What Do EDG and PSG Cover, and Who Can Apply? 2026 Guide

The EDG (Enterprise Development Grant) covers up to 50% of qualifying digital transformation and custom software project costs, has no pre-approved vendor list, but work must not start before approval. The PSG (Productivity Solutions Grant) only funds pre-scoped, packaged solutions. Core eligibility: registered in Singapore, at least 30% local shareholding, and within SME group revenue or headcount caps.

How are EDG and PSG different?

EDG funds projects; PSG funds items from a catalog. That single difference decides which scheme fits your case.

Criteria	EDG	PSG
What it funds	Digital transformation projects, bespoke software, custom ERP	Pre-scoped, pre-approved packaged IT solutions
Support level	Up to 50% of qualifying costs	Capped per solution category
Pre-approved vendor list	No, you choose your vendor	Yes, must pick from the list
How it's assessed	Each project proposal evaluated individually	You adopt a listed, pre-vetted solution

If your business needs a system built around its own processes, say inventory management shaped by specific supplier contracts, a custom ERP module, or system integration, that falls under EDG, not PSG.

What costs does EDG cover?

EDG covers up to 50% of a project's qualifying costs: third-party consultancy fees, software development directly tied to the project, and in some cases internal manpower assigned to it. "Qualifying" means linked to the transformation goal, whether that is a new workflow, automation, or a new operational capability.

What is usually excluded: general office equipment, recurring subscriptions unrelated to the project, and any cost incurred before approval. One rule matters above the rest. Do not start work before the application is approved, because breaking it can forfeit the entire grant.

What does PSG cover, and why not custom software?

PSG helps businesses adopt pre-vetted, packaged IT solutions such as POS, accounting, and HR tools, chosen from a published list. Because the solutions are approved in advance, the application process is faster and simpler than EDG.

That catalog mechanism is exactly why PSG generally does not apply to fully custom software: a system built around your own workflows is not on any list. A quick test: if you can name the exact product you plan to buy and it appears on the PSG list, use PSG. If you are describing a problem no packaged product solves out of the box, you are looking at an EDG project.

Who is eligible to apply for EDG or PSG?

Three baseline conditions apply to both schemes:

• Registration: a business entity registered and operating in Singapore.
• Local shareholding: at least 30% held by Singapore citizens or permanent residents.
• SME size: group annual revenue or employment within the caps set by the current SME definition.

The business must also be financially able to carry the project, since grants reimburse a share of costs afterwards and do not pre-pay. Specific thresholds change between budget cycles, so verify the current Enterprise Singapore guidelines before preparing a proposal.

Does the vendor need to be pre-approved? Can I pick a Vietnam-based team?

For EDG: no pre-approval needed. EDG assesses the project itself, meaning scope, cost reasonableness, and expected outcomes, rather than checking the vendor against a list. So you can engage a Vietnam-based developer such as FutureTech. That matters for cost: Vietnam rates run $10–22/hour versus S$90–150/hour at local agencies, and with EDG offsetting up to 50%, your effective outlay becomes very low. PSG is the opposite: you must choose from the approved solution list.

FutureTech is a Vietnam-based software company that specialises in delivering projects for the Singapore market, and it is built to survive EDG scrutiny. On data security, the team holds an ISO 27001 information security management certification, the credential reviewers and PDPA-conscious buyers look for when business data leaves the office. On accountability, every engagement carries a fixed scope, a committed delivery schedule, and a written commitment to hand over 100% of the source code and IP to you at completion. And rather than the usual offshore friction, the team works to Singapore business hours and communicates in fluent English, so you get real-time collaboration and grant-ready documentation, not a time-zone gap. The result is a lower effective cost than a local build, without giving up security assurance or delivery discipline.

For how to structure a complete application, see our guide to funding custom software with EDG and PSG grants. If you are weighing an offshore team, read Is Vietnam Good for Software Outsourcing? and our review of the best software outsourcing companies in Vietnam.

What do grants not pay for?

Grants co-fund a percentage of project costs, not the full amount, and rarely cover recurring costs after go-live. Budget separately for:

• Your co-funding share (the percentage the grant does not cover).
• Annual maintenance, around 15–20% of the contract value.
• Feature expansions requested after the approved scope closes.

Example: a $30,000–100,000 mid-size build approved at 50% support leaves $15,000–50,000 of qualifying costs on your side, plus maintenance from year two.

FAQ

Can a startup with little revenue history still apply? Eligibility rests on registration, shareholding, and size, not revenue track record. Early-stage startups should confirm with Enterprise Singapore first, as some categories expect a baseline of operations.

Can EDG and PSG be used on the same project? A single project normally uses one scheme. A mixed project that combines a packaged tool with custom development may split the packaged part under PSG and the bespoke part under EDG, subject to current rules, so confirm before submitting.

Does choosing an overseas vendor weaken an EDG application? Not legally, since vendor location is not a disqualifying factor. Overseas vendors simply need more thorough documentation (company profile, reference projects, support plan) because reviewers are less familiar with them.

Can I sign the contract before the grant is approved? Signing may come first, but do not start project work before approval. Costs incurred before the approval date will not qualify.

Does meeting the eligibility criteria guarantee approval? No. Eligibility only lets you apply; the outcome and support level are decided case by case by Enterprise Singapore based on the strength of the project proposal.

Need a grant-ready technical scope? FutureTech runs a free scoping session and prepares the scope-of-work and milestone-based cost documents in the structure reviewers expect, backed by ISO 27001 security, a committed delivery timeline, full source-code and IP handover, and a team that works Singapore hours in English.

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