The Skills Future Enterprise Credit is a one-time $10,000 credit provided by the Singapore government. Effective from 1 April 2020, the aim for this credit is to encourage companies to improve internal capabilities and enhance employees’ skills sets. The SFEC credit will cover up to 90% of such expenses.
How to Use the SFEC Credit?
Companies can utilise the $10,000 SFEC credit on either enterprise transformation or workforce transformation.
Up to $7,000 of the total credit received may be used on enterprise transformation. Companies that have received partial funding through the Productivity Solutions Grant, Enterprise Development Grant, and/or Market Readiness Assistance, can further claim to use SFEC to cover up to 90% of the remaining balance.
Company XYZ received PSG grant approval to implement the Xero Cloud Accounting Solution. The Xero Cloud package costs $5,527, of which the company will get 80% funding from the PSG grant. To fund the remaining package cost, Company XYZ may further claim SFEC credit to defray up to 90% of the unfunded cost. Finally, with funds from both PSG and SFEC, Company XYZ needs to pay only $110.54 for a digital solution worth over $5,500!
Xero Cloud Package Price $ 5,527.00
Less: 80% funding from PSG $ 4,421.60
Unfunded Balance $ 1,105.40
Less: 90% of unfunded balance covered by SFEC $ 994.86
Total payable balance $ 110.54
Please note that companies can further claim an additional $200 if the E-Invoice Registration Subsidy is applicable. This way, the full cost of the digital solution can be waived.
Businesses can use up the full $10,000 credit amount on workforce transformation. Companies with employees who have received training through the Skills Framework-Aligned Courses, Professional Conversion Programme, and/or Place-and-Train Programme can apply for SFEC to cover up to 90% of the remaining course fees.
An employee of Company ABC was sent for a 2-day Digital Marketing Skills Framework-Aligned course. The course fee was $480. A $25 funding was provided for each training hour under the Skills Development funding. To cover up to 90% of the remaining expense, Company ABC can still claim SFEC credit. Finally, the Company ABC will only have to incur a negligible cost of $8 for every employee they send for this training.
Course Fee for 2-day Course $ 480.00
Less: Skills Development Funding ($25/ hour for 16 hours) $ 400.00
Unfunded Balance $ 80.00
Less: 90% Funding From SFEC $ 72.00
Total Payable Balance $ 8.00
Who is Eligible for the SFEC Credit?
Application for the SFEC credit will close by 31 March 2021. Companies are required to meet 3 conditions in order to qualify for the SFEC. They are:
- Have 30% or more local equity
- Have contributed a minimum of $750 Skills Development Levy in the 12 months before the application
- Have employed 3 or more SC/PR in each of the previous 12 months before the application
Check out other available Government Grants here: