Singapore’s SkillsFuture initiative has become a cornerstone of the nation’s workforce development strategy. It equips companies across sectors with tools to upskill talent, drive transformation, and sharpen their competitive edge.

The programme benefits businesses of all sizes, but small and medium-sized enterprises (SMEs) have emerged as its biggest winners.

With robust financial incentives, curated training, and industry mentorship, the government is building a business culture steeped in lifelong learning and adaptability.

SMEs at the heart of the action

In 2024, SMEs made up 95% of the 24,000 companies that took part in SkillsFuture Singapore (SSG)-supported training programmes.

This is hardly surprising. Operating with leaner resources and tighter margins, SMEs often lack the capacity to run training independently – making government support a game-changer.

Since the launch of the SkillsFuture Enterprise Credit (SFEC) in 2020, over 30,000 businesses have leveraged the scheme. The credit, which offers up to $10,000 per company, helps offset the costs of training and business transformation.

In 2024 alone, 5,200 firms tapped into their SFEC for the first time, showing that appetite for support remains high.

The Queen Bees: Industry-led transformation

One standout initiative is the SkillsFuture Queen Bee programme. Here, industry leaders step into mentorship roles, guiding other businesses in their sector. These “Queen Bees” offer tailored training and advisory support to uplift entire ecosystems.

As of 2024, 37 companies have been appointed as Queen Bees, including names like AETOS Holdings, FoodXervices Inc, Sembcorp Solar, and ST Engineering Land Systems. Together, they have supported over 5,200 enterprises – nearly 80% of them SMEs – in areas such as manufacturing, logistics, hospitality, and security.

In sectors such as food & beverage and logistics, Queen Bees like FoodXervices Inc and ST Logistics have helped SMEs adopt digital tools and streamline operations. This sector-based approach ensures training is relevant and directly applicable to each industry’s challenges.

The ripple effect of SkillsFuture has reached far and wide. Strong participation has been recorded in food and beverage, ICT, security and investigation, and even air transport and tourism, especially during the pandemic. Such cross-sector uptake speaks to the programme’s flexibility and ability to cater to varied business needs.

From 2023 to 2024, the number of companies engaging with SkillsFuture training grew from 23,000 to 24,000. Employee participation also rose from 228,000 to 241,000. This steady climb suggests that employers are treating upskilling as a long-term investment rather than a one-time intervention.

Building vibrant learning ecosystems

The National Centre of Excellence for Workplace Learning (NACE) is also playing a vital role. By helping hundreds of businesses every year build internal learning capabilities, it complements the Queen Bee model to create vibrant learning ecosystems at scale.

Case studies bring the strategy to life.

DBS Bank offers a textbook example of strategic reskilling. When automation rendered cheque-clearing roles obsolete, the bank reskilled 1,600 employees – redeploying 1,200 internally and helping 400 transition to other banks. This forward-thinking approach kept the business agile while avoiding major job losses.

For SMEs, the gains are equally tangible. ASK Training reported that companies investing in employee learning enjoyed boosts in productivity, innovation, and retention.

GoBusiness Singapore has also documented success stories where SkillsFuture support drove digitalisation and operational improvements.

Sometimes the spark begins at the individual level. Take Vicknesh Gunabalan, for example. During COVID-19, he pivoted his e-commerce business using SkillsFuture courses in digital strategy and UX design – transforming challenge into opportunity. Or Katherine Chua, whose diploma in Logistics and Supply Chain Management earned through SkillsFuture funding led to a promotion, benefiting both her and her employer.

These stories reinforce the principle that when employees grow, so do their businesses. Employers, in turn, aren’t just passive recipients of government support  – they’re active architects of the learning ecosystem.

How employers can maximise SkillsFuture

Employer participation comes in many forms. Companies sponsor employees for SSG-supported courses: 97% of the 23,000 firms in 2023 were SMEs. They take advantage of financial aids such as SFEC and absentee payroll funding to ease the cost of training. They identify skill gaps using tools such as the Singapore Skills Taxonomy and Career-Skills Passport.

Many collaborate with educational institutions to create sector-specific training. Some participate in national programmes such as the Jobs-Skills Integrator pilot or the SkillsFuture Work-Study Programme.

Most importantly, they embed lifelong learning into the DNA of their workplace culture.

The return on these investments is measurable. A 10% rise in locally sponsored workers leads to a 2.2% uptick in labour productivity – clear evidence that upskilling is not just good HR, but sound economics.

The SFEC remains a particularly powerful lever for employers looking to align workforce and business transformation. Each eligible company can access up to $10,000, with at least $3,000 reserved for workforce initiatives and up to $7,000 for enterprise transformation. Used wisely, this can be a catalyst for long-term growth.

SkillsFuture outcomes leading to business transformation

Business transformation efforts might include digitalisation, automation, or process innovation, such as investments in ERP systems, HR tech, or e-commerce platforms.

On the people side, firms are encouraged to support training that matches sector trends and national Skills Frameworks. Programmes such as Career Conversion and job redesign enable employees to adapt to new roles and technologies. There’s no cap on funding for workforce transformation, making it an excellent opportunity to scale talent development.

The key is balance. Businesses that combine workforce upskilling with operational upgrades make the most of the credit and ensure holistic growth. Platforms like the Business Grants Portal or SkillsFuture for Business can help companies explore supported programmes from agencies such as Enterprise Singapore, IMDA, and SSG. These range from leadership development courses to workplace learning certifications.

To simplify the process, tools like the GoBusiness SkillsFuture for Enterprise Guide offer step-by-step assistance. Firms can also consult with approved advisors to tailor solutions to their specific needs.

More than subsidy, a growth catalyst

The SFEC will be available until the second half of 2026, after which a new version of the scheme will launch. Companies are advised to chart their transformation path early and monitor their credit usage via the Business Grants Portal.

To ensure timely disbursement, businesses should submit complete applications without delay. Funds are automatically transferred via GIRO or PayNow Corporate. It’s wise for Corppass administrators to familiarise themselves with the process to avoid hiccups.

The SFEC is a strategic business opportunity. When used thoughtfully, it can help firms build resilience, boost output, and future-proof their workforce.

Overall, SkillsFuture has become a blueprint for sustainable business growth in Singapore’s evolving economy.