PSG vs EDG: Which Grant Funds Custom Software in Singapore?

Singapore offers generous co-funding for business technology — but two schemes get mixed up constantly, and choosing the wrong one wastes weeks. The Productivity Solutions Grant (PSG) and the Enterprise Development Grant (EDG) both help fund software, yet they fund fundamentally different things. Here’s the difference in plain English, and which one actually funds a custom build.

Status check (June 2026): Both PSG and EDG are open and accepting applications. EnterpriseSG has announced the two grants (with MRA) will be streamlined into a single new scheme, EDGE, launching in the second half of 2026 — but until it launches, the current rules below still apply.

PSG vs EDG: what’s the difference?

PSG co-funds pre-approved, off-the-shelf digital solutions and equipment — up to 50%, capped at S$30,000 per application. EDG co-funds customised, bespoke projects, including custom software — up to 50% for SMEs, with no fixed cap. The rule of thumb: off-the-shelf and fast, use PSG; custom-built and transformational, use EDG.

What is the PSG?

The Productivity Solutions Grant helps SMEs adopt ready-made IT solutions and equipment that have been pre-scoped and pre-approved — accounting, HR/payroll, CRM, POS, e-commerce, inventory, and cybersecurity tools, among others. You pick a listed solution from a listed vendor on GoBusiness, apply, and claim. It’s administered by EnterpriseSG with IMDA (which curates the IT solutions). Because everything is pre-approved, PSG is fast and low-touch — but you must choose from the list, and it can’t fund a one-off build.

What is the EDG?

The Enterprise Development Grant funds larger, customised projects that upgrade, innovate, or transform a business. Custom software sits under its Innovation & Productivity pillar, and eligible costs include third-party development fees, software, and certain internal manpower. Crucially, EDG has no pre-approved vendor list — you choose your own developer and build what your business actually needs. It’s higher-touch (you submit a proposal that’s assessed on scope and outcomes) and projects typically run 12–18 months. We cover the mechanics in our EDG funding guide.

Side-by-side comparison

Source: EnterpriseSG PSG and EDG pages, accessed June 2026. Support levels, caps and eligibility are set by EnterpriseSG and subject to change.

Which one funds custom software?

The EDG. This is the distinction that matters most: PSG is built around a pre-approved catalogue, so by design it cannot fund a system built specifically for you. EDG can — custom software development is an eligible cost, and there is no pre-approved or even local vendor requirement. (Only management-consultancy fees need an SAC-accredited TR 43 / SS 680 consultant; your software developer doesn’t.) So if your project is "buy a tool", look at PSG; if it’s "build the thing our business actually needs", EDG is the route.

Can you use both?

Yes — they fund different things, so it’s common to use PSG for an off-the-shelf tool and EDG for a separate custom build. The one rule to remember: you can’t claim the same cost under two grants. The schemes co-fund distinct scopes, not the same dollar.

How to apply (and the order that matters)

For PSG: find a pre-approved solution on GoBusiness, then apply on the Business Grants Portal before you pay the vendor. For EDG, sequence is everything — you must secure approval before the project starts:

1. Scope the project with your developer — deliverables and the productivity gains.
2. Get a proposal and quotation — the documentation your application needs.
3. Apply on the Business Grants Portal and wait for approval.
4. Build — only after approval, so the cost is fundable.

Where we fit in

AppTech is a software developer, not a grant consultant — but an EDG application needs exactly what we produce: a clear scope, deliverables, and a quotation for a custom build. If you’re weighing whether your project is a PSG-style tool or an EDG-style build, our free EDG eligibility check gives you a quick read, and the EDG funding page explains how we help. Choosing a builder at the same time? See how to choose a software development company.

Disclaimer: AppTech System is a software development vendor, not a government agency or appointed grant consultant. PSG and EDG are administered by Enterprise Singapore (with IMDA for PSG IT solutions), which sets all eligibility criteria, support levels, caps, and approval decisions — these are subject to change, including the planned transition to the EDGE scheme. Figures here reflect prevailing terms in June 2026 and are not a guarantee of funding. Verify current details on the official EnterpriseSG and GoBusiness Business Grants Portal.

About AppTech System — AppTech System is a Singapore custom-software team and the people behind the Automiq and BooknGo platforms, building web, mobile, AI and enterprise software for businesses in regulated industries. Talk to us.