The Government will extend the enhanced support levels of up to 75% for the Enterprise Development Grant (EDG) and the Productivity Solutions Grant (PSG) and expand the scope of the PSG to help firms adjust to the impending foreign workforce policy changes that will take effect from 1 January 2020.
(a) Enhancements to the Enterprise Development Grant (EDG)
The EDG’s enhanced support level of up to 70% will be extended for three more
years, up to 31 March 2023.
To ensure that the benefits of enterprise transformation are passed on to our workers, enterprises will also need to commit to outcomes for workers, such as wage increases, in order to qualify for the EDG, with effect from 1 April 2020. Details will be shared at a later date.
Enterprises can apply for the EDG through the Business Grants Portal.
(b) Enhancements to the Productivity Solutions Grant (PSG)
Depending on the sector which the PSG solution falls under, the support level (currently up to 70%) will drop to 50% after 31 March 2020. To support firms in making the transition, the PSG support level of up to 70% will be extended to 31 March 2023.
To further support firms, the PSG will be enhanced to include a component that supports worker upgrading. Eligible enterprises will be able to receive a subsidy for up to 70% of their out-of-pocket training expenses (i.e. the remaining amount which is not already covered by other government training subsidies such as those under SkillsFuture), capped at S$10,000/- per enterprise. This will last until 31 March 2023.
Enterprises applying for the training subsidy under the enhanced PSG must submit a training plan, which will be assessed. They will only be eligible for the training subsidy after their PSG application has been approved. Enterprises can apply for PSG through the Business Grants Portal. Further details will be released by Ministry of Trade and Industry’s (MTI) and Ministry of Education’s (MOE) at the COS.