Save Up To S$30,000: How Singapore SMEs Can Use PSG Grant For Business Central

For many Singapore SME owners, the cost of implementing an enterprise-grade ERP system feels out of reach. Yet one of the most powerful digital transformation tools available to businesses today — Microsoft Dynamics 365 Business Central — is now significantly more accessible thanks to a government grant most SMEs are not fully utilising: the Productivity Solutions Grant (PSG). The PSG grant Business Central Singapore combination gives eligible SMEs the ability to subsidise up to 50% of qualifying implementation costs, potentially saving your business up to S$30,000 on a fully configured ERP solution. In 2026, with digital transformation no longer optional for competitive businesses, this is one of the most important grants available to Singapore SMEs. This guide covers everything you need to know: what the PSG grant covers, whether your business is eligible, how to apply, and what to expect when implementing Business Central with grant support.

What Is the PSG Grant and How Does It Work?

The Productivity Solutions Grant (PSG) is a Singapore government initiative administered by the Info-communications Media Development Authority (IMDA) and Enterprise Singapore (EnterpriseSG). It was designed specifically to help Singapore SMEs adopt pre-approved digital and technology solutions that improve productivity and business efficiency. Unlike general grants that require competitive applications, the PSG operates on a pre-approved solutions model. IMDA maintains a curated list of vetted IT solutions across categories including ERP, CRM, HR management, financial management, and more. If a solution and its implementation partner are on the pre-approved list, your grant application is significantly streamlined. How the PSG grant works for Business Central:

Your business applies through the Business Grants Portal (BGP) before implementation begins
The grant covers up to 50% of qualifying implementation costs
Maximum supportable costs for ERP solutions can reach S$60,000, meaning up to S$30,000 in grant support
You pay the vendor directly; upon successful claim submission, the grant is disbursed to your business

Critically, the grant must be applied for and approved before implementation starts. SMEs that begin their Business Central project without first securing PSG approval are not eligible to claim retroactively.

PSG Grant Business Central Singapore: Eligibility Requirements

To qualify for the PSG grant for Business Central in Singapore, your business must meet the following criteria:

Registered in Singapore: Your business must be registered and physically operating in Singapore
Minimum 30% local shareholding: At least 30% of the business must be owned by Singapore Citizens or Permanent Residents
Annual turnover under S$100 million, or fewer than 200 employees: This defines the SME threshold for PSG eligibility
Must be purchasing a new solution: PSG does not support renewals or upgrades to existing licensed solutions in most cases — the solution must represent a new capability for your business
Solution must be used in Singapore: The implementation must be deployed and used primarily within Singapore operations

The grant is open to businesses across all industries, making it particularly valuable for Singapore SMEs in professional services, retail, F&B, manufacturing, logistics, and distribution — all sectors where Business Central delivers significant operational value.

What Does the PSG Grant Cover for Business Central?

The PSG grant covers qualifying costs related to the adoption of Business Central. These typically include:

Software licensing fees — the cost of Business Central subscription licences for your team
Implementation and configuration costs — the professional services required to set up, configure, and customise Business Central for your business
Training costs — end-user and administrator training to ensure your team can use the system effectively
Data migration — transferring your existing business data into the new system

Hardware costs, internal IT staff time, and ongoing maintenance fees after the implementation period are generally not covered. Your PSG-approved vendor will provide a quotation clearly outlining the qualifying costs eligible for grant support.

Why Business Central Is an Ideal PSG-Supported Solution

Microsoft Dynamics 365 Business Central is one of the most comprehensive ERP solutions available for Singapore SMEs, and it has been on IMDA’s pre-approved solutions list. For growing businesses, it delivers value across every department:

Financial Management

Automate accounts payable and receivable, bank reconciliation, financial reporting, and multi-currency transactions. For Singapore SMEs dealing with GST compliance and IRAS reporting requirements, Business Central significantly reduces the risk of errors.

Supply Chain and Inventory

Gain real-time visibility into stock levels, automate purchase orders, manage multiple warehouses, and reduce the cost of excess or insufficient inventory. Singapore businesses with regional supply chains particularly benefit from Business Central’s multi-location and multi-currency capabilities.

Sales and Customer Management

Track leads, manage customer records, process sales orders, and monitor receivables — all in one system. Sales teams get complete visibility into customer history and outstanding balances without switching between applications.

AI Copilot Features in 2026

Business Central 2026 Release Wave 1 has significantly expanded AI capabilities through Microsoft Copilot. Features like AI-assisted bank reconciliation, intelligent purchase order suggestions, and natural language financial queries make Business Central one of the most forward-looking ERP platforms available today. Implementing with PSG support now means your business gets access to these capabilities at subsidised cost.

Step-by-Step: How to Apply for the PSG Grant for Business Central

Applying for the PSG grant Business Central Singapore involves several steps. Here is the process you need to follow:

Identify a pre-approved vendor: Work with a PSG-approved Microsoft Dynamics 365 Business Central implementation partner. Your vendor must be on the IMDA pre-approved list for the grant to be applicable.
Get a quotation: Obtain a formal quotation from your vendor that clearly outlines the qualifying costs and the scope of implementation. This quotation will be submitted with your grant application.
Log in to the Business Grants Portal: Visit businessgrants.gov.sg and log in using Corppass. The application form will ask for your business details, the solution you are adopting, and your vendor’s information.
Submit your application before starting: PSG requires that you apply and receive in-principle approval before signing any contracts or making any payments to the vendor. Do not skip this step.
Receive in-principle approval: Processing typically takes 4–6 weeks. Once approved, you will receive a Letter of Offer outlining the approved grant amount and conditions.
Implement Business Central: With approval in hand, your implementation project begins. Your vendor will configure, customise, and deploy the system according to the agreed scope.
Submit your claim: After implementation is complete, submit your claim through BGP with supporting documents including invoices, receipts, and delivery confirmation.
Receive disbursement: Once your claim is approved, the grant amount is disbursed directly to your business bank account.

Common PSG Grant Mistakes Singapore SMEs Make

These are the most frequent errors that result in PSG grant rejections or reduced claims:

Starting Implementation Before Approval

This is the most common and most costly mistake. The PSG grant cannot be claimed for work completed before in-principle approval is issued. Always apply first, implement second.

Working with a Non-Approved Vendor

Only solutions and vendors on IMDA’s pre-approved list qualify for PSG support. Before signing any contract, verify that your vendor is listed on the Business Grants Portal.

Incorrect Documentation at Claim Stage

Missing invoices, incomplete delivery records, or inconsistencies between the quotation and final invoice can delay or reduce your claim. Work with a vendor experienced in PSG claims to ensure all documentation is accurate and complete.

Waiting Too Long to Apply

Grant budgets and eligibility criteria can change. Businesses that intend to implement Business Central but delay their PSG application risk missing out if the grant is modified or oversubscribed in their sector.

Why Work with a PSG-Approved Business Central Partner?

Beyond technical implementation, working with an experienced PSG-approved Business Central partner means you benefit from:

Grant application support: Your partner helps you prepare the right documentation and submit a complete application
Scope design aligned with PSG requirements: Qualifying costs are maximised within the grant guidelines
Claim preparation: Your partner ensures all invoices, delivery confirmations, and supporting documents are correct before you submit your claim
Ongoing support: A local partner provides post-implementation support, training, and system updates as your business grows

The difference between a smooth PSG grant experience and a rejected claim often comes down to whether your implementation partner has done this before and knows the requirements inside out.

Take the First Step Towards Subsidised Business Central Implementation

The PSG grant Business Central Singapore opportunity is real, meaningful, and available to eligible SMEs right now. With up to S$30,000 in grant support available, there has never been a more financially accessible time to implement an enterprise-grade ERP system for your Singapore business. The key is to start the process correctly: choose a pre-approved partner, apply through the Business Grants Portal before implementation begins, and work with a team that has handled PSG claims successfully before. Synchro’s team of certified Microsoft Dynamics 365 specialists has extensive experience supporting Singapore SMEs through the full PSG grant journey — from application to implementation to claim submission. Contact us today for a consultation on how your business can use the PSG grant to implement Business Central and transform the way you operate in 2026.

Save Up to S$30,000: How Singapore SMEs Can Use PSG Grant for Business Central