Fund Your Custom Software with EDG/PSG Grants: Complete Singapore SME Guide

Many Singapore SMEs assume government grants only fund off-the-shelf software from a pre-approved shortlist. That assumption is wrong, and it can mean paying more than necessary for a project that would have qualified for support either way. This guide explains what EDG and PSG actually cover, how a custom-built system — including one delivered by a Vietnam-based development team — can qualify, and how to plan a grant application alongside a realistic project budget.

This is the hub page for our EDG/PSG funding content. Read it end to end for the full picture, or jump to the linked deep-dive articles below for specifics on eligibility, vendor selection, and pricing.

Can Singapore SMEs use EDG or PSG to fund custom software, not just off-the-shelf tools?

Yes. Both EDG and PSG can fund custom-developed software, provided the project meets the scheme's project categories and the vendor and deliverables meet documentation requirements — there is no rule limiting support to pre-packaged, off-the-shelf products.

The Enterprise Development Grant (EDG) supports projects under three broad pillars: Core Capabilities, Innovation & Productivity, and Market Access. Digital transformation and business process redesign — which is exactly what a custom-built system does — sits squarely inside these categories. EDG can support up to 50% of qualifying project costs for eligible SMEs, subject to Enterprise Singapore's assessment of the project's scope, outcomes, and vendor quotation.

The Productivity Solutions Grant (PSG) is narrower in structure — it's built around a curated list of pre-scoped solutions in categories like retail, F&B, logistics, and professional services — but it does not exclude custom development outright. Many SMEs pair a PSG-supported core module with an EDG-supported custom layer, or apply for EDG directly when their requirements fall outside PSG's pre-scoped categories. PSG caps support at up to 50% of costs, subject to a S$30,000 cap per company (subject to current scheme terms).

The common misconception is that only large, Singapore-registered software vendors with an existing government approval can apply. That's not how either scheme is structured — approval is assessed project by project, not vendor by vendor.

Is there a pre-approved vendor list for EDG, and does that mean Vietnam-based vendors can't qualify?

No such exclusionary list exists for EDG. Enterprise Singapore assesses the project and the quotation, not the vendor's home country, which means a Vietnam-based custom software vendor can be part of an EDG-funded project.

This is the single most misunderstood fact for SMEs comparing costs and considering an offshore delivery partner. EDG does not require vendors to appear on a government-curated list. What Enterprise Singapore reviews is:

• Whether the project falls within an eligible category (e.g., digital transformation, process redesign, capability building)
• Whether the vendor's quotation is itemized, reasonable, and matched to a clear scope of work
• Whether the applicant SME can demonstrate the project's business case and expected outcomes
• Whether supporting documentation (contracts, invoices, deliverable milestones) is in order for disbursement

PSG works differently because it runs on a pre-scoped solutions list tied to specific PSG-listed vendors and packages. If your project fits a pre-scoped PSG category, you'll need a PSG-listed solution provider for that portion. But most SMEs with genuinely custom requirements — a tailored ERP, an internal ops platform, an industry-specific system — fall outside PSG's pre-scoped list entirely and route through EDG instead, where vendor nationality is not the gating factor.

This opens a legitimate path: use EDG to fund the project, and choose the vendor based on cost transparency, quality of delivery, and fit for your business process — not on whether they happen to have a Singapore address.

Disclaimer: grant approval, percentage of funding, and eligibility criteria are assessed case by case by Enterprise Singapore and are subject to change. Always confirm current terms and thresholds directly with Enterprise Singapore or a registered grant consultant before committing to a project budget.

How much of a custom software project can EDG or PSG actually cover?

EDG can fund up to 50% of qualifying project costs, and PSG can fund up to 50% up to a cap of S$30,000 — meaning the SME still needs to budget for the remaining share, and larger custom builds will exceed PSG's cap quickly.

For a mid-sized custom software project priced between S$40,000 and S$190,000, a 50% EDG contribution still leaves a substantial co-payment. This is why the vendor's pricing structure matters as much as the grant itself: a transparent, itemized quotation makes it easier both to get grant approval and to plan the SME's own cash outlay.

Below is a general reference for custom software pricing in Singapore dollars, by project size:

Project Type	Basic	Standard	Advanced
Custom software (general)	from S$22,000	S$40,000–190,000	S$250,000–700,000+
Custom ERP	from S$40,000	S$70,000–160,000	S$160,000–300,000+

Industry-specific starting points (Basic / Standard / Advanced, in S$):

Industry	Basic	Standard	Advanced
Retail & Warehouse	22,000	55,000	130,000
Sales & POS	22,000	55,000	130,000
F&B	20,000	50,000	120,000
Spa & Wellness	18,000	45,000	110,000
Education	22,000	55,000	130,000
Clinic / Healthcare	26,000	65,000	160,000
Agriculture	24,000	60,000	140,000
Professional Services	24,000	60,000	140,000
Logistics	36,000	90,000	220,000
Construction	38,000	95,000	230,000
Manufacturing	44,000	110,000	260,000

Ongoing maintenance typically runs 15–25% of build cost per year, and hourly development rates for a Vietnam-delivered team run around S$96/hour — a figure worth putting side by side with your grant-eligible quotation when preparing an EDG application.

Disclaimer: pricing above is indicative; an accurate quotation follows a business requirements survey. Grant coverage percentages and caps are subject to Enterprise Singapore's current published terms; verify before budgeting.

Why would a Singapore SME choose a Vietnam-based team for a grant-funded custom software project?

Because the grant funds the project outcome, not the vendor's location, an SME can combine EDG/PSG funding with a Vietnam delivery team and get transparent, itemized pricing without changing what the grant covers.

The value isn't a lower headline price — it's the combination of three things that actually affect whether a project succeeds:

1. Price transparency. An itemized quotation broken down by module, hour, or milestone is exactly what Enterprise Singapore's assessment process wants to see, and it's also what protects the SME from scope creep after the grant is approved.
2. Business-process fit. A custom build only earns its grant approval if it demonstrably improves how the business runs — that requires a vendor who scopes against your actual workflow, not a generic template.
3. A single accountable delivery party. Grant disbursement is milestone-based, so the SME needs a vendor who can commit to deliverables, invoice against them cleanly, and stand behind support after go-live.

A Vietnam-based vendor operating under a leaner cost structure can offer all three without asking the SME to compromise on documentation quality or delivery accountability. The cost advantage is a byproduct of the delivery model, not the reason to choose it on its own.

What does a realistic EDG/PSG-funded project timeline look like, from application to go-live?

Expect roughly 4–9 months for a mid-sized custom build after the grant is approved, on top of several weeks for grant application and approval itself — so total time from decision to go-live commonly spans 5–11 months.

A workable sequence looks like this:

1. Scoping and quotation (1–3 weeks). The vendor documents requirements and produces an itemized quote suitable for grant submission.
2. Grant application (varies, typically several weeks to a few months for EDG assessment). Enterprise Singapore reviews the business case, quotation, and expected outcomes.
3. Contract and kickoff. Once approved, the SME signs off and the build begins, structured around milestones that match the grant's disbursement schedule.
4. Development. MVP-scale builds run 6–12 weeks; mid-sized systems 4–9 months; full custom ERP builds run 3–5 months to design and 9–15 months to full rollout, depending on module count and integration complexity.
5. Go-live and maintenance. Post-launch support is typically billed at 15–25% of build cost annually.

Because grant disbursement is usually tied to completed milestones, building the payment schedule and the grant claim schedule together — rather than treating them as separate tracks — avoids cash-flow gaps mid-project.

Đọc sâu theo chủ đề

Muốn hiểu sâu hơn từng phần của bức tranh tài trợ và triển khai, xem các bài chuyên sâu sau:

• What Do EDG & PSG Grants Cover? Who Can Apply? (Singapore SME Guide)
• Can Custom Software Be Funded by a Government Grant in Singapore?
• Is Vietnam Good for Software Outsourcing? A Data-Driven Answer
• Best Software Outsourcing Companies in Vietnam 2026
• Software Outsourcing to Vietnam: Cost & How It Works
• Digital Transformation for SMEs in Singapore: Guide + Grant Funding
• Grant-Funded Custom ERP: Singapore Budget, Vietnam Build

FAQ

Does EDG require the software vendor to be Singapore-registered? No. EDG assesses the project scope, quotation, and business case rather than the vendor's country of registration, so a Vietnam-based vendor can be part of an EDG-funded project as long as documentation requirements are met.

Can I use PSG for a fully custom-built system? PSG is built around pre-scoped solutions and PSG-listed vendors, so a fully custom system more commonly routes through EDG. Some SMEs combine a PSG-supported base module with an EDG-supported custom layer.

What percentage of my project cost will the grant actually cover? EDG can support up to 50% of qualifying costs; PSG supports up to 50% capped at S$30,000. The exact percentage and eligibility depend on Enterprise Singapore's assessment, so confirm current terms before finalizing your budget.

How long does grant approval take before development can start? Timelines vary by project complexity and documentation completeness; SMEs should plan for several weeks to a few months for assessment before expecting a funding decision.

What should I prepare before applying? An itemized vendor quotation, a clear business case for the project's expected outcomes, and company eligibility documentation (registration, ownership, prior grant usage) are the baseline requirements for both schemes.

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