Most Singapore SME owners are familiar with the big four government grants — CCP, PSG, EDG, and MRA. What fewer businesses know is that many of these grants can be used together with SkillsFuture Enterprise Credit (SFEC) to further reduce out-of-pocket costs.
SFEC is a S$10,000 credit given to eligible Singapore companies that can be used to offset a portion of the fees required under approved workforce upgrading and business transformation programmes — including CCP, PSG, and EDG. In this guide, we explain exactly how SFEC works and how to use it strategically alongside your grant applications.
What Is SFEC?
SkillsFuture Enterprise Credit is a government initiative that provides eligible companies with a one-time S$10,000 credit to help defray the costs of workforce upgrading and business transformation. It was introduced to encourage employers to invest in skills development and productivity improvement beyond what standard grants cover.
Unlike grants that reimburse specific project costs, SFEC acts as a pre-approved credit that can be used to offset fees and employer contributions across qualifying programmes — essentially giving you extra headroom on top of your existing grant funding.
SFEC is free money that most SMEs are not using. When combined with PSG, CCP, or EDG, it can bring your net out-of-pocket cost down to almost nothing for certain projects.”
— Augustin Lee, Founder, Supreme Solution Consultancy
SFEC Eligibility
- Your company must be registered in Singapore
- You must have employed at least three Singapore Citizens or Permanent Residents on CPF contributions for a minimum period
- Your company must not be in the process of liquidation, winding up, or judicial management
- SFEC eligibility is assessed by SkillsFuture Singapore — eligible companies are automatically notified
How to Stack SFEC with Other Grants
SFEC + PSG:
PSG provides up to 50% co-funding on your technology solution cost, up to a cap of S$30,000. SFEC can be used to offset the remaining employer co-payment — meaning your actual out-of-pocket expense can be dramatically reduced.
SFEC + CCP:
Under the CCP, employers receive salary support for reskilling employees. SFEC can be applied to offset eligible training fees and related costs that fall outside the salary support component.
SFEC + EDG:
For EDG-supported projects, SFEC can offset the portion of qualifying costs not covered by EDG funding — particularly for workforce transformation and capability-building activities.
Important Notes
- SFEC is a one-time credit — once used, it is exhausted
- Claims must be submitted within the SFEC validity period (check your notification letter)
- SFEC cannot be used for capital expenditure — only eligible programme fees and employer contributions
- Not all programmes that qualify for PSG or EDG automatically qualify for SFEC — verify eligibility before planning your stack
