How the PSG government grant has helped Singapore’s small business ownersBy Jin Lee
The Singapore government has implemented several measures to support small businesses, one of which is the Productivity Solutions Grant (PSG) government grant. This grant is aimed at helping small businesses in Singapore to adopt technology and improve their productivity. In this article, we will take a closer look at the PSG grant and how it has helped small business owners in Singapore through the examples of ComfortDelgro Engineering and Achieva Technology.
The PSG grant was first introduced in 2010 as part of the government's efforts to encourage small businesses to adopt technology and improve their productivity. The PSG Grant provides funding for businesses to purchase and implement accounting software, certain areas of web development like custom social media and e-commerce websites, nearly any type of business software and even consulting services. The grant covers up to 80% of the total cost of the productivity solution, with a cap of $30,000 per company per fiscal year.
One example of a small business that has benefited from the PSG grant is ComfortDelgro Engineering, a subsidiary of ComfortDelgro Corporation that provides engineering solutions for the transportation industry. They used the PSG grant to purchase and implement a new Enterprise Resource Planning (ERP) system to improve their operational efficiency. With the new system, they were able to streamline their processes, improve their inventory management, and reduce their administrative costs by 15%. The new ERP system includes accounting software, has also helped ComfortDelgro Engineering to better track and manage their projects, which has helped to improve their productivity and customer satisfaction.
Another example of a small business that has benefited from the PSG grant is Achieva Technology, a small manufacturing company that specialises in precision parts. They used the PSG grant to purchase and implement an automated machine tending system to improve their efficiency and productivity. With the new system, they were able to increase their production output by 25% and reduce their labour costs by 30%. As a result, Achieva Technology was able to increase its competitiveness and profitability.
Overall, the PSG grant has helped small businesses in Singapore adopt technology and improve their productivity. The grant has provided funding for small businesses to purchase and implement pre-approved productivity solutions, which has helped to improve their efficiency and customer satisfaction. As a result, many small businesses have been able to increase their sales and revenue since implementing these solutions.
Who’s eligible for the PSG grant?
If you’re a Singaporean small business owner just finding out about this, you may be interested to apply for it. To be eligible for the grant, businesses must be registered and operating in Singapore; must have at least 30% local shareholding; must have a minimum of 30% of its employees in Singapore; must not have any outstanding taxes or fines; and must not have any outstanding government loans or grants
Once a business meets these eligibility criteria, they can apply for the grant by submitting an application to Enterprise Singapore, the government agency responsible for the administration of the grant. The application process involves submitting a proposal outlining the proposed productivity solution and its expected benefits, as well as providing financial and operational information about the business.
By providing funding for businesses to purchase and implement productivity solutions, the PSG grant has helped companies to improve their efficiency, productivity, and customer satisfaction. As the economy starts to recover from the impact of the pandemic, the PSG grant will continue to play an important role in helping Singapore's small businesses to thrive.
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