PSG Grant 50%, SFEC $10K and Corporate Bank Account Fees 2026

The Productivity Solutions Grant (PSG) has an annual funding cap of S$30,000 per company per grant year. The PSG financial year runs from 1 April to 31 March — not the standard calendar year. This means the cap resets on 1 April each year. If your company exhausts the S$30,000 cap in September 2026, no new PSG applications can be approved for that company until 1 April 2027, when a fresh S$30,000 cap becomes available. The cap applies to the aggregate of all approved PSG claims in the financial year — if you have three PSG solutions each attracting S$10,000 in grant, the total S$30,000 cap is consumed. Each UEN (Unique Entity Number) is assessed separately — so subsidiaries with their own UENs each have their own S$30,000 annual cap. Multi-entity business groups can potentially claim multiple S$30,000 annual caps if each entity is separately incorporated with its own UEN and meets all individual eligibility criteria. There is no lifetime PSG cap per company — you can claim PSG every year for new qualifying solutions. However, the same solution category cannot be funded twice — if you previously claimed PSG for a specific accounting software category, a like-for-like replacement system does not qualify for PSG again.

Yes — sole proprietorships registered and operating in Singapore are eligible to apply for the PSG, provided they meet all other eligibility criteria. The key eligibility requirements for a sole proprietorship are: the business must be registered with ACRA; the business must be operating in Singapore and the IT solution or equipment must be used in Singapore; the sole proprietorship must meet the SME size criteria (group annual turnover not exceeding S$100 million, or group employment size not exceeding 200 employees — most sole proprietorships easily satisfy this); for selected solutions that require local shareholding, the sole proprietor must have at least 30% local (Singaporean or PR) ownership; and the business must not have made any payment or signed any contract with the vendor before submitting the PSG application. Consultancy service solutions under PSG require at least three local employees — sole proprietorships without employees may not qualify for this specific sub-category. For IT solutions and equipment, the headcount requirement does not apply. Sole proprietorships can apply via the Business Grants Portal (businessgrants.gov.sg) using their CorpPass credentials tied to their business UEN.

Unused SkillsFuture Enterprise Credit balance remaining after 30 November 2026 will be permanently forfeited — they do not carry over, cannot be transferred, and will not be refunded. This is a hard deadline confirmed by EnterpriseSG and Skills Future Singapore. If your company has S$5,000 in unused SFEC and fails to deploy it before 30 November 2026, that S$5,000 in available government credit is permanently lost. The redesigned SFEC launches on 1 December 2026 under the Enterprise Workforce Transformation Package (EWTP). The new scheme operates as a digital wallet (upfront offset, not reimbursement) and provides a fresh S$10,000 tranche for qualifying employers. To qualify for the redesigned SFEC from 1 December 2026, an employer needs to maintain at least three Singapore Citizen or PR employees with CPF contributions — simplified from the prior multi-criteria qualifying periods. Employers who have already exhausted their current SFEC before 30 November 2026 can access the new S$10,000 EWTP credit from 1 December 2026 if they meet the simplified eligibility criteria. There is no double-counting — using up the current credit before November 30 does not disadvantage you under the redesigned scheme.

The Skills Development Levy (SDL) is a mandatory employer contribution in Singapore, paid to the CPF Board on behalf of SkillsFuture Singapore. The SDL rate is 0.25% of each employee’s monthly wages, with a minimum of S$2 per employee per month (for wages under S$800) and a maximum of S$11.25 per employee per month (for wages above S$4,500 per month). SDL is paid by the employer only — it is not deducted from employee salaries. SDL is collected alongside CPF contributions via GIRO or online payment. For SFEC eligibility, employers must have contributed at least S$750 in total SDL over the qualifying period. For most companies with three or more employees: three employees each earning S$4,000/month = SDL of 0.25% × S$4,000 × 3 = S$30/month × 12 months = S$360/year. To reach S$750, they need about 25 months of contributions at this rate — which means most companies qualifying for SFEC (which required specific historical qualifying periods through 2022) would naturally meet the SDL threshold. Companies with SDL payment defaults are excluded from SFEC — even if they paid enough SDL in total, defaults disqualify the application. Under the redesigned SFEC from 1 December 2026, the minimum SDL requirement has been simplified — the main criterion is maintaining at least three local (SC/PR) employees with CPF contributions.

Yes — the 90% SFEC coverage rule applies the same way to both PSG and EDG: SFEC covers up to 90% of the company’s out-of-pocket cost after the primary grant (PSG or EDG) is applied. The practical difference is in how the base company co-payment is calculated. For PSG: the base grant is 50% of qualifying cost; company co-payment is 50%; SFEC covers 90% of that 50% co-payment. Example: S$20,000 solution → PSG S$10,000 → company pays S$10,000 → SFEC 90% = S$9,000. Net cash outlay: S$1,000. For EDG: the grant is 50% (or 30% non-SME); company co-payment varies. Example: S$100,000 project → EDG S$50,000 → company pays S$50,000 → SFEC 90% of S$50,000 = S$45,000 — but this is capped at S$7,000 from the enterprise transformation bucket. So SFEC maximum contribution to EDG is S$7,000, regardless of how large the project is. The S$7,000 enterprise bucket cap means SFEC is relatively more valuable for smaller PSG projects (where S$7,000 can represent 70-90% of the company co-payment) than large EDG projects (where S$7,000 might only reduce a S$50,000 co-payment by 14%). For the workforce transformation bucket (training), the S$7,000 cap does not apply — the full S$10,000 SFEC credit balance can be directed to WSQ training, job redesign, and career conversion programmes.

Yes — each legal entity (each Unique Entity Number) is assessed separately for PSG eligibility and has its own S$30,000 annual grant cap. If a business group has three separately incorporated Pte Ltd companies, each with their own UEN, each can apply for PSG independently and each has access to a separate S$30,000 annual cap — subject to meeting all individual eligibility criteria. Group applications (where two or more companies are listed as co-applicants in a single application) are specifically not permitted. Each company must submit its own separate PSG application via the Business Grants Portal. The SME size threshold is assessed at the group level — the “group” consists of the applicant company, its holding companies that own more than 50% of the applicant, and its subsidiaries where the applicant owns more than 50%. If the group’s combined annual turnover exceeds S$100 million or combined headcount exceeds 200 employees, none of the entities in the group qualifies as an SME for PSG purposes. This means that Singapore subsidiaries of large foreign multinationals typically do not qualify for PSG, even if the Singapore entity itself is small.

A fall-below fee is a monthly charge applied by Singapore banks when a business account’s balance drops below a specified minimum threshold — either an average daily balance (ADB) calculated over the month, or a minimum balance measured at specific points in time. Examples in 2026: DBS Business Multi-Currency Account charges S$40/month if the average daily balance falls below S$10,000. OCBC Business Growth Account charges S$20/month (increased from S$15 on 1 May 2026) when the balance falls below its threshold. UOB eBusiness charges S$15/month when ADB falls below S$5,000 from the second year. The average daily balance mechanism is important — it does not allow for “make good” top-ups at month-end. If your account maintains S$12,000 for 29 days but drops to S$2,000 on payroll day, the ADB for that month may fall below the threshold, triggering the fee. Strategies to avoid fall-below fees: (1) Maintain a separate payroll float account — transfer payroll funds from a fintech account (Airwallex, Aspire, CIMB — all zero fall-below) rather than from your traditional bank; (2) Switch to a zero-threshold provider for your primary operating account (CIMB SME, Airwallex, or Aspire) and use traditional banks only for lending, trade finance, or relationship banking that requires it; (3) Time large outgoing payments to early-month when ADB is naturally higher after month-end receivables have cleared.

Airwallex (Singapore) Pte. Ltd. is licensed as a Major Payment Institution (MPI) by the Monetary Authority of Singapore (MAS) under the Payment Services Act. It is not a licensed bank — it is a payment institution. This means Airwallex accounts are not covered by the Singapore Deposit Insurance Corporation (SDIC) scheme, which protects deposits up to S$75,000 at licensed banks. However, MAS requires MPI licence holders to safeguard customer funds — Airwallex holds client funds in trust with leading global financial institutions, separately from its own operating funds. This means that even if Airwallex as a company were to face financial difficulties, customer funds are legally protected and separate from Airwallex’s own assets. The distinction matters for risk-conscious business owners: traditional licensed banks (DBS, OCBC, UOB, CIMB, Maybank) offer full SDIC protection up to S$75,000 per depositor per institution. For business accounts with consistently high balances (above S$75,000), a traditional bank may be preferable for the SDIC protection — though in practice, the failure of a major Singapore bank is extremely remote. For businesses primarily using accounts for operational cash flow and keeping reserves elsewhere, the MPI safeguarding model provides adequate protection in normal circumstances.

EDGE (Enterprise Development and Growth Enhancement) is a new consolidated grant scheme announced at Budget 2026, expected to launch in the second half of 2026. EDGE will consolidate three existing grants — EDG, PSG, and MRA — into a single grant framework accessed through the Business Grants Portal. Key differences between current PSG and EDGE: PSG funds pre-approved catalogue solutions only at 50% for SMEs. EDGE will incorporate PSG’s catalogue model but increase the maximum funding rate for SMEs to 70% (until 31 March 2029) — compared to the current PSG rate of 50%. The S$30,000 annual PSG cap structure under EDGE has not been fully disclosed — SMEs planning large productivity solution investments in 2H2026 should monitor EnterpriseSG announcements on the EDGE cap structure before deciding whether to apply under existing PSG (50% immediately) or wait for EDGE (70% but uncertain timing). Until EDGE officially launches, the existing PSG scheme remains fully operational. Applying under PSG now and then receiving a “top-up” under EDGE is not expected to be possible — typically grant schemes do not provide retrospective top-ups when a successor scheme offers higher rates.

Yes — changing your business bank account during a PSG or SFEC grant period does not affect your eligibility to receive grant disbursements. However, you must ensure your updated bank account details are registered in the relevant portals before disbursement is processed. For PSG claims: bank account details for reimbursement are typically collected during the claim submission on the Business Grants Portal. If you change bank accounts after submitting a claim but before disbursement, contact EnterpriseSG to update the payment details — disbursement to a closed or incorrect account may cause delays of several weeks. For SFEC disbursements: SFEC is disbursed to the IRAS-registered GIRO or PayNow Corporate account. If you change bank accounts, update your PayNow Corporate registration (via your new bank) and IRAS GIRO details before the next disbursement cycle. Banks supported for GIRO SFEC disbursement include: DBS, POSB, OCBC, UOB, Citibank, Standard Chartered, Maybank, Bank of China, and Maybank. Other banks may require a paper GIRO application form submitted to IRAS. Fintech accounts (Airwallex, Aspire, Wise) are generally not supported for GIRO but may be eligible for PayNow Corporate disbursement — check with the specific provider.

The GoBusiness PSG catalogue includes both generic solutions (available to all industries) and sector-specific solutions. For retail and food service — two of Singapore’s largest SME sectors — the catalogue includes: Generic solutions applicable to all sectors: cloud accounting and invoicing software, CRM platforms, HR and payroll management systems, e-commerce platforms, cybersecurity solutions (anti-virus, threat monitoring), and digital marketing tools. Sector-specific retail solutions: point-of-sale (POS) systems with inventory integration, customer loyalty platform management, retail analytics and demand forecasting tools. Sector-specific food service solutions: kitchen management and order management systems, food delivery platform integration tools, food cost and recipe management software, table management and reservation systems. Budget 2026 added AI-enhanced solutions to the catalogue: AI-powered demand forecasting, AI customer service chatbots for hospitality, and AI quality control tools for F&B operations are now appearing as PSG-supported options. Always verify current catalogue listings on the official GoBusiness Grant website at grants.gobusiness.gov.sg — the catalogue is regularly updated and solutions are added or removed based on EnterpriseSG’s periodic review cycles. Contact EnterpriseSG or a Business Advisory Centre for the latest sector-specific additions.

Account opening timelines vary significantly between traditional banks and fintech providers. Fintech providers (Airwallex, Aspire): typically 1–3 business days for Singapore-incorporated companies with online application. The application is fully digital and does not require director presence. Most accept foreign-incorporated companies or foreign-founded Singapore companies without in-person requirements. Traditional banks (DBS, OCBC, UOB): 2–4 weeks for Singapore-incorporated companies with local resident directors who can complete in-person KYC. Some traditional banks allow online applications via Singpass/CorpPass for certain account types — processing can be faster (3–7 business days) for streamlined digital applications. Foreign-founded Singapore companies (where all directors are foreign nationals without SingPass) typically face longer timelines at traditional banks — some may require an in-branch appointment, extending the process to 4–8 weeks. Documents required across most providers: ACRA BizFile business profile (download from bizfile.gov.sg), Certificate of Incorporation, company constitution (ACRA-registered), identity documents (NRIC for Singaporeans/PRs, passport for foreigners), details of all directors and shareholders above a specified ownership threshold (typically 25%). The practical recommendation for newly incorporated companies: open an Airwallex or Aspire account on Day 1 for immediate operational banking; add a DBS, OCBC, or UOB account 3–6 months in once your business has operational history to support the application.

InvoiceNow (also known as the Peppol e-invoicing network) is Singapore’s national e-invoicing standard, requiring businesses to send and receive structured digital invoices through the Peppol network rather than PDF or email invoices. From 1 April 2026, new voluntary GST-registered companies are required to be InvoiceNow-ready — they must use accounting software or invoicing systems capable of generating and receiving Peppol-compliant invoices. For businesses choosing a bank account in 2026, InvoiceNow matters because: your accounting software (which connects to your bank via API data feeds) must support Peppol e-invoicing for GST-registered businesses; banks that offer native integrations with InvoiceNow-compliant accounting platforms make compliance simpler. DBS, Airwallex, and Aspire all integrate with Xero, which supports InvoiceNow. QuickBooks Singapore also supports InvoiceNow. If your business is GST-registered (or plans to register voluntarily), verify that your chosen bank’s accounting software integration supports InvoiceNow before committing to a provider. The IMDA (Infocomm Media Development Authority) maintains the list of certified Peppol service providers at imda.gov.sg/infocomm-media/infocomm/infocomm-business/invoicenow. InvoiceNow adoption is being phased in progressively — existing GST-registered businesses that pre-date 1 April 2026 are not yet mandated but should plan the transition as requirements expand.

Yes — a Singapore company can have active PSG and EDG claims running simultaneously, as they cover different types of projects. PSG covers pre-approved solutions from the GoBusiness catalogue; EDG covers custom transformation projects not in the PSG catalogue. As long as the projects are distinct (different scope, different vendors, different objectives), having both PSG and EDG applications active simultaneously is permitted and common. Example: Company A applies for PSG in January for a cloud accounting system (S$8,000 solution, PSG funding S$4,000) and simultaneously applies for EDG in February for a custom business strategy consultancy project (S$80,000 project, EDG funding S$40,000). Both can proceed in parallel. The SFEC S$7,000 enterprise transformation bucket applies across both — SFEC claims against both PSG and EDG co-payments are aggregated against the S$7,000 cap. The total SFEC enterprise transformation drawdown from both projects cannot exceed S$7,000 in aggregate. From 2H2026, EDGE will consolidate PSG and EDG into a single scheme — at that point, the separate application model changes. Until the transition, the parallel PSG + EDG approach remains fully operational.

PayNow Corporate is Singapore’s real-time digital payment system for business entities, allowing companies to receive and send SGD payments using their Unique Entity Number (UEN) as the identifier — without sharing bank account numbers. It is built on the same FAST infrastructure as PayNow for individuals but operates at the corporate level. PayNow Corporate is critical for Singapore businesses because: (1) Grant disbursements — EnterpriseSG, SSG, and IRAS disburse PSG, EDG, SFEC, and other government grant payments via PayNow Corporate or GIRO. Having PayNow Corporate set up ensures you receive grant money faster (typically within days rather than 2–3 weeks for cheque processing); (2) Customer payments — many Singapore businesses and consumers now pay B2B invoices via PayNow UEN; (3) Government payments — CPF, IRAS taxes, and SDL contributions can be paid via PayNow Corporate. To set up PayNow Corporate: link your UEN to your corporate bank account through your bank’s online portal (DBS iBanking, OCBC, UOB FAST, etc.). Fintech providers: Airwallex and Aspire both support PayNow Corporate. Wise Business also supports PayNow but check current availability. Setup is typically free and takes 1–2 business days. Register PayNow Corporate as part of your company setup checklist immediately after opening your bank account — before submitting any grant applications — to ensure disbursement is received promptly.

Yes — several Singapore corporate banking options offer zero minimum balance and zero monthly fees in 2026. The best options for early-stage SMEs: Airwallex Business Account: S$0 initial deposit, no minimum balance, no monthly fee, free FAST transfers, free local payment rails to 120+ countries, S$20–35 for SWIFT international transfers where local rails are unavailable. FX markup approximately 0.4%. Accepts Singapore-incorporated companies regardless of director residency. Aspire Business Account: S$0 initial deposit, no minimum balance, free FAST, S$0.20 per GIRO transaction. Low-cost option for SGD-dominant businesses. Supports Xero and accounting integrations with native CPF e-payment support. CIMB SME Account: Traditional bank option with zero fall-below fee and no monthly charge in year one. From year two, S$8/month applies. Unlimited free FAST and GIRO transactions in year one. Wise Business Account: S$99 one-time setup fee; no monthly fee thereafter; no minimum balance. Excellent for holding and transacting in multiple currencies (40+ currencies supported). FX from approximately 0.26% of transfer value plus small fixed per-transfer fee. The trade-off: zero-fee accounts typically do not offer overdraft facilities, trade finance, or business loans. When your business requires working capital financing or a commercial mortgage, a relationship with a traditional bank (DBS, OCBC, UOB) becomes important. The common strategy: start with Airwallex or CIMB for daily operations and open a DBS or OCBC account later for lending access and credibility.