Skills Future Enterprise Credit (SFEC)

SFEC

Skills Future Enterprise Credit (SFEC)

With effect from 1 April 2020, the government will be providing a once-off $10,000 SFEC credit to encourage companies to further develop their capabilities and to boost their workers’ skills sets. This credit will be used to defray up to 90% of such out-of-pocket expenses.

How to use?

The $10,000 credit can be used for the following 2 categories.

  1. Enterprise Transformation (Only up to $7,000 of credit can be used)
  • Productivity Solutions Grant (PSG)
  • Enterprise Development Grant (EDG)
  • Market Readiness Assistance (MRA)

Companies that have successfully received partial funding through the above programmes, can further claim up to 90% of the unfunded portion. However, only a maximum of $7,000 SFEC credit can be used under this category.

Case Example

Company ABC received approval for their PSG grant application to implement Xero Cloud Accounting system. The package price is $5,527. After getting 80% funding from PSG, Company ABC can still further claim up to 90% of the balance unfunded cost through SFEC. With both PSG and SFEC, Company ABC only needs to bear $110.54 for a full Xero Cloud Accounting system worth over $5,500!

Package Price for Xero $ 5,527.00
Less 80% funding from PSG $ 4,421.60
Balance unfunded $ 1,105.40
Less 90% funding from SFEC $    994.86
Balance payable $    110.54

** If E-Invoice Registration Subsidy is applicable, companies can further claim another $200 to offset the full cost of the system.

  1. Workforce Transformation – full sum of up to $10,000 can be used
    • Skills Framework-Aligned Courses
    • Professional Conversion Programme (PCP)
    • Place-and-Train Programmes

Similarly, companies with employees who have undergone the above training programmes can also further claim up to 90% of the unsupported course fees. The full SFEC credit of $10,000 can be used under this category.

Case Example

Company XYZ sent one of their employees for a 2-day Digital Marketing course under the Skills Framework. The original course fee was $480. Under the Skills Development funding, a $25 funding would be provided for every hour of training. After getting this funding, Company XYZ can still further claim up to 90% of the balance unfunded course fee through SFEC. Eventually, Company XYZ only needs to pay $8 for every employee sent for this training!

Course Fee $ 480.00
Less Skills Devt funding ($25x16hrs) $ 400.00
Balance unfunded $   80.00
Less 90% funding from SFEC          $   72.00
Balance payable $     8.00

Who is eligible?

To be eligible for SFEC, companies must fulfil the following 3 conditions:

  1. Have at least 30% local equity
  2. Have contributed at least $750 Skills Development Levy (SDL) in the preceding 12 months prior to application (around 5 ~ 10 employees depending on the monthly salary)
  3. Have employed at least 3 SC/PR in each of the preceding 12 months prior to application

The SFEC credit will close for application by 31 March 2021.