Fund Custom Software with EDG & PSG Grants: Singapore SME Guide 2026

Singapore SMEs can fund custom software through the Enterprise Development Grant (EDG), which supports up to 50% of qualifying project costs. PSG only covers pre-scoped packaged solutions, so fully custom builds go through EDG. Combined with Vietnam-based development rates of $10–18/hour, a $30,000 custom project can cost an SME roughly $15,000 net.

Can a government grant fund custom software in Singapore?

Yes, through EDG. The Enterprise Development Grant supports custom software and digital transformation projects with funding of up to 50% of qualifying costs, assessed project by project. The one hard rule to remember: the project must not start before your application is approved, or you risk losing eligibility entirely.

EDG is project-based. You (or your vendor) submit a proposal describing the business problem, the system to be built, the expected productivity outcome, and an itemized vendor quotation. Enterprise Singapore assesses that specific project on its merits. We answer the most common eligibility questions directly in our guide on whether custom software can be funded by a government grant in Singapore.

A common misconception is that grants only apply to off-the-shelf products from approved catalogs. That is true of PSG, but not of EDG, which exists precisely for tailored projects that no packaged product covers.

Why doesn't PSG cover custom software?

PSG (Productivity Solutions Grant) is catalog-based: it only supports pre-scoped, packaged solutions from a published list, such as accounting tools, POS systems, or standard inventory software. A fully custom build is by definition not on that list, so custom software routes through EDG instead.

	EDG	PSG
What it funds	Custom projects: bespoke software, custom ERP, digital transformation	Pre-scoped packaged solutions from an approved list
How it is assessed	Project by project (business case + quotation)	Pick a listed solution; support is largely pre-determined
Support level	Up to 50% of qualifying costs	Up to 50% for listed solutions
Fits custom software?	Yes	No; custom builds go through EDG

Some SMEs combine both: a PSG-listed base tool for a standard function, plus an EDG-funded custom layer around it. For the full eligibility rules of each scheme, see what EDG and PSG grants cover and who can apply.

Is there a pre-approved vendor list for EDG?

No. EDG does not maintain a pre-approved vendor list. Enterprise Singapore evaluates the project scope, the itemized quotation, and your business case, not the vendor's country of registration. A Vietnam-based team like FutureTech can therefore deliver an EDG-funded project.

What the assessment actually looks at:

• Whether the project falls in an eligible category (digital transformation, process redesign, capability building)
• Whether the quotation is itemized, reasonable, and matched to a clear scope of work
• Whether you can demonstrate the business case and expected productivity outcomes
• Whether contracts, invoices, and milestones are documented cleanly for disbursement

This opens a legitimate path. Choose your vendor on cost transparency and business-process fit, not on whether they have a Singapore address. For an evidence-based look at the destination itself, see whether Vietnam is good for software outsourcing and our review of the best software outsourcing companies in Vietnam.

How much does custom software cost, and what does EDG leave you to pay?

FutureTech publishes its pricing openly, in USD. Assuming EDG is approved at 50% of qualifying costs, here is what each project tier looks like net:

Project tier	Scope	Price (USD)	Timeline	Net cost at 50% EDG
Small / MVP	1–3 core modules, 1 platform	From $10,000	6–10 weeks	From ~$5,000
Mid-size	Multi-module, API/payment integrations, reporting	$30,000 – 100,000	3–6 months	~$15,000 – 50,000
Large / Production	Multiple subsystems, multi-platform, high load	$100,000 – 350,000+	6–12 months+	~$50,000 – 175,000+

Custom ERP follows the same logic:

ERP package	Modules	Price (USD)	Timeline	Net cost at 50% EDG
ERP Starter	3–5	From $30,000	3–5 months	From ~$15,000
ERP Standard	6–10	$50,000 – 120,000	5–9 months	~$25,000 – 60,000
ERP Enterprise	10+	$120,000 – 250,000+	9–15 months+	~$60,000 – 125,000+

Annual maintenance runs 15–20% of the contract value and is typically not grant-eligible, so budget it separately. For a full breakdown of engagement models and rates, see our guide to software outsourcing to Vietnam: cost and how it works, and for a complete ERP worked example, see grant-funded custom ERP in Singapore.

Why combine EDG with a Vietnam-based team?

Because the grant then applies to an already-low cost base, and the two discounts stack. Local Singapore agencies commonly charge S$90–150/hour (≈ $70–115/hour). FutureTech's Vietnam-based rates are $10–18/hour on long-term work, 4 to 6 times cheaper at comparable quality.

Cost driver	Singapore local agency	FutureTech (Vietnam team)
Hourly rate	S$90–150 (≈ $70–115)	$10–18 (long-term)
Dedicated team	n/a	$1,500 – 2,900/person/month
Same $30,000-scope project	Often $120,000+ before grant	$30,000 before grant

Apply 50% EDG to the Vietnam quote and the net cost of a mid-size system falls to a fraction of an un-granted local build, with the same scope, full source code and database ownership, and a one-hour time zone difference. Many SMEs structure this as the funding backbone of a broader roadmap; see our guide to digital transformation for SMEs in Singapore.

FutureTech is a Vietnam-based software company that specialises in delivering projects for Singapore clients, so the low rate does not come with the usual offshore trade-offs. Our project managers work Singapore hours (GMT+8) and communicate in fluent English, so standups and reviews land inside your working day rather than overnight. We are ISO 27001 certified for information security management, which matters when a grant-funded system will hold PDPA-regulated customer and financial data. And every engagement is run to a fixed scope with committed delivery milestones and written deadlines, with the full source code and IP handed to you on completion. We also prepare the itemised, grant-ready quotation your EDG application needs and support the paperwork through to disbursement.

What does a realistic grant-funded timeline look like?

Plan for roughly 4–9 months from decision to go-live for a mid-size project, and sequence it strictly: application first, kickoff after approval.

• Scoping and quotation (1–3 weeks): the vendor documents requirements and issues an itemized quote suitable for grant submission. FutureTech does this as a free scoping session.
• EDG application (typically several weeks to a few months): Enterprise Singapore reviews the business case, quotation, and expected outcomes. Do not sign off or start development during this window.
• Approval, then kickoff: development is structured around milestones that match the grant's disbursement schedule.
• Build: MVPs run 6–10 weeks; mid-size systems 3–6 months; ERP builds 3–5 months (Starter) up to 9–15 months+ (Enterprise).
• Go-live and maintenance: 15–20% of contract value per year, company-funded.

Because disbursement is milestone-based, aligning vendor payment milestones with grant claim milestones prevents cash-flow gaps.

What determines your final price?

Six factors drive the quote: the number and complexity of modules (the biggest driver), external integrations (payments, banking, e-invoicing), the number of platforms (web, mobile, POS), user volume and load, the depth of UI and reporting customization, and security or compliance requirements. An itemized quote built from these factors is exactly what the EDG assessment wants to see, and it lets you verify every line against published unit rates.

FAQ

Can I use PSG for a fully custom-built system?

No. PSG only covers pre-scoped packaged solutions from its published list. A fully custom system routes through EDG, which funds up to 50% of qualifying costs and has no pre-approved vendor list.

Is the 50% EDG rate guaranteed?

No. Up to 50% is the ceiling; the actual percentage depends on Enterprise Singapore's assessment of your specific application, and criteria can change. Treat 50% as a planning assumption until you hold written approval.

Can I start the project while the application is being reviewed?

No. EDG requires that the project has not started before approval, and signing contracts or beginning development early can void eligibility. Use the review window for data preparation and internal alignment instead.

Does using a Vietnam-based vendor affect my eligibility?

No. EDG assesses the project scope, quotation, and business case, not the vendor's location. A Vietnam-based vendor is eligible as long as the documentation (contract, itemized invoices, milestones) is in order.

What should I prepare before applying?

Three things: an itemized vendor quotation (FutureTech issues one after a free scoping session), a clear business case with expected productivity outcomes, and your company eligibility documents such as registration and shareholding records.

Does the grant cover maintenance after go-live?

Typically no. EDG funds the qualifying development project, not ongoing annual maintenance, which runs 15–20% of contract value per year and should be budgeted separately.

To find out whether your project qualifies for EDG and what it would cost net of the grant, contact FutureTech (ftech.ltd) for a free scoping session and an itemized, grant-ready quotation.

Reference pricing — an exact quote follows a free scoping session.