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PSG vs EDG vs EDGE: Which One Funds a Custom AI Build

Compare PSG, EDG, and EDGE grants for custom AI builds. Find out which Singapore government funding matches your company's artificial intelligence project.

Hook: Building custom AI software is expensive, but choosing the right Singapore government grant can fund up to half of your project costs.

Founders and technical leads in Singapore often struggle to match their custom AI projects with the right funding. If you want to build a proprietary AI agent, a custom machine learning model, or a bespoke data pipeline, you must navigate the Productivity Solutions Grant (PSG), Enterprise Development Grant (EDG), and Go-Digital Edge. Choosing the wrong grant wastes time and delays your product launch. This guide breaks down exactly which scheme supports bespoke AI development. You will learn the funding caps, eligibility rules, and practical steps to secure support. By the end, you will know where to direct your application, allowing you to focus on building your AI capability.

Table of Contents

What is the Productivity Solutions Grant (PSG)?

The PSG helps companies adopt pre-scoped IT solutions and equipment to improve productivity. It is intended for off-the-shelf software, not ground-up custom builds.

For custom AI, the PSG is rarely applicable unless you are buying a pre-approved vendor’s standard AI tool. The focus is on rapid deployment of proven solutions in sectors like retail and logistics. Read more about when PSG is a trap for bespoke projects.

What is the Enterprise Development Grant (EDG)?

The EDG helps Singapore companies grow and transform. It supports projects that upgrade the business, innovate, or venture overseas. This makes it highly relevant for custom AI technology.

Custom AI software development falls under the EDG Innovation and Productivity pillar. If your software automates complex workflows or introduces a novel AI capability beyond standard industry solutions, EDG is the ideal fit.

What is the Go-Digital Edge Grant?

The Go-Digital Edge grant targets foundational digital capabilities for smaller enterprises. It covers basic tools like standard CRM systems or basic e-commerce setups.

While helpful for early digitisation, it does not fund fully custom AI software development. It acts as a stepping stone rather than supporting complex, proprietary AI systems.

Which grant is best for custom AI software?

For truly custom, ground-up AI development, the EDG is the definitive choice.

The PSG is for pre-approved products, and Go-Digital Edge supports basic capabilities. The EDG explicitly supports bespoke projects that drive significant business transformation. If you are debating between a custom build or an off-the-shelf product, consider whether you build vs buy AI agents based on your specific operational needs.

Practical Examples for Singapore SMEs

Consider a Singapore logistics firm needing a proprietary route optimisation AI integrated with their legacy warehouse system. Off-the-shelf tools fail to match their specific workflows. This unique build is a strong candidate for EDG funding.

Conversely, a local F&B outlet needing a standard inventory AI tool should apply for the PSG, as many approved vendors offer ready-made solutions.

What this costs and what it takes

Custom AI software projects typically range from SGD 50,000 to over SGD 250,000, depending on the complexity of the models and data integration.

Applying for the EDG requires a detailed project proposal, clear business outcomes, and a timeline. The process takes 8 to 12 weeks for approval. If approved, the grant covers up to 50% of qualifying costs for SMEs, significantly reducing the financial burden.

Common mistakes when applying

Applying for the wrong grant wastes valuable time.

Many businesses assume any AI software qualifies for the PSG, only to find custom builds are excluded. Another mistake is starting development before EDG approval; costs incurred prior to submission are strictly non-claimable. Finally, failing to articulate the business transformation aspect in an EDG proposal often leads to rejection.

Decision checklist

  • Is the AI software an off-the-shelf product from a pre-approved vendor? (If yes, look at PSG).
  • Are you building a unique, proprietary AI system not available on the market? (If yes, look at EDG).
  • Have you mapped out clear business outcomes and efficiency gains for the project?
  • Do you have the resources to co-fund the remaining percentage of the AI project cost?
  • Have you delayed starting development until the grant application is submitted?

Frequently Asked Questions

Can I claim PSG for custom AI development?

No, the PSG is designed for pre-approved, off-the-shelf solutions. For custom AI development, you need to apply for the EDG.

How much funding does the EDG provide for AI?

For SMEs, the EDG typically covers up to 50% of qualifying project costs, which include AI software development, consultancy, and training.

What are the qualifying costs for the EDG?

Qualifying costs usually cover third-party consultancy fees, AI software development costs, internal manpower costs related to the project, and necessary hardware.

How long does EDG approval take in Singapore?

Enterprise Singapore typically takes 8 to 12 weeks to process an EDG application from the date of a complete submission.

Can I apply for both PSG and EDG?

Yes, you can apply for both, but not for the exact same project or scope of work. They must cover different business needs.

Next steps for your software project

Choosing the right grant is only the first step. If you are planning a custom AI build and need technical clarity to support your EDG proposal, Zimozi can help map out the architecture and timeline. Send us your project brief to discuss how we can bring your custom AI software to life.