Singapore SMEs have two main grant levers for AI work: the Productivity Solutions Grant (PSG) for pre-approved off-the-shelf tools, and the Enterprise Development Grant (EDG) for custom AI projects with measurable productivity or capability uplift. Most genuine AI builds — the ones that move the needle for an SME — fit EDG, not PSG.
PSG vs EDG: which one applies to AI?
PSG is fast and simple but limited to vendors and solutions on IMDA's pre-approved list. If you want a generic AI chatbot, an off-the-shelf accounting AI, or a standard CRM with AI features, PSG is your route. Funding is currently up to 50% of qualifying costs (subject to current MAS/Enterprise SG terms — always verify before scoping).
EDG is for custom builds and capability projects under three pillars: Core Capabilities, Innovation & Productivity, and Market Access. Custom AI agents almost always fit Innovation & Productivity. Funding can go up to 50% (or higher for SMEs in specific schemes — check current rates with Enterprise Singapore).
What kinds of AI projects qualify under EDG
- Custom AI agents that automate a measurable, repetitive workflow
- Document-processing AI integrated with your ERP or accounting system
- AI-driven customer engagement tools tied to clear conversion or response-time KPIs
- Internal AI knowledge systems that reduce time-to-information across the company
- Predictive analytics tools that change how the business prices, schedules, or stocks
What gets rejected (or stuck in revisions)
- "We want to use AI" with no specific workflow. EDG funds projects, not exploration.
- No baseline metrics. If you can't say what current productivity looks like, you can't credibly forecast uplift.
- Buying generic SaaS dressed up as a project. That's a PSG conversation, not EDG.
- Vague capability gains. "Improved efficiency" doesn't fly. "Cut invoice processing from 8 minutes to 90 seconds across 1,200 invoices/month" does.
- No internal owner. Grants want to see the SME absorbing the capability, not just paying a vendor.
How to scope an AI project that's grant-friendly
Three things make a custom AI project EDG-friendly:
- A baselined workflow with numbers. Time per task, volume per month, error rate, manpower cost today.
- A defined target state with the same numbers. Time per task post-AI, error rate post-AI, manpower hours redeployed.
- A capability-transfer plan. How your team will own, run, and tune the AI agent after the build phase ends.
One thing we don't do
We don't write grant applications ourselves. What we do: scope the project so it's grant-friendly from day one, supply the documentation an Enterprise Singapore-recognised grant consultant needs, and deliver the build to the milestones the grant requires. If you don't have a grant consultant yet, we can refer you to ones we've worked with.
Always verify current grant rates and eligibility on the Enterprise Singapore EDG page and the GoBusiness PSG page before committing — terms change.
Want help scoping a project that fits EDG and ships? Start with our AI Strategy engagement — that's where this work happens.