PHASING OUT OF TRAINING SUBSIDIES

PHASING OUT OF TRAINING SUBSIDIES

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(SPUR): **

2.

Mdm Ho Geok Choo asked the Minister for Manpower (a) whether the phasing out of training subsidies under the Skills Programme for Upgrading and Resilience (SPUR) will force employers to cut back on training for their employees; and (b) if so, how will the Ministry address the issue of employees continuing lifelong training for skills acquisition.

Mr Gan Kim Yong: SPUR is a two-year programme established specifically to help companies and workers manage the economic downturn and invest in skills for the recovery. With the strong economic recovery this year, the programme will cease in December 2010. Since the inception of SPUR in November 2008, we have seen strong training commitment figures – as at end July 2010, some 259,000 workers have completed or are still undergoing SPUR training.

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Nevertheless, our commitment to help our workers continually upgrade their skills remains unchanged. Therefore, the Government will invest a total of $2.5 billion over the next five years on continuing education and training (CET). We will also continue to extend generous levels of support for course fees and absentee payroll for approved CET courses under the Skills Development Fund (SDF).

In addition, employers will be able to leverage on more funded courses for Professionals, Managers, Executives and Technicians (PMETs) to broaden and deepen their skills. Currently, there are 300 PMET courses available and efforts are underway to roll out more courses and reach out to more PMETs when SPUR ends.

My Ministry and the Singapore Workforce Development Agency (WDA) will also continue to expand the national CET system, and adopt more targeted measures to support the vision for capability and productivity driven growth. For example, the Workfare Training Support (WTS) scheme introduced in July 2010 encourages older low-wage workers to upgrade their skills through training, so that they can improve their employability, upgrade to better jobs and earn more.

WTS provides employers of older low-wage workers with higher course fee and absentee payroll support[1] that are on par with or higher than SPUR if they send their workers for Singapore Workforce Skills Qualifications (WSQ) training. Older low-wage workers will also receive higher course fee funding when they sign up for WSQ training at our CET Centres, and receive Training Commitment Awards if they sustain training over a one-year period. The Government will also increase the course fee tax relief for individuals from $3,500 to $5,500 with effect from Year of Assessment 2011.

I strongly encourage companies to support the training of their workers. Workers should also take the initiative to upgrade their skillsets. This is because it is important for us to continue to enhance our productivity and maintain our economic competitiveness.

*Under WTS, employers who sponsor their employees (Singapore Citizens aged 35 and above, and earning up to $1,700 per month) for training will be eligible for up to 95% of course fee and absentee payroll support.

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