Do You Count as an SME for PSG? The S$100M / 200-Employee Test
The SME definition trips up companies with parent entities: the test is computed at group level, and it is an either/or test. Here is how it works under the current rules.
The either/or test, at group level
Under current PSG rules you meet the SME definition if group annual revenue is not more than S$100 million, or group employment is not more than 200 employees. You need to satisfy only one of the two — but both are measured across your corporate group, including parent and related entities, not just the applying entity.
A subsidiary with modest local revenue can still qualify on the employee limb, and a large-headcount group can still qualify on the revenue limb. The boundaries are exact: S$100,000,000 and 200 employees are within limits; one dollar or one employee more is not.
The current PSG rules at a glance
Under the current PSG rules, a company generally qualifies if it is registered and operating in Singapore, has at least 30% local shareholding, and meets the SME definition — group annual revenue of not more than S$100 million, or not more than 200 employees. Support is at 50% of qualifying costs, capped at S$30,000 per company per year.
Two rules catch many applicants: the solution must be used in Singapore, and you must not have signed with or paid your vendor before applying.
Apply now or wait for EDGE?
If you qualify under today's PSG rules and have a concrete solution to buy, applying under known rules is generally the lower-risk path. Waiting means applying under criteria that are not yet final.
If you do not qualify today, the announced EDGE changes may or may not alter your position — run the free check to see both regimes side by side.
Frequently asked questions
- Is the SME test entity-level or group-level?
- Group level under current PSG rules — revenue and employment are assessed across the corporate group, including parent entities.
- Is PSG still open after the Budget 2026 announcement?
- Yes. PSG, EDG and MRA remain in force until EDGE launches in the second half of 2026.
- What support does PSG currently give?
- 50% of qualifying costs, capped at S$30,000 per company per year. Final eligibility is determined solely by EnterpriseSG.