Singapore announces new funding measures to support workforce transformation
- Josephine Tan
In a move aimed at bolstering workforce development and lifelong learning, Prime Minister and Finance Minister Lawrence Wong announced significant enhancements to the SkillsFuture initiative during his annual Budget speech. A key highlight is the expansion of training allowances to include part-time programmes, a measure designed to support mid-career employees aged 40 and above.
Starting early next year, eligible employees enrolled in part-time training courses will receive a fixed monthly allowance of S$300 (US$220), helping to offset learning expenses. This complements the existing SkillsFuture Level-Up programme, which offers a S$4,000 (US$2,977) credit top-up and monthly allowances for those undertaking full-time training. The full-time training allowance is capped at S$3,000 (US$2,233) per month, representing 50% of the individual’s average income over the past 12 months. Employees can utilise up to 24 months of training allowance throughout their careers, covering both full-time and part-time training.
The government is also strengthening support for lower-wage employees through an enhanced Workfare Skills Support scheme. This scheme, which currently focuses on short courses, will be expanded to provide monthly training allowances for lower-wage employees aged 30 and above who participate in selected part-time and full-time courses. This shift recognizes the greater benefit of longer-form training for substantial reskilling and upskilling.
Beyond individual support, the Budget also includes measures to assist organisations in workforce transformation. The SkillsFuture Workforce Development Grant will consolidate existing schemes, simplifying the application process and providing up to 70% funding support for job redesign activities. The SkillsFuture Enterprise Credit scheme will be revamped into an “online wallet” system, allowing organisations to track their credit balance and offset eligible workforce transformation costs. Organisations with at least three resident employees will receive an additional S$10,000 (US$7,444) in credits from H2 2026, valid for three years.
The government is also investing in Company Training Committees (CTCs) with an additional S$200 million (US$149 million) grant. This expanded grant will support employer-led training that leads to formal qualifications or certifications. The CTC initiative, launched in 2019, has already supported over 400 transformation projects impacting more than 7,000 employees, primarily small and medium-sized enterprises (SMEs).
READ MORE: Employers in Singapore show strong readiness for flexible work arrangements, survey finds
Recognising the crucial role of Institutes of Higher Learning (IHLs) in lifelong learning, the Singapore Universities Trust will be extended for 10 years to support fundraising efforts by newer autonomous universities. The government will also support the development of a new city campus for the Singapore University of Social Sciences (SUSS), enabling the university to expand its lifelong learning programmes.
Finally, the government is committed to developing future Singaporean leaders in the corporate sector. Existing schemes that support overseas work postings and leadership milestone programmes will be scaled up, providing more opportunities for Singaporeans to gain international experience and compete for regional and global leadership roles, reported CNA.
