What is the Singapore SkillsFuture Enterprise Credit (SFEC) Grant?

As Singapore’s economy continues to evolve, businesses are being encouraged to upskill their workforce and invest in enterprise transformation to remain competitive in the global marketplace. To support these efforts, the Singapore government introduced the SkillsFuture Enterprise Credit (SFEC) — a special grant designed to help companies offset out-of-pocket expenses incurred when undertaking eligible capability-building or workforce transformation initiatives.

Administered by SkillsFuture Singapore (SSG) and supported by various government agencies, the SFEC is part of the nation’s broader SkillsFuture movement. While many are familiar with the SkillsFuture Credit for individuals, the SFEC is specifically targeted at enterprises, particularly Small and Medium Enterprises (SMEs), that are ready to grow through staff development and process transformation.

Purpose of the SFEC

The SFEC aims to encourage employers to invest in both their people and their processes. It provides additional subsidies to companies that take up government-supported programmes in two main areas:

Workforce Transformation – upskilling employees through training and development programmes.
Enterprise Transformation – improving business operations through approved capability-building initiatives.

By doing so, the government hopes to encourage a culture of continuous learning, digitalisation, innovation, and human capital development among Singapore enterprises.

What Does SFEC Cover?

The SFEC provides up to S$10,000 per eligible employer to cover up to 90% of out-of-pocket expenses for qualifying initiatives, on top of existing government subsidies.

These initiatives fall under the following categories:

1. Workforce Transformation

This includes:

Employee training courses approved by SkillsFuture Singapore (SSG)
Participation in certification programmes
Courses under the Institute of Technical Education (ITE), Polytechnics, or Universities
Enrolment in WSQ (Workforce Skills Qualifications) programmes
Company-sponsored placement or attachments under SkillsFuture Work-Study Programmes

2. Enterprise Transformation

This includes government-supported schemes such as:

Enterprise Development Grant (EDG)
Productivity Solutions Grant (PSG)
Market Readiness Assistance (MRA)
Startup SG programmes
Business Excellence framework assessments

For instance, if you’re implementing a new HR management system under PSG, or sending your finance staff for WSQ-certified courses, you may be able to claim the remaining costs through SFEC.

How Much Can You Claim?

Each eligible company can receive up to S$10,000 in total SFEC credits:

Up to S$7,000 can be used for workforce transformation
Up to S$3,000 can be used for enterprise transformation

These funds top up existing government support, covering the employer’s share of the cost. For example:

If a course is subsidised 70% by SSG, the employer’s 30% co-payment can be further subsidised (up to 90%) through SFEC.
Similarly, for an EDG or PSG project, the out-of-pocket amount after government support may be further subsidised using SFEC credits.

Eligibility Criteria

To be eligible for the SFEC, employers must meet the following conditions:

Automatically Qualified Companies:

Have contributed at least S$750 to Skills Development Levy (SDL) over the qualifying period (usually within a calendar year)
Employ at least three local employees (Singapore Citizens or Permanent Residents) in the same period

Eligibility is assessed automatically based on government data — there’s no need to apply for eligibility separately.

Once your company qualifies, you will receive an Eligibility Letter or notification through your CorpPass-linked email account. You can then view your SFEC balance and usage through the SkillsFuture Enterprise Credit (SFEC) Portal.

Claiming the SFEC

The SFEC does not require a separate application or claim submission. Instead, the SFEC is automatically applied as an offset when you successfully complete and claim for approved programmes under schemes like:

EDG (via Enterprise Singapore)
PSG (via Business Grants Portal)
SSG-funded training (via Training Partners Gateway or SSG portal)

After the claim for the original grant or course is approved, the government will automatically apply SFEC to offset the remaining qualifying costs.

Note: You must ensure that your enterprise transformation or training programme is listed under the SFEC-eligible list at the time of application or training registration.

Why the SFEC Matters for Singapore SMEs

1. Maximises Grant Support

With SFEC, employers can enjoy stacked support. Instead of just relying on PSG, EDG, or SSG training subsidies, you can reduce your co-payment even further using SFEC credits.

2. Encourages Dual Transformation

SFEC incentivises both technology adoption and workforce upgrading—two pillars critical to long-term business success. It promotes a more holistic transformation strategy.

3. Eases the Cost Burden on SMEs

Many SMEs hesitate to invest in training or tech upgrades due to cost concerns. SFEC removes that barrier, enabling companies to take the leap without worrying about excessive upfront expenses.

4. Improves Productivity and Staff Retention

When businesses upskill their staff and improve operational efficiency, the benefits include:

Better employee retention
Higher productivity
Improved service delivery
Stronger competitiveness

5. Easy to Use

The SFEC mechanism is designed to be hassle-free. There’s no need for extra paperwork or grant applications — just take up approved training or transformation projects and the system takes care of the rest.

Real-Life Example: SFEC in Action

A local SME in the logistics industry wanted to automate their payroll and HR processes. They implemented an HRM system through the Productivity Solutions Grant (PSG) at a cost of S$20,000. After PSG, the out-of-pocket cost was S$10,000.

With SFEC, they were able to offset 90% of the $10,000, reducing their actual expenditure to just S$1,000.

Separately, they also enrolled three supervisors in WSQ leadership training courses, which were 70% subsidised. The remaining 30% was once again reduced through SFEC, enabling cost-effective upskilling.

Common Mistakes to Avoid

Despite its simplicity, some businesses miss out on maximising SFEC due to the following reasons:

Not checking eligibility early – Some companies don’t realise they’re eligible and delay their transformation plans.
Engaging non-approved vendors or courses – Only pre-approved programmes and partners are covered under SFEC.
Misunderstanding the 90% subsidy – SFEC covers 90% of your out-of-pocket costs after existing subsidies, not the total cost.
Missing deadlines – SFEC has a limited validity period, and unused credits may expire if not utilised in time.

Why Work with GrantConsultant.sg?

At GrantConsultant.sg, we help you unlock the full value of SFEC by:

Identifying suitable training and transformation projects
Recommending approved vendors and training providers
Aligning SFEC usage with other grants like PSG and EDG
Ensuring timely execution and claim submissions

Whether you’re training your staff, implementing new software, or undergoing business process reengineering, we’ll help you get the maximum value from the available funding.

Conclusion

The SkillsFuture Enterprise Credit (SFEC) is a valuable grant that empowers Singapore employers to invest in both people and productivity. By providing up to S$10,000 in additional support, SFEC significantly reduces the cost of essential training and transformation efforts that position businesses for long-term success.

For SMEs looking to grow sustainably in an increasingly digital and competitive world, SFEC is not just a grant—it’s a strategic opportunity.

Ready to optimise your SFEC usage? Contact GrantConsultant.sg today and let us help you turn government support into tangible business growth.