrated digital solutions can help SMEs with digitalization. You can implement the best ERP solutions to expand your business.
Besides the lack of knowledge about digital solutions, SMEs are also struggling financially. Competing with other SMEs is also a challenge for them. The government undoubtedly acknowledges those obstacles. The launching of the PSG grant did a big favor for SMEs as they will receive tons of benefits by applying for it. You should consider applying for the PSG grant since everything is going digital these days. Staying competitive could be less stressful by implementing complete ERP software for your operational process. Without a doubt, you will notice improvement after switching to digital solutions.
PSG Funds Objective
The main objective of the PSG funds is to provide SMEs with solutions that could help them to improve productivity and stay competitive in this digital era. SMEs will obtain up to 70% of financial support. Now, we will go through all of the PSG grant’s solutions.
- Digital Solutions
The main point of the grant is to help SMEs switch to digital operational processes. Pre-approved vendors will give you references and assist you with the solutions they provide. Choose wisely for the vendor you’ll use. They should be able to maximize your business potential digitally and help you increase profitability.
2. Equipment
Other than digital solutions, equipment support is included in the grant. Some industries are lacking behind in providing equipment. SMEs will provide companies with sources for the equipment. They’ll also acquire quotations from the vendor.
3. Consultancy Service
Pre-approved consultants are available to assist you through your business process. This allows SMEs to consult and forecast better things about their business. In addition, job redesign consultancy is also available for business sectors to utilize.
Also read: How to Gain Up to 70% of Funding With PSG
Types of PSG
There are two types of PSG solutions. SMEs should take notes on which solutions they’re eligible for. The first one is sector-specific solutions. The sector-specific solutions are for those companies within the respective sectors. It is also organized in particular by sector lead agencies and aligned to industry roadmaps. The sectors are:
- Advanced manufacturing
- Banks
- Building & construction
- Early childhood
- Engineering services
- Estate agency
- Food
- Food manufacturing
- Food services
- Healthcare
- Legal
- Logistics
- Marine & offshore
- Personal care services
- Precision engineering
- Retail
- Security
- Travel agents
- Wholesale trade
There are also generic solutions. Unlike sector-specific solutions, all companies across every sector and industry can benefit from generic solutions. Generic solutions aim for companies to build up their productivity in business operations. The solutions are:
- Human resource solutions
- ERP and standalone solutions
- Fleet safety and fleet management system
- Document management and mobile access system
- Digital marketing solutions
- E-commerce solutions
- Cyber security solutions
- Job redesign solutions
SMEs should always carefully choose which digital solution vendor they want to use. The vendor must be able to meet SMEs’ needs. To optimize the use of the given funds, ERP solutions might be an excellent choice. ERP software provides you with tons of solutions. With its centralized system, controlling and managing operational processes are just one click away.
We absolutely can’t leave Singapore out if we’re talking about its SMEs. Holding high at about 99% of all enterprises, SMEs are the backbone of Singapore’s economic growth. According to SingStat in 2021, SMEs contributed to almost half of Singapore’s GDP. In addition, SMEs create job opportunities by employing about 70% of their local labor force. Despite the high stats, SMEs are more vulnerable when it comes to economic drop-off. SMEs need to stay competitive in order to survive since there are a lot of them. Some of the frequent obstacles they come across are financial issues, outsourcing, digitalization, and increasing competition. Most business owners struggle to implement fundamental digital solutions and are still doing the operational process manually. Meanwhile, going digital is essential these days to stay competitive. Going digital also means uplifting their productivity. Hence, SMEs seek greater support in financial support and assistance with digitalization. SMEs are also expected to increase their spending on the newest technologies and assets. The Singapore government is aware of this problem. Hence, they launched the PSG grant to help the growth of SMEs. PSG funds will surely help SMEs toward the digitalization of their business. They will receive a bunch of help, including obtaining up to 70% of financial support that will significantly benefit them. They’re encouraged to adapt to digital solutions such as ERP solutions, cyber security solutions, document management, and many more. Also read: The Role of SMEs in Singapore The PSG grant will significantly help local SMEs by improving their productivity with digitalization. Digital solutions are considered essential for nowadays business. Here are the benefits of the PSG grant for local SMEs. By applying for a PSG grant, you can receive up to 70% of financial support. There are also sectors under Food Services and Retail Business industries that are able to receive up to 80% grant support. These numbers are undoubtedly beneficial for enterprises to make use of or to invest in technologies. High-quality digital solutions are necessary and should be able to accompany SMEs through their journey. That’s why most enterprises apply for the PSG grant to obtain infinite access to high-quality digital solutions. They aim to expand their business with digitalization. This also will help them to achieve their goals and gain more profits. Since the grant is made for enterprises to expand their operation digitally, it is applicable for most industries. The businesses that can apply for the PSG grant are wholesale & distribution, retail & food and `beverages, logistics, professional service, construction & landscaping, and e-commerce. While going digital, SMEs also need to compete with other businesses. SMEs usually have little to zero knowledge of how to reach better outcomes with digitalization. Applying for the PSG grant is a huge deal since SMEs are able to have a great head start thanks to the 70% funding. This way, SMEs can expand their business effectively.
SMEs are expected to optimize the use of the funds given. Since the main event of applying for the PSG grant is to improve their business process digitally, SMEs usually implement most of the funds for IT solutions. Transforming to digital solutions has tons of benefits for your business. One of them is minimizing human errors. The majority of businesses are fetching a lot of data from clients. Managing and analyzing data digitally could save time and avoid mistakes. By using digital solutions, resource management will be done much more efficiently. This is due to the integration between systems, applications, and databases. Switching to digital solutions could instantly boost productivity and efficiency which will lead to maximum profit gain. There are plenty of vendors to that you can apply for the PSG grant. HashMicro provides the most complete ERP solutions that are suitable for various businesses and industries such as sales, accounting, inventory, purchasing, and manufacturing. Consider using HashMicro’s ERP solution to digitalize your operational process. Don’t worry, HashMicro will also assist you with guidelines for applying for the PSG grant. The small to medium-sized enterprises (SMEs) in Singapore holds a major role in its economic scene. Surprisingly, they still struggle on implementing basic technology despite how well-known Singapore is for its advanced technology. SMEs also express their struggle with financial support. The government is completely aware of these issues. Hence, they launched the Productivity Solutions Grant (PSG). It provides financial support for SMEs to adopt IT solutions, equipment, and consultancy services. Digitalization is essential for nowadays business. Switching to IT solutions can improve productivity and efficiency thus gaining more profit. The PSG grant pre-approved various vendors you can choose according to your sector and needs. You can utilize the best ERP solution in Singapore to enhance your business. It provides you with various features for your business needs. The most versatile ERP solution also can be integrated with other systems to boost efficiency even more. Going digital with the best ERP solution will benefit your business as a whole. Schedule a free demo now to experience the transformational power it brings to your operations.
Rising of Local SMEs
How Will PSG Funds Helps Local SMEs
1. Receive up to 70% of financial support
2. Acquire high-quality digital solutions
3. The grant supports most industries
4. Possess a great head start
PSG Funds Usage in A Company
Conclusion
