EDG vs PSG: Which Grant is Right for Your Business?
A comprehensive comparison of Singapore's two most popular business grants
Choosing between the Enterprise Development Grant (EDG) and the Productivity Solutions Grant (PSG) is one of the most common decisions Singapore businesses face. Both grants support digital transformation and business growth, but they serve different purposes and have different requirements. This guide helps you understand the key differences and choose the right grant for your needs.
Quick Comparison
| Feature | PSG | EDG |
|---|---|---|
| Funding Support | Up to 50% | Up to 50% (70% for sustainability) |
| Target AudienceSMEs: ≤200 employees or ≤S$100M revenue | SMEs only | All businesses |
| Solution Type | Pre-approved only | Custom projects |
| Application Complexity | Simple | Complex |
| Approval Time | ~4 weeks | ~2-3 months |
| Max Funding Amount | Capped per solution | No fixed cap |
| Consultancy Support | No | Yes |
| Overseas Expansion | No | Yes |
| Custom Software Development | No | Yes |
Pros and Cons
Productivity Solutions Grant (PSG)
- Fast approval process (~4 weeks)
- Simple application with minimal documentation
- Pre-approved solutions reduce vendor risk
- Higher funding rate (up to 50%)
- Great for quick digital wins
- Limited to pre-approved solutions only
- SMEs only (≤200 employees or ≤S$100M revenue)
- No support for custom development
- Cannot fund consultancy services
- Capped funding per solution
Enterprise Development Grant (EDG)
- Supports custom, tailored projects
- Covers consultancy and professional services
- Enables overseas market expansion
- Higher funding (up to 70%) for sustainability
- Open to businesses of all sizes
- Longer approval process (2-3 months)
- Complex application with detailed proposal
- Requires strong business case
- More documentation and reporting
- No guarantee of approval
Which Grant Should You Choose?
The right choice depends on your business stage, project complexity, and timeline. Here are our recommendations:
→ Apply for PSG
Learn more→ Apply for EDG
Learn more→ Apply for EDG (Market Access)
Learn more→ Start with PSG, consider EDG later
Learn moreFrequently Asked Questions
Yes! Many businesses apply for PSG first to address immediate needs, then EDG later for larger transformation projects. However, you cannot use both grants for the same project or expense.
Both grants require at least 30% local (Singaporean or PR) shareholding. This is verified through your ACRA records during the application process.
No. You must wait for written approval before incurring any expenses or signing contracts. Starting early will disqualify your application.
PSG typically takes about 4 weeks for approval. EDG takes 2-3 months due to the more detailed assessment process.
For PSG: ACRA BizFile and quotation from pre-approved vendor. For EDG: Detailed project proposal, business case, vendor quotations, and company financials.