Singapore is gearing up to launch a fresh SkillsFuture initiative this May, aimed at encouraging mid-career professionals to enhance their skills and adapt to evolving job demands.
Under this program, Singaporeans aged 40 and above will receive a S$4,000 boost in SkillsFuture credits, along with subsidies for pursuing full-time diploma programs and training allowances for specific courses.
However, there’s a deliberate shift towards diplomas over degrees in this initiative. Why is that?
Indranee Rajah, Second Minister for Finance and National Development, shed light on this aspect during a discussion on CNA938’s Asia First show on Monday, February 19, 2024
She pointed out that while degrees often follow an academic trajectory, diplomas are inherently more focused on practical skills. Looking ahead, she emphasized the increasing significance of skills in the workforce, especially considering that individuals already possess foundational knowledge from their degree or initial diploma.
The focus is on building upon existing skills rather than starting from scratch, Indranee clarified.
These remarks came in response to inquiries about the newly introduced SkillsFuture Level-Up program, which Deputy Prime Minister Lawrence Wong unveiled during the Budget 2024 announcement on February 16, 2024
Starting in May, individuals aged 40 and above will receive a S$4,000 SkillsFuture credit top-up, earmarked for selected training programs that promise better employment prospects. Eligible courses include part-time and full-time diplomas, post-diploma programs, undergraduate studies, and sectors aligned with the Progressive Wage Model.
Even those below the age threshold will receive the same credit allocation once they reach 40. Additionally, the government will subsidize the costs for mid-career workers pursuing another full-time diploma in the 2025 academic year, announced DPM Wong.
Furthermore, participants in selected full-time courses will be entitled to monthly training allowances, capped at half of their average income over the preceding 12 months, up to $3,000 monthly. Each individual can receive this allowance for up to 24 months throughout their lifetime.
This comprehensive SkillsFuture program aims to facilitate career transitions for individuals seeking to contribute in different capacities. For instance, those considering a shift to professions like social work or life coaching may find diplomas more relevant than pursuing another degree.
Indranee emphasized the concept of layering skills, where previous learning remains valuable, and new competencies are added to enhance one’s professional toolkit.
Having called for such a subsidy in his 2023 Budget Debate Speech, NTUC Assistant Secretary-General Desmond Choo wrote on Facebook: “The SkillsFuture Level-Up programme will help workers get the confidence to pick up new skills and be resilient in their jobs, and training allowance to help defray loss of income while training [huge bugbear of workers with commitments]. The second subsidised diploma [which NTUC and Manpower GPC have lobbied for a long time] will help workers to seize new opportunities.”
NTUC Deputy Secretary-General Desmond Tan was elated that his calls on training recommendations were addressed in the budget. “These support measures will enable mid-career workers to reskill and upskill, and be equipped with new skills for a career transition or be prepared for the future economy,” he said.
Both the subsidised diplomas and training allowances can also be found in NTUC’s #Every Worker Matters Conversations recommendations.
In supporting individuals’ decision-making process, Indranee highlighted the government’s role in identifying growth sectors and providing comprehensive information to empower individuals to make informed choices about their career paths.
Rather than imposing mandates, the government aims to facilitate individuals’ pursuit of pathways that align with their interests and aspirations.
