Guide
AI grants for Singapore SMEs: what actually funds what
Singapore has one of the world's most generous SME digitalisation regimes — and one of the most confusing acronym stacks. This guide maps PSG, EDG, SMEs Go Digital, and the GenAI programmes honestly: what each covers, what it doesn't, and where custom AI systems actually fit. We are not grant consultants, and we don't sell through grant promises.
The support landscape at a glance
Four things matter for an SME thinking about AI. Figures below are the widely published levels as of mid-2026 — always confirm current terms on GoBusiness before committing to anything.
| Scheme | What it is | Typical support |
|---|---|---|
| Productivity Solutions Grant (PSG) | Co-funding for pre-approved off-the-shelf digital solutions chosen from a catalogue | Up to 50% of qualifying costs, within an annual cap |
| Enterprise Development Grant (EDG) | Co-funding for qualifying projects (capability, innovation, productivity), assessed case by case | Up to 50% of qualifying project costs for SMEs |
| SMEs Go Digital (IMDA) | The umbrella programme: Industry Digital Plans, pre-approved solutions, CTO-as-a-Service advisory | Advisory is free; solutions route through PSG |
| GenAI programmes | Initiatives such as GenAI × Digital Leaders for digitally mature SMEs adopting generative AI | Guidance plus project support, by selection |
One more thing to know in 2026: Enterprise Singapore has announced a consolidation of its grant landscape (a successor scheme to EDG and related grants) rolling out in the second half of the year. If you are reading this near a decision, check the official pages first — the acronyms may have moved again.
PSG: great for catalogue software, not for custom systems
PSG works on a catalogue model. Enterprise Singapore and IMDA pre-approve specific vendors and specific packaged solutions — accounting software, POS systems, HR tools, some AI-powered SaaS — and eligible SMEs claim co-funding on those exact packages. The mechanics that trip people up:
- Apply before you pay. Sign or pay first and the claim is gone.
- Eligibility — registered and operating in Singapore, at least 30% local shareholding, and group turnover not exceeding S$100 million or group employment not exceeding 200.
- Catalogue only. The grant attaches to the listed solution, not to the problem you're solving.
Said plainly: Olano is not a PSG pre-approved vendor, and custom-scoped AI systems — designed around your workflows, connected to your live data, managed for you — are generally not what the catalogue lists. If a vendor's pitch leans mostly on "it's 50% off with PSG", make sure the remaining 50% still buys the thing you actually need.
EDG: where bespoke projects get assessed
EDG is the opposite shape: no catalogue, no pre-approved vendors — a project application assessed on its merits (capability development, innovation, productivity), usually prepared with your corporate advisor. Custom AI work can, in principle, form part of a qualifying project; whether a specific one does is entirely the agency's decision, and anyone who guarantees you an outcome is overselling.
What we can do on our side is make the project legible: a fixed-scope proposal that names the workflows, integrations, deliverables, and management arrangement, which you or your advisor can take into an EDG conversation. What we won't do is design the engagement around a grant application.
The advisory layer most SMEs skip
Before spending anything, two free resources are worth a morning: IMDA's SMEs Go Digital hub — Industry Digital Plans give a sector-by-sector view of what to digitalise in what order — and CTO-as-a-Service, which offers consultancy without a sales agenda. If your team is already digitally mature, the GenAI initiatives are expanding fast and worth tracking on IMDA's site.
Grant or no grant, the economics must stand on their own
Here is the uncomfortable truth grant-led marketing skips: a grant lowers the price of a decision — it doesn't make the decision right. A co-funded chatbot nobody trusts is still shelfware. Our view:
- Start where the pain is measurable — missed after-hours enquiries, a drowning inbox, a CRM full of stale records. See the five workflows worth automating first.
- Size it small. A single-workflow pilot might cost S$300–S$1,500 per month plus review time — quoted as a fixed proposal before any work begins, with hard AI-spend controls agreed in advance. That is a scale where the workflow either proves itself in a month or doesn't.
- Compare against labour honestly. Our agent team vs human team diary prices one real day of operating work at Singapore blended rates — that's the comparison that matters, not the sticker discount.
A practical checklist before you apply for anything
- Confirm current support levels, caps, and eligibility on GoBusiness — this article states the mid-2026 picture and will age.
- Never sign or pay before the application is in.
- Ask any vendor what the solution costs and does after the funded period.
- Decide the one metric the project must move (response time, leads captured, hours returned) before you commit.
- If the project is custom, involve your corporate advisor early — assessment is about the project's merits, not the vendor's brochure.
This article is general information as of July 2026, not grant advice. Eligibility and funding decisions rest solely with the administering agencies.
Related reading
The rest of the Singapore SME series.
AI agents for Singapore SMEs
The practical guide: which workflows agents handle today, what stays human, and how to start.
Hire another person, or deploy an agent?
The 2026 hiring math — salaries, CPF, quotas — against handing the repetitive layer to agents.
AI agent team vs human team
One real day of operating work, priced honestly at Singapore blended rates.
How to choose an AI agent platform
The vendor-evaluation checklist to run before any application: approvals, audit, spend caps, isolation.
FAQ
Is Olano a PSG pre-approved vendor?
No. PSG funds solutions listed in the pre-approved catalogue, and custom-scoped AI systems like ours are generally not catalogue products. We would rather say that plainly than let a grant assumption drive your decision. Every Olano engagement is quoted as a fixed proposal that has to make sense on its own economics.
Can EDG funding apply to a custom AI system?
EDG supports qualifying projects assessed case by case by Enterprise Singapore — there is no pre-approved catalogue. Whether a specific AI project qualifies is the agency's decision, usually made with your corporate advisor. We can scope a fixed proposal you can bring to that conversation, but we never promise grant outcomes.
Do I need a grant before starting with AI agents?
No. A sensible first workflow is deliberately small — a single-workflow pilot might cost S$300–S$1,500 per month plus review time, quoted as a fixed proposal before any work begins. If the workflow doesn't pay for itself at that scale, a grant wouldn't have fixed it.
Where do I check current grant terms?
GoBusiness (gobusiness.gov.sg) is the official portal for PSG and EDG, and IMDA's site covers SMEs Go Digital and the GenAI programmes. Terms, support levels, and caps change — always confirm against the official pages before committing to any purchase.
Want the fixed-proposal version of your project?
Book a private consultation. We map the workflow, quote it fixed, and you decide — with or without a grant in the picture.