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What is the PSG Grant? How Can Restaurants Save 80% of Their Costs Through it?

Technology isn’t just about flashy, high-priced solutions. Kick-start your IT journey by automating your existing operations and increasing efficiency.

The Productivity Solutions Grant (PSG) is a government initiative in Singapore that provides financial assistance to businesses to adopt technology solutions and equipment to improve their productivity and efficiency. The grant aims to support local businesses in their digital transformation journey and enable them to stay competitive in the ever-evolving business landscape. One of the sectors that can benefit from the PSG grant is the food and beverage industry, particularly restaurants. With the help of PSG, restaurant owners can enhance their operations, streamline processes, and deliver better customer experiences.

In addition to sector-specific solutions, PSG encourages the adoption of cross-industry solutions in areas such as data analytics, customer management, financial management, and inventory tracking. The PSG’s maximum funding level has been raised from 70% to 80% in an effort to encourage companies to continue to improve their digitalization and productivity. Businesses will therefore be able to save up to 80% on their annual costs.

Digital Transformation has various benefits; it empowers employees through transparency, learning opportunities, and open communication. It also enables companies to expect growth in revenue along with building resilience by replacing inflexible processes with a workforce culture and infrastructure that will respond and adapt to new market demands.

PSG will support the Singapore companies in the following ways:

  • Funding of up to 80% of costs;
  • Allowance for PSG grants of $30,000 a year;
  • Prequalified list of IT solution vendors;
  • Business Grants Portal (BGP) grant processes are simplified.

In this article, we will discuss the PSG grant in Singapore for restaurants in more detail, including its eligibility criteria, application process, and the technology solutions covered by the grant.

How Restaurants Can Benefit from the PSG Grant?

Restaurants can benefit from the Productivity Solutions Grant (PSG) in several ways, including:

1. Financial assistance: The PSG provides financial assistance to eligible restaurants to support their adoption of pre-scoped productivity solutions. The grant covers up to 80% of the cost of the solution, which can significantly reduce the financial burden on the restaurant.

2. Enhanced productivity and efficiency: The pre-scoped solutions covered by PSG are designed to improve productivity, enhance operations, and reduce manual effort. By adopting these solutions, restaurants can automate routine tasks, streamline operations, and improve overall efficiency, which can lead to cost savings and higher profitability.

3. Improved customer experience: Many pre-scoped solutions covered by PSG are aimed at enhancing the customer experience, such as digital menu boards, table ordering systems, and mobile payment solutions. By adopting these solutions, restaurants can offer a more seamless and convenient dining experience, which can lead to increased customer satisfaction and loyalty.

4. Competitive advantage: By adopting the latest technology solutions, restaurants can gain a competitive edge in the industry. PSG grants can enable restaurants to invest in the latest technology and equipment, which can improve their overall capabilities and help them stand out in a crowded market.

Who all are Eligible for the PSG Grant?

The PSG Grant is available to all local small and medium-sized enterprises (SMEs) that are registered and operating in Singapore. The following are the eligibility criteria for the PSG Grant:

  1. The company must be registered and operating in Singapore.
  2. The company must have a minimum of 30% local shareholding.
  3. The company must have a group annual sales turnover of less than S$100 million or group employment size of less than 200 employees.
  4. The purchased/ leased equipment or software must be used in Singapore.

It is important to note that the eligibility criteria may differ for specific technology solutions covered under the PSG Grant, and businesses should check the specific requirements for the solution they are interested in before applying for the grant.

In order to qualify for the PSG Grant for Restaurant Technology Solutions, the following criteria must be met:

  1. The company must be a licensed food and beverage (F&B) establishment, such as a restaurant, café, or food court.
  2. The purchased/leased equipment or software must be used to enhance the productivity and efficiency of F&B operations, such as kitchen automation systems, point-of-sale systems, online ordering systems, inventory management software, and customer relationship management systems.
  3. The purchased/leased equipment or software must be pre-scoped and listed on the official PSG website.
  4. The company must not have received funding support for the same project from other government agencies or schemes.

It is recommended that businesses check the specific eligibility criteria for the restaurant technology solution they are interested in before applying for the PSG Grant.

Additional Support: SkillsFuture Enterprise Credit (SFEC)

The SkillsFuture Enterprise Credit (SFEC) is available to all eligible enterprises in Singapore, including restaurants and food and beverage (F&B) establishments. The SFEC credit can be used to support the restaurant’s efforts in skills upgrading, business transformation, and productivity improvement.

To be eligible for SFEC for restaurants, the restaurant must meet the following criteria:

  1. The restaurant must be registered and operating in Singapore.
  2. The restaurant must have a minimum of three local employees at the time of application.
  3. The restaurant must have contributed to the Skills Development Levy (SDL).
  4. The restaurant must have employed at least one Singaporean or Singapore Permanent Resident employee who is eligible for the Workfare Skills Support (WSS) scheme.
  5. The restaurant must have demonstrated commitment to skills upgrading and investing in their employees’ capabilities.

The SFEC credit can be used to offset the cost of eligible enterprise-level courses and/or selected industry-recognized certification programmes. The credit can also be used to support business transformation efforts, such as improving productivity and upgrading capabilities. By leveraging SFEC, restaurants can further enhance their competitiveness and deliver better customer experiences.

How do Restaurants Apply for the PSG?

Restaurants can apply for the Productivity Solutions Grant (PSG) online through the Business Grants Portal (BGP). The following are the steps to apply for the PSG:

1. Check if the restaurant is eligible: Before applying for the PSG, the restaurant must ensure that they meet the eligibility criteria for the specific technology solution they are interested in. The eligibility criteria can be found on the official PSG website.

2. Select a pre-scoped solution: The PSG covers a range of pre-scoped solutions to improve productivity and enhance operations. The restaurant should select a solution that meets their business needs and is listed on the official PSG website.

Access the list of supportable solutions provided on our Compare Vendors page and find the solutions that best fit your business needs.

3. Prepare required documents: The restaurant must prepare the necessary documents, such as their ACRA business profile, bank statement, and quotation/invoice from the vendor.

4. Apply through BGP: The restaurant can submit the application online through the Business Grants Portal (BGP). The application must include the required documents and details of the selected solution and vendor.

5. Await outcome of application: The application will be processed by the relevant agency, and the restaurant will be notified of the outcome within four to six weeks. If the application is approved, the restaurant can proceed with the purchase/lease of the solution and claim the grant reimbursement.

It is important to note that the application process may differ for specific technology solutions covered under the PSG, and restaurants should check the specific requirements for the solution they are interested in before applying for the grant.

For a more thorough on how to apply for a PSG grant, click here.

How Many PSG Grants can a Restaurant Apply for?

Restaurants can apply for multiple PSG grants, subject to the following conditions:

  1. The restaurant must ensure that they meet the eligibility criteria for each technology solution they are interested in.
  2. Each PSG grant application must be for a different pre-scoped solution listed on the official PSG website.
  3. The total amount of PSG grants claimed by the restaurant must not exceed the funding cap of S$30,000 per entity per financial year.

Therefore, restaurants can apply for and receive multiple PSG grants to support the adoption of different technology solutions to improve productivity and enhance operations. However, it is important to note that the PSG grant is subject to availability of funds and may be subject to changes in funding policies over time.

What is the Processing Time for PSG Applications?

After all essential information is submitted, applications are processed in roughly 6 weeks.

Companies are highly advised to submit their applications ahead of time in order to account for the application outcome and/or processing time.

Companies may choose to proceed with the project and purchase the equipment/IT solution before the application is approved. But, if your application is denied, you will not be able to file a claim afterward.

Under PSG, are Unlisted IT Solutions and Equipment Supported?

Productivity Solutions Grant (PSG) aims to make it easier for proven productivity solutions to be adopted quickly by sector-leading agencies. New productivity solutions are assessed and added to the list on a regular basis.

PSG helps companies adopt pre-scoped IT solutions, equipment, and consultancy services, which are aligned with their industry roadmaps, such as Industry Transformation Maps (ITMs) and Industry Digital Plans (IDPs).

Best POS in Singapore has a collection of easily implementable options. Selecting the right-sized and relevant PSG support package should be based on the applicants’ business needs.

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