Against the backdrop of a resilient global economy, plagued by geopolitical risks and ongoing conflicts, Singapore’s focus will still be on jobs and skills.
During the Singapore Budget 2024 statement, Deputy Prime Minister Lawrence Wong, extended the SkillsFuture Enterprise Credit (SFEC) scheme to 30 June 2025. Previously, this scheme had already been expanded to include more small and micro companies by lowering the qualifying criteria.
Meant for employers, this scheme runs in parallel to the SkillsFuture credits that the government provides to individuals. For individuals, they can look forward to the new SkillsFuture Level-Up Programme – providing a $4,000 top-up to Singaporeans 40 and above to attend full-time and part-time diploma, post-diploma and undergraduate programmes.
Read Also: 10 Things Businesses Need To Know About Singapore’s Budget 2024
What Is The SkillsFuture Enterprise Credit (SFEC)?
While SkillsFuture credits go to individuals, the government also provides businesses with SkillsFuture Enterprise Credit (SFEC). This is meant to encourage employers to invest in the transformation of 1) the enterprise and 2) its workforce.
Eligible employers will receive a one-off $10,000 credit to cover up to 90% of out-of-pocket expenses on qualifying costs for supportable initiatives. This will be on top of the support levels of existing schemes, which can already be quite substantial.
How Employers Can Benefit From The SkillsFuture Enterprise Credit?
For example, an employer applies for the Productivity Solutions Grant (PSG) to automate certain business processes. Let’s assume the cost of the equipment adds up to $15,000.
Under the Productivity Solutions Grant, the employer can already receive up to 50% funding for eligible expenses. This means the employer can claim up to $7,500 when they spend $15,000 on eligible expenses. This leaves $7,500 as out-of-pocket expenses.
This is where the SkillsFuture Enterprise Credit (SFEC) comes into play, covering up to 90% of your out-of-pocket expenses. This means employers can claim $6,750 (90% of $7,500) – leaving a final out-of-pocket expense at $750.
| Example: Utilising The SkillsFuture Enterprise Credit (SFEC) | |
| Equipment Cost: | $15,000 |
| Productivity Solutions Grant (PSG) Funding | -$7,500 (up to 50% of eligible expenses) |
| Out-Of-Pocket Cost | $7,500 |
| SkillSsFuture Enterprise Credit (SFEC) Funding | -$6,750(up to 90% of eligible out-of-pocket expenses) |
| Final Out-Of-Pocket Cost | $750 |
Read Also: Guide To Productivity Solutions Grant (PSG)
Broadly speaking, SkillsFuture Enterprise Credit supports programmes under two categories – Enterprise Transformation and Workforce Transformation.
While Enterprise Transformation would likely be initiated by adopting technology as determined by management, Workforce Transformation is where both employers and employees have to play equal parts to achieve the ideal outcome. Of the $10,000 credit, $3,000 is ringfenced for workforce transformation only, while the remaining $7,000 can be used for both enterprise and workforce transformation.
#1 Enterprise Transformation (up to $7,000)
Under the enterprise transformation component, companies will be able to use up to $7,000 of the SkillsFuture Enterprise Credits. What this means is that a minimum of $3,000 must be allocated to workforce transformation.
The list of supportable programmes for Enterprise Transformation can be found on the SkillsFuture Enterprise Credit microsite. They include:
| 1 | Enterprise Development Grant (EDG) | Enterprise Singapore (ESG) |
| 2 | Enterprise Leadership for Transformation Programme (ELT) | Enterprise Singapore (ESG) |
| 3 | Market Readiness Assistance (MRA)Grant | Enterprise Singapore (ESG) |
| 4 | Productivity Solutions Grant (PSG) | Enterprise Singapore (ESG), Singapore Tourism Board (STB), Building and Construction Authority (BCA), National Environment Agency (NEA), Infocomm Media Development Authority (IMDA) and Monetary Authority of Singapore (MAS) |
| 5 | Business Improvement Fund (BIF) | Singapore Tourism Board (STB) |
| 6 | Aviation Development Fund (ADF) | From Civil Aviation Authority of Singapore (CAAS) |
| 7 | Scale-Up |
#2 Workforce Transformation
To encourage employers to train and upskill their employees, a minimum of $3,000 (and a maximum of $10,000) of the SkillsFuture Enterprise Credits must be utilised towards workforce transformation programmes.
The list of supportable programmes for Workforce Transformation includes:
| 1. Skills Framework-aligned Courses (in support of the Industry Transformation Maps) | SkillsFuture Singapore (SSG) |
| 2. Career Conversion Programme (CCP) (course fee expenses only) – this includes the Professional Conversion Programme (PCP) and Rank-and-File (RnF) Programmes | Workforce Singapore (WSG) |
| 3. Support for job Redesign consultancy under Productivity Solutions Grant (PSG-JR) | Workforce Singapore (WSG) |
| 4. Job Redesign initiative (e.g. i4.0 Human Capital Initiative for Manufacturing Sector, Service Industry Transformation Programme for the Services sector) | Workforce Singapore (WSG) |
| 5. Design Thinking Business Transformation Programme | Workforce Singapore (WSG) |
| 6. Employment Support for Persons with Disabilities (PwD) – Job Redesign Grant for Employers | Workforce Singapore (WSG) |
| 7. Career Conversion Programmes (course fee expenses only) | Employment and Employability Institute |
| 8. Training Industry Professionals in Tourism (TIP-iT) | Singapore Tourism Board (STB) |
Is Your Company Eligible For SkillsFuture Enterprise Credits (SFEC)?
There is no need to apply for the SkillsFuture Enterprise Credits (SFEC). Eligible employers that qualify will be notified by Enterprise Singapore (ESG) via email sent to their registered CorpPass Administrators.
To be eligible, employers need to meet the following conditions:
- Have contributed at least $750 in Skills Development Levy over the qualifying period. There are four qualifying periods:
- 1 April 2019 – 31 March 2020
- 1 July 2019 – 30 June 2020
- 1 October 2019 – 30 September 2020
- 1 January 2020 – 31 December 2020
- Have employed at least three Singapore Citizens or Permanent Residents every month over the same period
- Have not been qualified at any of the earlier periods
During Budget 2022, it was also announced that the SFEC will be expanded. Employers must have employed at least three Singapore citizens and PRs monthly over the qualifying period. They must have not been previously qualified for SFEC, are not in default of their SDL contributions during the qualifying period, and do not have an inactive ACRA status during the qualification process. The qualifying period is from 1 January 2021 – 31 December 2021.
Read Also: Skills Development Levy: What Is It And How Much Do Companies Need To Pay?
This article was first published on 1 October 2020 and has been updated.
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