Budget 2025: Quick takes on SkillsFuture workforce development grant, enterprise credit and more

A FEW initiatives around SkillsFuture were announced in Prime Minister Lawrence Wong’s Budget speech on Tuesday (Feb 18). 

They are:

• A new SkillsFuture Workforce Development Grant, which will provide higher funding support of up to 70 per cent for job-redesign activities.
• From March 2025, Singaporeans can apply for a training allowance under the SkillsFuture Level-Up Programme of up to S$3,000 a month for selected full-time courses. The training allowance will be given out for up to 24 months. This programme grants all Singaporeans aged 40 and above S$4,000 in SkillsFuture Credit.
• An enhanced tier of the Workfare Skills Support for lower-wage workers.
• A redesigned SkillsFuture Enterprise Credit: All companies with at least three resident employees will get a fresh S$10,000. The new credit will be available in the second half of 2026, and last for three years.
• S$200 million will be set aside for NTUC’s Company Training Committees, which bring union leaders and employers together to design and implement workforce upgrading plans.

Here are some quick takes from analysts and observers on the latest announcement:

Kelvin Cen, Head of Southeast Asia at Bloomberg L.P.

“Singapore already has a formidable role as a hub for innovation and digital talent. Initiatives like the SkillsFuture Workforce Development Grant will further enhance Singapore’s ability to upskill and build the next generation of data and technology professionals, futureproofing local talent.”

Senior vice-president for the Asia-Pacific at ADP, Jessica Zhang:

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• “Singapore’s economic competitiveness depends on how well all segments of its workforce adapt to rapid technological change. With the right skills, the country’s workers can navigate uncertainty together, and advance their careers with more confidence. However, only 23 per cent of Singapore workers feel equipped to progress in their careers, according to ADP’s People at Work 2025 report.”
• “As workforce development takes centre stage in Budget 2025, businesses that invest in skills training will build a stronger, more resilient workforce. Employers should embrace the enhanced upskilling initiatives that have been made more accessible to them, and take the lead by offering inclusive and scalable learning opportunities. Investing in AI, digital skills and innovation-driven training will not only help employees future-proof their careers, but would also boost business productivity.”
• “To retain talent, businesses must go beyond flexible policies and ensure fair career progression for all employees, regardless of their work arrangements. ADP’s research shows that while competitive pay remains important, additional benefits – such as one-off bonuses, extended parental leave and eldercare support – also contribute to job satisfaction and long-term commitment. Companies that recognise these needs will be better positioned to attract and retain skilled employees.”

 Country Director of Randstad Singapore, David Blasco:

• “The S$10,000 SkillsFuture Enterprise Credit is heartening for organisations, as it will encourage employers to take greater initiative in moving their workforce transformation strategy forward. This gives them more time to strengthen their employees’ skills for a more agile workforce, which is crucial for keeping pace with the development of AI and other emerging technologies.”
• “Simultaneously, the ongoing SkillsFuture Level-Up Programme and the new part-time training allowance will give Singaporeans a welcome push to upskill and diversify their skills and capabilities.”

Group CEO for NETS, Lawrence Chan:

• “As Singapore moves toward a more digital-first economy, workforce development must evolve alongside technological advancements. The increasing adoption of interoperable digital payments, as seen in the expansion of SGQR+, underscores the need for upskilling workers in digital financial literacy.”
• “In an era of rapid technological change, lifelong learning is not just an advantage – it’s a necessity. The financial industry must prioritise talent development to build a workforce that can adapt, innovate and stay ahead of industry shifts.”

Senior vice-president and managing director for the Asia-Pacific and Japan for New Relic, Simon Lee:

• “The expansion of the SkillsFuture Enterprise scheme will help equip organisations to better address the persistent shortage of seasoned IT professionals in the region. While the hunt for talent continues, it is crucial for businesses to harness the power of existing teams by investing in training, encouraging knowledge-sharing sessions and embracing the unique strengths each member brings to the table.”
• “For software engineers – who are critical to the foundation of Singapore’s digital ambitions – the tools they use can make all the difference in their efficiency. Leveraging AI-strengthened tools can turn tasks that used to take hours into actions that take mere minutes. AI can simplify workflows, build dashboards to ensure full-alert coverage and ultimately, help build resilient, high-performing systems.”