SINGAPORE: In a strategic move to bolster workforce adaptability amidst rapid technological changes, the Singaporean government announced new initiatives aimed at helping employers upskill their employees. In his Budget 2025 speech, Prime Minister Lawrence Wong introduced the SkillsFuture Workforce Development Grant, designed to support employers in redesigning jobs and upgrading skills in the face of emerging technologies, particularly artificial intelligence (AI).
Empowering employers with financial support
According to the latest HRD Asia report, the newly introduced SkillsFuture Workforce Development Grant offers employers funding support of up to 70% for job redesign activities, streamlining existing schemes managed by Workforce Singapore and SkillsFuture Singapore. This will ease the process for businesses seeking to restructure and transform their operations. Prime Minister Wong emphasised that as technological advancements, especially in AI, continue to disrupt industries, businesses need to be proactive in equipping their workers with the skills necessary to stay competitive.
“We must prepare our workforce for the unpredictable changes ahead,” Wong stated, highlighting the importance of upskilling initiatives for workers to remain relevant in an increasingly automated world. The new grant aims to assist both workers and businesses in navigating these transformations together.
Industry leaders applaud the grant’s potential
The Singapore National Employers Federation (SNEF) welcomed the new funding support, recognizing its potential to help employers successfully navigate business transformation. According to SNEF CEO Hao Shuo, “Job redesign sits at the nexus of enterprise and workforce transformation, and this support is crucial for employers looking to innovate.”
Industry leaders, including Brian Kealey from Salesforce Singapore, also expressed their enthusiasm, noting that the grant would help Singaporean workers thrive in an era of AI. “As AI agents begin to autonomously handle tasks, employees will be able to focus on higher-value, strategic roles,” Kealey remarked. “The workforce must adapt to work alongside AI to fully unlock its potential.”
Similarly, KPMG’s Chiu Wu Hong highlighted how the new initiatives would empower businesses to invest more strategically in their workforce. He added that alleviating financial burdens on businesses will foster innovation, improve productivity, and enhance Singapore’s overall economic resilience.
A revamped SkillsFuture Enterprise Credit to further support transformation
In addition to the workforce development grant, Prime Minister Wong also introduced a revamped version of the SkillsFuture Enterprise Credit. This new credit will make it easier for companies to access support for workforce transformation. Companies with at least three resident employees will receive a S$10,000 credit, which can be used to offset costs for eligible workforce transformation initiatives and courses.
Unlike the previous version, which required employers to pay upfront and wait for reimbursement, the revamped credit will function like an online wallet, offering businesses immediate access to the funds they need. This change, set to take effect in the second half of 2026, aims to streamline the process, allowing companies to make workforce upgrades without financial strain.
As Singapore positions itself at the forefront of AI integration and digital transformation, these initiatives are set to play a pivotal role in ensuring that the nation’s workforce is not only future-ready but also resilient in the face of an ever-changing technological landscape.