PSG grant in 2026: how software and AI are funded under EDGE

In this guide

• Is PSG still available?
• What EDGE pays for software and AI
• The caps, with a worked example
• Which route fits an AI tool
• Eligibility and steps
• Traps that cost the grant
• Reading a vendor's grant claim and how Olano fits

Is the PSG grant still available?

Not for new applications: Enterprise Singapore states that EDG, MRA and PSG ceased on 29 September 2026 and that from 30 September new applications go through the EDGE Grant (Enterprise Singapore, checked 1 November 2026). Applications already submitted and projects already running carry on under PSG and claim on completion.

Two details catch people. Enterprise Singapore's PSG page was still online on 1 November 2026, describing the old scheme ("up to 50% of eligible costs for local SMEs", up to S$30,000), so a search for "psg grant" lands on rules that no longer take applications. And if an ongoing PSG project uses SkillsFuture Enterprise Credit, its final claims are due by 30 November 2026 (EDGE FAQ). For the changeover in general, see what replaced PSG, EDG and MRA.

How much does EDGE pay for software and AI?

Up to 50% of qualifying costs for an SME and up to 30% for a non-SME: the EDGE FAQ keeps its higher rates, up to 70% and 50%, for internationalisation and sustainability activities. Software, equipment and AI tools sit in Automation and Digitalisation, on the standard rate. The EDGE page's "up to 70% for SMEs" headline is the ceiling across all activities; it adds that "support levels differ by activity".

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Sources: Enterprise Singapore's PSG page and PSG FAQ, the EDGE page and the EDGE FAQ, checked 1 November 2026. For software, the SME rate and the S$30,000 are where PSG left them; what is new is that larger companies can apply, the pre-approved route answers faster, and each listed solution has its own cost cap.

What the caps mean for one year's budget

A company can receive up to S$100,000 of EDGE support a year, and no more than S$30,000 of it for single-function digital solutions, integrated enterprise systems and pre-scoped equipment combined, in a year that runs from 1 April to 31 March (EDGE FAQ). Smaller limits sit below that:

• Each listed solution has a cost cap. "The cost of this activity is capped at S$5,000" for CRM, and the same for AI Accounting Automation; S$10,000 for Digital Marketing; S$30,000 for Automated Order Management, which Enterprise Singapore describes as automating "customer engagements through AI-powered digital assistants"; S$60,000 for an Integrated ERP.
• Software only, for 12 months at most. The solution pages we checked support software costs alone; GST and maintenance are excluded, and projects must finish within 18 months of approval. A laptop on its own has no route either: the pre-scoped equipment list is specific machines such as automated dishwashers, and Large-scale Automation lists laptops, tablets and mobile phones among costs it does not support.
• One go per solution. Selected single-function solutions and integrated systems are limited to one application per UEN; pre-scoped equipment can cover several locations.
• Old grants do not count. PSG, EDG and MRA amounts are not counted toward the EDGE caps.
• Large-scale projects sit outside. Large-scale Automation and Large-scale Digital Transformation are assessed case by case and do not count toward the S$100,000 (BizSG, BizSG).

Worked example: an SME takes three listed solutions in one year, each on a 12-month quote before GST.

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That leaves S$13,500 of the digital cap until 31 March; the 70% headline would have suggested S$23,800. Our arithmetic at maximum rates, assuming each cost cap limits the supportable cost and every application is approved; the Letter of Offer states the real amount.

Which EDGE route fits an AI tool?

That depends on whether the AI is a listed product, part of a business system or a custom project: each is a different EDGE activity, with its own cap and timeline.

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Large-scale Digital Transformation is where a custom AI system would be assessed, and it asks a lot. It supports hardware, professional services, salary and software, but excludes "automation of isolated tasks without broader business transformation". You apply with a project proposal, vendor quotations, financial statements and three-year projections; at the end come a final consultancy report and an audited claim (activity page, BizSG). If the tool is neither listed nor part of a wider project, the FAQ suggests asking an SME Centre. More on custom work in our EDGE reference.

Who is eligible, and how do you apply?

A business entity registered and operating in Singapore, with at least 30% Singaporean or PR ownership (direct or indirect), can apply, provided it has not started work or paid any deposit before applying and has not applied before for the same solution. Larger companies qualify at the lower rate; non-profits, societies and statutory boards do not (EDGE FAQ). Some listed solutions, AI Accounting Automation and Automated Order Management among them, exclude home-based businesses, which PSG could support. The steps for a listed solution (solution pages):

1. Find the solution on the EDGE page or BizSG, and a pre-approved vendor on SMEs Go Digital.
2. Get the vendor's quotation, build the matching package on SMEs Go Digital, and generate its package reference ID with Corppass.
3. Prepare the quotation and a projection of cost savings for one year after completion.
4. Apply on the Business Grants Portal through your own staff with the BGP Preparer or Acceptor role, never the vendor.
5. Accept the Letter of Offer, deploy, pay in full, and photograph the software with its unique identifier, such as a licence number or user ID.
6. Submit one final claim. Disbursement takes about 14 working days by PayNow Corporate, or up to eight weeks by GIRO.

Traps that cost the grant

Six rules in the EDGE FAQ decide whether a digital purchase is funded:

• Paying before you submit. A deposit or any work before submission makes the application retrospective and unsupported. Paying after submission but before approval is allowed, at your own risk.
• Letting the vendor do your part. Vendors may not apply, request changes or claim for you, and a vendor connected to your company, its directors or shareholders is not allowed.
• Changing vendor after approval. Not permitted: terminate and apply again before paying the new one.
• Funding the same cost twice. You cannot apply for EDGE after another government grant has approved the same expenses, and should not seek it for a project PSG already funded.
• Missing the year end. Caps reset on 1 April, so apply before 31 March to use this year's.
• Cash flow. EDGE reimburses, never advances, and accepts one final claim, from 1 December 2026 at the earliest. Pay the full invoice first.

How to read a grant claim in a vendor's pitch

Treat any grant line written before 30 September 2026 as out of date until you have checked four things: the scheme name, the support rate for that activity, the S$30,000 digital cap with the solution's own cost cap, and the date.

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Only Enterprise Singapore decides an application, and its PSG page notes that its schemes charge no compulsory application fees.

How Olano fits

Olano is a Singapore AI studio that builds and runs AI agents. We are not a pre-approved vendor for any grant, we do not apply on a client's behalf, and we never promise a grant outcome. If a listed solution on SMEs Go Digital does what you need, that is the better choice, with an application outcome in about a week. Where the work is custom, we scope it after a 30-minute consultation and quote a fixed proposal in Singapore dollars, exclusive of GST and never priced per seat; a single-workflow pilot might cost S$300 to S$1,500 a month plus your review time. See our services and the FAQ.