The administration of the Skills Development Fund (SDF) will be transferred from SPRING Singapore to the Ministry of Manpower (MOM) with effect from 1 October 2002. The SDF will continue its role in encouraging employers to invest in the upgrading of their workers’ skills, as part of MOM’s integrated framework for manpower development and Continuing Education and Training (CET) in Singapore. This should better enable the Government to address the twin priorities of tackling structural unemployment and ensuring that our workforce has the skills to support Singapore's future economic growth.

Employer-based skills upgrading remains Singapore’s core strategy as employers are in the best position to decide the types of training required by their employees. However, recent developments – particularly structural unemployment, the rapid economic restructuring from old jobs to new jobs requiring new skills and the consequent need for CET – make it necessary to view workforce development and lifelong learning more holistically. The transfer of the Fund’s administration to MOM is aimed at achieving greater synergy in the Ministry’s existing efforts to integrate workforce development with lifelong learning. MOM will be better able to develop a holistic plan for the funding and management of the major national training programmes for adults in Singapore, be it through employer-based funding through the SDF or through other funding from government such as the Lifelong Learning Fund.

Since its establishment in 1979, the SDF has focused on providing financial assistance to employers to upgrade the skills of the workforce. It has fulfilled its purpose well, having supported about 8 million training places amounting to a cumulative value of $1.6 billion. It will continue to play this role. Advice for the disbursement of funds will continue to be provided by the SDF Advisory Committee comprising private sector representatives from various industry sectors and union and government representatives.

As the transfer is administrative, companies and workers would not be unduly affected. The SDF will honour the assistance it has committed to prior to the transfer. As long as the applications and claims meet the eligibility criteria, the SDF will continue to accord and disburse assistance upon completion of training. Employers and workers requiring assistance can continue to approach the SDF Secretariat, which will continue operating from their current premises at SPRING Singapore’s Head Office in Bukit Merah until further notice. They may also call the SDF Customer Service Hotline at 6278 4466 for any general enquiries. Existing contact numbers for the SDF will remain unchanged until further notice.

There will not be any changes to the Skills Development Levy so employers who have workers earning $1500 or less per month will continue to pay a levy of 1% of their employees’ remuneration or a minimum of $2 whichever is greater.

Employers will also not experience any change in procedures in obtaining assistance from SDF when it comes under the MOM’s purview. They can continue to make use of SDF EasyNet (www.sdf.gov.sg) which is an internet-based application system that electronically links up companies, training providers and the SDF. The SDF EasyNet is an on-line public service for enquiry on training, enrolment for courses, and application and claim for SDF support. Its aim is to provide easy access to SDF funds and to reach out to more organisations, especially small and medium-sized enterprises.

The incentive schemes offered by SDF under SPRING Singapore will also continue under MOM. So long as the applications and claims meet the eligibility criteria, the SDF will continue to accord and disburse assistance upon completion of training. The SDF will continue to study the manpower needs of industries and develop new incentive schemes to help companies in their skills upgrading efforts.