Written reply to PQ On Utilisation Rates of Skillsfuture Enterprise Credit (SFEC) and Measures to Encourage SFEC Use Before Expiry in 2026

Question:

Mr Patrick Tay Teck Guan: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what is the number of eligible enterprises that have not utilised the SkillsFuture Enterprise Credit (SFEC); and (b) what further measures does the Ministry have to encourage all eligible enterprises to use the SFEC before unused amounts expire in the second half of 2026.

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong:

1.       The SkillsFuture Enterprise Credit (SFEC) was introduced in 2020 to defray out-of-pocket costs for specified enterprise and workforce transformation programmes. To date, close to 40,000 enterprises, or about half of the eligible enterprises, have utilised the SFEC.

2.       We have enhanced and extended SFEC several times in the last few years to encourage more enterprises to invest in transformation efforts and the capabilities of their employees. For example, we removed the minimum Skills Development Levy contribution in 2022 to avail SFEC to more enterprises.

3.       As announced at Budget 2025, the current SFEC, originally set to expire in June 2025, has been extended until the redesigned SFEC is ready in the second half of 2026. Under the new redesigned SFEC, employers can look forward to receiving a fresh $10,000 in credits via an online wallet to immediately offset out-of-pocket costs for eligible workforce transformation initiatives, rather than do so on a reimbursement basis. This change will help ease any cash flow concerns for employers.