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EDG vs PSG: Which Government Grant Is Right for Your Business?
Compare EDG vs PSG for Singapore SMEs, including support levels, project fit, documents, complexity and how to choose the right grant first.
Many SME owners ask whether they should use EDG or PSG when they want to upgrade their business. The answer depends less on the vendor and more on the project. PSG usually fits pre-approved productivity solutions and equipment. EDG fits broader capability, innovation, productivity, or market access projects with a defined scope and expected outcomes. Choosing the wrong route can waste time or create claim problems later.
EDG vs PSG at a glance
Question | PSG | EDG |
|---|---|---|
Best for | Pre-scoped IT solutions and equipment | Structured transformation, innovation, productivity, or market access projects |
Support level | Up to 50% of eligible costs, support up to S$30,000 | Up to 50% of eligible costs for local SMEs |
Scope | More standardised | More customised and project-based |
Documents | Quotation and solution details | Project proposal, milestones, costs, and outcomes |
Common use | Accounting software, HR system, POS, approved equipment | Process redesign, product innovation, automation, overseas capability |
Choose PSG when
- The solution is listed as a pre-approved productivity solution.
- The project is mainly adoption of a known software or equipment package.
- The business problem is operational productivity, not broad transformation.
- The vendor and package match the official scope.
Choose EDG when
- The project needs consulting, redesign, customisation, or internal capability building.
- The business is changing processes, products, markets, or operating model.
- The outcome needs milestones and measurable business impact.
- A simple pre-approved package does not describe the real project.
Decision table for common projects
Project | Grant to check first | Reason |
|---|---|---|
Buy pre-approved accounting software | PSG | Standard productivity solution. |
Redesign finance workflow and integrate systems | EDG | Broader process and capability project. |
Buy approved equipment | PSG | Pre-scoped productivity equipment. |
Develop a new product process | EDG | Innovation or productivity project. |
Prepare for a new overseas market | EDG or MRA | Depends on whether the project is capability-building or market-entry activity. |
Mistakes to avoid
- Choosing based on the highest grant amount instead of project fit.
- Trying to force a custom project into PSG.
- Using EDG for routine software adoption when PSG is the natural first check.
- Signing or paying before grant approval.
- Ignoring claim evidence until after the project is completed.
Official sources to check
This guide was reviewed on 28 June 2026. Check the official pages before applying because support levels, eligibility, claim rules, and deadlines can change: EnterpriseSG PSG, EnterpriseSG EDG, EnterpriseSG MRA, Business Grants Portal, Startup SG Founder, and SkillsFuture Enterprise Credit.
Frequently Asked Questions
Is EDG better than PSG?
Not always. EDG is better for broader projects, while PSG is usually better for pre-approved productivity solutions.
Can PSG cover customised software?
PSG generally focuses on pre-approved solutions. Custom or broader transformation work may require EDG consideration.
Can a company apply for both EDG and PSG?
A company can check both schemes for different projects, but should not claim the same cost twice. Check official terms before applying.
Which grant should SMEs check first for software?
Check PSG first if the software is a pre-approved solution. Check EDG if the software is part of a larger transformation project.
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