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PSG · Singapore SME grants

Can I use the PSG grant for AI tools?

Short answer

Yes. PSG covers AI tools that appear on the SMEs Go Digital pre-approved list — including GenAI customer-engagement chatbots, AI marketing and content generation, and AI accounting automation. Custom-built AI with no pre-approved vendor is not covered under PSG; that route is the Enterprise Development Grant (EDG) instead.

Key facts

  • AI-enabled solutions carry an official tag on the portal
  • Covered AI categories include chatbots, marketing content, and accounting automation
  • Bespoke AI without a listed vendor → use EDG, not PSG
  • Same 50% / S$30k-cap terms apply to AI solutions

IMDA has been raising the share of genuinely AI-enabled solutions in the catalogue, so the AI options under PSG are widening. Look for the AI-enabled tag on the portal listing.

The dividing line is pre-approval. If a vendor and solution are on the list, PSG can fund it at 50%. If you need something custom that no listed vendor offers, that capability build belongs under EDG, which funds bespoke Stage 2/3 work.

On framing: a funded AI tool should redesign a role, not delete it. It absorbs the repetitive workload so the person moves to higher-value work — workforce plus AI, not AI instead of workforce. That framing also makes the strongest grant case.

Answered by Nick Tung— a seasoned Singapore entrepreneur and PMC-certified consultant (PMC-10960) with deep first-hand familiarity across Singapore's SME grant landscape (PSG, EDG, MRA, CTC). My focus is helping SMEs adopt enterprise and workforce AI transformation; government funding is one of the support options businesses can tap through the official channels. More about how I work →

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Sources:EnterpriseSG, IMDA, NTUC, Singapore Government open data. Factual content (grant rules, eligibility, vendor data, pricing) is sourced directly from official government portals and remains the copyright of those respective agencies. Analysis, commentary and editorial framing are the author's own. Always verify the latest on GoBusiness, EnterpriseSG, or SMEs Go Digital before applying.