Budget 2025: New workforce development grant to provide higher funding, more SkillsFuture credit for staff training

A NEW SkillsFuture Workforce Development Grant will provide higher funding support of up to 70 per cent for job redesign activities, said Finance Minister Lawrence Wong on Tuesday (Feb 18).

The new grant will bring existing Workforce Singapore and SkillsFuture schemes together and simplify the application process for companies.

In his Budget speech delivered in Parliament, Wong, who is also the prime minister, said the government will also redesign the SkillsFuture Enterprise Credit, which helps employers defray the out-of-pocket costs for enterprise and workforce transformation, to make it more accessible.

To make use of the existing scheme, companies have to pay upfront for staff training and wait for reimbursement. “There are also employers who are not aware of the credit or how it can be used,” said PM Wong.

The revamped credit will operate like an online wallet and allow companies to check how much credit they have, he said.

“They can use the credits to immediately offset out-of-pocket costs for eligible workforce transformation initiatives and courses, rather than do so on a reimbursement basis,” said PM Wong.

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All companies that have at least three resident employees will receive a fresh S$10,000 in the redesigned SkillsFuture Enterprise Credit, which will be available from the second half of 2026 and last for three years.

Companies who have current credit can continue to use it until the new credit is ready, he said.

PM Wong also highlighted that tripartite partners, such as the National Trades Union Congress (NTUC), play key roles in workforce transformation.

NTUC has Company Training Committees (CTCs) that bring union leaders and employers together to design and implement workforce upgrading plans, with a grant that supports over 400 transformation projects.

This grant will receive additional funding of around S$200 million to help more companies transform, said Wong.

“We will also expand the CTC grant to support employer-led training that leads to formal qualifications or certifications,” he said.

Meanwhile, government agencies, such as Enterprise Singapore and the Monetary Authority of Singapore, offer schemes that support companies sending Singaporeans for overseas work postings and leadership milestone programmes.

These schemes have received positive feedback, and more resurces will be set aside to increase their capacity, as well as provide more opportunities for promising Singaporean leaders, said Wong.

Further details will be provided during the Ministry of Manpower’s Committee of Supply debate in Parliament.

For more Budget stories, visit businesstimes.com.sg/singapore-budget-2025