Still room for Singapore’s SkillsFuture lifelong learning movement to update itself

LAST Tuesday’s Budget brought upgrades to the national SkillsFuture movement, with a redesigned SkillsFuture Enterprise Credit and the new Workforce Development Grant.

The change to the former was made in response to feedback; the new grant is an example of how SkillsFuture is being integrated into wider workforce development plans, as it brings together programmes previously handled by Workforce Singapore and SkillsFuture Singapore (SSG).

This week, the fiscal process moves into the Budget debate, followed by Committee of Supply debates on each ministry’s Budget. What further improvements to SkillsFuture could be considered, at this or later stages?

Letting industry take the lead

In his Budget speech, Prime Minister and Finance Minister Lawrence Wong announced that the SkillsFuture Enterprise Credit (SFEC) would be revamped to “operate more like an online wallet”, instead on the current system of reimbursement.

When the redesigned scheme is launched, companies with three or more resident employees will get an additional S$10,000 in SFEC allowances.

The change, made in response to feedback, is an example of efforts to keep SkillsFuture relevant to the industry. It also reinforces the role of businesses in workforce development.

Future tweaks could similarly be based on collaboration with employers.

For instance, KPMG and the Singapore Institute of Directors suggested in a recent report that employers be allowed to top up workers’ SkillsFuture credit allowances, as they do with Central Provident Fund contributions.

Separately, to ensure credits are used for the right purpose, employers “could be required to ensure employees are trained in a set of high-demand skills”, they suggested.

The report also suggested that the focus of SkillsFuture could be better aligned with economic needs. For instance, a certain quantum of SFEC allowances could be earmarked for skills in specific areas, to steer employers towards priority industries. The same could be done for individuals.

Empowering individual workers

In contrast, the signature SkillsFuture Credit scheme for individuals was left untouched in Budget 2025.

But Lee Chew Chiat, government and public services industry leader at Deloitte, believes that the use of these credits could be made “more strategically aligned with other national initiatives”, with higher tiers of funding for priority areas.

These could include tackling the healthcare labour shortage, or driving the “30 by 30” goal of enhancing local food production, so that 30 per cent of the country’s nutritional needs are met by 2030.

This is just one way that the use of these individual credits could be reviewed.

Another aspect is curation. SSG already requires providers to show that their courses are actively offered and industry-relevant, and is tightening rules to improve the quality of the courses by 2026.

Yet credit-eligible courses could still be pre-approved much more selectively, in line with the possibility of prioritising certain economic areas. SkillsFuture credits could also be tailored more to different groups of workers.

Such differentiation is already taking place. Compared with fresh graduates and retirees, mid-career workers arguably stand to gain the most by keeping their skills current and avoiding redundancy.

Tthe government has, accordingly, given more to older workers. Those aged 40 to 60 as at Dec 31, 2020, received an extra S$500 in credits; in 2024, those aged 40 and up were given an additional S$4,000 credits.

Besides mature workers, other groups could benefit from special attention. The Workfare Skills Support scheme in Budget 2025, for instance, provides training allowances to lower-wage workers aged 30 and up for selected courses.

Before the Budget, KPMG principal advisor in corporate transformation Nicki Doble told The Business Times that there is “an opportune and valuable chance to reassess and optimise (SkillsFuture) credit allocation to guarantee equitable upskilling access for all”.

Planners could consider giving more SkillsFuture credits to other vulnerable groups, such as persons with disabilities and caregivers looking to re-enter the workforce.

Separately, training programmes themselves could be tailored for these groups. Giving them greater access to training “can mitigate risks of exclusion”, added Doble.

Not all SkillsFuture refinements need to be dramatic. Even simple changes can help to encourage training, since the adult learning market can be overwhelming.

The government’s MySkillsFuture portal offers a full directory of supported courses. While its one-stop nature is helpful, the list is a dizzying array, ranging from brief courses to university degrees with sticker prices in the tens of thousands of dollars.

Singaporeans may still need more guidance. This could be provided by tweaking the interface of the portal to better differentiate courses by duration and teaching medium.

It can also be difficult for workers to determine the final out-of-pocket expense for a course. The portal could be clearer about the availability of other grants and subsidies, such as the National Trades Union Congress’s Union Training Assistance Programme.

Lifelong learning

Further changes to the SkillsFuture programme could give individuals greater ownership of their upskilling journey, even as it reinforces employers’ responsibility for investing in their workers’ skills.

Beyond policy moves – and as the government has reiterated over the last decade – the success of the SkillsFuture movement lies with employers and employees themselves.

Even as new schemes are introduced and implementation is fine-tuned, SkillsFuture’s legacy may lie in making individuals and companies more aware of the need to reskill – regardless of their age, employment status or educational level.

Said Lee: “There is little restriction, for the most part, on what Singaporeans can use their SkillsFuture credits for, as long as the training providers are accredited with SkillsFuture. Therefore, the economic impact of the scheme cannot be easily determined.

“Nevertheless, SkillsFuture is an effective demonstration of the government’s support for lifelong learning.”