SKILLS DEVELOPMENT FUND

The Skills Development Fund (SDF) was established in October 1979 with the institution of the
Skills Development Levy (SDL) Act with the primary objective of encouraging employers to invest in
skills upgrading of the workforce.
The SDF does this by offering assistance as an incentive to companies to mount training programmes
for employees.
Incentives are offered on the basis of a cost-sharing principle and the training must be relevant to the
economic development of Singapore. The amount of incentives that a company can obtain is not tied
to the levy contribution.

Principle of Operation
The operation of the Assistance Schemes is guided by the following fundamental principles:
1. The SDF offers assistance specifically as incentives for companies to undertake worker
training. Assistance is not given as subsidies for training.
2. SDF assistance is awarded only for employer-based training to ensure that training has the
accountability of the workplace. The company must identify the training required to upgrade
its employees and undertake to fully fund the training programmes.

Criteria for Support

To qualify for support, a Training Programme must have the following:

Specific performance objectives, i.e. the skills, knowledge and attitudes to be attained must
be specified;
Schedule of training activities/lesson plans*;
Specified duration of training;
Guided instruction, i.e., conducted by qualified instructors; and
Test(s) to assess attainment of training objectives.

*An On-the-Job Training (OJT) programme should be supported with an OJT Training Plan. An OJT Training Plan should
contain information on the main tasks, task elements, key points, task standards, knowledge and skills required, training
guidelines and OJT hours. In addition, the attendance of the trainees must be recorded in an OJT Attendance Log.

There are some programmes that are excluded from support. These programmes include:

Seminars and conferences designed to stimulate discussions and/or keep participants

abreast of the latest trends in skills upgrading
Induction/orientation programmes
Appreciation programmes of short duration
Programmes specific to company procedures/policies
Training for spiritual, cultural and social enhancement, eg. religious studies and
appreciation of music
Professional-training programmes, involving the upgrading of personnel such as doctors,
lawyers, accountants and architects
Postgraduate training programmes, involving the pursuance of higher education leading to
the award of a degree or post-degree qualification
Attachment of engineers and senior managers to advance their skills and knowledge in
existing or new work areas