What you need to know about the 2016 Budget
There's a lot in the Singapore Budget 2016 budget, thus we have highlighted key pieces of information to note for HR practitioners in our newsletter.
Singapore Budget 2016
Some key initiatives you need to know as a HR practitioner
The Singapore Budget 2016 retains its focus on economic restructuring to prepare the city state for the future. While targeted short term measures are calibrated to cushion the impact of the current economic slowdown, the thrust of the budget remains on growth through transformation and innovation. In particular, financing and tax incentives to support scale-ups have been rolled out by expanding the SME Mezzanine Growth Fund and M&A Allowance. Significant amount of funds have also been set aside for mechanisation and research and development.
The other critical tenet of Budget 2016 involves the investment in human capital to support businesses in their transformation. The government has demonstrated its support for growing a workforce that is lean, nimble and progressive through the following schemes.
SkillsFuture is a national movement launched in Nov 2014 to equip and develop all Singaporeans, regardless of stage in life.
- SkillsFuture Credit of S$500 for all Singaporeans aged 25 and above to use for approved skills related courses.
- SkillsFuture Study Award of S$5,000 for up to 2000 study awards annually for early to mid-career Singaporeans to acquire specialist skills and other competencies. (The SkillsFuture Study Awards has been discontinued with effect from 1 April 2022.)
- SkillsFuture Mid-Career Enhanced Subsidy of up to 90% of course fees for approved courses to support mid-career Singaporeans aged 40 and above to stay relevant and responsive.
As Singapore move towards the goal of a Smart Nation, the demand for ICT professionals grows. In response to this, the TechSkills Accelerator was conceived to set up a new skills development and job placement hub for the ICT sector to:
- Identify the ICT needs of industries and facilitate training opportunities for in-demand ICT skills.
- Develop industry recognised skills standards and certification to guide ICT professionals in acquiring skills and help employers assess the skills proficiency of employees.
- Encourage the industry to support hiring and paying based on certified skills proficiency rather than academic qualifications alone.
PMET: Professionals, Managers, Executives and Technicians.
ICT: Information and Communication Technology refers to the combination of manufacturing and services industries that capture, transmit and display data and information electronically.
WHAT CAN HR DO:
HR plays a vital role in facilitating optimal utilisation of the up-skilling and re-skilling schemes.
Practical course of action may include:
(1) Sourcing for subsidised WDA-approved courses that can provide employees with necessary job-relevant skills and recommending employees to utilise their SkillsFuture credit for such courses
(2) Encourage and facilitate employees’ training and development through new HR policies such as providing partial/full subsidy to fund the remaining course fee not covered by government subsidy/SkillsFuture credit/awards, and paid time off for job-related training
(3) Recommending employees for the SkillsFuture Study Award/Fellowship/Leadership Development Initiative
Tapping on these initiatives ensures that companies simultaneously increase their employees' competencies and maintain low training costs.
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