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The short answer: the Productivity Solutions Grant (PSG) is built for pre-approved, off-the-shelf solutions you can adopt with minimal customisation, while the Enterprise Development Grant (EDG) is built for larger, more customised, or more strategic projects, including bespoke AI builds. Which one fits depends on whether you are buying a ready-made tool off a pre-approved list, or commissioning something built around your specific workflow.

Both schemes are administered under EnterpriseSG frameworks and both require approval before you commit to the project, both operate on a co-funding and reimbursement basis, and neither guarantees approval simply because you submit an application. The right choice depends on what you are actually buying, not on which grant sounds bigger.

What is the core difference between PSG and EDG?

	PSG	EDG
Best for	Pre-approved, off-the-shelf software or systems	Custom, larger-scope, or strategic capability projects
Solution type	Solutions already listed/pre-scoped under the grant	Bespoke projects scoped specifically for your business
Typical use case	Adopting a known AI chatbot platform, accounting software, or point-of-sale system	Building a custom AI agent, redesigning a core process with AI, market or capability expansion
Application effort	Generally more straightforward, tied to the pre-approved solution	Requires a fuller proposal: project scope, costing, expected outcomes
Funding basis	Co-funding, reimbursement after purchase and proof of use	Up to 50% of qualifying costs for eligible SMEs, reimbursement after claim

Neither scheme's exact support percentages, eligible solution lists, or caps should be taken as fixed. EnterpriseSG updates scheme parameters periodically. Always check the current details on the GoBusiness Grants portal before you plan a budget around a specific number.

When does PSG make more sense for an AI project?

PSG is designed around simplicity: EnterpriseSG (working with sector agencies) pre-approves specific solutions, and businesses adopt them with less customisation and a faster, more standardised application. For AI adoption, this typically fits scenarios like:

• Adopting a pre-approved AI chatbot or customer service platform with minimal customisation
• Rolling out a productivity tool that already has built-in AI features, such as automated scheduling or basic document processing
• Smaller-scope digitalisation that does not require a custom-built solution

If what you need is genuinely close to "buy this tool, configure it, go live," PSG is worth checking first. It is generally not the right fit if what you actually need is a chatbot custom-trained on your own products, policies, and tone of voice, since that leans closer to a project EDG is designed for. If you are unsure which category your project falls into, request a quote and we will help you work it out before you approach either scheme.

When does EDG make more sense for an AI project?

EDG suits AI projects that are being built or configured specifically for your business rather than adopted off a shelf. This includes:

• A custom conversational AI agent trained on your own data, integrated with your booking system, CRM, or inventory
• Process redesign where AI automation replaces or restructures an existing manual workflow
• Larger projects that combine strategy, data readiness work, and implementation, not just a software purchase

EDG applications require more upfront scoping: a clear problem statement, a costed proposal (often from a vendor like an AI implementation partner), and a defined outcome. It is a heavier process than PSG, but it fits projects PSG was never designed to cover. For a deeper look at EDG specifically, see our guide to the EDG grant for AI projects.

Can a project use both PSG and EDG?

Some businesses use PSG for the "easy" part of digitalisation (a pre-approved base platform) and EDG for a separate, more customised project. Whether a specific combination is permissible, and how EnterpriseSG treats overlapping scope, depends on the current rules and the specifics of each project. This is a question to raise directly with EnterpriseSG or a qualified grant advisor rather than assume from general guidance, since combining schemes incorrectly can create complications at claim stage.

A practical way to decide

Ask yourself three questions before choosing a track:

1. Is there already a pre-approved solution that does roughly what I need, with light configuration? If yes, check PSG first.
2. Does my project require custom development, integration with my own systems, or a bespoke AI build? If yes, EDG is the more natural fit.
3. Is this part of a bigger capability shift for the business, not just a single tool purchase? If yes, EDG's broader scope (and its link to strategy and process redesign) usually applies better.

This is exactly the kind of decision we help SMEs work through before they touch a grant application at all. Our AI strategy and advisory service starts by defining what the actual capability gap is, which naturally clarifies whether the fix looks like an off-the-shelf tool or a custom build.

What does the application experience actually feel like for each scheme?

Beyond the eligibility criteria, the day-to-day experience of applying differs between the two schemes, and it is worth setting expectations accordingly.

Applying under PSG

Because PSG is tied to pre-approved solutions, much of the groundwork (what the solution does, its general suitability) is already established before you apply. Your main job is usually confirming your business's eligibility, selecting the right pre-approved package or vendor, and submitting the application through the GoBusiness Grants portal. It is a comparatively lighter lift, though "lighter" does not mean "automatic," approval still depends on meeting the scheme's criteria.

Applying under EDG

EDG applications generally require more upfront work: a clear problem statement, a costed vendor proposal, a description of the expected capability upgrade, and supporting documentation about your business. This is closer to writing a mini business case than filling out a form. It takes longer to prepare, but it also opens the door to projects that are genuinely tailored to your business rather than constrained to a pre-approved list.

A worked example: choosing between the two for a customer service upgrade

Say a retail business wants to improve how it handles customer enquiries. Here is how the decision might play out:

• Scenario A: The business wants to adopt a well-known, pre-approved AI customer service platform, configure it with their FAQs and hours, and go live within a few weeks. This leans towards PSG: the solution is largely fixed, the customisation is light, and the project does not require custom development.
• Scenario B: The business wants a chatbot that is trained specifically on their product catalogue, integrated with their inventory system to answer real-time stock questions, and connected to their CRM to route qualified leads to the right salesperson. This leans towards EDG: it is a custom build with integration work, not an off-the-shelf adoption.
• Scenario C: The business is not sure which one they need yet, they just know customer service is a pain point. This is where scoping work, before any grant application, matters most. Jumping straight to a grant application without first understanding the actual capability gap is how businesses end up applying to the wrong scheme, or building something that does not solve the real problem.

What if my business has never applied for a grant before?

First-time applicants sometimes assume the process is more complicated than it is, or conversely, underestimate how much documentation and scoping is genuinely expected. A few practical starting points:

• Read the current eligibility criteria and process guidance on the GoBusiness Grants portal directly, rather than relying solely on secondhand summaries (including this one)
• Get your basic company documentation in order early: business registration details, financial statements, and shareholding structure are commonly requested across grant applications
• If you are using an implementation partner, ask them directly what role they will play, scoping and technical proposal support versus submitting the application itself, since the application must come from the business, not the vendor
• Do not sign a vendor contract that assumes grant approval before that approval is actually confirmed

What both schemes have in common (and where projects go wrong)

• Apply before you start. Both schemes generally require approval before project work or purchase, not after.
• Reimbursement, not upfront funding. You pay first, then claim, for both schemes.
• Neither guarantees approval. Assessment sits with EnterpriseSG (or the relevant approving agency), not with any vendor.
• The applicant company submits the application in its own name through the GoBusiness Grants portal, whichever scheme is used.

Where projects run into trouble is usually not the grant itself, it is picking the wrong track for the scope of work, or starting implementation before approval comes through. If you are unsure which track fits, it is worth getting that scoping question answered before committing time to either application. Our piece on how Singapore SMEs can fund AI adoption is a useful starting point for the wider funding landscape beyond just these two schemes.

Ready to see what AI can do for your business?

Not sure whether your project looks more like a PSG-eligible tool adoption or an EDG-scale build? Request a quote and we will help you scope it honestly, including telling you if a pre-approved off-the-shelf option would serve you better than a custom build. Reach us on WhatsApp at +65 9184 9908, email glenn@freemansland.co, or visit our contact page.

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