Grant stacking Singapore: S$200k AI transformation maths
Grant stacking Singapore breaks down the PSG + EDG + CTC formula delivering ~57% effective subsidy. See the exact line-by-line maths for a S$200k AI project.
Nick Tung
@nick_tung_ · 10 min read
Published:
Updated:
Every Singapore grant article ends with a vague statement: "You can stack PSG + EDG + CTC for an effective subsidy of 55-60%." No-one shows the actual maths.
This is the line-by-line worked example on grant stacking Singapore. A realistic S$200,000 AI transformation for a Singapore SME, broken into the funded components, with the maths under each grant — the same way I work it out when I'm advising an owner on whether a project is fundable at the scale they want. (For the record: I've advised on 200+ PSG, 100+ EDG, 50+ MRA and 30+ CTC projects, so these are the proportions I actually see, not textbook numbers.)
If you're scoping a project and trying to project the net out-of-pocket, this is the spreadsheet logic.
The project — a representative scenario
The fictional company:
Singapore-registered F&B chain with 6 outlets, S$8M annual revenue, 65 staff. Owner wants to deploy an AI-powered customer data platform, an integrated POS-and-inventory layer, and retrain the floor staff and back-office team around the new way of working.
Total project budget: S$200,000.
The scope breaks into three pieces:
- Off-the-shelf AI tools from the PSG vendor catalogue — S$40,000
- Custom integration + data platform build at IDP Stage 2/3 — S$110,000
- Workforce transformation (equipment, software updates, consultancy, training) around the impacted staff — S$50,000
Now the grant maths, line by line.
Component 1 — PSG (S$40,000 envelope)
The owner picks an AI customer data platform (CDP) and an AI inventory tool from the PSG pre-approved vendor catalogue. Both are SME-eligible solution categories for F&B.
The maths:
| Line | Amount |
|---|---|
| PSG-eligible vendor invoice (post-application) | S$40,000 |
| PSG subsidy (50%) | – S$20,000 |
| Out-of-pocket after PSG | S$20,000 |
PSG caps at S$30,000 per UEN per solution category, so the S$20,000 PSG funding here sits within the envelope. → Full PSG playbook.
Component 2 — EDG (S$110,000 envelope)
The custom integration + data platform build is the heart of the transformation. It maps to Stage 2 → Stage 3 of the F&B IDP — integrated outlet-level data, AI-driven menu and labour optimisation, customer data platform unifying online + offline. → Full IDP Stages explanation.
Because the build is custom, it does not duplicate anything in the PSG vendor catalogue. The IDP Stage 2/3 mapping makes this a clean EDG case.
The maths:
| Line | Amount |
|---|---|
| EDG-eligible project cost | S$110,000 |
| EDG SME subsidy rate (50%) | – S$55,000 |
| Out-of-pocket after EDG | S$55,000 |
EDG has no fixed cap for SMEs at this scale; the 50% applies to qualifying scope. The consultant fee (PMC-certified) is itself part of the qualifying scope. → Full EDG playbook.
Component 3 — CTC (S$50,000 envelope)
The transformation impacts the floor staff (service workflow change), the back-office team (inventory + supplier workflow change), and the outlet managers (data-driven daily ops review). The committed worker outcome is anchored to the national average wage increment for F&B service and supervisory roles. → Full worker outcome framing.
The CTC envelope of S$50,000 breaks into the 4 supportable cost lines:
| CTC cost line | Amount |
|---|---|
| Equipment (tablets, scanners, kitchen display screens) | S$8,000 |
| Software updates and integration for impacted workflows | S$12,000 |
| Consultancy (workforce redesign + change management) | S$15,000 |
| Training (in-house S$9/hour + external SkillsFuture-supplemented courses) | S$15,000 |
| Total CTC envelope | S$50,000 |
CTC subsidy at 70%:
| Line | Amount |
|---|---|
| CTC-eligible project cost | S$50,000 |
| CTC subsidy (70%) | – S$35,000 |
| Out-of-pocket after CTC | S$15,000 |
→ Full CTC playbook + Formation guide.
SFEC layer — S$10,000 on the out-of-pocket training
SFEC (SkillsFuture Enterprise Credit) is a S$10,000 auto-credit covering up to 90% of out-of-pocket on training spend. It stacks on top of CTC and PSG (where the training component is eligible).
Of the CTC out-of-pocket S$15,000, a portion is the company's share of training spend. SFEC covers 90% of that share up to the S$10,000 cap.
Conservative SFEC application here:
| Line | Amount |
|---|---|
| Eligible training out-of-pocket | ~S$5,000 |
| SFEC credit (90%, within cap) | – S$4,500 |
| Remaining training OOP | ~S$500 |
The SFEC envelope on this project is small because the CTC subsidy already covered most of the training, but every dollar saved here is a dollar that doesn't need to come from operating cashflow. And SFEC expires 30 November 2026. → Full SFEC playbook.
The full stack — the bottom line
Pulling the maths together:
| Component | Gross | Grant funding | Net OOP |
|---|---|---|---|
| PSG-eligible AI tools | S$40,000 | – S$20,000 | S$20,000 |
| EDG IDP Stage 2/3 build | S$110,000 | – S$55,000 | S$55,000 |
| CTC 4-component transformation | S$50,000 | – S$35,000 | S$15,000 |
| Subtotal before SFEC | S$200,000 | – S$110,000 | S$90,000 |
| SFEC top-up on training OOP | — | – S$4,500 | – S$4,500 |
| Net out-of-pocket | ~S$85,500 | ||
| Effective subsidy | ~57% |
That is the ~57% effective subsidy number that vague articles reference. It comes from a clean stack with cleanly separated scopes — no individual cost line is claimed under more than one grant.
What the 57% number hides
A few important caveats that the headline number obscures.
Caveat 1 — Approval is not automatic
Every grant in this stack requires its own application, its own approval, and its own claim submissions. The PSG application is straightforward. The EDG application is a 3-6 month process. The CTC application is partner-walked (no open form). The S$110k of funding doesn't arrive in one cheque; it arrives over 12-18 months of milestone claims.
Caveat 2 — The company must fund its share first
You pay the vendor and consultant out of operating cashflow, then claim back the grant funding at milestones. The full S$200k cashflow happens before the S$114.5k of grants arrive. Owners who don't plan working capital for this gap can get caught.
Caveat 3 — KPI delivery is conditional
The CTC funding is conditional on meeting the committed worker outcomes as stated in the Letter of Award. The EDG funding is conditional on meeting the capability deliverables. If the project under-delivers, the funding is reduced or clawed back.
Caveat 4 — Scope separation must be defensible
The maths only works if the scopes are cleanly separated. If the same vendor invoice tries to claim under two grants, both claims get questioned. The discipline of mapping every cost line to exactly one grant is what makes the stack survive review.
How the maths changes at different project sizes
The same stack logic applies at smaller and larger project sizes, with different proportions.
S$80,000 project (smaller F&B chain, 2-3 outlets)
| Component | Gross | Grant funding | Net OOP |
|---|---|---|---|
| PSG-eligible AI tools | S$30,000 | – S$15,000 | S$15,000 |
| EDG IDP Stage 2 build (lighter) | S$30,000 | – S$15,000 | S$15,000 |
| CTC envelope (training-heavy) | S$20,000 | – S$14,000 | S$6,000 |
| Subtotal | S$80,000 | – S$44,000 | S$36,000 |
| SFEC top-up | — | – S$3,000 | – S$3,000 |
| Net out-of-pocket | ~S$33,000 | ||
| Effective subsidy | ~59% |
S$500,000 project (larger group, multi-business unit)
| Component | Gross | Grant funding | Net OOP |
|---|---|---|---|
| PSG (capped) | S$60,000 | – S$30,000 (PSG cap) | S$30,000 |
| EDG (50% on full custom scope) | S$330,000 | – S$165,000 | S$165,000 |
| CTC (4-component, larger envelope) | S$110,000 | – S$77,000 | S$33,000 |
| Subtotal | S$500,000 | – S$272,000 | S$228,000 |
| SFEC top-up | — | – S$10,000 (full cap) | – S$10,000 |
| Net out-of-pocket | ~S$218,000 | ||
| Effective subsidy | ~56% |
The effective subsidy lands in the same 55-60% band across project sizes when the stack is designed cleanly.
How to project your own numbers
To project the numbers for your own project:
- Split the project into the three buckets — off-the-shelf tools (PSG), custom IDP Stage 2/3 build (EDG), and the team-side transformation envelope (CTC)
- Apply the subsidy rates — 50% for PSG (capped at S$30k), 50% SME / 30% non-SME for EDG, 70% for CTC
- Layer SFEC on the training-spend out-of-pocket (within the S$10k auto-credit cap; expires Nov 2026)
- Apply the realistic constraints — PSG cap, EDG approval window, CTC partner-walked process, worker outcome KPIs
The Grant Savings Calculator on this site runs the maths interactively. The Grant Matcher helps figure out the right combination if you're not sure which grants apply.
What this exercise is for
This worked example is not financial advice and the specific numbers will vary based on your project, eligibility, and approvals. It is the working maths an experienced operator runs at the planning stage to project whether a project is fundable at the scale you want.
The pattern that emerges from running this exercise on dozens of projects:
- ~55-60% effective subsidy is realistic for cleanly-scoped projects
- Cashflow pre-funding is required — grants reimburse, they don't pre-pay
- The stack discipline matters more than the headline rates — vague scope kills the maths even when the numbers look right on paper
If you're scoping a project and want a 15-minute conversation on whether the stack design works for your specific situation, message me. The numbers above are illustrative; the right answer for your project depends on the actual scope.
Frequently Asked Questions
Q: Can I use the same cost line under two different grants? A: No. Each cost line must map to exactly one grant. The grant reviewer will flag any cost appearing in multiple claims, and both will be questioned. Keep a simple spreadsheet tracking which cost goes where.
Q: Does PSG funding arrive before I need to pay the vendor? A: No. You pay the vendor upfront, then claim PSG reimbursement after invoicing. Plan your working capital accordingly — the full amount must be funded from your cashflow first.
Q: What happens if my project runs 20% over budget? A: The grant funding is fixed at approval (e.g., S$55k for EDG). If your project grows to S$220k, you absorb the overage out-of-pocket. Budget conservatively and lock vendor quotes before grant submission.
Q: Is the 57% effective subsidy guaranteed? A: No. It assumes all three grants (PSG, EDG, CTC) are approved and the project meets delivery KPIs. If EDG approval takes longer than planned or CTC worker outcomes aren't met, the effective subsidy drops. The 55-60% range is realistic for cleanly-scoped projects, not a guarantee.
Q: Can I stack PSG + EDG on the exact same invoice? A: Only if the invoice naturally separates into distinct cost lines — e.g., software licence (PSG-eligible) and custom integration (EDG-eligible). If it's a single bundled invoice, you'll need to split it with the vendor or file separate claims. Reviewers scrutinise this closely.
Related reading
- PSG vs EDG vs CTC — which grant should you actually apply for? — the parent decision tree
- IMDA Industry Digital Plan Stages explained — why EDG cares about the Stage 2/3 mapping
- How to frame your CTC worker outcome — what drives CTC funding quantum
- The 30-day post-Letter-of-Offer checklist — what to do once funding is approved
- Grant Savings Calculator — interactive version of the maths above
— Nick
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