By the WahLiao desk · Last verified 1 October 2026
A Singapore small business adopting Super Intelligence, or AI, has two main sources of government help in 2026. The Productivity Solutions Grant (PSG) pays up to 50% of the cost of pre-approved digital solutions, and IMDA is raising the share of AI-enabled solutions on its pre-approved list from 30% to 50%. And for the Years of Assessment 2027 and 2028, the Enterprise Innovation Scheme (EIS) gives a 400% tax deduction on up to S$50,000 a year of qualifying AI spending. Around both sits the National AI Impact Programme, which aims to help 10,000 enterprises adopt AI over three years.
There is room to grow. According to the Government, 14.5% of Singapore’s small and medium-sized enterprises had adopted AI in 2024, up from 4.2% in 2023, while the rate among larger firms rose from 44% to 62.5%. This guide covers the support; paying for Super Intelligence covers the price of the tools themselves.
AI support for SMEs: quick facts
| PSG | Up to 50% of qualifying costs for pre-approved solutions; apply before you commit to buying |
| AI on the PSG list | IMDA aims to raise AI-enabled pre-approved solutions from 30% to 50% of the list |
| EIS AI deduction | 400% on up to S$50,000 of qualifying AI expenditure per year, for YA 2027 and 2028; no cash payout option |
| EIS, other activities | 400% on up to S$400,000 a year for each of four activities; optional 20% cash payout on up to S$100,000 |
| National AI Impact Programme | Support for 10,000 enterprises over three years |
| For business owners | IMDA’s Digital Leaders Accelerator Bootcamp |
| Bigger firms | The Champions of AI programme |
The WahLiao Verdict
| Start with | A pre-approved AI solution under PSG; it is the quickest route. |
| The tax angle | Keep records: for a calendar-year company, AI spending in 2026 falls into YA 2027. |
| The catch | Apply first, buy second; a grant cannot be claimed after the fact. |
| Ask vendors | “Is this solution on IMDA’s pre-approved list?” |
| Don’t forget | Train the people, not just buy the tool. |
The Productivity Solutions Grant
PSG is run by Enterprise Singapore, with IMDA pre-approving digital solutions and vendors under its SMEs Go Digital programme. It pays up to 50% of qualifying costs, the rate in force since 1 April 2023, subject to caps set by Enterprise Singapore. You apply on the Business Grants Portal, using Corppass, and you must apply before you commit to the purchase. The conditions include being registered and operating in Singapore with at least 30% local shareholding, and others depend on the solution; check the portal for the current terms.
The Budget 2026 statement gave a small-business example: HarriAnns, the nonya kueh business that began in the 1940s and now runs eight cafes, used PSG support to adopt an AI-enabled restaurant management system that automates ordering and billing. The Government is widening PSG to cover more AI-enabled solutions, and IMDA plans to raise their share of its pre-approved list from 30% to 50%.
The Enterprise Innovation Scheme’s AI route
The EIS runs from YA 2024 to YA 2028 and gives 400% tax deductions or allowances on qualifying spending. Budget 2026 added a new qualifying activity for AI: for YA 2027 and YA 2028, businesses can claim 400% on up to S$50,000 of qualifying AI expenditure each year. Unlike the scheme’s other activities, this one cannot be converted into a cash payout. The existing activities continue, with 400% on up to S$400,000 a year for each of four activities, and an option to convert up to S$100,000 of total qualifying spending into a cash payout at 20%.
Because a Year of Assessment taxes the previous financial year’s income, a company with a calendar financial year claims 2026 spending in YA 2027. IRAS sets out what counts as qualifying AI expenditure on its EIS page, so read it before you commit, and remember that you cannot claim the part of a cost already covered by a grant. Budget 2026 also added the Sectoral AI Centre of Excellence for Manufacturing to the list of partners for innovation projects.
The National AI Impact Programme
Launched at the Committee of Supply debates in March 2026, the programme aims to help 10,000 enterprises integrate AI into their business processes over three years. For business owners, IMDA is adding a Digital Leaders Accelerator Bootcamp to its Digital Leaders Programme, with hands-on AI project work alongside industry partners. For staff, it is expanding the TechSkills Accelerator (TeSA) to build AI skills in the workforce, starting with accountancy and legal professionals. Larger firms ready to transform their whole business can look to the separate Champions of AI programme.
Training your people
Tools only pay off when people use them well. Staff who are Singapore Citizens aged 18 and above can get six months of a premium tool free after an eligible course; see SkillsFuture’s free AI subscription. Training is also one of the EIS’s qualifying activities. Before anyone pastes customer data into a new tool, agree the rules; your data and Super Intelligence explains why.
A sensible first project
Pick one repetitive, measurable job: chasing invoices, answering routine customer questions, scheduling, or turning meeting notes into actions. Look for a pre-approved solution for it, apply for PSG before you sign, and measure the hours saved in the first three months. If it works, the second project is easier to justify, and the EIS AI deduction can help with the next round of spending.
AI grants for SMEs: FAQ
Can PSG pay for AI software?
Yes, if the solution is on the pre-approved list. PSG covers up to 50% of qualifying costs, and IMDA is increasing the share of AI-enabled solutions on the list.
How much is the EIS AI tax deduction?
400% on up to S$50,000 of qualifying AI expenditure per year, for YA 2027 and YA 2028.
Can I convert the EIS AI deduction into cash?
No. The cash payout option does not apply to the new AI activity, though it remains available for the scheme’s other activities.
Do I apply for PSG before or after buying?
Before. Submit your application on the Business Grants Portal before you commit to the purchase.
What is the National AI Impact Programme?
A programme launched in 2026 to help 10,000 enterprises adopt AI over three years, with training for business owners and staff.
Read next
This page belongs to Super Intelligence. For the national picture, read Singapore’s Super Intelligence plan. Before you buy new equipment for the office, read “AI” phones and laptops.
Sources checked 1 October 2026: IRAS, Enterprise Innovation Scheme; MDDI, National AI Impact Programme factsheet; Budget 2026 statement, section C; Raffles Corporate Services, PSG application process; ADV Digital Labs, PSG eligibility. Grant terms change; confirm on the Business Grants Portal and IRAS before you spend. General information, not tax advice. Last updated 1 October 2026.
