Using PSG to Fund an AI Consultant in Singapore

Yes, you can use PSG to fund an AI consultant in Singapore — but only if that consultant or their firm is listed as a pre-approved vendor on IMDA's vendor panel. The grant covers up to 50% of qualifying costs, capped at S$30,000 of support per solution. You apply through the Business Grants Portal before the project starts.

Who qualifies as a PSG-eligible AI consultant?

The Productivity Solutions Grant (PSG) does not fund consultants directly. It funds specific pre-approved solutions delivered by pre-approved vendors. So the right question is: is the AI solution and the vendor on IMDA's approved list?

IMDA maintains a panel of pre-scoped IT solutions across categories including Artificial Intelligence, Customer Management, and Data Analytics. Each listed solution has a fixed maximum supportable cost and a defined scope. The vendor must deliver exactly that scoped solution — not a bespoke engagement — for the grant to apply.

If you're speaking to an AI consultant who claims PSG funding but is not on the vendor panel, they cannot legally access PSG for your project. Ask for their solution listing on the Business Grants Portal before signing anything.

What counts as an AI solution under PSG?

PSG recognises AI solutions across several functional categories. Commonly listed types include:

• AI-powered customer service and chatbot tools for handling inbound enquiries
• Predictive analytics and demand forecasting platforms
• Automated document processing using optical character recognition and extraction
• AI-assisted HR tools for scheduling, payroll anomaly detection, or performance tracking
• Computer vision solutions for inventory or quality control in manufacturing

Each approved solution has a fixed scope document. The consultant must implement that exact scope. Any additional customisation outside the listed deliverables is not covered by the grant and must be funded separately.

For a broader look at which grants fit which projects, use the grant matcher tool to see whether PSG, EDG, or CTC better suits your situation.

How much can PSG cover?

PSG currently supports up to 50% of the qualifying cost for most businesses. The maximum supportable cost per solution is typically S$30,000, meaning the maximum grant you can receive per solution is S$15,000.

You can apply for multiple solutions across different categories, but each application is assessed independently. There is no hard cap on the total number of PSG applications, though IMDA applies judgment on whether each solution is genuinely new and productivity-improving.

Your business must meet the baseline eligibility criteria:

• Registered and operating in Singapore
• At least 30% local shareholding
• Annual sales turnover not exceeding S$100 million, or fewer than 200 employees (for SMEs)

Run the AI readiness checker before applying — it helps identify which solutions will make a credible case for productivity uplift, which IMDA assessors look for.

How do you apply, and how long does it take?

The full process runs through the Business Grants Portal (BGP) at businessgrants.gov.sg. The steps in order:

1. Identify the pre-approved vendor and solution you want
2. Get a formal quotation from the vendor (do not start work yet)
3. Log into BGP using your Corppass account
4. Submit the application with the vendor's quote attached
5. Wait for approval — this typically takes 4 to 6 weeks
6. Receive Letter of Offer, then sign and commence work
7. Submit claims with proof of payment and delivery after completion

The most common reason applications are delayed or rejected is that businesses begin work before receiving the Letter of Offer. IMDA is explicit: costs incurred before the approval date are not claimable, without exception.

A full walkthrough of the end-to-end process is in the PSG grant guide.

What are the common pitfalls to avoid?

Starting work early. Nothing disqualifies a claim faster. Even if your vendor assures you it will be fine, it will not be fine. Wait for the Letter of Offer.

Choosing an unlisted vendor. Verify the vendor's solution directly on BGP, not from the vendor's marketing materials. Listings can expire or be suspended.

Scope creep outside the approved solution. If the vendor does work beyond the scoped deliverables, that portion is ineligible. Get clarity in writing on what is and is not in-scope before signing the vendor contract.

Applying with the wrong grant. If your AI project involves significant business transformation, strategy consulting, or capability-building, PSG may not be the right vehicle. EDG covers transformation projects at up to 50% (and higher for qualifying companies). The CTC grant guide explains what the Career Conversion Programme covers if headcount and reskilling are involved.

If you are unsure which grant applies, the honest answer is: most genuine AI implementation projects that go beyond a packaged SaaS tool are better funded through EDG than PSG. PSG is efficient for fast, standardised deployments. EDG is better for custom AI workforce builds.

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Frequently Asked Questions

Can I use PSG if my consultant is not on the IMDA pre-approved list?

No. PSG only funds solutions from vendors listed on the Business Grants Portal. If your consultant is not listed, the engagement is not PSG-eligible, regardless of how the work is scoped or described. You would need to look at EDG instead, which allows a broader range of qualified consultants including PMC-certified advisors.

Is the 50% support rate guaranteed?

The 50% rate applies to most SMEs meeting the eligibility criteria as of 2025. The rate has changed in the past — it was temporarily raised to 80% during COVID — so confirm the current rate on the BGP at the time of your application rather than relying on vendor quotes.

Can I apply for PSG and EDG for the same project?

No. You cannot stack PSG and EDG on the same scope of work. However, you can apply for PSG for a defined software solution and EDG for a separate consulting engagement that is distinct in scope and deliverables. Keep the scopes cleanly separated and documented.

What SSIC codes are eligible for PSG AI solutions?

PSG is open to most SSIC-coded businesses, but some solution categories are sector-specific. For example, certain AI solutions for F&B or retail may require relevant SSIC codes. Check the specific solution listing on BGP — each listing states the eligible sectors. Your consultant or their firm should be able to confirm eligibility before you apply.

How do I find IMDA pre-approved AI vendors?

Go to businessgrants.gov.sg, navigate to the Solutions section, and filter by "Artificial Intelligence" or the relevant functional category. Each listing shows the vendor, solution name, scope, and maximum supportable cost. You can also search by vendor name if you already have a specific firm in mind. Always verify the listing is active before signing any vendor agreement.