EDG Grant Software Development Singapore: What EDG and PSG Really Cover

Can you use an EDG grant for software development in Singapore? It is one of the most common questions we hear from founders who want a custom app, web platform or automation built but hope the government will cover part of the bill. The honest answer is: sometimes, and it depends heavily on which grant you mean. The Enterprise Development Grant (EDG) can support qualifying custom-software and consultancy projects, while the Productivity Solutions Grant (PSG) funds only pre-approved, off-the-shelf tools - not bespoke builds. This guide explains what each scheme really covers, the eligibility basics, and the new EDGE grant that will soon fold both together.

The short answer, in one minute

There are two schemes people usually mean when they ask about an EDG grant for software development in Singapore, and they behave very differently:

• EDG supports qualifying business-transformation projects, which can include some custom software, digital tooling and third-party consultancy. Support for SMEs is up to 50% of qualifying costs, assessed on a project basis, and applications go through the Business Grants Portal.
• PSG funds only pre-approved, packaged IT solutions from vendors listed on the GoBusiness portal - up to 50% of cost, capped at S$30,000 per company per financial year. It does not fund a from-scratch build, and it does not pay for developers or staff.

So if your project is a genuine custom build, EDG is the scheme worth exploring; PSG is for buying a ready-made tool off the approved list. One important caveat up front: this isn't grant or legal advice - confirm current eligibility with Enterprise Singapore before you budget around any figure, because criteria and caps change.

What the EDG grant covers for software development

The Enterprise Development Grant is EnterpriseSG's flagship project grant. It is organised into three pillars, and most software work sits under the second one:

• Core Capabilities - strategy, financial management, human capital, service quality and brand development.
• Innovation & Productivity - automation, process redesign and product development. This is where a bespoke web app, mobile app, internal system or automation build typically fits.
• Market Access - overseas expansion, pilot projects and standards certification.

Within an approved project, EDG funds three broad categories of qualifying cost: third-party consultancy fees, software and equipment, and internal manpower costs. For SMEs, the support level is up to 50% of those qualifying costs (up to 30% for non-SMEs). Enhanced tiers above 50% have applied to specific project categories at times, but these are reviewed periodically - so treat up to 50% as the working assumption for a standard software project and confirm the current rate for your case. There is no fixed dollar cap - each project is assessed on its merits, scope and outcomes.

The practical implications for a software project are worth being clear about. EDG is project-based, not a subsidy you attach to any invoice: you need a defined project with clear deliverables and business outcomes, it must be new (not already started before you apply), and applications are submitted by the company itself through the Business Grants Portal using Corppass - usually with the help of a management or grant consultant whose fees can themselves be a qualifying cost. In other words, our job as your custom software development partner is to build the thing well and scope it sensibly; the grant application and eligibility assessment run through your company and a qualified consultant.

What PSG does - and doesn't - fund

The Productivity Solutions Grant is the scheme most SMEs know, because it is fast and simple. But that simplicity comes from a hard rule: you can only be supported for pre-scoped packages from pre-approved vendors listed on the GoBusiness portal. PSG covers three types of pre-approved spend:

• IT solutions - packaged software such as accounting, HR, CRM, inventory, e-commerce and cybersecurity tools.
• Equipment - physical productivity equipment for specific sectors like F&B and retail.
• Consultancy - advisory services from pre-approved consultants (this route requires at least three local employees at application).

Funding is up to 50% of cost, capped at S$30,000 per company per financial year across all your PSG claims. Here is the part founders most often get wrong: PSG does not fund bespoke software development, and it does not pay for people. You cannot use PSG to commission a custom platform, and you cannot use it to fund staff augmentation or a monthly developer engagement. If a workflow genuinely needs something built - say an agentic AI system tailored to your operations - that is outside PSG's remit by design. We are honest about this because getting it wrong wastes weeks: our core service, custom development, is not a "PSG-eligible" purchase, and any vendor who tells you otherwise is misreading the scheme.

EDG vs PSG for a software project, at a glance

• Type of solution: EDG - custom projects and consultancy; PSG - pre-approved packaged tools only.
• Support level: EDG - up to 50% for SMEs, project-assessed; PSG - up to 50%, capped at S$30,000 per financial year.
• Best for: EDG - a genuine build or transformation with defined outcomes; PSG - buying an off-the-shelf system quickly.
• Application: EDG - Business Grants Portal, usually with a consultant; PSG - GoBusiness portal, self-serve from the solution list.
• Bespoke development: EDG - potentially, as a qualifying project cost; PSG - no.
• Paying for developers/staff: Neither grant is designed to fund ongoing headcount.

Eligibility basics for both grants

The foundational criteria overlap, though PSG adds a size test. As a general guide (always verify the current wording on the official pages):

• Registered and operating in Singapore - both grants require a Singapore-registered business entity.
• At least 30% local shareholding - held directly or indirectly by Singapore citizens and/or PRs.
• Financial viability - for EDG, you must be in a position to start and complete the project.
• Size test (PSG) - group annual sales turnover not more than S$100 million, or group employment size not more than 200.
• Timing - apply before you commit. For PSG in particular, signing a contract, paying a deposit or paying fees before your application is submitted and approved can disqualify the claim. For EDG, the project must not have commenced before application.

None of this is exotic, but the timing rule catches people out constantly. Get the grant conversation going before you sign anything, not after.

The new EDGE grant is coming in 2H2026

There is one more moving part to plan around. At Budget 2026, the government announced that EDG, PSG and the Market Readiness Assistance (MRA) grant will be consolidated into a single scheme called EDGE. The idea is that businesses apply based on their intended activity - digitalisation, productivity or market expansion - rather than having to work out which grant fits first. Early details reported so far indicate support will be capped at around S$100,000 per year and that it will be open to all Singapore businesses, including non-SMEs, administered by EnterpriseSG - but treat those figures as provisional until the scheme is live.

EDGE is expected to launch in the second half of 2026. Until then, EDG, PSG and MRA remain accessible through the Business Grants Portal, and applications already approved under the existing schemes will be honoured - so an in-flight EDG or PSG project is not disrupted by the transition. As always, confirm the current details with Enterprise Singapore rather than budgeting around an announced number.

How to scope a software build so it is grant-ready

Whether you go the EDG route now or the EDGE route later, the same discipline makes a project fundable and, frankly, more likely to succeed on its own merits:

1. Frame it as a project with outcomes, not a shopping list. Grant assessors and good developers both want the same thing: a defined problem, a defined solution and a measurable result (hours saved, error rate, faster turnaround).
2. Scope a first version tightly. A lean, well-defined build is easier to cost, quote and assess. Our guide to MVP development cost in Singapore shows how to size a first version sensibly.
3. Get your paperwork in before you commit spend. Loop in a grant consultant early so the application precedes the contract.
4. Keep IP and documentation clean. Clear ownership and a proper statement of work help both the grant file and your business. Our complete guide to outsourcing software development covers how we structure scope, IP and handover.

This is exactly where we can add value without overstepping. We can help you scope a build so it is grant-ready and point you to the right consultant - but we do not submit the application for you, and we cannot promise approval. Confirm eligibility with Enterprise Singapore; this is not grant or legal advice.

How Outsourced SG fits in

Outsourced SG is a founder-led Singapore software studio: Joshua Lim personally leads a small team of vetted, AI-trained developers based in Indonesia (GMT+7, an hour behind Singapore) and hands projects over in person. We have delivered 60-plus projects since 2019 - websites, web and mobile apps, e-commerce, automation and AI chatbots - and we scope them the way a grant assessor likes to see: one clear problem, a defined build, a measurable outcome.

Our pricing is transparent and always in SGD, never USD: the Starter plan starts at S$400/month and the Product Team plan at S$550/month. Because the team is engaged remotely, there is no CPF and no foreign-worker levy to factor in; every engagement comes with an NDA, data handled in line with the PDPA, and 100% IP assignment, backed by a 30-day replacement guarantee and no lock-in. You can see the full breakdown on our pricing page. Where a grant like EDG can support part of a qualifying project, treat that as a bonus on top of already-predictable costs - not the thing your business case depends on. Build something worth building first; let the funding, where you qualify, make the maths friendlier.

Frequently asked questions

Can I use the EDG grant for custom software development in Singapore?

Potentially, yes. The Enterprise Development Grant supports qualifying business-transformation projects, and a bespoke build often fits under its Innovation & Productivity pillar, with qualifying costs including software, third-party consultancy and internal manpower. SME support is up to 50% of qualifying costs, assessed per project and applied via the Business Grants Portal. Eligibility is decided by EnterpriseSG, so confirm your specific case with them - this is not grant or legal advice.

Is bespoke software development PSG-eligible?

No. The Productivity Solutions Grant only funds pre-approved, packaged IT solutions from vendors listed on the GoBusiness portal, up to 50% and capped at S$30,000 per financial year. A from-scratch custom build is outside PSG's scope by design, and PSG cannot be used to pay for developers or staff augmentation. For a custom project, look at EDG (and, from 2H2026, the new EDGE grant) instead.

How much does EDG cover and is there a cap?

For SMEs, EDG covers up to 50% of qualifying project costs (up to 30% for non-SMEs). Enhanced support tiers above 50% have applied to specific project types at times, but rates are reviewed periodically, so treat up to 50% as the working assumption and confirm the current level with Enterprise Singapore. There is no fixed dollar cap - each project is assessed on its scope and outcomes. This isn't grant or legal advice.

What are the basic eligibility requirements?

Both grants require a business registered and operating in Singapore with at least 30% local shareholding held by Singaporeans or PRs. EDG additionally requires financial viability to complete the project and that the project has not started before you apply. PSG adds a size test - group annual turnover not exceeding S$100 million or group employment not exceeding 200 - and you must apply before committing to any spend.

What is the new EDGE grant and when does it launch?

EDGE is a consolidated scheme announced at Budget 2026 that merges EDG, PSG and MRA into one grant, letting businesses apply by intended activity rather than picking a scheme first. Early details reported so far point to support capped at around S$100,000 per year, open to all Singapore businesses including non-SMEs, and a launch in the second half of 2026. Treat those figures as provisional, confirm them with Enterprise Singapore, and note that existing grants remain available until then and approved applications will be honoured.

Can Outsourced SG help me get a grant?

We can help you scope a build so it is grant-ready and point you to the right grant consultant, and we structure projects with clean scope, IP and documentation that support an application. We do not submit the application for you or guarantee approval - eligibility is decided by Enterprise Singapore. Please confirm current eligibility with them; this is not grant or legal advice.

Sources

• Enterprise Development Grant (EDG) - EnterpriseSG
• Productivity Solutions Grant (PSG) - GoBusiness
• Productivity Solutions Grant (PSG) - EnterpriseSG