S$10,000 SkillsFuture training subsidy launched for eligible SMEs
The subsidy, to offset up to 70% of a company's out-of-pocket training costs, can be used with other government subsidies
Singapore
SINGAPORE companies will be able to get more support in upgrading their workers' skills from July 1, when each eligible company will be able to tap into a government subsidy, capped at S$10,000, to offset training costs.
The subsidy, called the SkillsFuture Training Subsidy (SFTS), can be used on top of the existing Productivity Solutions Grant (PSG), which currently provides funding support of up to 70 per cent of costs for selected productivity solutions. The subsidy, administered by SkillsFuture Singapore (SSG), will cover up to 70 per cent of a company's out-of-pocket training costs and can also be used on top of other government subsidies.
Senior Minister of State in the Ministry of Trade and Industry Chee Hong Tat, speaking at the launch of the SkillsFuture Festival 2019 on Friday, said small and medium-sized enterprises (SMEs) hire about 70 per cent of the workforce but invest less in training than larger companies do: "For our broad middle tier of SMEs to upgrade their capabilities and enhance their competitiveness, we have to do better when it comes to worker training. Otherwise, the skills gap could become a bottleneck that limits economic competitiveness."
OCBC Bank chief executive Samuel Tsien, speaking on a panel at the launch event, urged workers and organisations to view training as a stepping stone towards one's life goals, rather than as a burden.
"We as the organisation have the responsibility to facilitate and create a conducive environment for the person to be trained. If it is imposed upon the person as an additional job requirement, I don't think the effect of the training is going to be very good."
Companies may apply for the PSG and SFTS at the same time between July 1 and March 31, 2023. Businesses which have had their PSG applications already approved may also apply for the SFTS.
Mr Chee, who is also Senior Minister of State in the Ministry of Education, also announced that SSG is working with intermediaries such as industry partners, trade associations and chambers, unions and lead agencies to co-create training curricula and work-learn programmes, as well as workplace learning and skills solutions, to improve SMEs' capabilities.
He said such intermediaries can play a useful role because they know their SME customers and understand their business requirements, and so can provide tailored training programmes for these SMEs.
In sectors that require specialised skills and knowledge, for which specific courses are harder to come by, the government plans to work with anchor companies to conduct training for the sector. For instance, IBM and SSG are working together to develop IBM-certified programmes in Artificial Intelligence for the sector.
Mr Chee noted that this approach has been used successfully by countries such as Switzerland, where companies such as Swatch train their competitors' workers as well as their own. "In training, such a model enables the industry as a whole to attract and train more workers for all companies. By growing the pie, there is more for everyone to share."
The SkillsFuture Festival 2019, organised by SkillsFuture Singapore, runs until Aug 11. More than 250 community, education and industry partners are running over 350 learning activities across the island during this period.
