Understanding SkillsFuture Enterprise Credit (SFEC): A Comprehensive Overview

Viewed by 2,671 Smart Towkays

Understanding SkillsFuture Enterprise Credit (SFEC): A Comprehensive Overview

What is SkillsFuture Enterprise Credit (SFEC)?

SkillsFuture Enterprise Credit (SFEC) is a government initiative aimed at supporting eligible employers in their workforce transformation efforts and encouraging their adoption of enterprise transformation. Under the SFEC scheme, employers can receive a one-off $10,000 credit that can be used to cover the cost of various training programmes and initiatives. The SFEC scheme covers a range of supportable initiatives, including workforce transformation programmes, career conversion programmes, and sector-specific programmes, and offers eligible employers automatic eligibility checks to determine their qualification for the credit. In this article, we will provide a comprehensive overview of SFEC and clear up any confusion surrounding the eligibility criteria, qualifying period, and supported programmes.

Objectives of SFEC

SkillsFuture Enterprise Credit (SFEC) is a program designed to support eligible employers in their workforce transformation and enterprise development efforts. The program aims to encourage employers to invest in their workforce by providing them with financial support for training courses and initiatives that align with their business goals.

Eligibility and Qualifying Period

To be eligible for SkillsFuture Enterprise Credit (SFEC), employers need to fulfill certain criteria.

In general, eligible employers include those who are registered and operating in Singapore, have a minimum of three local employees (Singapore Citizens or Permanent Residents) at the time of application, and have made Skills Development Levy (SDL) contributions for their employees in the 12 months before the application. Employers who have undergone a transformation program such as an Enterprise Transformation or Productivity Solutions program are also eligible.

The respective government agencies, such as SkillsFuture Singapore (SSG) and Enterprise Singapore will inform employers who meet the eligibility criteria for SFEC. Once the eligibility has been confirmed, eligible employers can claim SFEC-supportable programs and initiatives. Final claims must be submitted to the respective agencies by 30 June 2024.

Small businesses can now qualify for the SFEC due to the waiver of Skills Development Levy contributions from January 1 to December 31, 2022 in Budget 2022.

If you have met the qualifications during any of the qualifying periods, additional eligibility checks will not be necessary.

Starting on April 1, 2020 and ending on June 30, 2023, employers can apply for supported programmes and reimbursement will begin on April 1, 2021.

It is worth noting that the SFEC credit is a one-time $10,000 credit that companies can use on enterprise transformation or workforce transformation initiatives. Of this amount, not more than S$7,000 can be used for enterprise transformation, to encourage employers to embark on both types of transformation programs.

Companies can utilize this credit to support various SFEC-supported programs under enterprise transformation, which include the Productivity Solutions Grant (PSG), the Enterprise Development Grant (EDG), the Market Readiness Assistance (MRA) Grant, the Enterprise Leadership for Transformation Programme (ELT), Scale-Up, the Aviation Development Fund (ADF), and the Business Improvement Fund (BIF). These programs are designed to help enterprises upgrade their capabilities, innovate, and expand overseas, among other things.

In order to check if your company is eligible for SFEC, visit Business Grant Portal with your Singpass first. If the blue banner (shown in the image below) can be seen, your company is deemed eligible.

how-to-check-if-you-are-eligible-for-sfec-grant.png

Below is the calculation based on the eligibility of SFEC and how you will benefit from supportable programs like PSG.

Original Pricing Of A Supported Program
S$4,800
Claim 50% from PSG
(S$2,400)
Out-of-Pocket Expenses (50%)
S$1,200
Claim 90% from SFEC
(S$1,080)
Nett Cost Incurred to Company
S$120

Table: Claim For Accounting Solutions under PSG

Workforce Transformation Initiatives Supported by SFEC

Let's take a closer look at the workforce transformation initiatives supported by SFEC.

Job Redesign Initiatives

The SkillsFuture Enterprise Credit (SFEC) has been introduced to support job redesign initiatives in Singapore, providing companies with the necessary resources to facilitate workforce transformation and upskill their employees. Job redesign is a crucial aspect of enterprise transformation, and the SFEC provides a comprehensive overview of how companies can use this credit to fund training courses for this purpose.

A wide range of job redesign training programmes is eligible for SFEC support, including skills framework-aligned courses, sector-specific programmes, and individual SFEC-supportable programmes. Companies can choose from a broad range of options, depending on their specific needs and requirements. Some of the eligible programmes include the Place-and-Train programme, Professional Conversion Programme, Enterprise Leadership for Transformation Programme, and Qualification Programmes.

To be eligible for SFEC support, companies need to meet the eligibility criteria for job redesign initiatives. These criteria include having a clear plan for workforce transformation, identifying roles and processes that require redesign, and implementing training programmes that are supported by SFEC. Companies also need to engage government agencies or their respective agencies to obtain an eligibility letter that confirms their automatic eligibility for SFEC support.

Career Conversion Programmes

One of the key objectives of SkillsFuture Enterprise Credit (SFEC) is to help companies adapt and transform to the changing demands of their industry. To achieve this, SFEC offers various training programmes, including the Career Conversion Programmes.

The Career Conversion Programmes aim to help employers reskill their employees for new roles within the company or even in new industries. This initiative is particularly helpful for companies that need to pivot their business strategies due to market changes or disruptions. By reskilling their employees, companies can retain their talent pool and increase their competitiveness in the industry.

To apply for the Career Conversion Programmes, employers can approach any of the appointed programme providers, including the Continuing Education and Training (CET) Centres and private training providers. They can also check the eligibility criteria and application process here.

Read also: Singapore's First Career Conversion Programme For FinTech Talents

Training Programmes and Courses Aligned with Skills Framework

One of the key features of SkillsFuture Enterprise Credit (SFEC) is that it supports various training programmes and courses that are aligned with the Skills Framework. These programmes and courses aim to help companies and their employees acquire the necessary skills and knowledge to stay competitive and succeed in their respective industries.

The Skills Framework is a critical component of SFEC, as it allows training providers to align their courses with the skills required by various industries. Institutes of Higher Learning (IHLs) map their Continuing Education and Training (CET) courses against the Skills Framework, making them eligible for SFEC support.

The benefits of the Skills Framework are twofold. Firstly, it helps to ensure that individuals and organisations have a common understanding of the skills, competencies, and career pathways within each sector. Secondly, the Skills Framework allows training providers to develop and offer courses that meet the needs of different industries, enabling organisations to improve productivity and keep up with technological advancements.

SFEC supports many types of courses that are aligned with the Skills Framework. These include SSG-funded courses, which are subsidised by the government and cover a wide range of topics across different sectors. Additionally, certifiable courses approved by SSG are eligible for SFEC support. These courses are accredited by recognised institutions and come with a certification upon completion.

Training Providers (TPs) can also put up their courses to be supported under SFEC. By logging on to the Training Partners Gateway (TPGateway) and declaring that their courses are Skills-Framework aligned, TPs can make their courses eligible for SFEC support.

Sector-Specific Programmes

In addition to the Skills Framework-aligned courses, SFEC also supports a range of sector-specific programmes that are tailored to meet the specific needs of various industries. These programmes provide industry-specific training and development, helping organisations to improve their performance and keep up with the latest developments within their sectors.

For example, there are SFEC-supported programmes for the manufacturing industry, which cover topics like advanced manufacturing technologies, supply chain management, and lean manufacturing processes. Similarly, SFEC supports training programmes for the construction industry that address issues such as safety management, project planning, and sustainable building practices. There are also programmes supported by SFEC for the tourism industry, including hospitality management, tourism operations and marketing, and event management.

These sector-specific programmes are designed to help organisations develop the skills and competencies they need to thrive in their respective industries. By offering training and development that is tailored to the requirements of each sector, SFEC aims to support the transformation and growth of Singapore's economy. Eligible employers can tap on SFEC to support their workforce transformation efforts and take their organisations to the next level.

Individual SFEC-Supportable Programmes

Some examples of SFEC-supportable programmes include the Enterprise Leadership for Transformation Programme and the Place-and-Train programme. The former is aimed at helping business leaders and owners to transform their enterprises and build capabilities, while the latter is designed to support mid-career job seekers with job match and training to take on new roles.

In addition to these, SFEC supports Professional Conversion Programmes (PCPs) which enable mid-career professionals to reskill and take on new job roles, as well as Qualification Programmes for employees to gain deeper skills and competencies in their respective industries.

Government Agencies Offering SFEC Support and Guidance

The SkillsFuture Enterprise Credit (SFEC) is a valuable initiative that offers financial support to employers in Singapore who wish to engage in workforce and enterprise transformation. To ensure that employers fully benefit from this programme, there are various government agencies responsible for providing guidance and support. In this article, we will explore some of these government agencies and how they can help employers navigate the SFEC programme.

Enterprise Singapore

Enterprise Singapore is the government agency that has been entrusted with the task of supporting the SkillsFuture Enterprise Credit (SFEC) initiatives in Singapore. SFEC is a comprehensive scheme implemented by the Singapore government to encourage employers to invest in the development of their workforce so that they can improve their business performance and stay competitive in the changing business landscape. Enterprise Singapore provides a range of programmes and services to help eligible employers become eligible for SFEC support so that they can undertake workforce transformation, job redesign, and career conversion initiatives.

Enterprise Singapore has sponsored several programmes that are eligible for SFEC support, including workforce transformation programmes, sector-specific programmes, skills framework-aligned courses, qualifying individual SFEC-supportable programmes, and training courses. These programmes are designed to cater to the diverse needs of different types of businesses in different sectors.

Workforce Singapore

Workforce Singapore (WSG) is a government agency that provides support and guidance for eligible employers seeking to utilize SkillsFuture Enterprise Credit (SFEC) for workforce transformation initiatives. WSG's key role is to help companies develop and enhance the skills and capabilities of their workforce, in order to boost their productivity and competitiveness in the marketplace.

WSG offers a range of training programs and services to eligible employers, including career conversion programs and job redesign initiatives. These programs are designed to cater to the diverse needs of different types of businesses in different sectors, and are available for both individuals and groups of employees.

In addition to these SFEC-supportable programs, WSG also provides a range of other services to eligible employers, such as government course fee subsidies for WSQ and non-WSQ course fees, SSG-funded courses, and certifiable courses. Employers can also access additional support through WSG's career services, job matching and placement programs, and various other workforce development initiatives.

Overall, WSG plays an important role in providing support and guidance to businesses seeking to optimize their workforce and boost their productivity through the use of SFEC-supported programs. By offering a diverse range of training programs and services, as well as flexible eligibility criteria and generous credit options, WSG is helping to foster a more robust and resilient workforce in Singapore.

Guide: How to Claim Your SFEC

If you are an eligible employer and would like to claim your SFEC credit, follow these steps:

Step 1: Submission

  • To submit the SFEC claim through the SFEC Microsite, it is necessary to assign Corppass and log in via Singpass in accordance with portal requirements.
  • After logging in to the SFEC Microsite, click on the SFEC Training Claims tab to access the Dashboard and review the status of your claim submissions and disbursements.
  • To file a manual SFEC Claim for your business, go to the SFEC Training Claims section and provide information about the course, trainees, and necessary documents.

**Ensure that all required documents are attached and that the information provided is accurate.

Step 2: Endorsement

After you submit your claim, it will be sent to the Training Provider for approval. You can check the status of your submission by going to the same dashboard and clicking on the Training Claim Details tab.

Step 3: Approval

The evaluation of the SFEC claim is conducted by SSG, and a decision is made to accept or deny it.

Step 4: Disbursement

Once your SFEC claim receives endorsement from the Training Provider and approval from SSG, it will be forwarded on for processing by ESG. Approved SFEC claims will be distributed on a quarterly basis via PayNow.

Read also: Reduced Grant Funding Support For Productivity Solutions Grant (PSG) and Enterprise Development Grant (EDG), What It Meant For SMEs In Singapore?

Read also: Step-by-Step Guide On How To Make a Claim Under The Productivity Solutions Grant 2023 Edition

Read also: Complete Guide To EDG Strategic Brand And Marketing Development Grant - What Are Claimable? *Updated

-------------------------------------------------------------------------------------------------------

Got a Question?

WhatsApp Us, Our Friendly Team will get back to you asap :)

Share with us your thoughts by leaving a comment below!


Stay updated with the latest business news and help one another become Smarter Towkays. Subscribe to our Newsletter now!

UPDATED AS OF 15 Jun 2024
Lowest Business Banking Facilities
SMART-TOWKAY.COM
Lowest SME Working Capital Loan (WCL) Rate
6.5%
Per year
Lowest Business Term Loan Rate
7.5%
Per year
Lowest Home Loan Rate
3.3%
Per year
Lowest P2P Biz Loan Rate
1.3%
Per month
Lowest Commercial Property Rate
3.98%
Per year

Find the Best Loans, Insurance & Credit Cards

Get Our Weekly Newsletter

We value your privacy. We never share your email with 3rd parties. Unsubscribe at any time.