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The Productivity Solutions Grant (PSG) makes it easier for SMEs in Singapore to adopt essential tech tools like Point-of-Sale (POS) systems by covering up to 50% of costs. This guide explains how the PSG Grant applies to POS systems, the business benefits, and how to successfully apply for a PSG Grant.
What Is the Productivity Solutions Grant (PSG) and Why It Matters
The Productivity Solutions Grant (PSG) is a Singapore government initiative that subsidises up to 50% of the cost for pre-approved digital solutions, including Point-of-Sale (POS) systems. Designed to support digital transformation among local small and medium enterprises (SMEs), the grant reduces the upfront investment required to adopt technology that improves efficiency and competitiveness.
For SMEs looking to modernise sales operations, streamline workflows, and gather smarter business insights, the Productivity Solutions Grant makes POS system adoption both accessible and cost-effective.
Why POS Systems Are Eligible for Productivity Solutions Grant Funding
POS systems are critical tools that go beyond basic sales transactions. Modern Point-of-Sale systems combine hardware and software to manage inventory, track customer behaviour, generate real-time reports, and improve operational speed and accuracy.
Recognising this, IMDA and Enterprise Singapore have included POS systems in the PSG’s pre-approved digital solutions list. These are solutions that have been vetted for quality, reliability, and relevance to local business needs.
Key features often included in PSG-funded POS systems:
- Integrated inventory and order management
- Mobile or cloud-based access
- Kitchen display or receipt printers (for F&B)
- Customer relationship management (CRM) and customer loyalty tools
- Integration with accounting or delivery platforms
How SMEs Benefit from PSG-Funded POS Systems
For SMEs, the cost savings are only one part of the benefit. A modern POS system can fundamentally reshape daily business operations, helping you make faster, smarter, and more profitable decisions.
1. Reduced Upfront Technology Costs
With the PSG covering up to 50% of the system cost, SMEs can access high-end technology at half the price, freeing up capital for marketing, staffing, or inventory.
2. Increased Operational Efficiency
A PSG-funded POS system helps eliminate manual processes like handwritten orders or inventory counts. This translates into fewer errors, faster checkouts, and better staff productivity.
3. Stronger Business Insights
Built-in reporting tools give business owners visibility into peak hours, top-selling items, and staff performance, all of which can inform future business strategies.
4. Improved Customer Experience
From faster payments to loyalty programmes, a POS system helps SMEs deliver consistent and personalised service, increasing customer retention.
How to Apply for the PSG Grant for a POS System
Applying for the PSG Grant requires preparation, but is a straightforward process if you follow the right steps:
Step 1: Check Eligibility
Ensure your business meets the PSG criteria:
- Registered and operating in Singapore
- Minimum 30% local shareholding, either by Singaporeans or Singapore PRs
- Using the solution locally
Step 2: Choose a Pre-Approved POS Vendor
You must select from the IMDA-approved list of POS system vendors. These solutions are guaranteed to be grant-eligible and tailored for local SME needs.
Step 3: Get a Quotation
Request a formal quote from the chosen vendor for the POS system package.
Step 4: Apply via the Business Grants Portal (BGP)
Submit your application with supporting documents, including the vendor’s quotation, business information, and justification for the system.
Step 5: Await Approval
You will typically receive an approval notice within 4–6 weeks.
Step 6: Implement and Submit Claims
After approval, deploy the POS system and then submit your claims to receive reimbursement.
Important: Purchases made before approval will not be reimbursed.
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Other Business Grants for SMEs
While the Productivity Solutions Grant (PSG) remains one of the most popular funding schemes for SMEs in Singapore, there are several other business grants that can also support technology adoption, including the purchase of POS systems. These include:
- Hawkers’ Productivity Grant
- Business Assistance Grant
- Enterprise Development Grant
Check out the different types of business grants for SMEs and assess your eligibility by comparing your organisational requirements with the criteria of available funding schemes.
Frequently Asked Questions (FAQs)
Can I use the PSG Grant for an upgrade to my current POS system?
Yes, if the upgrade involves a new PSG-approved solution. It must be significantly different from your current setup.
What’s the current funding support level for POS systems under PSG?
PSG covers up to 50% of the cost. This amount may vary, so check the GoBusiness portal for the latest updates.
Can I choose any POS vendor?
No. Only vendors listed under the PSG-approved vendor list are eligible for funding support.
Start Your POS Upgrade with PSG Support
The PSG Grant is more than a subsidy—it’s a catalyst for growth. By lowering the financial barrier to adopting a modern POS system, Singaporean SMEs can increase productivity, serve customers better, and compete at a higher level.
Whether you run a café, a boutique retail shop, or a service-based business, upgrading your POS system with PSG support is a strategic move.
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