To encourage businesses to embark on the transformation of their workforce’s skill sets and their enterprise’s capabilities, the Singapore government has released the new SkillsFuture Enterprise Credit (SFEC), which provides eligible companies with an additional $10,000 credit. Employers can use this credit amount to defray up to 90% of such out-of-pocket expenses. In this article, we will take a closer look at the SFEC and how you can get it!
What is SkillsFuture Enterprise Credit (SFEC) about?
Open to applications from 1 April 2020, the SkillsFuture Enterprise Credit of a $10,000 budget can be used for enterprise and workforce transformation. In which, Productivity Solution Grant (PSG), Enterprise Development Grant (EDG), Market Readiness Assistance (MRA) are some of the SFEC-supportable programs and eligible SMEs may enjoy additional funding support of up to $7,000. $3,000 of the initiative should be used for workforce transformation programs and there is no cap on the budget that can be used for workforce transformation. This is to incentivise employers to train and upskill their workers.
Enterprises who have already earned partial funding through the initiatives listed above can also claim up to 90 per cent of the unfunded section. However, only a maximum of $7,000 SFEC credit can be used under this category.
Employer decides to enhance the productivity through automation by adopting Synergix ERP software and received approval for their PSG application. For instance, the solution price is $20,000 and they get 80% claim of the cost from PSG. Under Enterprise Transformation supportable program, the employer can still get 90% of the unfunded cost, up to $7,000 credit.
Similarly, companies with employees who have undergone the above training programs can also further claim up to 90% of the unsupported course fees. The full SFEC credit of $10,000 can be used under this category.
Applications for the SFEC open from 1 April 2020 and will close by 31 March 2021. Here are Qualifying periods of the SFEC. Employers will have to meet the conditions of a SFEC-supportable program before they can draw dawn the Credit. In each of the qualifying period, eligible companies which meet the eligibility criteria will be informed in writing.
- 1 April 2019 – 31 March 2020
- 1 July 2019 – 30 June 2020
- 1 October 2019 – 30 September 2020
- 1 January 2020 – 31 December 2020
In order to be eligible for the SkillsFuture Enterprise Credit, businesses must meet the following requirements:
- The companies have Singapore equity of at least 30%
- The companies have paid at least $750 Skills Development Levy (SDL) over the qualifying period
- The companies have employed at least three Singapore Citizens or Permanent Residents every month over the same period
- The companies have not been qualified at any of the earlier periods.
How can businesses apply for SFEC?
Companies do not need to apply for the SFEC. Enterprises will be notified by Enterprise Singapore in writing if they fulfill the eligibility criteria. The Credit will be used to subsidise supportable projects or courses that companies successfully apply for.
If your company has not adopted digital solutions such as an ERP System and has not applied for Productivity Solution Grant (PSG) under the enterprise transformation program, you can reach out to Synergix Technologies for a free consultation. As we are a pre-approved vendor for PSG with longstanding experience, we have helped many our customers successfully receive the PSG to foster their business growth.