PSG Grant for Xero Setup: How Singapore SMEs Get 50% Off

If you run a Singapore SME and you're thinking about moving to cloud accounting, Enterprise Singapore will pay for half of it. That's the short version of the Productivity Solutions Grant (PSG), and it's the single most under-claimed grant in our experience working with founders.

The grant is real, the process is straightforward, and Xero (the platform we run all our clients on) sits on the pre-approved list. The catch isn't the application; it's the timing. It's best to apply well before you intend to make the switch.

This guide walks through eligibility, the application steps, what Harvest handles for you, and the common mistakes that get applications rejected. By the end, you'll know whether you qualify and how to get the 50% back into your bank account.

What is the Productivity Solutions Grant?

The PSG is administered by Enterprise Singapore (sometimes still referenced as IMDA's SMEs Go Digital programme for technology-related solutions). It exists to help Singapore SMEs adopt productivity-enhancing technology, from accounting software like Xero to inventory systems, point-of-sale platforms, HR tools, and more.

For accounting and Xero specifically, the grant covers up to 50% of qualifying costs, capped at SGD 30,000 per financial year per SME. Qualifying costs typically include the Xero subscription, professional setup, data migration, training, and post-implementation support.

Important to note upfront: PSG is a reimbursement, not an upfront discount. You pay the vendor in full, then claim back the 50% from Enterprise Singapore after the project is complete and approved.

Are you eligible?

Three eligibility tests, all of which must be met:

1. Registered and operating in Singapore. The business must be a Singapore-registered entity, and the digital solution must be used in Singapore.
2. At least 30% local shareholding. Singapore Citizens or Permanent Residents (or a combination) must hold at least 30% of the company's shares.
3. Size threshold. At the group level, your business must have either annual sales turnover of SGD 100 million or less, or 200 or fewer employees.

Most Singapore SMEs we work with meet these requirements. The 30% local shareholding rule trips up some founders with overseas backers. Check before applying.

Is Xero on the approved list?

Yes. Xero is a pre-approved digital solution under PSG for accounting and cloud accounting use cases. Multiple PSG-approved Xero vendors offer slightly different bundles (some focused on basic setup, others including data migration from a legacy system, training packages, or integration with other tools).

Harvest is one of those approved vendors. Each of our PSG Xero packages includes a 12-month Xero subscription with unlimited users, full Xero setup (chart of accounts, bank feeds, AR/AP import, opening balances), 8 hours of online training, and historical-data migration of up to 12 months and 1,200 lines. As a 2025 Xero Partner of the Year for Singapore and a Xero Platinum Partner, we've handled hundreds of migrations, and can advise if your business would be a good fit for Xero.

How much does it actually cost?

Harvest offers five PSG-claimable Xero packages. The list (pre-grant) prices range from SGD 770 to SGD 4,970, and after the 50% PSG support, your net out-of-pocket cost lands between SGD 385 and SGD 2,985 depending on the scope you need:

Eligible SMEs can also stack the SkillsFuture Enterprise Credit (SFEC) on top of PSG, which can cover up to 90% of remaining out-of-pocket expenses. See the Harvest PSG page for the full deliverable breakdown by package and a quote request form.

The Xero subscription itself, after the included 12-month implementation period, reverts to the standard Xero Singapore plan pricing. Ongoing subscription is a normal operating expense and is generally not claimable under PSG.

The application process, step by step

Applications are submitted electronically via the Business Grants Portal (BGP) using a CorpPass login. The flow looks like this:

1. Get a quotation from a PSG-approved vendor. Make sure the vendor and the specific solution are on the pre-approved list. Harvest provides PSG-formatted quotes that match Enterprise Singapore's expected fields.
2. Log in to the Business Grants Portal with your CorpPass account.
3. Submit the PSG application before you sign any contract with the vendor and before you make any payment. This is the single biggest rejection trap.
4. Wait for approval. Processing typically takes 4–6 weeks.
5. Accept the Letter of Offer within the specified window (usually 30 days from the date of issue) via the Business Grants Portal.
6. Complete the project. Your vendor delivers the Xero setup, training, and migration.
7. Submit your claim. Upload invoices, proof of payment, and any completion evidence required by the LO. Claims are processed within 4–6 weeks.
8. Receive disbursement. Funds land in your nominated GIRO/PayNow Corporate account once the claim is approved.

In total, the time from "I want to apply" to "the money is in my bank" is usually 12–18 weeks (4–6 weeks for application approval, plus the project itself, plus 4–6 weeks for claim processing).

What documentation do you need?

For the application itself:

• A formal quotation from a pre-approved PSG vendor, detailing costs for the Xero subscription, setup, training, and any other claimable components
• CorpPass account access for the Business Grants Portal
• Basic company details (UEN, financial particulars) to support the eligibility check

For the claim, after the project is done:

• Vendor invoices for the full amount
• Proof of payment (bank statements or transfer confirmations)
• A GIRO form, verified by your bank, for the disbursement (first time only)
• Project completion evidence as specified in your Letter of Offer

Harvest prepares the application bundle and the post-completion claim package as part of our standard PSG engagement, so most of the paperwork is handled on your behalf.

What Harvest handles vs what you do

Splitting it out clearly so there are no surprises:

The only steps that require your involvement are the CorpPass-gated portal submissions (Enterprise Singapore requires the company itself to log in, not the vendor) and the bank-verified GIRO form. Everything else flows through us.

The five most common reasons applications get rejected

We've seen these patterns enough times to flag them clearly:

1. Signing the contract or paying the vendor before the application is approved. This is the single biggest cause of rejection. PSG funds projects that haven't started yet. If you've already paid even a deposit, the project is deemed to have commenced and is no longer eligible.

2. Failing the 30% local shareholding test. Companies with majority foreign investors don't qualify. There's no workaround; you have to meet the 30% threshold at application time.

3. Vendor or solution not on the pre-approved list. PSG only covers solutions that Enterprise Singapore has vetted. If you've already engaged a non-approved consultant, the costs aren't claimable, even retroactively.

4. Hitting the SGD 30,000 annual cap. If your business has already used PSG funding for other solutions in the same financial year (HR software, e-commerce platform, inventory system), the available headroom for Xero may be smaller than expected. Check your year-to-date PSG usage before applying.

5. Incomplete or inconsistent documentation. Mismatched figures between the quotation, application, and final invoices will pause your claim while Enterprise Singapore queries the discrepancy. Keep everything consistent.

Timing the application

The order matters. Here's the right sequence:

1. Decide you want Xero
2. Get a PSG-approved quotation from Harvest (or another approved vendor)
3. Submit the PSG application via the Business Grants Portal
4. Wait for the Letter of Offer (4–6 weeks)
5. Accept the LO, then sign the engagement contract with us
6. Project starts
7. Project completes
8. Claim submitted, claim processing takes 4–6 weeks, funds disbursed once approved

Skipping ahead, especially signing the contract before the LO arrives, voids the application. We've seen founders excited to get started, sign with us, and then realise the PSG window closed because the timeline got out of sequence. The rule is: PSG application first, contract second.

What about ongoing Xero subscriptions?

PSG focuses on the implementation and adoption phase. The Harvest packages above bundle 12 months of Xero subscription into the initial claim; once that included year ends, you continue at Xero's standard Singapore plan pricing. The ongoing monthly fee is your normal operating expense and is generally not claimable under PSG.

If you're switching from a non-cloud system to Xero, the migration, setup, and training elements far outweigh the first year of subscription anyway, so the 50% PSG saving on the bigger setup component is where most of the value sits.

What happens if my application is rejected?

Rejection is recoverable in some cases (incomplete documentation, eligibility queries that can be clarified) and not in others (signed contracts, foreign-majority ownership). If your application is rejected, Enterprise Singapore typically issues a notification with the reason. Common next steps:

• If it's a documentation issue: re-submit with the missing items or corrections.
• If it's a timing issue (already signed/paid): the project itself is no longer claimable, but you can apply for the next eligible project.
• If it's an eligibility issue (shareholding or revenue threshold): no workaround within the same application; revisit the structure or wait until thresholds are met.

We typically catch these issues at the quotation stage so the formal application doesn't fail at all. That's part of what we mean when we say we handle the PSG flow end-to-end.

Recent changes for 2026, and what's coming with EDGE

Budget 2026 (announced February 2026) confirmed two things SMEs should know.

First, PSG is still active right now (April 2026). The 50% support, SGD 30,000 annual cap, and existing eligibility criteria are unchanged. If you want Xero set up in the next few months, PSG is the scheme you apply to. Approved PSG projects will be honoured under existing terms even after the transition.

Second, PSG is being merged into a new scheme called EDGE in the second half of 2026. EDGE consolidates PSG, the Enterprise Development Grant (EDG), and the Market Readiness Assistance (MRA) grant into a single application portal and process. Indicative figures from Enterprise Singapore point to higher support levels (up to 70%) and a higher cap (up to SGD 100,000) under EDGE, though final mechanics will be confirmed closer to launch.

Practically, what this means for an SME considering Xero today:

• Apply for PSG now if you're ready to move on Xero. Don't wait for EDGE; the 4 to 6 week processing window plus the project itself fits comfortably before EDGE's H2 2026 launch.
• Keep an eye on Enterprise Singapore's announcements for EDGE-specific guidance later in 2026 if you have other digital projects (HR, e-commerce, marketing) you'd like to bundle under the new scheme.

Frequently asked questions

Do I need to repay the grant if I stop using Xero? No. Once the grant has been disbursed and the project is complete, the funds are yours. You're not locked into a minimum subscription period from the grant's perspective (though you may have separate vendor contract terms).

Can my company apply for PSG if it's brand new? Yes, as long as it's registered in Singapore and meets the 30% local shareholding test. New companies don't have a turnover history yet, so the 200-employee threshold typically applies as the eligibility test.

Is PSG the same as the SME Go Digital programme? PSG is one of the funding mechanisms within the broader SMEs Go Digital programme run by IMDA. The two are linked: SMEs Go Digital identifies and pre-approves the digital solutions, and PSG provides the funding when SMEs adopt them.

Can I use PSG and other grants together for the same project? Generally no, you can't double-claim the same costs across multiple grants. Different parts of a project (PSG for digital tools, EDG for capability development, MRA for market expansion) can run in parallel, but each cost item can only be funded by one grant.

How long does PSG approval take in practice? Enterprise Singapore quotes 4–6 weeks for application approval and another 4–6 weeks for claim processing once the project is complete. Plan your project start at least 6 weeks after submitting the application, and budget another 4–6 weeks after project completion before the funds disburse.

What if I'm already a Xero customer? PSG funds the implementation phase. If you're already on Xero and just want to add features (advanced reporting, integrations), it may not qualify as a fresh implementation. Check with us first; we'll tell you honestly whether your case fits.

Ready to find out if you qualify?

Most Singapore SMEs we work with qualify for PSG without realising it. The 30% local shareholding test and the size thresholds are forgiving for the typical Harvest client.

Book a free PSG eligibility check, no obligation, and we'll confirm whether you qualify, scope the right Xero package from our PSG packages page, and handle the entire application end-to-end. Most clients who meet the criteria have their books fully migrated to Xero within a few weeks of project kick-off, with the 50% reimbursement landing in their account roughly 4–6 weeks after the claim submission.