*Update: From 1 April 2023, SMEs can receive up to 50% support for PSG.
Are you running a retail business in Singapore? Retail businesses in Singapore can be expensive to start and to run. Thankfully, the Singapore government is helping SMEs (retailers included) with grants or financial assistance. What are kinds of financial assistance are available and how can we use it? Let’s dive in.
First and foremost, because government policies change over time, you need to know where to get the latest and most updated information. One important website that is very helpful is SME Portal (https://smeportal.sg). This website is brought to you by Enterprise Singapore which is the Singaporean government agency that champions enterprise development. SME Portal, in their own words, is the first stop for Singaporean SME owners and aspiring entrepreneurs who are looking for information, tools and services that can help them build sustainable and competitive businesses.
This website contains plenty of information on starting a business in Singapore and the means to get the support required. One of the most important area where our Singapore government is focusing on is the adoption of technology to SMEs, including retailers. This actually make perfect sense. Retail businesses can benefit from automation through digital solutions. Currently, retailers are heavily disrupted by online channels. It is no longer enough to run a retail business without any understanding and capability in technology. The good news is, there is a grant called PSG (Productivity Solutions Grant) that can subsidise up to 70% of the cost of technology adoption for productivity improvement.
There are many areas in our retail businesses that can be improved by technology. Things like integrated retail management solution: from Point of Sales systems, Inventory Management, Customer Relationship Management, and even integration with e-commerce. These solutions will help you to better plan your inventory and merchandising, understand your customer segment and blend your online and offline sales effectively. Our company Edgeworks, provide such solutions and are listed as one of pre-approved vendor for PSG grant.
So how does the PSG grant work and what does the application process look like?
- Visit TechDepot section in SME Portal. TechDepot is a dedicated section in SME Portal website that covers technology solutions.
- Access the list of supported solutions in TechDepot and identify the relevant solutions and vendor that meet your needs.
- Get a quotation from the pre-approved vendors of your choice
- After deciding the preferred vendor, do not purchase it yet. Submit an application on the Business Grant Portal (BGP). After your application has been approved, you can then purchase the solutions from the vendor.
- You will need to purchase the solution in full price first and then the cost of the solution will be re-imbursed to you for up to 70% at the completion of the project.
To qualify for the grant is pretty straightforward. You need to be a registered business in Singapore and is operating in Singapore. The solution that you purchased must be used in Singapore. For selected solutions, you will need to have a minimum of 30% local shareholding (Singaporean or PR).
Stay tuned, in the coming blog posts we will discuss more on how to apply for PSG grant in details and also other grants available for retailers. Just drop us an email below to get the latest updates from us.