SkillsFuture Workforce Development Grant introduced; SkillsFuture Enterprise Credit revamped
The Singaporean government unveiled on Wednesday new initiatives that aim to support employers in upskilling their workforce in the wake of rapid workplace transformation due to rapid technological advances.
Prime Minister Lawrence Wong introduced in his Budget 2025 speech a new SkillsFuture Workforce Development Grant, which aims to provide employers with funding support of up to 70% for job redesign activities.
"This will bring together existing schemes administered by Workforce Singapore and SkillsFuture Singapore, and simplify the application process," Wong said.
The prime minister unveiled the new grant as he stressed that artificial intelligence, a rapidly expanding ecosystem, will get better in the future, with new disruptive technologies expected to emerge.
"It is hard to predict how they will impact specific industries and jobs. But one thing is clear: our workers must be equipped with the skills to stay competitive and relevant," Wong said in the speech.
"And in tandem, we will help our companies to restructure and transform, and to upgrade their workforce."
The Singapore National Employers Federation said it welcomes the increased funding support under the SkillsFuture Workforce Development Grant.
"This would give much-needed support to employers who are looking to transform their businesses as job redesign sits at the nexus of enterprise and workforce transformation," said SNEF chief executive officer Hao Shuo in a statement.
Brian Kealey, Country Leader, Salesforce Singapore, said the grant will ensure the competitiveness of Singaporean workers.
"As we enter the third wave of the AI revolution, AI agents that autonomously handle tasks present unique opportunities for employees to grow their careers by focusing on strategic, high-value tasks," Kealey said in a statement to HRD.
"To do so, they must adapt to new ways of working alongside these AI agents to reach their full potential."
Chiu Wu Hong, Partner, Head of Private Enterprise, KPMG in Singapore, also welcomed the initiative, saying it empowers companies to invest strategically in their workforce.
"By alleviating the financial burden associated with upskilling, businesses can more readily adopt innovative practices, enhance productivity, and sharpen their competitive edge," he said in a statement.
"Furthermore, this investment in human capital not only bolsters individual enterprises but also fortifies Singapore's overall economic resilience."
Tahsin Alam, Regional Vice President and General Manager for Southeast Asia, at UiPath, said the 2025 Singapore Budget reinforces Singapore's AI-first vision that emphasises workforce expansion, reskilling, and digitalisation.
"The new SkillsFuture Workforce Development Grant will help companies restructure and upgrade their workforce to harness the full potential of AI integration in the workplace," Alam said in a statement.
"Ultimately, holistic government support and strategic collaborations to foster innovation will be key to building a reliable and resilient AI ecosystem where Singapore’s human and digital workers can thrive."
Meanwhile, the prime minister also announced a revamped SkillsFuture Enterprise Credit that will make it more accessible.
Under the new credit, companies with at least three resident employees will receive $10,000 to help them defray the costs of workforce transformation.
"The revamped credit will operate more like an online wallet," Wong said.
"Companies can easily check how much they have. And 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."
The current credit scheme requires employers to pay upfront for staff training and wait for reimbursement.
"So, we will redesign the credit to make it more accessible," the prime minister said.
The new credit will be available in the second half of 2026 and will last for three years. Companies may use the existing credit until the new credit scheme is ready.
