PSG Grant for Websites in 2026: SG SME Guide

Running an SME in Singapore is a rewarding challenge, but we know that balancing costs is always top of mind. One of the most common questions we get from fellow business owners is: "How can I get a professional website without a huge upfront cost?" For many, the answer lies in the Productivity Solutions Grant (PSG).

As we move into 2026, the government's push to help SMEs digitalise remains strong. For businesses looking to build a new e-commerce platform or a powerful corporate site, the PSG is a fantastic resource. This guide breaks down what you need to know to tap into this support.

What is the PSG Grant and Who is it For?

The PSG, overseen by IMDA, is designed to help Singaporean SMEs adopt pre-approved IT solutions and equipment to improve their productivity. A professional, lead-generating website falls squarely into this category.

To be eligible for the grant, your business must meet the following criteria:

• Registered in Singapore: Your business must be registered and operating in Singapore.
• 30% Local Shareholding: At least 30% of the company's ordinary shares must be held directly or indirectly by Singapore Citizens or Permanent Residents.
• SME Status: Your company's annual sales turnover must be less than S$100 million, OR you must have fewer than 200 employees.
• New Solution: The website or e-commerce solution you are purchasing must be for a new capability and not a minor upgrade.

PSG for Websites: What to Expect in 2026

While the exact details can be adjusted by the authorities, the core support structure of the PSG has been consistent. For 2026, here’s the general framework you can plan around:

• Support Level: Eligible SMEs can receive funding support for up to 50% of the qualifying cost.
• Annual Grant Cap: There is a cap on the total grant amount an entity can claim, which is typically S$30,000 per financial year (1st April to 31st March).
• Focus on Functionality: The grant supports pre-scoped, pre-approved solution packages. This means you can’t just hire any developer. You must engage a pre-approved vendor (like us!) whose website package has been vetted by IMDA. These packages often include essential features like:
  • E-commerce capabilities (shopping cart, checkout)
  • Compliance with Singapore's PDPA (Personal Data Protection Act)
  • Integration with local payment gateways (e.g., PayNow QR)
  • Mobile-responsive design

Do AI-Built Websites Qualify for the PSG Grant?

This is a hot topic, and the answer is more straightforward than you might think. The PSG supports pre-approved solutions, not the specific tools used to create them.

Think of it this way: the grant approves the blueprint for a safe, functional house, not the brand of hammer the contractor uses.

So, if a pre-approved vendor like aiweb.sg uses advanced AI tools to design layouts, write copy, or optimise SEO more efficiently, the website absolutely can qualify for the PSG. The key is that the final product is delivered by an approved vendor and meets the approved solution's scope. The use of AI is simply a modern, efficient method for delivering a high-quality, compliant website.

How to Choose a Pre-Approved PSG Vendor

Your choice of vendor is the most critical step. Your partner should not only be on the official list but also understand the unique needs of a Singapore SME.

Where to Find Vendors

Start at the source: the GoBusiness GovAssist portal. This is the official directory of all pre-approved vendors and their solution packages. Don't engage a vendor who claims to be "PSG eligible" but isn't on this list.

What to Look For

1. A Strong Portfolio: Do their past projects look professional? Do they have case studies from Singapore-based businesses, perhaps in industries like F&B (SFA compliance) or real estate (CEA guidelines)?
2. Clear Scope of Work: The vendor must provide a detailed quotation that matches the description of their approved solution package. Be wary of hidden costs or vague promises.
3. Local Context: Does the vendor understand what makes a Singapore business tick? This includes everything from setting up your Google Business Profile for local visibility to ensuring your site is PDPA compliant.
4. Long-Term Strategy: A good vendor doesn't just build a website and disappear. They should be able to advise you on how to generate leads, improve your SEO, and make your new digital asset work for your business.

Your Step-by-Step Guide to Applying for the PSG

The process is managed through the Business Grants Portal (BGP) and is quite systematic.

1. Get a Quotation: Contact a pre-approved vendor from the GoBusiness list to discuss your needs and get a formal quotation for their pre-approved package.
2. Submit Your Application: Log into the Business Grants Portal (BGP) using your company's CorpPass. You will need to submit the vendor's quotation and other required documents.
3. Wait for Approval: Do NOT sign any contracts or make any payments to the vendor before you receive the Letter of Offer (LOF) from the BGP. This is a strict rule.
4. Accept the Offer: Once you receive the LOF, you can formally accept it through the portal.
5. Build Your Website: Now you can give your vendor the green light to start work on your project.
6. Pay and Claim: After the project is complete, you must pay the vendor the full amount. Then, you can submit your claim documents (invoice, proof of payment) through the BGP to receive the grant reimbursement.

FAQ: Quick Answers on the PSG Website Grant

Q1: Can I use the PSG to revamp my existing website?

Yes, potentially. The grant is for adopting new capabilities. If your revamp involves moving to a pre-approved e-commerce or CMS platform that your business does not currently use, it is often considered a new capability and may be eligible. A simple redesign on the same platform usually is not.

Q2: Is Goods and Services Tax (GST) covered by the grant?

No. The PSG grant covers up to 50% of the qualifying costs, which excludes GST. You will need to pay the GST component in full to your vendor.

Q3: How long does the PSG application and claim process take?

Application approval typically takes a few weeks, provided all your documents are in order. The claim reimbursement after project completion and payment also takes a few weeks. It's wise to factor this timeline into your business planning.