If you have been planning to put AI tools into your business and let the government cover half the bill, the scheme you were about to apply for is being replaced.
EnterpriseSG is consolidating the Productivity Solutions Grant (PSG), the Market Readiness Assistance grant (MRA) and the Enterprise Development Grant (EDG) into a single scheme called EDGE, launching in the second half of 2026. PSG still works right now. It will not work indefinitely.
This is worth more than five minutes of your attention, because the two schemes have different caps, different eligibility rules, and a completely different way of deciding what qualifies. Applying under the wrong one, or at the wrong moment, is the difference between S$30,000 and S$100,000 of support.
What is actually changing
Today, you pick a grant first and then work out whether your purchase fits it. PSG covers pre-approved IT solutions and equipment. MRA covers overseas expansion. EDG covers bigger capability projects. If your plan straddles two of them, you deal with two applications and two sets of criteria.
EDGE inverts that. You apply based on the activity you want funded, whether that is digitalisation, productivity improvement, capability building or overseas expansion, and the scheme works out the rest. The annual cap rises to S$100,000, and eligibility opens up to all Singapore businesses rather than SMEs alone.
One point that removes most of the anxiety: applications already approved under PSG, MRA or EDG are honoured. If you have a project running, the transition does not touch it.
Why this matters specifically for AI tools
PSG has always worked from a list. EnterpriseSG and its partner agencies pre-approve specific products, you pick from that list, and anything not on it is simply not fundable. That model made sense for accounting software and point-of-sale systems. It fits AI tooling badly, because the category moves faster than any approval list can.
Two things are shifting in your favour. First, EnterpriseSG has stated that PSG is being expanded to support digital and AI-enabled solutions for firms of all sizes. Second, EDGE is activity-based rather than product-based, which means the question becomes “does this improve your productivity” rather than “is this exact SKU on the list.”
The practical read: a tool that was not fundable in 2025 has a materially better chance now, and a better one again after EDGE launches.
Do you qualify for PSG right now?
Five conditions, all of which must hold on the day you submit.
The turnover and headcount test is measured at group level, and either one qualifies you. A company with S$4 million in revenue and 12 staff is comfortably inside it. So is a two-person operation, which is worth saying plainly, because a lot of solo founders assume these schemes are for larger companies and never check.
If you have not incorporated yet, that is the first step rather than a blocker. We covered the numbers involved in what it actually costs to start a business in Singapore.
How to apply, step by step
- Find the solution on GoBusiness Gov Assist. Browse the pre-approved list and identify the exact product and vendor. If what you want is not there, that is your signal to consider waiting for EDGE.
- Get a formal quotation from the approved vendor. Not a pricing page screenshot, an actual quote addressed to your company.
- Prepare your documents. Financial statements, the quotation, and a short proposal covering the business impact you expect.
- Submit through the Business Grants Portal using Corppass. This is where the application formally begins, and it must happen before any money changes hands.
- Wait for the Letter of Offer. Budget around six weeks.
- Deploy and use the solution. There is a minimum usage period of 30 days before you can claim.
- Submit your claim. Invoices, proof of payment, and serial numbers where equipment is involved.
- Get paid. Roughly 14 working days by PayNow Corporate, or up to eight weeks by GIRO.
End to end, from submission to money in the account, plan for three to four months. That timeline is the real argument against waiting until you are desperate.
Apply now, or wait for EDGE?
There is no universally correct answer, but the decision is not complicated once you know which two numbers matter: whether your tool is on the current list, and whether your spend clears S$30,000.
The case for moving now is that PSG is a known quantity. The list exists, the process is documented, and the timeline is predictable. The case for waiting is that EDGE lifts the cap to S$100,000, opens to non-SMEs, and stops tying funding to a product list. If either of those two constraints is what is blocking you today, waiting is rational.
The mistake that kills most applications
You cannot pay first and claim later.
Any payment or deposit to the vendor before your application is submitted disqualifies that purchase. Not delays it, disqualifies it. This catches people constantly with software specifically, because the natural instinct with a SaaS tool is to start a paid plan, confirm it works, and then sort out the paperwork. Do that and you have funded it yourself.
Free trials are fine. The moment a card is charged, that purchase is out.
What to do this week
- Write down the tools you are actually planning to buy in the next six months, with rough annual costs.
- Check each one against the pre-approved list on GoBusiness Gov Assist.
- Add up the total. Under S$30,000 and on the list means apply now. Over it, or missing from the list, means wait for EDGE.
- Confirm your Corppass access works before you need it. This is a boring administrative step that delays more applications than it should.
- Stop any purchase you were about to make on a tool you intend to claim for.
If you are still deciding what to build before you decide what to fund, start with validating the idea before you spend a dollar, and then look at how to set up a small Singapore business using AI. If you already know the shape of the business and just need the tooling, our roundup of the best AI tools for small businesses is a reasonable starting shortlist, and the AI side hustles Singaporeans are starting this year covers the smaller end.
Frequently asked questions
Is PSG still open in 2026?
Yes. EnterpriseSG has confirmed that PSG, MRA and EDG remain accessible until EDGE launches in the second half of 2026.
What happens to my PSG project when EDGE launches?
Nothing. Approved applications under the existing grants are honoured, and a project already in progress is unaffected by the transition.
How much is the EDGE grant worth?
Up to S$100,000 per year for eligible activities. For overseas expansion activity specifically, support levels rise to up to 70% for SMEs and up to 50% for non-SMEs.
Can a one-person company apply?
Yes, provided it is registered and operating in Singapore, has at least 30% local equity, and meets the group turnover or headcount test. There is no minimum size.
Will EDGE cover AI tools that PSG does not?
Probably, though the detailed criteria are not published yet. EDGE funds activities rather than pre-approved products, which structurally suits fast-moving software better than a fixed list does. PSG itself is also being expanded to support digital and AI-enabled solutions for firms of all sizes.
Do I need a consultant to apply?
No. The Business Grants Portal application is designed to be completed directly by the business. Consultants exist and can be useful for larger EDG-style projects, but for a straightforward PSG software claim the fee rarely justifies itself.
Sources
- EnterpriseSG, Productivity Solutions Grant
- EnterpriseSG, Budget 2026
- MTI, Committee of Supply Debate 2026 speech
- GoBusiness Gov Assist
Grant terms change. Figures here reflect what EnterpriseSG and MTI have published as of July 2026. Confirm current details on the official pages before you apply.